Stocks rose strongly in the fourth quarter of 2020 as resilient economic and earnings growth and optimism over new COVID-19 vaccines lifted investor sentiment. Congress also passed the $1.9 trillion American Rescue Plan, which included cash payments to most households. Stocks rose through the first half of 2021, as an accelerating vaccine rollout helped support healthy economic and earnings growth. However, stocks suffered periods of volatility, especially in the third quarter as the spread of the new Delta variant led to renewed pandemic concerns. Supply constraints and higher input costs also fueled inflation, which drove interest rates higher late in the third quarter. The Federal Reserve (Fed) also signaled it would begin tapering its monetary support before year-end, which added to upward pressure on interest rates. Through much of the period, investors shifted between growth stocks and more cyclically driven value opportunities as they awaited more clarity on the economic outlook. Rising interest rates in the third quarter fueled a rotation away from growth stocks, however. As a result, mid-cap growth underperformed mid-cap value for the 12-month period, as measured by the Russell indices.
The past few years have seen unusual behavior in the mid-cap growth market. For much of 2020, market returns were driven by a narrow group of high-valuation growth stocks. We approached these stocks with caution because we felt that in many cases their valuations weren’t supported by longer-term fundamentals. During 2021, however, we have been encouraged to see periods of rationality, as investors paid increased attention to relative valuations and profitability. This renewed focus on fundamentals worked to our advantage, as a number of our reasonably valued growth investments were rewarded with strong stock performance. Our disciplined approach to seeking opportunity while managing risk also helped the portfolio hold its value during the periods of market volatility, such as the third quarter of 2021. As a result, the Fund delivered a strong positive return for the 12-month period while also outperforming the benchmark index.
Several information technology investments were notable positive contributors. Long-term holding ON Semiconductor benefited from strong demand and pricing trends for the global chip market, as well as from its foothold in fast-growing end markets such as electric vehicle production, automation and the Internet of Things. Under the guidance of a new management team, ON Semiconductor streamlined its manufacturing operations and boosted its profit margins, and it released multi-year financial targets that were well received by the market. The stock was a strong performer for the period. Lam Research, another contributor, supplies specialty equipment used to produce memory chips, one of the fastest-growing areas of the semiconductor market. Lam Research also benefited as technology companies invested in additional manufacturing capacity to safeguard their supply chains.
Our interest in the secular growth in digital payments led to our investment in Global Payments, a provider of software solutions that help vendors take credit card payments. The company benefited from the expansion in digital commerce during the pandemic, which led to higher payment volumes. Volumes slowed somewhat in 2021, however, as consumers returned to more in-person transactions. The company also faced concerns over competition from alternative payment solutions, and the stock was a prominent detractor. Despite its underperformance, we continued to believe in the company’s fundamentals and in growth trends for the online payments industry as more transactions move
online. We held onto the stock, but we will continue to monitor the company’s competitive positioning.
GoDaddy is another company benefiting from the growth in online commerce. It sells website domain names, a moderate growth business that has historically generated strong free cash flow. The stock performed well in 2020, as businesses of all sizes looked to enhance their web presence. It gave back some ground in 2021 as the reopening of the economy led consumers to shift some of their attention away from screens. As a result, the stock was a detractor for the period. However, we remained positive on the company’s positioning within the expanding digital commerce field.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
We continue to see potential around long-term trends such as the digital transformation of the economy, the development of advanced biologics and investments in green energy and electric vehicles. At the same time, we are cognizant of valuations that are elevated relative to history, and we view recent volatility as a reminder of ongoing risks that could slow the pace of the recovery and contribute to market turbulence. These include the ongoing pandemic, raw material, freight and worker shortages that have fueled inflation and challenged businesses, a looming U.S. debt ceiling standoff and a political and economic climate in China that appears to be shifting. The end to government cash payments and the Fed’s plans to taper its monetary support could also lead to slower economic growth or a reevaluation of asset prices. Given these crosscurrents, we remain committed to our disciplined investment approach that seeks opportunity while managing risk. We remain highly selective as we look to invest in companies where valuations make sense in the context of long-term earnings growth. We also continue to favor companies with durable competitive advantages and strong market positioning that may enable them to manage higher input prices without reducing their profit margins. We believe such companies are positioned for strong relative growth over longer time horizons, and we believe this disciplined investment approach will work to the long-term benefit of our investors.
Thank you for your investment in Janus Henderson Enterprise 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.
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, Environmental, Social and Governance (ESG) factors, 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 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 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 July 12, 2012. Performance shown for periods prior to July 12, 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.
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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.
(1) Closed to certain new investors.
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.
(1) For securities that were affiliated for a portion of the year ended September 30, 2021, this column reflects amounts for the entire year ended September 30, 2021 and not just the period in which the security was affiliated.
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 September 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 September 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 Enterprise 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.
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 original 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 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.
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 September 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 September 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:
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 are 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 realized 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.
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.
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.
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 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 September 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 September 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $3,538,559. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2021 is $3,807,681, resulting in the net amount due to the counterparty of $269,122.
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 0.64% 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 0.80% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 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 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 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 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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $14,300.
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 September 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 September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $4,602.
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.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 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.
Information on the tax components of derivatives as of September 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 322,923,135, including 301,375,260 of 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 September 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 September 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.
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 September 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.
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 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 September 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 Bloomberg 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.
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 September 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 September 30, 2021 |
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| | Janus Henderson European Focus 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 European Focus Fund
Janus Henderson European Focus Fund (unaudited)
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FUND SNAPSHOT The Janus Henderson European Focus Fund is a regional equity fund that seeks to achieve long-term capital appreciation primarily through investment in European companies. The management team applies a high-conviction approach, with a focus on opportunities that offer material upside potential, regardless of style. | | | | | 
Robert Schramm-Fuchs Portfolio manager |
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PERFORMANCE
The Janus Henderson European Focus Fund I Shares returned 30.63% for the 12-month period ended September 30, 2021, outperforming its benchmark, the MSCI Europe IndexSM, which returned 27.25%.
INVESTMENT ENVIRONMENT
The 12-month period began with equity markets moving higher as a result of accelerating economic data, upward-inflecting lead indicators and Pfizer’s announcement, in November 2020, of a COVID-19 vaccine. This lasted until the second quarter of 2021, when sentiment grew more cautious on the equity market outlook. It was not until the third quarter that we saw the first significant market correction, with European equity markets giving up all gains since the end of March. The Fund managed this correction well and continued to defend its year-to-date gains in this tougher environment.
PERFORMANCE DISCUSSION
Our decision to meaningfully reduce cyclicality in the portfolio through the second quarter of 2021 aided relative returns through the summer and allowed for stock selection once again to be the primary driver of the Fund’s overall performance.
The biggest positive contribution came from vaccine producer BioNTech, where the market increasingly looked beyond the COVID earnings boost toward long-term applications of the company’s mRNA technology. Eastern European bank Erste also benefited relative returns – unusually for the sector, the business is growing as central banks in the region have a much lower tolerance for inflation and rates continued to rise during the period. Another top individual contributor was German luxury fashion apparel company Hugo Boss, which exceeded analyst expectations on revenue and earnings after the new CEO, who started during the summer, subsequently bought a large number of shares from his personal wealth before presenting plans for a successful turnaround of the brand.
On the negative side, an underweight position in U.S. Gulf of Mexico oil producer Royal Dutch Shell detracted on a relative basis, as well as solar power generation company Solaria Energía, which lagged along with the majority of the renewables sector in 2021. Our underweight position in Danish pharmaceutical company Novo Nordisk also weighed on relative returns.
As a result of our near-term caution, we maintained our prudent underlying portfolio construction. Our exposure remained focused on the theme of “always looking good,” with consumers returning to the office and once again socializing and celebrating life’s events. In addition, we built a number of positions in regulated utilities whose regulatory mechanisms allow for inflation protection.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
Our overall view on the market remains cautious. As regular readers know, we follow three key indicators to form our top-down view of the world of investments: The rate of change of real money creation; the global inventory stock-building cycle; and the global business capital investment cycle.
The rate of change in real money creation peaked in the third quarter of 2020 and continues along a falling trajectory. Overall, it still is expanding but at a much lower and downward-sloping rate of change. In our view, the best hope for a pickup in money creation rates probably would be China, but other than small steps to curb the fallout from the Evergrande default there have been no material monetary policy changes. With the Chinese economy suffering from power shortages, it is possible that authorities would see limited effectiveness were they
Janus Henderson European Focus Fund (unaudited)
to launch broader monetary easing or fiscal stimulus measures. Historically, consensus earnings expectations have tended to correlate quite closely with Purchasing Managers’ Index (PMI) dynamics, and in fact recently have peaked and are beginning to roll over. There have been numerous profit warnings in the industrials space leading up to the third quarter earnings season.
Regarding inventory restocking, on a global level raw materials and intermediary products are in fact fully restocked already, even to a level that historically has suggested some destocking. Finished goods inventories are still trailing but have begun building at the fastest rate in several decades, according to Global PMI Inventory data. We see clear double-ordering in many components now. If there were to be a hint of end demand weakness, e.g., triggered by the falling consumer confidence in the U.S. economy, we could experience a sudden air pocket in new industrial orders. There is also potential for demand destruction from sharply rising prices. We hold sympathy with the view that many factors driving those sharp price increases are temporary from supply side disruptions, but this temporary hyperinflation phase is lasting longer than expected. The longer it lasts, the harder the adjustments will be. Coupled with the risk for demand destruction from these inflationary trends, we also see potentially lower goods demand from the general shift of consumption back to services due to continued economic reopening and increasing consumer mobility. This happens at a time when household support measures are generally being phased out and a good proportion of the excess savings built up during the pandemic already has been spent.
Thank you for investing in the Janus Henderson European Focus Fund.
Janus Henderson European Focus Fund (unaudited)
Fund At A Glance
September 30, 2021
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| BioNTech SE (ADR) | 0.82% | | 2.61% | | Royal Dutch Shell PLC Class A | 0.22% | | -0.84% |
| Hugo Boss AG | 1.67% | | 1.40% | | Solaria Energia y Medio Ambiente SA | 0.43% | | -0.81% |
| Ashtead Group PLC | 2.20% | | 1.32% | | Novo Nordisk A/S | 0.99% | | -0.77% |
| Straumann Holding AG | 1.99% | | 1.09% | | Symrise AG | 0.74% | | -0.69% |
| Erste Group Bank AG | 1.62% | | 0.83% | | HelloFresh SE | 0.08% | | -0.53% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Europe Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | 5.54% | | 12.62% | 14.36% |
| Industrials | | 2.39% | | 21.16% | 14.72% |
| Consumer Discretionary | | 1.43% | | 13.42% | 11.65% |
| Consumer Staples | | 0.76% | | 12.11% | 13.07% |
| Information Technology | | 0.17% | | 6.83% | 8.01% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Europe Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | -2.07% | | 2.45% | 4.36% |
| Materials | | -1.85% | | 7.76% | 8.27% |
| Utilities | | -1.66% | | 6.72% | 4.62% |
| Other** | | -0.95% | | 4.54% | 0.00% |
| Financials | | -0.37% | | 12.09% | 15.67% |
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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 European Focus Fund (unaudited)
Fund At A Glance
September 30, 2021
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5 Largest Equity Holdings - (% of Net Assets) |
Nestle SA (REG) | |
Food Products | 3.5% |
Erste Group Bank AG | |
Banks | 3.4% |
Danone SA | |
Food Products | 3.3% |
Hugo Boss AG | |
Textiles, Apparel & Luxury Goods | 3.2% |
Lonza Group AG | |
Life Sciences Tools & Services | 3.0% |
| | 16.4% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.9% | |
Investment Companies | | 0.5% | |
Other | | 1.6% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
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Janus Henderson European Focus 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 September 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 | | 30.31% | 8.94% | 9.66% | 12.41% | | | 1.45% | 1.31% |
Class A Shares at MOP | | 22.81% | 7.66% | 9.01% | 12.08% | | | | |
Class C Shares at NAV | | 29.29% | 8.12% | 8.82% | 11.57% | | | 2.20% | 2.07% |
Class C Shares at CDSC | | 28.29% | 8.12% | 8.82% | 11.57% | | | | |
Class D Shares | | 30.57% | 9.12% | 9.75% | 12.45% | | | 1.40% | 1.11% |
Class I Shares | | 30.63% | 9.23% | 9.96% | 12.60% | | | 1.17% | 1.04% |
Class N Shares | | 30.72% | 9.28% | 9.85% | 12.51% | | | 1.20% | 0.96% |
Class S Shares | | 30.63% | 8.98% | 9.64% | 12.40% | | | 7.87% | 1.47% |
Class T Shares | | 30.41% | 9.04% | 9.71% | 12.43% | | | 1.70% | 1.21% |
MSCI Europe Index | | 27.25% | 8.85% | 8.15% | 5.88% | | | | |
Morningstar Quartile - Class A Shares | | 2nd | 3rd | 2nd | 1st | | | | |
Morningstar Ranking - based on total returns for Europe Stock Funds | | 42/94 | 56/87 | 30/71 | 9/55 | | | | |
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 January 28, 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), non-diversification, Environmental, Social and Governance (ESG) factors, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and
Janus Henderson European Focus Fund (unaudited)
Performance
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.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson European Focus 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 August 31, 2001. Class I Shares and Class R6 Shares of the Predecessor Fund commenced operations on March 31, 2009 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 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 March 31, 2009, 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.
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.
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 – August 31, 2001
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson European Focus 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,083.30 | $6.74 | | $1,000.00 | $1,018.60 | $6.53 | 1.29% |
Class C Shares | $1,000.00 | $1,079.10 | $10.63 | | $1,000.00 | $1,014.84 | $10.30 | 2.04% |
Class D Shares | $1,000.00 | $1,084.40 | $5.75 | | $1,000.00 | $1,019.55 | $5.57 | 1.10% |
Class I Shares | $1,000.00 | $1,084.60 | $5.38 | | $1,000.00 | $1,019.90 | $5.22 | 1.03% |
Class N Shares | $1,000.00 | $1,085.20 | $5.02 | | $1,000.00 | $1,020.26 | $4.86 | 0.96% |
Class S Shares | $1,000.00 | $1,083.20 | $6.79 | | $1,000.00 | $1,018.55 | $6.58 | 1.30% |
Class T Shares | $1,000.00 | $1,083.70 | $6.32 | | $1,000.00 | $1,019.00 | $6.12 | 1.21% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 European Focus Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 97.9% | | | |
Aerospace & Defense – 1.5% | | | |
| | MTU Aero Engines AG | | 33,363 | | | $7,542,789 | |
Air Freight & Logistics – 1.9% | | | |
| | DSV Panalpina A/S | | 40,006 | | | 9,552,922 | |
Airlines – 2.0% | | | |
| | Wizz Air Holdings PLC (144A)* | | 146,309 | | | 9,741,656 | |
Auto Components – 1.6% | | | |
| | Faurecia SE | | 165,142 | | | 7,695,402 | |
Automobiles – 2.2% | | | |
| | Daimler AG | | 124,067 | | | 11,027,536 | |
Banks – 10.3% | | | |
| | Erste Group Bank AG | | 383,442 | | | 16,743,431 | |
| | FinecoBank Banca Fineco SpA* | | 696,158 | | | 12,614,523 | |
| | KBC Group NV | | 155,780 | | | 13,983,370 | |
| | Nordea Bank Abp | | 596,687 | | | 7,660,670 | |
| | | 51,001,994 | |
Beverages – 2.0% | | | |
| | Diageo PLC | | 210,045 | | | 10,119,110 | |
Capital Markets – 4.7% | | | |
| | Deutsche Boerse AG | | 38,773 | | | 6,310,891 | |
| | Euronext NV (144A) | | 63,840 | | | 7,203,058 | |
| | UBS Group AG | | 614,338 | | | 9,818,688 | |
| | | 23,332,637 | |
Chemicals – 1.3% | | | |
| | Symrise AG | | 48,203 | | | 6,358,223 | |
Electric Utilities – 6.3% | | | |
| | EDP - Energias de Portugal SA | | 1,435,402 | | | 7,528,694 | |
| | Orsted A/S (144A) | | 39,005 | | | 5,147,223 | |
| | SSE PLC | | 234,069 | | | 4,914,376 | |
| | Terna Rete Elettrica Nazionale SpA | | 1,948,686 | | | 13,819,903 | |
| | | 31,410,196 | |
Electrical Equipment – 2.1% | | | |
| | Vestas Wind Systems A/S | | 257,606 | | | 10,315,425 | |
Food Products – 9.1% | | | |
| | Chocoladefabriken Lindt & Spruengli AG (PC) | | 1,018 | | | 11,405,927 | |
| | Danone SA | | 236,486 | | | 16,139,225 | |
| | Nestle SA (REG) | | 144,129 | | | 17,344,235 | |
| | | 44,889,387 | |
Health Care Equipment & Supplies – 4.9% | | | |
| | Carl Zeiss Meditec AG | | 45,183 | | | 8,684,284 | |
| | Siemens Healthineers AG (144A) | | 99,505 | | | 6,473,954 | |
| | Straumann Holding AG | | 5,107 | | | 9,140,481 | |
| | | 24,298,719 | |
Hotels, Restaurants & Leisure – 0% | | | |
| | BNN Technology PLC*,¢ | | 11,756,231 | | | 16 | |
Life Sciences Tools & Services – 3.0% | | | |
| | Lonza Group AG | | 19,881 | | | 14,897,062 | |
Machinery – 4.4% | | | |
| | Alfa Laval AB | | 201,822 | | | 7,523,166 | |
| | Atlas Copco AB | | 104,695 | | | 6,353,226 | |
| | Rational AG | | 8,201 | | | 7,732,045 | |
| | | 21,608,437 | |
Metals & Mining – 2.0% | | | |
| | Anglo American PLC | | 289,632 | | | 9,989,337 | |
Multi-Utilities – 1.5% | | | |
| | E.ON SE | | 596,096 | | | 7,291,961 | |
Oil, Gas & Consumable Fuels – 4.1% | | | |
| | Lundin Petroleum AB | | 322,249 | | | 11,966,925 | |
| | Neste Oyj | | 149,324 | | | 8,426,579 | |
| | | 20,393,504 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2021 |
Janus Henderson European Focus Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Paper & Forest Products – 2.1% | | | |
| | UPM-Kymmene Oyj | | 290,703 | | | $10,269,854 | |
Personal Products – 2.5% | | | |
| | L'Oreal SA | | 29,885 | | | 12,332,590 | |
Pharmaceuticals – 4.6% | | | |
| | AstraZeneca PLC | | 89,988 | | | 10,831,564 | |
| | Roche Holding AG | | 32,261 | | | 11,774,054 | |
| | | 22,605,618 | |
Professional Services – 2.6% | | | |
| | RELX PLC | | 446,359 | | | 12,861,023 | |
Semiconductor & Semiconductor Equipment – 4.3% | | | |
| | ASML Holding NV | | 19,270 | | | 14,213,085 | |
| | Nordic Semiconductor ASA* | | 230,992 | | | 6,914,683 | |
| | | 21,127,768 | |
Software – 1.8% | | | |
| | SAP SE | | 64,547 | | | 8,743,272 | |
Specialty Retail – 3.6% | | | |
| | JD Sports Fashion PLC | | 775,650 | | | 10,918,697 | |
| | Kingfisher PLC | | 1,551,811 | | | 7,019,746 | |
| | | 17,938,443 | |
Textiles, Apparel & Luxury Goods – 8.6% | | | |
| | Hugo Boss AG | | 266,479 | | | 16,065,476 | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 17,098 | | | 12,224,565 | |
| | Pandora A/S | | 119,666 | | | 14,514,377 | |
| | | 42,804,418 | |
Trading Companies & Distributors – 1.3% | | | |
| | Ashtead Group PLC | | 86,730 | | | 6,578,072 | |
Water Utilities – 1.6% | | | |
| | Severn Trent PLC | | 228,570 | | | 7,991,601 | |
Total Common Stocks (cost $438,226,716) | | 484,718,972 | |
Investment Companies– 0.5% | | | |
Money Markets – 0.5% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $2,579,657) | | 2,579,399 | | | 2,579,657 | |
Total Investments (total cost $440,806,373) – 98.4% | | 487,298,629 | |
Cash, Receivables and Other Assets, net of Liabilities – 1.6% | | 7,722,938 | |
Net Assets – 100% | | $495,021,567 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson European Focus Fund
Schedule of Investments
September 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
Germany | | $86,230,431 | | 17.7 | % |
United Kingdom | | 81,223,542 | | 16.7 | |
Switzerland | | 74,380,447 | | 15.3 | |
France | | 48,391,782 | | 9.9 | |
Denmark | | 39,529,947 | | 8.1 | |
Italy | | 26,434,426 | | 5.4 | |
Finland | | 26,357,103 | | 5.4 | |
Sweden | | 25,843,317 | | 5.3 | |
Netherlands | | 21,416,143 | | 4.4 | |
Austria | | 16,743,431 | | 3.4 | |
Belgium | | 13,983,370 | | 2.9 | |
Hungary | | 9,741,656 | | 2.0 | |
Portugal | | 7,528,694 | | 1.6 | |
Norway | | 6,914,683 | | 1.4 | |
United States | | 2,579,657 | | 0.5 | |
| | | | | | |
| | | | | | |
Total | | $487,298,629 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/21 |
Investment Companies - 0.5% |
Money Markets - 0.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | $ | 13,864 | $ | 648 | $ | (1,005) | $ | 2,579,657 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 31,910∆ | | - | | - | | - |
Total Affiliated Investments - 0.5% | $ | 45,774 | $ | 648 | $ | (1,005) | $ | 2,579,657 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson European Focus Fund
Schedule of Investments
September 30, 2021
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Investment Companies - 0.5% |
Money Markets - 0.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 19,626,491 | | 425,921,526 | | (442,968,003) | | 2,579,657 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | - | | 66,038,889 | | (66,038,889) | | - |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Schedule of OTC Written Options |
Counterparty/ Reference Asset | Number of Contracts | Exercise Price | | | Expiration Date | | Notional Amount | | Premiums Received | | Unrealized Appreciation/ (Depreciation) | | Options Written, at Value | |
| | | | | | | | | | | | | | | |
Written Put Options:
Citigroup:
| | | | | | | | | | | | | | |
Pandora A/S | 1,250 | 710.52 | DKK | | 12/17/21 | $ | 15,493,309 | $ | 555,038 | $ | 31,605 | $ | (523,433) |
SAP SE | 1,123 | 96.00 | EUR | | 12/17/21 | | 15,202,075 | | 257,425 | | 136,392 | | (121,033) |
Total - Written Put Options | | | | 812,463 | | 167,997 | | (644,466) |
Total OTC Written Options | | | $ | 812,463 | $ | 167,997 | $ | (644,466) |
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 September 30, 2021.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2021 |
| | | | | |
| | | | | Equity
Contracts |
| | | |
Liability Derivatives: | | | |
Options written, at value | | | $644,466 |
| | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson European Focus Fund
Schedule of Investments
September 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 September 30, 2021.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2021 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Equity
Contracts |
Purchased options contracts | | $ 64,624 |
Written options contracts | | 2,550,927 |
| | | | | |
Total | | $2,615,551 |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Equity
Contracts |
Purchased options contracts | | $ 81,881 |
Written options contracts | | 127,053 |
| | | | | |
Total | | $ 208,934 |
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 September 30, 2021 |
| |
| Market Value |
Purchased options contracts, call | $ 38,699 |
Written options contracts, call | 26,849 |
Written options contracts, put | 767,959 |
| | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2021 |
Janus Henderson European Focus Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI Europe IndexSM | MSCI Europe IndexSM reflects the equity market performance of developed markets in Europe. |
| | |
LLC | Limited Liability Company |
OTC | Over-the-Counter |
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 September 30, 2021 is $28,565,891, which represents 5.8% of net assets. |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of September 30, 2021. |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2021 is $16, 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 European Focus 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 September 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 | | | | | | |
Hotels, Restaurants & Leisure | $ | - | $ | - | $ | 16 |
All Other | | - | | 484,718,956 | | - |
Investment Companies | | - | | 2,579,657 | | - |
Total Assets | $ | - | $ | 487,298,613 | $ | 16 |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Options Written, at Value | $ | - | $ | 644,466 | $ | - |
| | | | | | | |
(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 European Focus Fund
Statement of Assets and Liabilities
September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $438,226,716) | | $ | 484,718,972 | |
| Affiliated investments, at value (cost $2,579,657) | | | 2,579,657 | |
| Deposits with brokers for OTC derivatives | | | 670,000 | |
| Cash denominated in foreign currency (cost $32,637) | | | 32,637 | |
| Non-interested Trustees' deferred compensation | | | 12,345 | |
| Receivables: | | | | |
| | Investments sold | | | 5,974,589 | |
| | Foreign tax reclaims | | | 2,231,422 | |
| | Fund shares sold | | | 390,903 | |
| | Dividends | | | 128,856 | |
| | Dividends from affiliates | | | 1,666 | |
| Other assets | | | 21,865 | |
Total Assets | | | 496,762,912 | |
Liabilities: | | | | |
| Due to custodian | | | 7 | |
| Options written, at value (premiums received $812,463) | | | 644,466 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 438,263 | |
| | Advisory fees | | | 397,500 | |
| | Transfer agent fees and expenses | | | 61,345 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 51,190 | |
| | Professional fees | | | 47,713 | |
| | Non-interested Trustees' deferred compensation fees | | | 12,345 | |
| | Custodian fees | | | 11,691 | |
| | Non-interested Trustees' fees and expenses | | | 3,264 | |
| | Affiliated fund administration fees payable | | | 1,079 | |
| | Accrued expenses and other payables | | | 72,482 | |
Total Liabilities | | | 1,741,345 | |
Net Assets | | $ | 495,021,567 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson European Focus Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 851,179,686 | |
| Total distributable earnings (loss) | | | (356,158,119) | |
Total Net Assets | | $ | 495,021,567 | |
Net Assets - Class A Shares | | $ | 141,907,540 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,190,155 | |
Net Asset Value Per Share(1) | | $ | 44.48 | |
Maximum Offering Price Per Share(2) | | $ | 47.19 | |
Net Assets - Class C Shares | | $ | 23,301,886 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 556,165 | |
Net Asset Value Per Share(1) | | $ | 41.90 | |
Net Assets - Class D Shares | | $ | 10,101,641 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 228,488 | |
Net Asset Value Per Share | | $ | 44.21 | |
Net Assets - Class I Shares | | $ | 299,271,712 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,763,880 | |
Net Asset Value Per Share | | $ | 44.25 | |
Net Assets - Class N Shares | | $ | 9,763,287 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 222,145 | |
Net Asset Value Per Share | | $ | 43.95 | |
Net Assets - Class S Shares | | $ | 85,484 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,015 | |
Net Asset Value Per Share | | $ | 42.42 | |
Net Assets - Class T Shares | | $ | 10,590,017 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 239,732 | |
Net Asset Value Per Share | | $ | 44.17 | |
| |
(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 | SEPTEMBER 30, 2021 |
Janus Henderson European Focus Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 8,273,345 | |
| Affiliated securities lending income, net | | 31,910 | |
| Dividends from affiliates | | 13,864 | |
| Unaffiliated securities lending income, net | | 676 | |
| Interest | | 9 | |
| Other income | | 81,883 | |
| Foreign tax withheld | | (934,181) | |
Total Investment Income | | 7,467,506 | |
Expenses: | | | |
| Advisory fees | | 4,494,068 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 342,023 | |
| | Class C Shares | | 277,511 | |
| | Class S Shares | | — | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 7,676 | |
| | Class S Shares | | 169 | |
| | Class T Shares | | 13,091 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 109,476 | |
| | Class C Shares | | 26,088 | |
| | Class I Shares | | 183,091 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 7,973 | |
| | Class C Shares | | 1,440 | |
| | Class D Shares | | 1,937 | |
| | Class I Shares | | 9,972 | |
| | Class N Shares | | 244 | |
| | Class S Shares | | 3 | |
| | Class T Shares | | 37 | |
| Registration fees | | 105,869 | |
| Custodian fees | | 49,608 | |
| Professional fees | | 46,777 | |
| Shareholder reports expense | | 22,598 | |
| Affiliated fund administration fees | | 12,694 | |
| Non-interested Trustees’ fees and expenses | | 6,715 | |
| Other expenses | | 94,385 | |
Total Expenses | | 5,813,445 | |
Less: Excess Expense Reimbursement and Waivers | | (512,389) | |
Net Expenses | | 5,301,056 | |
Net Investment Income/(Loss) | | 2,166,450 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson European Focus Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 97,036,796 | |
| Investments in affiliates | | 648 | |
| Purchased options contracts | | 64,624 | |
| Short sales | | (28,725) | |
| Written options contracts | | 2,550,927 | |
Total Net Realized Gain/(Loss) on Investments | | 99,624,270 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 6,617,845 | |
| Investments in affiliates | | (1,005) | |
| Purchased options contracts | | 81,881 | |
| Written options contracts | | 127,053 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 6,825,774 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 108,616,494 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2021 |
Janus Henderson European Focus Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 2,166,450 | | $ | 1,640,842 | |
| Net realized gain/(loss) on investments | | 99,624,270 | | | 43,758,359 | |
| Change in unrealized net appreciation/depreciation | | 6,825,774 | | | 38,925,813 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 108,616,494 | | | 84,325,014 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (362,388) | | | (1,186,901) | |
| | Class D Shares | | (20,930) | | | (32,297) | |
| | Class I Shares | | (1,148,633) | | | (2,905,921) | |
| | Class N Shares | | (26,735) | | | (19,353) | |
| | Class S Shares | | (185) | | | (610) | |
| | Class T Shares | | (12,244) | | | (9,250) | |
Net Decrease from Dividends and Distributions to Shareholders | | (1,571,115) | | | (4,154,332) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (8,045,062) | | | (21,249,933) | |
| | Class C Shares | | (14,066,619) | | | (21,581,585) | |
| | Class D Shares | | 5,355,988 | | | 648,406 | |
| | Class I Shares | | 29,583,028 | | | (58,387,988) | |
| | Class N Shares | | 3,380,544 | | | 3,923,326 | |
| | Class S Shares | | 15,445 | | | 610 | |
| | Class T Shares | | 8,380,996 | | | 755,031 | |
Net Increase/(Decrease) from Capital Share Transactions | | 24,604,320 | | | (95,892,133) | |
Net Increase/(Decrease) in Net Assets | | 131,649,699 | | | (15,721,451) | |
Net Assets: | | | | | | |
| Beginning of period | | 363,371,868 | | | 379,093,319 | |
| End of period | $ | 495,021,567 | | $ | 363,371,868 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $34.23 | | | $27.21 | | | $31.73 | | | $35.02 | | | $34.22 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.16 | | | 0.11 | | | 0.41 | | | 0.46 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | 10.20 | | | 7.22 | | | (3.91) | | | (3.16) | | | 0.67 | |
| Total from Investment Operations | | 10.36 | | | 7.33 | | | (3.50) | | | (2.70) | | | 0.80 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.11) | | | (0.31) | | | (1.02) | | | (0.59) | | | — | |
| Total Dividends and Distributions | | (0.11) | | | (0.31) | | | (1.02) | | | (0.59) | | | — | |
| Net Asset Value, End of Period | | $44.48 | | | $34.23 | | | $27.21 | | | $31.73 | | | $35.02 | |
| Total Return* | | 30.31% | | | 27.04% | | | (10.61)% | | | (7.84)% | | | 2.34% | |
| Net Assets, End of Period (in thousands) | | $141,908 | | | $116,047 | | | $112,110 | | | $176,690 | | | $273,184 | |
| Average Net Assets for the Period (in thousands) | | $136,809 | | | $109,879 | | | $135,260 | | | $227,911 | | | $268,061 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.41% | | | 1.45% | | | 1.46% | | | 1.31% | | | 1.35% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.30% | | | 1.31% | | | 1.32% | | | 1.30% | | | 1.35% | |
| | Ratio of Net Investment Income/(Loss) | | 0.37% | | | 0.38% | | | 1.49% | | | 1.37% | | | 2.29% | |
| Portfolio Turnover Rate | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $32.40 | | | $25.69 | | | $29.66 | | | $32.68 | | | $31.98 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.18) | | | (0.11) | | | 0.16 | | | 0.21 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 9.68 | | | 6.82 | | | (3.57) | | | (2.97) | | | 0.62 | |
| Total from Investment Operations | | 9.50 | | | 6.71 | | | (3.41) | | | (2.76) | | | 0.70 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.56) | | | (0.26) | | | — | |
| Total Dividends and Distributions | | — | | | — | | | (0.56) | | | (0.26) | | | — | |
| Net Asset Value, End of Period | | $41.90 | | | $32.40 | | | $25.69 | | | $29.66 | | | $32.68 | |
| Total Return* | | 29.32% | | | 26.12% | | | (11.26)% | | | (8.51)% | | | 2.19% | |
| Net Assets, End of Period (in thousands) | | $23,302 | | | $29,652 | | | $43,110 | | | $118,408 | | | $184,366 | |
| Average Net Assets for the Period (in thousands) | | $27,919 | | | $37,468 | | | $62,633 | | | $154,929 | | | $183,018 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.17% | | | 2.19% | | | 2.19% | | | 2.04% | | | 2.22% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.05% | | | 2.06% | | | 2.06% | | | 2.02% | | | 2.22% | |
| | Ratio of Net Investment Income/(Loss) | | (0.46)% | | | (0.40)% | | | 0.62% | | | 0.65% | | | 1.44% | |
| Portfolio Turnover Rate | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2021 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | |
Class A Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.17 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.34 | |
| | Net realized and unrealized gain/(loss) | | 2.50 | |
| Total from Investment Operations | | 2.84 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.79) | |
| Total Dividends and Distributions | | (0.79) | |
| Net Asset Value, End of Period | | $34.22 | |
| Total Return* | | 9.15% | |
| Net Assets, End of Period (in thousands) | | $274,588 | |
| Average Net Assets for the Period (in thousands) | | $381,753 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.33% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.33% | |
| | Ratio of Net Investment Income/(Loss) | | 1.06% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| | | | | | | |
Class C Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $30.06 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 2.32 | |
| Total from Investment Operations | | 2.43 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.51) | |
| Total Dividends and Distributions | | (0.51) | |
| Net Asset Value, End of Period | | $31.98 | |
| Total Return* | | 8.32% | |
| Net Assets, End of Period (in thousands) | | $188,120 | |
| Average Net Assets for the Period (in thousands) | | $219,705 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 2.11% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.11% | |
| | Ratio of Net Investment Income/(Loss) | | 0.36% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $34.01 | | | $27.05 | | | $31.61 | | | $35.02 | | | $34.21 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.24 | | | 0.18 | | | 0.49 | | | 0.57 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | 10.13 | | | 7.16 | | | (3.92) | | | (3.20) | | | 0.67 | |
| Total from Investment Operations | | 10.37 | | | 7.34 | | | (3.43) | | | (2.63) | | | 0.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.17) | | | (0.38) | | | (1.13) | | | (0.78) | | | — | |
| Total Dividends and Distributions | | (0.17) | | | (0.38) | | | (1.13) | | | (0.78) | | | — | |
| Net Asset Value, End of Period | | $44.21 | | | $34.01 | | | $27.05 | | | $31.61 | | | $35.02 | |
| Total Return* | | 30.57% | | | 27.27% | | | (10.39)% | | | (7.67)% | | | 2.37% | |
| Net Assets, End of Period (in thousands) | | $10,102 | | | $3,510 | | | $2,293 | | | $2,875 | | | $2,776 | |
| Average Net Assets for the Period (in thousands) | | $6,844 | | | $2,636 | | | $2,421 | | | $3,071 | | | $2,683 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.28% | | | 1.40% | | | 1.59% | | | 1.19% | | | 1.11% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.10% | | | 1.11% | | | 1.14% | | | 1.11% | | | 1.11% | |
| | Ratio of Net Investment Income/(Loss) | | 0.57% | | | 0.60% | | | 1.81% | | | 1.71% | | | 2.52% | |
| Portfolio Turnover Rate | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $34.03 | | | $27.07 | | | $31.59 | | | $34.94 | | | $34.13 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.26 | | | 0.19 | | | 0.42 | | | 0.54 | | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | 10.15 | | | 7.17 | | | (3.82) | | | (3.14) | | | 0.66 | |
| Total from Investment Operations | | 10.41 | | | 7.36 | | | (3.40) | | | (2.60) | | | 0.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.19) | | | (0.40) | | | (1.12) | | | (0.75) | | | — | |
| Total Dividends and Distributions | | (0.19) | | | (0.40) | | | (1.12) | | | (0.75) | | | — | |
| Net Asset Value, End of Period | | $44.25 | | | $34.03 | | | $27.07 | | | $31.59 | | | $34.94 | |
| Total Return* | | 30.66% | | | 27.35% | | | (10.30)% | | | (7.60)% | | | 2.37% | |
| Net Assets, End of Period (in thousands) | | $299,272 | | | $208,159 | | | $220,722 | | | $695,302 | | | $1,234,695 | |
| Average Net Assets for the Period (in thousands) | | $263,587 | | | $204,753 | | | $353,101 | | | $1,025,799 | | | $1,231,744 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.14% | | | 1.17% | | | 1.16% | | | 1.03% | | | 1.06% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.03% | | | 1.04% | | | 1.03% | | | 1.02% | | | 1.06% | |
| | Ratio of Net Investment Income/(Loss) | | 0.62% | | | 0.64% | | | 1.53% | | | 1.60% | | | 2.59% | |
| Portfolio Turnover Rate | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2021 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | |
Class D Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $33.53 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 0.57 | |
| Total from Investment Operations | | 0.68 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $34.21 | |
| Total Return* | | 2.03% | |
| Net Assets, End of Period (in thousands) | | $2,585 | |
| Average Net Assets for the Period (in thousands) | | $2,342 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.25% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.08% | |
| | Ratio of Net Investment Income/(Loss) | | 2.11% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| | | | | | | |
Class I Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.18 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.44 | |
| | Net realized and unrealized gain/(loss) | | 2.47 | |
| Total from Investment Operations | | 2.91 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.96) | |
| Total Dividends and Distributions | | (0.96) | |
| Net Asset Value, End of Period | | $34.13 | |
| Total Return* | | 9.44% | |
| Net Assets, End of Period (in thousands) | | $1,277,021 | |
| Average Net Assets for the Period (in thousands) | | $1,414,519 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.07% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.07% | |
| | Ratio of Net Investment Income/(Loss) | | 1.38% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| |
* Total return 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 July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $33.80 | | | $26.86 | | | $31.64 | | | $34.89 | | | $34.10 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.35 | | | 0.34 | | | 0.49 | | | 0.56 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | 10.01 | | | 7.01 | | | (3.91) | | | (3.14) | | | 0.66 | |
| Total from Investment Operations | | 10.36 | | | 7.35 | | | (3.42) | | | (2.58) | | | 0.79 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.21) | | | (0.41) | | | (1.36) | | | (0.67) | | | — | |
| Total Dividends and Distributions | | (0.21) | | | (0.41) | | | (1.36) | | | (0.67) | | | — | |
| Net Asset Value, End of Period | | $43.95 | | | $33.80 | | | $26.86 | | | $31.64 | | | $34.89 | |
| Total Return* | | 30.72% | | | 27.51% | | | (10.25)% | | | (7.54)% | | | 2.32% | |
| Net Assets, End of Period (in thousands) | | $9,763 | | | $4,371 | | | $139 | | | $284 | | | $318 | |
| Average Net Assets for the Period (in thousands) | | $9,327 | | | $3,114 | | | $207 | | | $332 | | | $245 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.11% | | | 1.20% | | | 2.56% | | | 1.43% | | | 1.19% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.96% | | | 0.96% | | | 0.97% | | | 0.97% | | | 1.19% | |
| | Ratio of Net Investment Income/(Loss) | | 0.85% | | | 1.17% | | | 1.82% | | | 1.68% | | | 2.29% | |
| Portfolio Turnover Rate | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $32.57 | | | $25.98 | | | $31.53 | | | $35.01 | | | $34.20 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.23 | | | 0.11 | | | 0.45 | | | 0.47 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | 9.73 | | | 6.85 | | | (3.98) | | | (3.20) | | | 0.68 | |
| Total from Investment Operations | | 9.96 | | | 6.96 | | | (3.53) | | | (2.73) | | | 0.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.11) | | | (0.37) | | | (2.02) | | | (0.75) | | | — | |
| Total Dividends and Distributions | | (0.11) | | | (0.37) | | | (2.02) | | | (0.75) | | | — | |
| Net Asset Value, End of Period | | $42.42 | | | $32.57 | | | $25.98 | | | $31.53 | | | $35.01 | |
| Total Return* | | 30.63% | | | 26.93% | | | (10.35)% | | | (7.96)% | | | 2.37% | |
| Net Assets, End of Period (in thousands) | | $85 | | | $54 | | | $43 | | | $48 | | | $52 | |
| Average Net Assets for the Period (in thousands) | | $68 | | | $48 | | | $43 | | | $50 | | | $50 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 5.71% | | | 7.83% | | | 8.50% | | | 4.42% | | | 1.48% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.07% | | | 1.34% | | | 1.17% | | | 1.35% | | | 1.30% | |
| | Ratio of Net Investment Income/(Loss) | | 0.58% | | | 0.40% | | | 1.73% | | | 1.42% | | | 2.34% | |
| Portfolio Turnover Rate | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
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24 | SEPTEMBER 30, 2021 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | |
Class N Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.18 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.42 | |
| | Net realized and unrealized gain/(loss) | | 2.47 | |
| Total from Investment Operations | | 2.89 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.97) | |
| Total Dividends and Distributions | | (0.97) | |
| Net Asset Value, End of Period | | $34.10 | |
| Total Return* | | 9.36% | |
| Net Assets, End of Period (in thousands) | | $210 | |
| Average Net Assets for the Period (in thousands) | | $1,074 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.10% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.10% | |
| | Ratio of Net Investment Income/(Loss) | | 1.34% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| | | | | | | |
Class S Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(3) | |
| Net Asset Value, Beginning of Period | | $33.53 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | 0.58 | |
| Total from Investment Operations | | 0.67 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $34.20 | |
| Total Return* | | 2.00% | |
| Net Assets, End of Period (in thousands) | | $51 | |
| Average Net Assets for the Period (in thousands) | | $49 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.45% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.45% | |
| | Ratio of Net Investment Income/(Loss) | | 1.67% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| |
* 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) Period from June 5, 2017 (inception date) through July 31, 2017. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $34.02 | | | $27.06 | | | $31.57 | | | $35.03 | | | $34.22 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.20 | | | 0.12 | | | 0.47 | | | 0.54 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | 10.12 | | | 7.20 | | | (3.90) | | | (3.21) | | | 0.68 | |
| Total from Investment Operations | | 10.32 | | | 7.32 | | | (3.43) | | | (2.67) | | | 0.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.17) | | | (0.36) | | | (1.08) | | | (0.79) | | | — | |
| Total Dividends and Distributions | | (0.17) | | | (0.36) | | | (1.08) | | | (0.79) | | | — | |
| Net Asset Value, End of Period | | $44.17 | | | $34.02 | | | $27.06 | | | $31.57 | | | $35.03 | |
| Total Return* | | 30.41% | | | 27.20% | | | (10.43)% | | | (7.79)% | | | 2.37% | |
| Net Assets, End of Period (in thousands) | | $10,590 | | | $1,579 | | | $676 | | | $929 | | | $1,275 | |
| Average Net Assets for the Period (in thousands) | | $5,237 | | | $839 | | | $762 | | | $1,598 | | | $1,077 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.38% | | | 1.70% | | | 1.76% | | | 1.31% | | | 1.22% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.21% | | | 1.19% | | | 1.18% | | | 1.20% | | | 1.18% | |
| | Ratio of Net Investment Income/(Loss) | | 0.47% | | | 0.41% | | | 1.74% | | | 1.59% | | | 2.26% | |
| Portfolio Turnover Rate | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
26 | SEPTEMBER 30, 2021 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | |
Class T Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $33.53 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 0.64 | |
| Total from Investment Operations | | 0.69 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $34.22 | |
| Total Return* | | 2.06% | |
| Net Assets, End of Period (in thousands) | | $983 | |
| Average Net Assets for the Period (in thousands) | | $63 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.51% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.21% | |
| | Ratio of Net Investment Income/(Loss) | | 1.60% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| |
* Total return 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 July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 27 |
Janus Henderson European Focus Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson European Focus 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 capital appreciation primarily through investment in equities of European companies. 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 European Focus 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. The Fund's first fiscal year end was July 31, 2017. Subsequent to July 31, 2017, the Fund changed its fiscal year end to September 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 original 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.
Janus Henderson European Focus Fund
Notes to Financial Statements
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.
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
Janus Henderson European Focus Fund
Notes to Financial Statements
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 September 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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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
Janus Henderson European Focus Fund
Notes to Financial Statements
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
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. 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 September 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
Janus Henderson European Focus Fund
Notes to Financial Statements
(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 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
Janus Henderson European Focus Fund
Notes to Financial Statements
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.
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 period, the Fund purchased call options on various equity index securities for the purpose of increasing exposure to broad equity risk.
During the period, the Fund purchased call options on various equity index securities for the purpose of increasing exposure to individual equity risk.
There were no purchased options held at September 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
Janus Henderson European Focus Fund
Notes to Financial Statements
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 period, the Fund wrote put options on various equity securities for the purpose of increasing exposure to individual equity risk and/or generating income.
During the period, the Fund wrote put options on various equity indices for the purpose of increasing exposure to broad equity risk.
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 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
Janus Henderson European Focus Fund
Notes to Financial Statements
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.
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 September 30, 2021” table located in the Fund’s Schedule of Investments.
| | | | | | | | | | |
Offsetting of Financial Liabilities and Derivative Liabilities |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Citigroup | $ | 644,466 | $ | — | $ | — | $ | 644,466 |
| | | | | | | | | |
(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,
Janus Henderson European Focus Fund
Notes to Financial Statements
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 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.
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).
Janus Henderson European Focus Fund
Notes to Financial Statements
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 September 30, 2021.
Short Sales
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 Consolidated Statement of Operations,/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 September 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).
| | |
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $500 Million | 1.00 |
Next $1 Billion | 0.90 |
Next $1 Billion | 0.85 |
Over $2.5 Billion | 0.80 |
The Fund’s actual investment advisory fee rate for the reporting period was 1.00% 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
Janus Henderson European Focus Fund
Notes to Financial Statements
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 0.96% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 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 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 European Focus 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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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
Janus Henderson European Focus Fund
Notes to Financial Statements
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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $5,044.
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 September 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 September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $867.
As of September 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 | 76 | | 2 | | |
Class S Shares | 83 | | -* | | |
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.
Janus Henderson European Focus Fund
Notes to Financial Statements
Other book to tax differences primarily consist of deferred compensation, 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) | |
$ 1,407,905 | $ - | $(402,103,105) | $ - | $ - | $ 175,806 | $ 44,361,275 | |
Accumulated capital losses noted below represent net capital loss carryovers, as of September 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 September 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(190,648,870) | $(211,454,235) | $ (402,103,105) | | |
During the year ended September 30, 2021, capital loss carryovers of $99,040,882 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 September 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) |
$ 442,937,354 | $71,500,814 | $(27,139,539) | $ 44,361,275 |
Janus Henderson European Focus Fund
Notes to Financial Statements
Information on the tax components of derivatives as of September 30, 2021 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ (812,463) | $ 167,997 | $ - | $ 167,997 |
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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 1,571,115 | $ - | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 4,154,332 | $ - | $ - | $ - | |
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 |
$ (27,503) | $ (762,999) | $ 790,502 |
Janus Henderson European Focus Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 416,402 | $ 17,599,243 | | 974,533 | $ 29,859,343 |
Reinvested dividends and distributions | 8,199 | 321,149 | | 35,146 | 1,090,947 |
Shares repurchased | (624,419) | (25,965,454) | | (1,739,228) | (52,200,223) |
Net Increase/(Decrease) | (199,818) | $ (8,045,062) | | (729,549) | $(21,249,933) |
Class C Shares: | | | | | |
Shares sold | 78,064 | $ 2,985,510 | | 504,926 | $ 15,125,223 |
Reinvested dividends and distributions | - | - | | - | - |
Shares repurchased | (437,142) | (17,052,129) | | (1,267,435) | (36,706,808) |
Net Increase/(Decrease) | (359,078) | $(14,066,619) | | (762,509) | $(21,581,585) |
Class D Shares: | | | | | |
Shares sold | 181,755 | $ 7,699,475 | | 39,355 | $ 1,257,383 |
Reinvested dividends and distributions | 523 | 20,335 | | 1,019 | 31,386 |
Shares repurchased | (56,979) | (2,363,822) | | (21,972) | (640,363) |
Net Increase/(Decrease) | 125,299 | $ 5,355,988 | | 18,402 | $ 648,406 |
Class I Shares: | | | | | |
Shares sold | 1,698,263 | $ 73,365,880 | | 1,801,475 | $ 50,334,182 |
Reinvested dividends and distributions | 28,012 | 1,089,119 | | 88,190 | 2,715,360 |
Shares repurchased | (1,079,177) | (44,871,971) | | (3,928,070) | (111,437,530) |
Net Increase/(Decrease) | 647,098 | $ 29,583,028 | | (2,038,405) | $(58,387,988) |
Class N Shares: | | | | | |
Shares sold | 201,165 | $ 8,001,484 | | 206,736 | $ 6,365,903 |
Reinvested dividends and distributions | 693 | 26,735 | | 633 | 19,353 |
Shares repurchased | (109,036) | (4,647,675) | | (83,212) | (2,461,930) |
Net Increase/(Decrease) | 92,822 | $ 3,380,544 | | 124,157 | $ 3,923,326 |
Class S Shares: | | | | | |
Shares sold | 339 | $ 15,260 | | - | $ - |
Reinvested dividends and distributions | 5 | 185 | | 21 | 610 |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 344 | $ 15,445 | | 21 | $ 610 |
Class T Shares: | | | | | |
Shares sold | 280,176 | $ 12,166,569 | | 53,315 | $ 1,767,197 |
Reinvested dividends and distributions | 310 | 12,060 | | 285 | 8,796 |
Shares repurchased | (87,171) | (3,797,633) | | (32,169) | (1,020,962) |
Net Increase/(Decrease) | 193,315 | $ 8,380,996 | | 21,431 | $ 755,031 |
7. Purchases and Sales of Investment Securities
For the year ended September 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 |
$797,522,516 | $ 771,995,703 | $ - | $ - |
Janus Henderson European Focus Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 European Focus Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson European Focus Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson European Focus Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 30, 2021, including the related notes, and the financial highlights for each of the periods indicated (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 September 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 September 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 September 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
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson European Focus 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) (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 European Focus 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 European Focus 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 European Focus 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 European Focus 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 European Focus 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 European Focus 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 European Focus 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 European Focus 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 European Focus 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 European Focus 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 European Focus 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.
Janus Henderson European Focus 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 September 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 Bloomberg 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 European Focus 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.
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.
Janus Henderson European Focus Fund
Useful Information About Your Fund Report (unaudited)
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 European Focus Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Foreign Taxes Paid | $842,815 |
Foreign Source Income | $5,665,319 |
Qualified Dividend Income Percentage | 100% |
Janus Henderson European Focus 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 European Focus 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson European Focus 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 European Focus 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 European Focus 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson European Focus 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 European Focus 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 |
Robert Schramm-Fuchs
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Executive Vice President and Portfolio Manager
Janus Henderson European Focus Fund | 3/19-Present | Fund Manager of European Equities of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. Formerly, European equity analyst for Janus Henderson Investors (2014-2019). |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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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| |
Janus Henderson European Focus 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 |
| | | | 125-02-93080 11-21 |
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| | | |
| | | ANNUAL REPORT September 30, 2021 |
| | |
| | Janus Henderson Forty Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Forty Fund
Janus Henderson Forty Fund (unaudited)
| | | | | | |
FUND SNAPSHOT Forty Fund is a concentrated large-cap growth fund, leveraging Janus Henderson’s three decades of experience in high-conviction investing. By investing in our best wide-moat ideas, the Fund seeks to add excess return over the long term. Given its concentrated nature, the Fund may exhibit moderately higher volatility than its benchmark. | | | | 
Doug Rao co-portfolio manager | 
Nick Schommer co-portfolio manager |
| | | |
PERFORMANCE OVERVIEW
The Janus Henderson Forty Fund I Shares returned 30.07% for the 12-month period ended September 30, 2021, versus a return of 27.32% for the Fund’s primary benchmark, the Russell 1000® Growth Index. The Fund’s secondary benchmark, the S&P 500® Index, returned 30.00% for the period.
INVESTMENT ENVIRONMENT
The period began amid uncertainty regarding the U.S. presidential election, surging coronavirus cases and renewed social restrictions. However, as the period progressed, a steady vaccination rollout led to a marked drop in COVID-related deaths and hospitalizations. Widespread vaccinations combined with powerful fiscal and monetary stimulus, strong capital markets performance and a robust housing market positioned both individuals and corporations to support a broadening economic recovery. Later in the period, the spread of the COVID Delta variant and supply chain disruptions began to dampen economic growth. This led to upward inflationary pressures. In addition, the Federal Reserve (Fed) indicated that it could begin to taper its asset purchases later this year.
PERFORMANCE DISCUSSION
As part of our investment strategy, we seek companies that have built clear, sustainable moats around their businesses with strong competitive advantages. We believe these advantages should help them grow market share within their respective industries over time. Important competitive advantages could include a strong brand, network effects from a product or service that would be hard for a competitor to replicate, a lower cost structure than competitors in the industry, a distribution advantage or patent protection over valuable intellectual property. We think emphasizing these sustainable competitive advantages can be a meaningful driver of outperformance over longer time horizons as the market often underestimates the duration of growth for these companies and the long-term potential return to shareholders.
Social media operator Snap, Inc. was among the top relative contributors during the period. We see substantial opportunity as the company expands into areas such as augmented reality (AR) advertising and e-commerce and enhances its app with new features such as Spotlight. We believe that the company is still early in its development and that as Snap matures, its business model continues to evolve into a core digital advertising platform with the potential for significant growth.
Private equity firm The Blackstone Group was also among the top relative contributors. During the period, management raised its full-year guidance due to strong performance for their private equity strategies as well as continued inflows into their products. We believe there is a long runway for growth in Blackstone’s fee-gathering strategies, as the company remains favorably positioned to capture capital migrating to private equities ‒ a long-term secular trend that is likely to continue.
Medical device maker Dexcom was also among the top relative contributors. During the period, the company reported revenue growth that beat consensus estimates. They added a record number of new patients, driven in large part by its G6 continuous glucose monitor (CGM) for diabetics. We believe the market for CGMs remains underpenetrated and that Dexcom appears well positioned for sales growth and improving margins as this market expands. Expansion into non-intensive type 1 and type 2 diabetes as well as into international markets should help increase the addressable market. Further, significant manufacturing efficiencies should drive down the cost and price of their product, helping both demand and margin expansion.
Mastercard was among the top relative detractors, as fears that the Delta variant would slow a recovery in travel and business activity hurt the company’s stock. Recent merger and acquisition (M&A) transactions and innovation
Janus Henderson Forty Fund (unaudited)
within the industry have also called into question Mastercard’s role in the future of payments. We believe these concerns are largely overstated, and that Mastercard’s payments network remains positioned to be a key beneficiary as more transactions migrate from cash and check to credit card and electronic payments.
Salesforce.com was also among the top relative detractors. As a provider of tools for digital interaction between companies and their customers, the company benefited from the acceleration of digital transformation earlier in the pandemic. However, the stock traded lower as investors digested news of its planned acquisition, at a relatively high premium, of enterprise communications platform Slack Technologies. We exited our position during the period due to these concerns.
Uber Technologies was also among the top relative detractors. There have been ongoing concerns that Uber will be required to classify its workers as employees rather than independent contractors, which would raise costs. Uber’s competitive positioning against rival DoorDash, the pace of travel recovery and the company’s ability to attract drivers have also weighed on sentiment. We exited our position during the period.
OUTLOOK
The spread of the COVID Delta variant, broadening supply chain disruptions and inflationary pressures dampened growth toward the end of the period. However, we believe that economic activity will continue to normalize as we move into 2022 and expect a healthy year for earnings growth. That said, while economic normalization happens, interest rate normalization may also occur ‒ continuing the tug-of-war between rates and valuations that we have witnessed over previous quarters ‒ with the potential for bouts of market volatility like we saw at the end of the third quarter.
We think growth can accelerate as supply chain issues begin to heal and some temporal inflation ‒ such as recently seen in used vehicles and other durable goods ‒ abates. We expect some healthy wage inflation, which in general should be supportive of a growing economy, but are also cognizant of reduced labor force participation, which remains one of the more vexing hindrances to growth.
Consumer balance sheets remain generally strong, bolstered by stimulus, strong capital markets and a robust housing market. As wages have increased and savings rates continue to be elevated, we think consumer spending can fuel growth as the Delta variant wanes and supply chains are repaired. Likewise, as the economy more fully reopens, we expect consumer spending to transition toward services and away from goods, more in line with pre-pandemic spending patterns. As vaccinations in Europe and Asia have accelerated, we also see the potential for a more synchronized global recovery, in contrast to the more regional recoveries we have witnessed thus far.
As always, we will continue to invest in companies that can grow market share profitably, independent of the macro environment. We further believe that our companies have attractive reinvestment opportunities, trusted relationships with their customers and enjoy some degree of pricing power. We think this combination of business qualities is effective regardless of whether we are investing in an inflationary or deflationary environment.
Thank you for your investment in Janus Henderson Forty Fund.
Janus Henderson Forty Fund (unaudited)
Fund At A Glance
September 30, 2021
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| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Snap Inc | 3.11% | | 2.61% | | Mastercard Inc | 5.90% | | -1.24% |
| Blackstone Group Inc | 2.91% | | 2.19% | | Alphabet Inc - Class C | 3.31% | | -0.86% |
| ASML Holding NV | 2.64% | | 1.45% | | salesforce.com Inc | 1.52% | | -0.84% |
| Align Technology Inc | 2.34% | | 1.06% | | Tesla Inc | 0.10% | | -0.76% |
| DexCom Inc | 1.18% | | 1.01% | | Uber Technologies Inc | 0.75% | | -0.60% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | 2.13% | | 3.16% | 2.02% |
| Communication Services | | 2.08% | | 18.51% | 11.95% |
| Health Care | | 1.84% | | 13.52% | 12.50% |
| Consumer Staples | | 0.18% | | 1.95% | 4.30% |
| Utilities | | -0.00% | | 0.00% | 0.02% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | -1.12% | | 36.16% | 44.57% |
| Other** | | -0.62% | | 1.86% | 0.00% |
| Industrials | | -0.50% | | 4.99% | 5.02% |
| Real Estate | | -0.21% | | 2.12% | 1.71% |
| Consumer Discretionary | | -0.08% | | 15.54% | 16.92% |
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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 Forty Fund (unaudited)
Fund At A Glance
September 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 8.4% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 5.8% |
Mastercard Inc | |
Information Technology Services | 5.1% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 5.0% |
Facebook Inc | |
Interactive Media & Services | 4.1% |
| | 28.4% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.8% | |
Investment Companies | | 2.2% | |
Private Investment in Public Equity (PIPES) | | 0.5% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.2% | |
Warrants | | 0.0% | |
Other | | (0.7)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
|
Janus Henderson Forty Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended September 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 29.72% | 23.23% | 20.15% | 13.11% | | | 1.01% |
Class A Shares at MOP | | 22.25% | 21.78% | 19.44% | 12.84% | | | |
Class C Shares at NAV | | 28.88% | 22.45% | 19.37% | 12.41% | | | 1.75% |
Class C Shares at CDSC | | 27.88% | 22.45% | 19.37% | 12.41% | | | |
Class D Shares | | 30.00% | 23.50% | 20.24% | 13.07% | | | 0.80% |
Class I Shares | | 30.07% | 23.60% | 20.51% | 13.31% | | | 0.74% |
Class N Shares | | 30.15% | 23.68% | 20.57% | 13.20% | | | 0.67% |
Class R Shares | | 29.21% | 22.77% | 19.71% | 12.72% | | | 1.42% |
Class S Shares | | 29.50% | 23.08% | 20.04% | 12.99% | | | 1.17% |
Class T Shares | | 29.86% | 23.39% | 20.32% | 13.13% | | | 0.92% |
Russell 1000 Growth Index | | 27.32% | 22.84% | 19.68% | 9.79% | | | |
S&P 500 Index | | 30.00% | 16.90% | 16.63% | 9.17% | | | |
Morningstar Quartile - Class S Shares | | 1st | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Large Growth Funds | | 251/1,252 | 247/1,144 | 163/1,009 | 22/509 | | | |
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.
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),
Janus Henderson Forty Fund (unaudited)
Performance
non-diversification, Environmental, Social and Governance (ESG) factors, 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 I Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009 after the reorganization of each class of Janus Adviser Forty Fund (the “JAD predecessor fund”) into corresponding shares of the Fund.
Performance shown for Class S Shares reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares) from August 1, 2000 to July 6, 2009, calculated using the fees and expenses of the JAD predecessor fund’s Class S Shares, net of any applicable fee and expense limitations or waivers. For the periods prior to August 1, 2000, the performance shown for Class S Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization of the Retirement Shares into the JAD predecessor fund). Performance shown for certain periods prior to August 1, 2000 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers.
Performance shown for Class C Shares reflects the historical performance of the JAD predecessor fund’s Class C Shares from September 30, 2002 to July 6, 2009, calculated using the fees and expenses of the JAD predecessor fund’s Class C Shares, net of any applicable fee and expense limitations or waivers. For the periods August 1, 2000 to September 30, 2002, the performance shown for Class C Shares reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares). For the periods prior to August 1, 2000, the performance shown for Class C Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization). Performance shown for certain periods prior to September 30, 2002 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitation or waivers.
Performance shown for Class A Shares and Class R Shares reflects the historical performance of each corresponding class of the JAD predecessor fund from September 30, 2004 to July 6, 2009, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund respectively, net of any applicable fee and expense limitations or waivers. Performance shown for each class for the periods August 1, 2000 to September 30, 2004 reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares). Performance shown for each class for the periods prior to August 1, 2000 reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization). Performance shown for Class A Shares for certain periods prior to September 30, 2004 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers. Performance shown for Class R Shares for certain periods prior to September 30, 2004 was calculated using the fees and expenses of Class R Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers.
Performance shown for Class I Shares reflects the historical performance of the JAD predecessor fund’s Class I Shares from November 28, 2005 to July 6, 2009, calculated using the fees and expenses of the JAD predecessor fund’s Class I Shares, net of any applicable fee and expense limitations or waivers. For the periods August 1, 2000 to November 28, 2005, the performance shown for Class I Shares reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares). For the periods prior to August 1, 2000, the performance shown for Class I Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization). Performance shown for certain periods prior to November 28, 2005 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on January 27, 2017. Performance shown for Class D Shares reflects the performance of the Fund's Class S Shares from July 6, 2009 to January 27, 2017, calculated using the fees and expenses of Class S Shares, net of any applicable fee and expense limitations or waivers. For the periods August 1, 2000 to July 6, 2009, the performance shown for Class D Shares reflects the performance of Class S Shares (formerly named Class I Shares) of the JAD predecessor fund (prior to the reorganization), calculated using the fees and expenses of the JAD predecessor fund's Class S Shares, net of any applicable fee and expense limitations or waivers. For the periods prior to August 1, 2000, the performance shown for Class D Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series - Forty Portfolio (as a result of a separate prior reorganization). Performance shown for certain periods prior to August 1, 2000 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers.
Class T Shares commenced operations on July 6, 2009. Performance shown for Class T Shares reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares) from August 1, 2000 to July 6, 2009, calculated using the fees and expenses of the JAD predecessor fund’s Class S Shares, net of any applicable fee and expense limitations or waivers. For the periods prior to August 1, 2000, the performance shown for Class T Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization). Performance shown for certain periods prior to August 1, 2000 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers.
Class N Shares commenced operations on May 31, 2012. Performance shown for Class N Shares reflects the performance of the Fund’s Class S Shares from July 6, 2009 to May 31, 2012, calculated using the fees and expenses of Class S Shares, net of any applicable fee and expense limitations or waivers. For the periods August 1, 2000 to July 6, 2009, the performance shown for Class N Shares reflects the performance of Class
See important disclosures on the next page.
Janus Henderson Forty Fund (unaudited)
Performance
S Shares (formerly named Class I Shares) of the JAD predecessor fund (prior to the reorganization), calculated using the fees and expenses of the JAD predecessor fund’s Class S Shares, net of any applicable fee and expense limitations or waivers. For the periods prior to August 1, 2000, the performance shown for Class N Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization). Performance shown for certain periods prior to August 1, 2000 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, 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.”
*The Predecessor Fund’s inception date – May 1, 1997
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Forty 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 prospectus. 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,143.40 | $5.48 | | $1,000.00 | $1,019.95 | $5.16 | 1.02% |
Class C Shares | $1,000.00 | $1,139.50 | $9.23 | | $1,000.00 | $1,016.44 | $8.69 | 1.72% |
Class D Shares | $1,000.00 | $1,144.70 | $4.41 | | $1,000.00 | $1,020.96 | $4.15 | 0.82% |
Class I Shares | $1,000.00 | $1,144.80 | $4.14 | | $1,000.00 | $1,021.21 | $3.90 | 0.77% |
Class N Shares | $1,000.00 | $1,145.00 | $3.76 | | $1,000.00 | $1,021.56 | $3.55 | 0.70% |
Class R Shares | $1,000.00 | $1,141.00 | $7.78 | | $1,000.00 | $1,017.80 | $7.33 | 1.45% |
Class S Shares | $1,000.00 | $1,142.20 | $6.44 | | $1,000.00 | $1,019.05 | $6.07 | 1.20% |
Class T Shares | $1,000.00 | $1,144.00 | $5.05 | | $1,000.00 | $1,020.36 | $4.76 | 0.94% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 Forty Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 97.8% | | | |
Aerospace & Defense – 1.7% | | | |
| | L3Harris Technologies Inc | | 1,667,736 | | | $367,302,177 | |
Capital Markets – 3.6% | | | |
| | Blackstone Group Inc | | 6,718,706 | | | 781,654,256 | |
Chemicals – 2.2% | | | |
| | Sherwin-Williams Co | | 1,690,251 | | | 472,813,912 | |
Diversified Financial Services – 0.2% | | | |
| | Altimeter Growth Corp - Class A*,#,£ | | 4,920,075 | | | 50,283,167 | |
Entertainment – 4.9% | | | |
| | Netflix Inc* | | 862,215 | | | 526,244,303 | |
| | Walt Disney Co* | | 3,171,903 | | | 536,590,831 | |
| | | 1,062,835,134 | |
Equity Real Estate Investment Trusts (REITs) – 2.1% | | | |
| | American Tower Corp | | 1,748,032 | | | 463,945,173 | |
Health Care Equipment & Supplies – 13.5% | | | |
| | Align Technology Inc* | | 945,159 | | | 628,937,153 | |
| | Boston Scientific Corp* | | 14,658,417 | | | 636,028,714 | |
| | Danaher Corp | | 2,510,060 | | | 764,162,666 | |
| | DexCom Inc* | | 1,186,170 | | | 648,668,926 | |
| | Edwards Lifesciences Corp* | | 2,206,122 | | | 249,755,072 | |
| | | 2,927,552,531 | |
Hotels, Restaurants & Leisure – 0.8% | | | |
| | Caesars Entertainment Inc* | | 1,606,172 | | | 180,340,992 | |
Household Products – 1.8% | | | |
| | Procter & Gamble Co | | 2,762,335 | | | 386,174,433 | |
Information Technology Services – 7.6% | | | |
| | Mastercard Inc | | 3,176,781 | | | 1,104,503,218 | |
| | Shopify Inc* | | 126,424 | | | 171,403,131 | |
| | Twilio Inc* | | 1,148,203 | | | 366,334,167 | |
| | | 1,642,240,516 | |
Interactive Media & Services – 13.1% | | | |
| | Alphabet Inc - Class C* | | 304,282 | | | 811,005,857 | |
| | Facebook Inc* | | 2,581,917 | | | 876,276,811 | |
| | Match Group Inc* | | 2,151,094 | | | 337,700,247 | |
| | Snap Inc* | | 10,782,027 | | | 796,468,334 | |
| | | 2,821,451,249 | |
Internet & Direct Marketing Retail – 8.8% | | | |
| | Amazon.com Inc* | | 380,334 | | | 1,249,412,403 | |
| | Booking Holdings Inc* | | 216,741 | | | 514,514,958 | |
| | Farfetch Ltd - Class A* | | 3,870,535 | | | 145,067,652 | |
| | | 1,908,995,013 | |
Machinery – 1.4% | | | |
| | Deere & Co | | 908,188 | | | 304,306,553 | |
Metals & Mining – 0.7% | | | |
| | Freeport-McMoRan Inc | | 4,441,763 | | | 144,490,550 | |
Professional Services – 1.9% | | | |
| | CoStar Group Inc* | | 4,689,210 | | | 403,553,413 | |
Semiconductor & Semiconductor Equipment – 10.6% | | | |
| | ASML Holding NV | | 885,683 | | | 659,931,260 | |
| | NVIDIA Corp | | 3,568,072 | | | 739,161,796 | |
| | Taiwan Semiconductor Manufacturing Co Ltd (ADR) | | 2,818,336 | | | 314,667,214 | |
| | Texas Instruments Inc | | 3,035,315 | | | 583,417,896 | |
| | | 2,297,178,166 | |
Software – 13.7% | | | |
| | Adobe Inc* | | 1,202,478 | | | 692,290,634 | |
| | Microsoft Corp | | 6,432,481 | | | 1,813,445,044 | |
| | Unity Software Inc* | | 1,236,185 | | | 156,068,356 | |
| | Workday Inc - Class A* | | 1,160,073 | | | 289,890,642 | |
| | | 2,951,694,676 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Forty Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Technology Hardware, Storage & Peripherals – 5.0% | | | |
| | Apple Inc | | 7,595,129 | | | $1,074,710,753 | |
Textiles, Apparel & Luxury Goods – 3.0% | | | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 524,661 | | | 375,117,120 | |
| | NIKE Inc - Class B | | 1,866,804 | | | 271,115,945 | |
| | | 646,233,065 | |
Wireless Telecommunication Services – 1.2% | | | |
| | T-Mobile US Inc* | | 2,082,906 | | | 266,112,071 | |
Total Common Stocks (cost $10,369,181,205) | | 21,153,867,800 | |
Private Investment in Public Equity (PIPES)– 0.5% | | | |
Diversified Financial Services – 0.5% | | | |
| | Altimeter Growth Corp*,§((cost $100,724,460) | | 10,072,446 | | | 102,940,398 | |
Warrants– 0% | | | |
Diversified Financial Services – 0% | | | |
| | Altimeter Growth Corp, expires 9/30/25*((cost $3,145,245) | | 984,015 | | | 2,174,673 | |
Investment Companies– 2.2% | | | |
Money Markets – 2.2% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $491,118,148) | | 491,081,383 | | | 491,130,492 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.2% | | | |
Investment Companies – 0.2% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 30,214,439 | | | 30,214,439 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 0.0400%, 10/1/21 | | $7,553,610 | | | 7,553,610 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $37,768,049) | | 37,768,049 | |
Total Investments (total cost $11,001,937,107) – 100.7% | | 21,787,881,412 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.7)% | | (159,585,576) | |
Net Assets – 100% | | $21,628,295,836 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $20,121,695,035 | | 92.4 | % |
Netherlands | | 659,931,260 | | 3.0 | |
France | | 375,117,120 | | 1.7 | |
Taiwan | | 314,667,214 | | 1.4 | |
Canada | | 171,403,131 | | 0.8 | |
United Kingdom | | 145,067,652 | | 0.7 | |
| | | | | | |
| | | | | | |
Total | | $21,787,881,412 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Forty Fund
Schedule of Investments
September 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/21 |
Common Stocks - 0.2% |
Diversified Financial Services - 0.2% | |
| | Altimeter Growth Corp - Class A* | $ | - | $ | - | $ | 918,158 | $ | 50,283,167 |
Private Investment in Public Equity (PIPES) - 0.5% |
Diversified Financial Services - 0.5% | |
| | Altimeter Growth Corp*,§ | | - | | - | | 2,215,938 | | 102,940,398 |
Warrants - 0.0% |
Diversified Financial Services - 0.0% | |
| | Altimeter Growth Corp* | | - | | - | | (970,572) | | 2,174,673 |
Investment Companies - 2.2% |
Money Markets - 2.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 256,798 | | (2,100) | | 501 | | 491,130,492 |
Investments Purchased with Cash Collateral from Securities Lending - 0.2% |
Investment Companies - 0.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 1,959,196∆ | | - | | - | | 30,214,439 |
Total Affiliated Investments - 3.1% | $ | 2,215,994 | $ | (2,100) | $ | 2,164,025 | $ | 676,743,169 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2021, this column reflects amounts for the entire year ended September 30, 2021 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Common Stocks - 0.2% |
Diversified Financial Services - 0.2% | |
| | Altimeter Growth Corp - Class A* | | - | | 49,365,009 | | - | | 50,283,167 |
Private Investment in Public Equity (PIPES) - 0.5% |
Diversified Financial Services - 0.5% | |
| | Altimeter Growth Corp*,§ | | - | | 100,724,460 | | - | | 102,940,398 |
Warrants - 0.0% |
Diversified Financial Services - 0.0% | |
| | Altimeter Growth Corp* | | - | | 3,145,245 | | - | | 2,174,673 |
Investment Companies - 2.2% |
Money Markets - 2.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 191,567,780 | | 3,591,788,115 | | (3,292,223,804) | | 491,130,492 |
Investments Purchased with Cash Collateral from Securities Lending - 0.2% |
Investment Companies - 0.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 2,088,280 | | 188,811,342 | | (160,685,183) | | 30,214,439 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Forty Fund
Notes to Schedule of Investments and Other Information
| | |
Russell 1000® Growth Index | Russell 1000® Growth Index reflects the performance of U.S. large-cap equities with higher price-to-book ratios and higher forecasted growth values. |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at September 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. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2021) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Altimeter Growth Corp | 4/14/21 | $ | 100,724,460 | $ | 102,940,398 | | 0.5 | % |
| | | | | | | | | |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2021. The issuer incurs all registration costs. | |
| | | | | | | | | | | | | |
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 September 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 | | | | | | |
Textiles, Apparel & Luxury Goods | $ | 271,115,945 | $ | 375,117,120 | $ | - |
All Other | | 20,507,634,735 | | - | | - |
Private Investment in Public Equity (PIPES) | | - | | 102,940,398 | | - |
Warrants | | 2,174,673 | | - | | - |
Investment Companies | | - | | 491,130,492 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 37,768,049 | | - |
Total Assets | $ | 20,780,925,353 | $ | 1,006,956,059 | $ | - |
| | | | | | | |
Janus Henderson Forty Fund
Statement of Assets and Liabilities
September 30, 2021
| |
See footnotes at the end of the Statement |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $10,327,369,806)(1) | | $ | 21,111,138,243 | |
| Affiliated investments, at value (cost $674,567,301) | | | 676,743,169 | |
| Cash | | | 8,801 | |
| Non-interested Trustees' deferred compensation | | | 539,638 | |
| Receivables: | | | | |
| | Fund shares sold | | | 18,103,899 | |
| | Dividends | | | 5,310,756 | |
| | Foreign tax reclaims | | | 374,177 | |
| | Dividends from affiliates | | | 25,555 | |
| Other assets | | | 392,048 | |
Total Assets | | | 21,812,636,286 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 37,768,049 | |
| Payables: | | | — | |
| | Investments purchased | | | 100,724,460 | |
| | Fund shares repurchased | | | 27,862,564 | |
| | Advisory fees | | | 13,386,243 | |
| | Transfer agent fees and expenses | | | 2,741,606 | |
| | Non-interested Trustees' deferred compensation fees | | | 539,638 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 426,838 | |
| | Non-interested Trustees' fees and expenses | | | 147,783 | |
| | Professional fees | | | 60,096 | |
| | Affiliated fund administration fees payable | | | 46,945 | |
| | Custodian fees | | | 24,790 | |
| | Accrued expenses and other payables | | | 611,438 | |
Total Liabilities | | | 184,340,450 | |
Net Assets | | $ | 21,628,295,836 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Forty Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 9,014,406,945 | |
| Total distributable earnings (loss) | | | 12,613,888,891 | |
Total Net Assets | | $ | 21,628,295,836 | |
Net Assets - Class A Shares | | $ | 525,208,176 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,345,581 | |
Net Asset Value Per Share(2) | | $ | 56.20 | |
Maximum Offering Price Per Share(3) | | $ | 59.63 | |
Net Assets - Class C Shares | | $ | 160,132,606 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,691,580 | |
Net Asset Value Per Share(2) | | $ | 43.38 | |
Net Assets - Class D Shares | | $ | 12,846,210,066 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 236,674,414 | |
Net Asset Value Per Share | | $ | 54.28 | |
Net Assets - Class I Shares | | $ | 2,360,268,672 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 39,965,588 | |
Net Asset Value Per Share | | $ | 59.06 | |
Net Assets - Class N Shares | | $ | 581,224,622 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,787,494 | |
Net Asset Value Per Share | | $ | 59.38 | |
Net Assets - Class R Shares | | $ | 103,653,014 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,138,083 | |
Net Asset Value Per Share | | $ | 48.48 | |
Net Assets - Class S Shares | | $ | 586,481,208 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,996,912 | |
Net Asset Value Per Share | | $ | 53.33 | |
Net Assets - Class T Shares | | $ | 4,465,117,472 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 81,202,269 | |
Net Asset Value Per Share | | $ | 54.99 | |
| |
(1) Includes $36,826,222 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 | SEPTEMBER 30, 2021 |
Janus Henderson Forty Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 105,209,671 | |
| Affiliated securities lending income, net | | 1,959,196 | |
| Dividends from affiliates | | 256,798 | |
| Unaffiliated securities lending income, net | | 2,774 | |
| Foreign tax withheld | | (2,211,633) | |
Total Investment Income | | 105,216,806 | |
Expenses: | | | |
| Advisory fees | | 136,920,994 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 1,208,547 | |
| | Class C Shares | | 1,405,163 | |
| | Class R Shares | | 511,620 | |
| | Class S Shares | | 1,429,923 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 13,393,074 | |
| | Class R Shares | | 265,640 | |
| | Class S Shares | | 1,429,471 | |
| | Class T Shares | | 10,424,348 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 345,309 | |
| | Class C Shares | | 97,189 | |
| | Class I Shares | | 1,367,122 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 26,970 | |
| | Class C Shares | | 6,930 | |
| | Class D Shares | | 646,940 | |
| | Class I Shares | | 81,046 | |
| | Class N Shares | | 13,685 | |
| | Class R Shares | | 987 | |
| | Class S Shares | | 3,856 | |
| | Class T Shares | | 26,312 | |
| Shareholder reports expense | | 772,346 | |
| Affiliated fund administration fees | | 560,834 | |
| Non-interested Trustees’ fees and expenses | | 308,762 | |
| Registration fees | | 253,240 | |
| Professional fees | | 128,949 | |
| Custodian fees | | 104,707 | |
| Other expenses | | 935,094 | |
Total Expenses | | 172,669,058 | |
Less: Excess Expense Reimbursement and Waivers | | (631,536) | |
Net Expenses | | 172,037,522 | |
Net Investment Income/(Loss) | | (66,820,716) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Forty Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 2,250,878,717 | |
| Investments in affiliates | | (2,100) | |
Total Net Realized Gain/(Loss) on Investments | | 2,250,876,617 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 2,907,409,018 | |
| Investments in affiliates | | 2,164,025 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 2,909,573,043 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 5,093,628,944 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2021 |
Janus Henderson Forty Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (66,820,716) | | $ | (5,925,871) | |
| Net realized gain/(loss) on investments | | 2,250,876,617 | | | 1,361,696,671 | |
| Change in unrealized net appreciation/depreciation | | 2,909,573,043 | | | 3,191,807,337 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 5,093,628,944 | | | 4,547,578,137 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (33,598,159) | | | (20,863,545) | |
| | Class C Shares | | (14,455,246) | | | (10,054,893) | |
| | Class D Shares | | (866,959,615) | | | (575,968,009) | |
| | Class I Shares | | (141,602,894) | | | (82,560,557) | |
| | Class N Shares | | (39,775,852) | | | (19,854,859) | |
| | Class R Shares | | (9,043,233) | | | (7,856,211) | |
| | Class S Shares | | (43,872,591) | | | (32,637,257) | |
| | Class T Shares | | (302,858,400) | | | (204,605,984) | |
Net Decrease from Dividends and Distributions to Shareholders | | (1,452,165,990) | | | (954,401,315) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 25,051,230 | | | 25,928,024 | |
| | Class C Shares | | (1,600,042) | | | (16,929,068) | |
| | Class D Shares | | 396,508,500 | | | 151,471,385 | |
| | Class I Shares | | 183,240,069 | | | 230,358,576 | |
| | Class N Shares | | (27,031,815) | | | 126,345,527 | |
| | Class R Shares | | (15,860,764) | | | (26,554,129) | |
| | Class S Shares | | (60,632,171) | | | (43,112,589) | |
| | Class T Shares | | 86,098,289 | | | (36,857,386) | |
Net Increase/(Decrease) from Capital Share Transactions | | 585,773,296 | | | 410,650,340 | |
Net Increase/(Decrease) in Net Assets | | 4,227,236,250 | | | 4,003,827,162 | |
Net Assets: | | | | | | |
| Beginning of period | | 17,401,059,586 | | | 13,397,232,424 | |
| End of period | $ | 21,628,295,836 | | $ | 17,401,059,586 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $46.81 | | | $37.16 | | | $37.42 | | | $33.03 | | | $30.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.26) | | | (0.08) | | | 0.02 | | | (0.04) | | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | 13.50 | | | 12.27 | | | 2.25 | | | 7.38 | | | 6.13 | |
| Total from Investment Operations | | 13.24 | | | 12.19 | | | 2.27 | | | 7.34 | | | 6.10 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.01) | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (3.85) | | | (2.54) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Net Asset Value, End of Period | | $56.20 | | | $46.81 | | | $37.16 | | | $37.42 | | | $33.03 | |
| Total Return* | | 29.72% | | | 34.62% | | | 7.77% | | | 23.77% | | | 22.03% | |
| Net Assets, End of Period (in thousands) | | $525,208 | | | $411,899 | | | $303,070 | | | $237,547 | | | $211,197 | |
| Average Net Assets for the Period (in thousands) | | $483,419 | | | $339,815 | | | $268,921 | | | $220,973 | | | $219,728 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.02% | | | 1.01% | | | 1.01% | | | 1.04% | | | 1.07% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.02% | | | 1.01% | | | 0.98% | | | 0.98% | | | 1.02% | |
| | Ratio of Net Investment Income/(Loss) | | (0.50)% | | | (0.21)% | | | 0.05% | | | (0.13)% | | | (0.11)% | |
| Portfolio Turnover Rate | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $37.15 | | | $30.17 | | | $31.11 | | | $28.08 | | | $26.27 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.47) | | | (0.28) | | | (0.16) | | | (0.21) | | | (0.19) | |
| | Net realized and unrealized gain/(loss) | | 10.55 | | | 9.79 | | | 1.75 | | | 6.19 | | | 5.24 | |
| Total from Investment Operations | | 10.08 | | | 9.51 | | | 1.59 | | | 5.98 | | | 5.05 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Net Asset Value, End of Period | | $43.38 | | | $37.15 | | | $30.17 | | | $31.11 | | | $28.08 | |
| Total Return* | | 28.88% | | | 33.67% | | | 7.11% | | | 23.05% | | | 21.24% | |
| Net Assets, End of Period (in thousands) | | $160,133 | | | $137,952 | | | $126,726 | | | $227,488 | | | $235,992 | |
| Average Net Assets for the Period (in thousands) | | $153,590 | | | $128,357 | | | $154,535 | | | $235,933 | | | $245,129 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.68% | | | 1.68% | | | 1.63% | | | 1.66% | | | 1.69% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.68% | | | 1.68% | | | 1.58% | | | 1.59% | | | 1.64% | |
| | Ratio of Net Investment Income/(Loss) | | (1.15)% | | | (0.87)% | | | (0.58)% | | | (0.74)% | | | (0.72)% | |
| Portfolio Turnover Rate | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $45.24 | | | $35.99 | | | $36.25 | | | $32.02 | | | $28.81 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.15) | | | —(3) | | | 0.09 | | | 0.04 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 13.04 | | | 11.86 | | | 2.18 | | | 7.15 | | | 4.62 | |
| Total from Investment Operations | | 12.89 | | | 11.86 | | | 2.27 | | | 7.19 | | | 4.67 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.08) | | | — | | | (0.01) | | | — | |
| | Distributions (from capital gains) | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (1.46) | |
| Total Dividends and Distributions | | (3.85) | | | (2.61) | | | (2.53) | | | (2.96) | | | (1.46) | |
| Net Asset Value, End of Period | | $54.28 | | | $45.24 | | | $35.99 | | | $36.25 | | | $32.02 | |
| Total Return* | | 30.00% | | | 34.88% | | | 8.03% | | | 24.06% | | | 16.71% | |
| Net Assets, End of Period (in thousands) | | $12,846,210 | | | $10,287,828 | | | $8,018,389 | | | $7,842,180 | | | $6,646,830 | |
| Average Net Assets for the Period (in thousands) | | $11,890,281 | | | $8,759,841 | | | $7,517,796 | | | $7,241,280 | | | $4,012,697 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.82% | | | 0.80% | | | 0.79% | | | 0.79% | | | 0.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.82% | | | 0.80% | | | 0.75% | | | 0.73% | | | 0.73% | |
| | Ratio of Net Investment Income/(Loss) | | (0.29)% | | | 0.00%(4) | | | 0.27% | | | 0.13% | | | 0.25% | |
| Portfolio Turnover Rate | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $48.89 | | | $38.69 | | | $38.74 | | | $34.00 | | | $30.87 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.13) | | | 0.03 | | | 0.12 | | | 0.07 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 14.15 | | | 12.80 | | | 2.36 | | | 7.63 | | | 6.30 | |
| Total from Investment Operations | | 14.02 | | | 12.83 | | | 2.48 | | | 7.70 | | | 6.37 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.10) | | | — | | | (0.01) | | | — | |
| | Distributions (from capital gains) | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (3.85) | | | (2.63) | | | (2.53) | | | (2.96) | | | (3.24) | |
| Net Asset Value, End of Period | | $59.06 | | | $48.89 | | | $38.69 | | | $38.74 | | | $34.00 | |
| Total Return* | | 30.07% | | | 34.97% | | | 8.06% | | | 24.19% | | | 22.43% | |
| Net Assets, End of Period (in thousands) | | $2,360,269 | | | $1,783,057 | | | $1,178,733 | | | $1,125,445 | | | $935,002 | |
| Average Net Assets for the Period (in thousands) | | $2,119,223 | | | $1,416,287 | | | $1,081,498 | | | $1,024,982 | | | $820,856 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.74% | | | 0.72% | | | 0.72% | | | 0.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.74% | | | 0.68% | | | 0.66% | | | 0.70% | |
| | Ratio of Net Investment Income/(Loss) | | (0.24)% | | | 0.06% | | | 0.34% | | | 0.19% | | | 0.22% | |
| Portfolio Turnover Rate | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 January 27, 2017 (inception date) through September 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) Less than 0.005%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $49.11 | | | $38.85 | | | $38.86 | | | $34.08 | | | $30.92 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.10) | | | 0.05 | | | 0.15 | | | 0.09 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | 14.22 | | | 12.86 | | | 2.37 | | | 7.66 | | | 6.31 | |
| Total from Investment Operations | | 14.12 | | | 12.91 | | | 2.52 | | | 7.75 | | | 6.40 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.12) | | | — | | | (0.02) | | | — | |
| | Distributions (from capital gains) | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (3.85) | | | (2.65) | | | (2.53) | | | (2.97) | | | (3.24) | |
| Net Asset Value, End of Period | | $59.38 | | | $49.11 | | | $38.85 | | | $38.86 | | | $34.08 | |
| Total Return* | | 30.15% | | | 35.06% | | | 8.15% | | | 24.27% | | | 22.49% | |
| Net Assets, End of Period (in thousands) | | $581,225 | | | $511,465 | | | $273,438 | | | $199,929 | | | $148,223 | |
| Average Net Assets for the Period (in thousands) | | $533,647 | | | $384,360 | | | $212,223 | | | $178,576 | | | $147,902 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.70% | | | 0.67% | | | 0.65% | | | 0.66% | | | 0.68% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.70% | | | 0.67% | | | 0.62% | | | 0.60% | | | 0.63% | |
| | Ratio of Net Investment Income/(Loss) | | (0.17)% | | | 0.12% | | | 0.40% | | | 0.26% | | | 0.30% | |
| Portfolio Turnover Rate | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $41.01 | | | $32.97 | | | $33.65 | | | $30.08 | | | $27.84 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.40) | | | (0.21) | | | (0.10) | | | (0.15) | | | (0.13) | |
| | Net realized and unrealized gain/(loss) | | 11.72 | | | 10.78 | | | 1.95 | | | 6.67 | | | 5.61 | |
| Total from Investment Operations | | 11.32 | | | 10.57 | | | 1.85 | | | 6.52 | | | 5.48 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Net Asset Value, End of Period | | $48.48 | | | $41.01 | | | $32.97 | | | $33.65 | | | $30.08 | |
| Total Return* | | 29.21% | | | 34.05% | | | 7.36% | | | 23.34% | | | 21.62% | |
| Net Assets, End of Period (in thousands) | | $103,653 | | | $101,440 | | | $106,843 | | | $127,954 | | | $119,259 | |
| Average Net Assets for the Period (in thousands) | | $106,256 | | | $101,751 | | | $113,204 | | | $123,528 | | | $115,657 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.43% | | | 1.41% | | | 1.40% | | | 1.40% | | | 1.43% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.42% | | | 1.41% | | | 1.36% | | | 1.34% | | | 1.37% | |
| | Ratio of Net Investment Income/(Loss) | | (0.90)% | | | (0.60)% | | | (0.34)% | | | (0.49)% | | | (0.46)% | |
| Portfolio Turnover Rate | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $44.67 | | | $35.61 | | | $36.02 | | | $31.93 | | | $29.29 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.33) | | | (0.13) | | | (0.03) | | | (0.08) | | | (0.06) | |
| | Net realized and unrealized gain/(loss) | | 12.84 | | | 11.72 | | | 2.15 | | | 7.12 | | | 5.94 | |
| Total from Investment Operations | | 12.51 | | | 11.59 | | | 2.12 | | | 7.04 | | | 5.88 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Net Asset Value, End of Period | | $53.33 | | | $44.67 | | | $35.61 | | | $36.02 | | | $31.93 | |
| Total Return* | | 29.50% | | | 34.40% | | | 7.65% | | | 23.63% | | | 21.93% | |
| Net Assets, End of Period (in thousands) | | $586,481 | | | $546,341 | | | $475,553 | | | $516,748 | | | $517,623 | |
| Average Net Assets for the Period (in thousands) | | $571,789 | | | $491,995 | | | $468,610 | | | $525,707 | | | $512,584 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.20% | | | 1.17% | | | 1.15% | | | 1.15% | | | 1.18% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.19% | | | 1.16% | | | 1.10% | | | 1.08% | | | 1.12% | |
| | Ratio of Net Investment Income/(Loss) | | (0.66)% | | | (0.36)% | | | (0.08)% | | | (0.23)% | | | (0.20)% | |
| Portfolio Turnover Rate | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $45.83 | | | $36.44 | | | $36.70 | | | $32.40 | | | $29.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.21) | | | (0.04) | | | 0.06 | | | 0.01 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 13.22 | | | 12.01 | | | 2.21 | | | 7.24 | | | 5.98 | |
| Total from Investment Operations | | 13.01 | | | 11.97 | | | 2.27 | | | 7.25 | | | 6.03 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.05) | | | — | | | —(2) | | | — | |
| | Distributions (from capital gains) | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (3.85) | | | (2.58) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Net Asset Value, End of Period | | $54.99 | | | $45.83 | | | $36.44 | | | $36.70 | | | $32.40 | |
| Total Return* | | 29.86% | | | 34.71% | | | 7.93% | | | 23.96% | | | 22.22% | |
| Net Assets, End of Period (in thousands) | | $4,465,117 | | | $3,621,078 | | | $2,914,481 | | | $2,935,096 | | | $2,529,514 | |
| Average Net Assets for the Period (in thousands) | | $4,169,739 | | | $3,138,440 | | | $2,750,999 | | | $2,727,557 | | | $1,084,741 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.95% | | | 0.92% | | | 0.90% | | | 0.91% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.93% | | | 0.91% | | | 0.85% | | | 0.83% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | (0.41)% | | | (0.10)% | | | 0.17% | | | 0.02% | | | 0.15% | |
| Portfolio Turnover Rate | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | 21 |
Janus Henderson Forty Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Forty 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 nondiversified, 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 original 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 Forty 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 Forty 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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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 Forty 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 Forty 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 Forty 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 | $ | 36,826,222 | $ | — | $ | (36,826,222) | $ | — |
| | | | | | | | | |
(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 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.
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Private Investment in Public Equity
Private investments in public equity (“PIPEs”) are equity securities privately purchased from public companies (including special purpose acquisition companies) at a specified price. PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. Until the public registration process is completed, PIPEs are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect. To the extent that they increase the supply of a company’s stock in the market, PIPEs can potentially dilute the value of existing shares.
Special Purpose Acquisition Companies (SPAC)
The Fund may invest in stock, warrants, and other securities of special purpose acquisition companies (“SPACs”) or similar entities that pool funds to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC typically invests its assets (less a portion retained to cover expenses) in U.S. Government securities, money market fund securities, and cash. If an acquisition that meets the requirements for the SPAC is not completed within a
Janus Henderson Forty Fund
Notes to Financial Statements
pre-established period of time (typically two years), the invested funds are returned to the SPAC’s shareholders. Because SPACs and similar entities are in essence blank check companies without an operating history or ongoing business other than seeking acquisitions, the value of a SPAC’s securities is particularly dependent on the ability of the SPAC’s management to timely identify and complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. To the extent the SPAC is invested in cash or similar securities while awaiting an acquisition opportunity, a Fund’s ability to meet its investment objective may be negatively impacted. In addition, some SPACs may be traded in the over-the-counter market and may be considered illiquid and/or be subject to restrictions on resale.
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 September 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $36,826,222. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2021 is $37,768,049, resulting in the net amount due to the counterparty of $941,827.
Janus Henderson Forty Fund
Notes to Financial Statements
3. Investment Advisory Agreements and Other Transactions with Affiliates
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 0.64%, and the Fund’s benchmark index used in the calculation is the Russell 1000® Growth 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 ±8.50%. 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 prospectus 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 September 30, 2021, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.68%.
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.
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 (if applicable), 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 0.68% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 28, 2021. The previous expense limit (until February 1, 2021) was 0.77%. 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 Henderson Forty Fund
Notes to Financial Statements
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 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 Henderson Forty Fund
Notes to Financial Statements
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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $90,802.
Janus Henderson Forty 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. During the year ended September 30, 2021, redeeming shareholders of Class A Shares paid CDSCs of $2,069 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 September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $18,323.
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) | |
$ 99,217,244 | $ 1,771,893,790 | $ - | $ - | $ - | $ (542,962) | $ 10,743,320,819 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 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) |
$ 11,044,560,593 | $ 10,847,934,211 | $(104,613,392) | $ 10,743,320,819 |
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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 31,168,249 | $ 1,420,997,741 | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 33,860,854 | $ 920,540,461 | $ - | $ - | |
Janus Henderson Forty 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 |
$ 69,648,224 | $ 63,524,589 | $ (133,172,813) |
Capital has been adjusted by $69,648,224, including $66,381,202 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Forty Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 1,923,980 | $ 98,440,290 | | 3,072,089 | $120,669,208 |
Reinvested dividends and distributions | 553,577 | 26,449,919 | | 448,932 | 16,650,906 |
Shares repurchased | (1,931,980) | (99,838,979) | | (2,876,579) | (111,392,090) |
Net Increase/(Decrease) | 545,577 | $ 25,051,230 | | 644,442 | $ 25,928,024 |
Class C Shares: | | | | | |
Shares sold | 827,558 | $ 32,934,290 | | 1,355,099 | $ 41,317,460 |
Reinvested dividends and distributions | 342,199 | 12,685,302 | | 259,317 | 7,673,179 |
Shares repurchased | (1,191,802) | (47,219,634) | | (2,101,840) | (65,919,707) |
Net Increase/(Decrease) | (22,045) | $ (1,600,042) | | (487,424) | $ (16,929,068) |
Class D Shares: | | | | | |
Shares sold | 7,868,804 | $392,766,804 | | 9,026,687 | $342,305,718 |
Reinvested dividends and distributions | 18,092,686 | 833,530,050 | | 15,470,826 | 553,700,851 |
Shares repurchased | (16,696,195) | (829,788,354) | | (19,892,179) | (744,535,184) |
Net Increase/(Decrease) | 9,265,295 | $396,508,500 | | 4,605,334 | $151,471,385 |
Class I Shares: | | | | | |
Shares sold | 11,693,146 | $638,016,744 | | 15,532,349 | $616,291,121 |
Reinvested dividends and distributions | 2,333,899 | 116,951,685 | | 1,789,568 | 69,184,700 |
Shares repurchased | (10,531,626) | (571,728,360) | | (11,315,854) | (455,117,245) |
Net Increase/(Decrease) | 3,495,419 | $183,240,069 | | 6,006,063 | $230,358,576 |
Class N Shares: | | | | | |
Shares sold | 3,128,306 | $171,897,432 | | 5,723,924 | $222,778,501 |
Reinvested dividends and distributions | 756,748 | 38,109,828 | | 492,714 | 19,127,162 |
Shares repurchased | (4,511,737) | (237,039,075) | | (2,840,097) | (115,560,136) |
Net Increase/(Decrease) | (626,683) | $ (27,031,815) | | 3,376,541 | $126,345,527 |
Class R Shares: | | | | | |
Shares sold | 403,015 | $ 18,154,560 | | 497,120 | $ 17,159,177 |
Reinvested dividends and distributions | 211,734 | 8,755,197 | | 215,467 | 7,024,221 |
Shares repurchased | (950,263) | (42,770,521) | | (1,480,006) | (50,737,527) |
Net Increase/(Decrease) | (335,514) | $ (15,860,764) | | (767,419) | $ (26,554,129) |
Class S Shares: | | | | | |
Shares sold | 1,477,965 | $ 72,325,291 | | 2,424,108 | $ 90,525,332 |
Reinvested dividends and distributions | 959,158 | 43,545,766 | | 915,293 | 32,438,001 |
Shares repurchased | (3,672,033) | (176,503,228) | | (4,462,732) | (166,075,922) |
Net Increase/(Decrease) | (1,234,910) | $ (60,632,171) | | (1,123,331) | $ (43,112,589) |
Class T Shares: | | | | | |
Shares sold | 7,415,102 | $374,476,972 | | 8,286,284 | $316,964,285 |
Reinvested dividends and distributions | 6,309,473 | 294,778,584 | | 5,490,211 | 199,239,761 |
Shares repurchased | (11,527,480) | (583,157,267) | | (14,760,334) | (553,061,432) |
Net Increase/(Decrease) | 2,197,095 | $ 86,098,289 | | (983,839) | $ (36,857,386) |
6. Purchases and Sales of Investment Securities
For the year ended September 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 |
$5,988,981,461 | $7,099,604,007 | - | - |
Janus Henderson Forty Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 Forty Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Forty Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Forty Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 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 September 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 September 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 September 30, 2021 by correspondence with the custodian, transfer agent, investee company 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
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Forty 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 Forty 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 Forty 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 Forty 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 Forty 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 Forty 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 Forty 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 Forty 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 Forty 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 Forty 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 Forty 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 Forty 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.
Janus Henderson Forty 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 September 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 Bloomberg 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 Forty 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.
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.
Janus Henderson Forty Fund
Useful Information About Your Fund Report (unaudited)
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 Forty Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Capital Gain Distributions | $1,487,378,943 |
Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income Percentage | 91% |
Janus Henderson Forty 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 Forty 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Forty 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 Forty 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Forty 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Forty 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Forty 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 |
A. Douglas Rao
151 Detroit Street
Denver, CO 80206
DOB: 1974 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Forty Fund | 6/13-Present | Portfolio Manager for other Janus Henderson accounts. |
Nick Schommer
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Forty Fund | 1/16-Present | 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, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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 Forty 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Forty 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 |
| | | | 125-02-93041 11-21 |
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| | | ANNUAL REPORT September 30, 2021 |
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| | Janus Henderson Global Equity 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 Global Equity Income Fund
Janus Henderson Global Equity Income Fund (unaudited)
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FUND SNAPSHOT The Janus Henderson Global Equity Income Fund is a long-only portfolio that seeks a high level of current income and steady capital appreciation. The Fund seeks global, high-quality, income-producing equities with a focus on international companies. | | | 
Ben Lofthouse co-portfolio manager | 
Job Curtis co-portfolio manager | 
Alex Crooke co-portfolio manager |
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PERFORMANCE
The Janus Henderson Global Equity Income Fund I Shares returned 19.43% for the 12-month period ended September 30, 2021. The Fund’s primary benchmark, the MSCI World IndexSM, returned 28.82%, and the Fund’s secondary benchmark, 85% MSCI ACWI ex-US High Dividend Yield / 15% MSCI USA High Dividend Yield Index, returned 22.53%.
INVESTMENT ENVIRONMENT
In the fourth quarter of 2020, news flow about the emergency approval of COVID-19 vaccines ignited equity markets and the “reflation trade.” Performance was largely dominated by a market rotation from growth stocks to value stocks on improved risk-on sentiment that the pandemic was going to come to an end, particularly in developed markets where governments (those that could afford it) had already negotiated vaccine supply. This “return to normal” in the developed world led to some serious supply-side constraints, where the emerging world’s commodities and manufacturing were slowed by the virus. Inflation was further exacerbated by a hike in energy prices, particularly in Europe and the UK.
Toward the end of the 12-month period, inflation and supply chain constraints remained top of mind. The impact was felt on both the top and bottom lines for companies within the industrials and consumer discretionary sectors. Many companies struggled to access the inventory needed to satisfy end demand. Cost inflation hit profitability from many angles, including raw materials, freight, energy and wages. Some of the inflationary pressures appeared to be transitory and demand remained high, providing support for growth and profitability of these sectors over the medium-term. Higher prices in energy were supportive to the sector, and rising global inflation and the resulting increased interest rate expectations benefited the financials sector, where banks were notable outperformers due to their earnings sensitivity to interest rates.
PERFORMANCE DISCUSSION
The Fund continued to meet its high-income objectives but lagged both its primary and secondary benchmarks over the period.
The Fund’s overweight position in the UK and underweight position in the U.S. were key detractors from relative performance at the country level. The UK underperformed broader equity markets, due to weaker economic data than many other developed nations, as well as ongoing uncertainty surrounding Brexit that was further exacerbated by a spike in energy/gas. In the U.S., while our underweight allocation hurt performance, the higher exposure to growth/technology stocks was additive.
At the sector level, our overweight to European utilities was the largest detractor. Europe’s political response to ballooning gas prices drove valuations down in the European utilities sector, despite the short-term nature of the regulatory controls imposed. The valuations of these companies appeared to be over-discounting the long-term impact of these measures. Our exposure to the financials sector also lagged, particularly in banks. The sector outperformed the broader market on the view that a higher interest rate environment potentially could be supportive for profitability in the sector and for the banking industry in particular. The Fund maintained a meaningful underweight in banks for the majority of the reporting period as many banks, especially those in Europe and the UK, had put a hold on dividend payments per cautious regulators. By period end, most banks were allowed to distribute cash to shareholders and the Fund’s allocation increased.
Strong stock selection in Asian technology and the semiconductor industry, consumer discretionary and materials benefited relative performance. Our overweight in energy also contributed.
Janus Henderson Global Equity Income Fund (unaudited)
DERIVATIVE USAGE
Please see “Notes to Financial Statements” for information about the derivatives used by the Fund.
OUTLOOK
From here, we remain constructive. We see growth broadening out across sectors versus a year ago when growth was focused on companies that were helping businesses adapt to COVID-19. Investments are widening with both catch-up and maintenance spend needed after an investment hiatus for many companies during the pandemic. The service sector, which drives a large part of economies, is snapping back as restrictions are lifted. Government projects in electrification and decarbonization will require large sums of capital and support from a range of industries, including the industrials, chemical and technology sectors. We believe this could be an attractive backdrop for companies to return solid levels of capital and income growth.
Thank you for investing in the Janus Henderson Global Equity Income Fund.
Janus Henderson Global Equity Income Fund (unaudited)
Fund At A Glance
September 30, 2021
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Taiwan Semiconductor Manufacturing Co Ltd (ADR) | 2.60% | | 0.79% | | Iberdrola SA | 1.35% | | -0.98% |
| Nutrien Ltd | 1.81% | | 0.65% | | Unilever PLC | 2.08% | | -0.74% |
| Samsung Electronics Co Ltd | 2.94% | | 0.54% | | Novartis AG | 1.80% | | -0.57% |
| Total SE | 3.08% | | 0.54% | | Enel SpA | 1.33% | | -0.54% |
| Repsol SA | 1.03% | | 0.47% | | BHP Group PLC | 1.04% | | -0.52% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | 1.50% | | 10.61% | 21.90% |
| Consumer Discretionary | | 0.59% | | 5.08% | 12.00% |
| Energy | | 0.18% | | 6.49% | 2.94% |
| Materials | | -0.03% | | 11.33% | 4.49% |
| Industrials | | -0.03% | | 6.46% | 10.59% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Utilities | | -2.91% | | 10.56% | 2.98% |
| Financials | | -2.76% | | 12.95% | 13.25% |
| Communication Services | | -1.67% | | 8.42% | 9.05% |
| Health Care | | -0.89% | | 11.00% | 12.78% |
| Other** | | -0.57% | | 2.25% | 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 Global Equity Income Fund (unaudited)
Fund At A Glance
September 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Total SE | |
Oil, Gas & Consumable Fuels | 3.2% |
Unilever PLC | |
Personal Products | 2.8% |
Merck & Co Inc | |
Pharmaceuticals | 2.6% |
AXA SA | |
Insurance | 2.2% |
Cisco Systems Inc | |
Communications Equipment | 2.1% |
| | 12.9% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 95.2% | |
Investments Purchased with Cash Collateral from Securities Lending | | 2.0% | |
Preferred Stocks | | 1.9% | |
Investment Companies | | 1.4% | |
Other | | (0.5)% |
| | | 100.0% |
Emerging markets comprised 6.9% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
|
Janus Henderson Global Equity Income Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 19.08% | 5.25% | 6.95% | 4.11% | | | 1.14% |
Class A Shares at MOP | | 12.24% | 4.01% | 6.31% | 3.70% | | | |
Class C Shares at NAV | | 18.54% | 4.52% | 6.18% | 3.36% | | | 1.78% |
Class C Shares at CDSC | | 17.54% | 4.52% | 6.18% | 3.36% | | | |
Class D Shares | | 19.43% | 5.41% | 7.03% | 4.17% | | | 0.92% |
Class I Shares | | 19.43% | 5.57% | 7.24% | 4.36% | | | 0.78% |
Class N Shares | | 19.51% | 5.64% | 7.17% | 4.26% | | | 0.72% |
Class S Shares | | 19.01% | 5.10% | 6.82% | 4.03% | | | 1.25% |
Class T Shares | | 19.35% | 5.39% | 7.02% | 4.16% | | | 0.95% |
MSCI World Index | | 28.82% | 13.74% | 12.68% | 7.13% | | | |
85% MSCI ACWI ex-US High Div Yld/15% MSCI USA High Div Yld Index | | 22.53% | 6.62% | 6.72% | 3.87% | | | |
Morningstar Quartile - Class A Shares | | 4th | 4th | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Foreign Large Value Funds | | 315/350 | 243/308 | 97/253 | 31/186 | | | |
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, Environmental, Social and Governance (ESG) factors, 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 Equity Income Fund (unaudited)
Performance
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson Global Equity 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 November 30, 2006. Class I Shares and Class R6 Shares of the Predecessor Fund commenced operations on March 31, 2009 and November 30, 2015, respectively.
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, except that for periods prior to March 31, 2009, 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.
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.
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.
| |
See important disclosures on the next page. |
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 January 28, 2021, the Fund's secondary benchmark index changed from MSCI World High Dividend Yield Index to 85% MSCI ACWI ex-US High Div Yield/15% MSCI USA High Div Yld Index.
*The Predecessor Fund’s inception date – November 30, 2006
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Equity 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $999.10 | $5.71 | | $1,000.00 | $1,019.35 | $5.77 | 1.14% |
Class C Shares | $1,000.00 | $997.80 | $8.66 | | $1,000.00 | $1,016.39 | $8.74 | 1.73% |
Class D Shares | $1,000.00 | $1,000.40 | $4.41 | | $1,000.00 | $1,020.66 | $4.46 | 0.88% |
Class I Shares | $1,000.00 | $1,000.90 | $3.86 | | $1,000.00 | $1,021.21 | $3.90 | 0.77% |
Class N Shares | $1,000.00 | $1,001.20 | $3.46 | | $1,000.00 | $1,021.61 | $3.50 | 0.69% |
Class S Shares | $1,000.00 | $1,000.40 | $6.07 | | $1,000.00 | $1,019.00 | $6.12 | 1.21% |
Class T Shares | $1,000.00 | $1,001.40 | $4.67 | | $1,000.00 | $1,020.41 | $4.71 | 0.93% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 Equity Income Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 95.2% | | | |
Aerospace & Defense – 0.6% | | | |
| | BAE Systems PLC | | 4,021,933 | | | $30,395,046 | |
Automobiles – 2.0% | | | |
| | Stellantis NV | | 2,518,828 | | | 48,090,641 | |
| | Toyota Motor Corp | | 2,890,000 | | | 51,703,887 | |
| | | 99,794,528 | |
Banks – 5.6% | | | |
| | Citigroup Inc | | 733,689 | | | 51,490,294 | |
| | ING Groep NV | | 5,614,142 | | | 81,473,981 | |
| | KB Financial Group Inc | | 565,123 | | | 26,299,357 | |
| | Lloyds Banking Group PLC | | 78,907,412 | | | 49,077,102 | |
| | Nordea Bank Abp | | 3,001,814 | | | 38,539,312 | |
| | Sumitomo Mitsui Financial Group Inc | | 1,051,000 | | | 36,774,594 | |
| | | 283,654,640 | |
Beverages – 1.6% | | | |
| | Carlsberg A/S | | 224,279 | | | 36,490,901 | |
| | Coca-Cola Co | | 843,190 | | | 44,242,179 | |
| | | 80,733,080 | |
Biotechnology – 0.9% | | | |
| | AbbVie Inc | | 427,069 | | | 46,067,933 | |
Capital Markets – 1.0% | | | |
| | CME Group Inc | | 247,776 | | | 47,914,923 | |
Chemicals – 2.5% | | | |
| | Air Products & Chemicals Inc | | 85,467 | | | 21,888,953 | |
| | Nutrien Ltd | | 1,595,969 | | | 103,604,399 | |
| | | 125,493,352 | |
Communications Equipment – 2.1% | | | |
| | Cisco Systems Inc | | 1,934,145 | | | 105,275,512 | |
Construction Materials – 1.3% | | | |
| | LafargeHolcim Ltd* | | 1,312,168 | | | 63,139,268 | |
Consumer Finance – 0.9% | | | |
| | OneMain Holdings Inc | | 845,515 | | | 46,782,345 | |
Containers & Packaging – 1.3% | | | |
| | Amcor PLC | | 3,775,056 | | | 44,613,965 | |
| | DS Smith PLC | | 4,151,483 | | | 22,917,749 | |
| | | 67,531,714 | |
Diversified Financial Services – 0.4% | | | |
| | M&G PLC | | 7,988,071 | | | 21,858,642 | |
Diversified Telecommunication Services – 3.0% | | | |
| | Telenor ASA# | | 2,957,072 | | | 49,687,317 | |
| | TELUS Corp | | 2,902,440 | | | 63,806,009 | |
| | Verizon Communications Inc | | 748,472 | | | 40,424,973 | |
| | | 153,918,299 | |
Electric Utilities – 4.7% | | | |
| | Endesa SA | | 1,554,384 | | | 31,345,283 | |
| | Enel SpA | | 6,348,342 | | | 48,733,248 | |
| | Iberdrola SA | | 9,530,263 | | | 95,171,618 | |
| | SSE PLC | | 2,946,482 | | | 61,862,614 | |
| | | 237,112,763 | |
Electrical Equipment – 2.7% | | | |
| | ABB Ltd | | 1,365,817 | | | 45,532,934 | |
| | nVent Electric PLC | | 1,199,853 | | | 38,791,248 | |
| | Schneider Electric SE | | 316,307 | | | 52,582,372 | |
| | | 136,906,554 | |
Entertainment – 0.8% | | | |
| | Nintendo Co Ltd | | 80,300 | | | 39,067,916 | |
Equity Real Estate Investment Trusts (REITs) – 1.0% | | | |
| | VICI Properties Inc | | 1,708,361 | | | 48,534,536 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2021 |
Janus Henderson Global Equity Income Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Food & Staples Retailing – 3.0% | | | |
| | Koninklijke Ahold Delhaize NV | | 1,652,908 | | | $54,792,197 | |
| | Tesco PLC | | 28,206,216 | | | 95,652,707 | |
| | | 150,444,904 | |
Food Products – 2.0% | | | |
| | Nestle SA (REG) | | 847,729 | | | 102,014,244 | |
Household Durables – 1.1% | | | |
| | Electrolux AB*,# | | 1,086,534 | | | 25,100,177 | |
| | Persimmon PLC | | 785,042 | | | 27,970,053 | |
| | | 53,070,230 | |
Insurance – 9.3% | | | |
| | AXA SA | | 3,957,796 | | | 110,091,425 | |
| | Direct Line Insurance Group PLC | | 12,669,624 | | | 49,424,366 | |
| | Legal & General Group PLC | | 18,106,854 | | | 68,366,378 | |
| | Manulife Financial Corp | | 4,509,419 | | | 86,812,725 | |
| | Phoenix Group Holdings PLC | | 5,446,635 | | | 47,091,809 | |
| | Sampo Oyj | | 995,448 | | | 49,387,911 | |
| | Tokio Marine Holdings Inc | | 1,139,700 | | | 61,127,564 | |
| | | 472,302,178 | |
Machinery – 1.5% | | | |
| | Volvo AB | | 3,467,901 | | | 77,943,840 | |
Media – 1.2% | | | |
| | Publicis Groupe SA | | 925,343 | | | 62,307,846 | |
Metals & Mining – 2.9% | | | |
| | Anglo American PLC | | 1,282,994 | | | 44,250,148 | |
| | BHP Group PLC | | 3,516,240 | | | 87,623,277 | |
| | Rio Tinto PLC | | 209,850 | | | 13,853,535 | |
| | | 145,726,960 | |
Multi-Utilities – 2.7% | | | |
| | Dominion Energy Inc | | 661,367 | | | 48,293,018 | |
| | National Grid PLC | | 3,923,054 | | | 46,658,987 | |
| | Sempra Energy | | 346,435 | | | 43,824,028 | |
| | | 138,776,033 | |
Oil, Gas & Consumable Fuels – 6.3% | | | |
| | Euronav NV# | | 1,990,822 | | | 19,430,423 | |
| | Royal Dutch Shell PLC | | 3,777,254 | | | 84,116,548 | |
| | Total SE | | 3,379,086 | | | 161,901,503 | |
| | Williams Cos Inc | | 2,015,393 | | | 52,279,294 | |
| | | 317,727,768 | |
Paper & Forest Products – 1.4% | | | |
| | UPM-Kymmene Oyj | | 1,974,715 | | | 69,762,042 | |
Personal Products – 2.8% | | | |
| | Unilever PLC | | 2,665,666 | | | 143,760,369 | |
Pharmaceuticals – 10.8% | | | |
| | AstraZeneca PLC | | 474,729 | | | 57,141,591 | |
| | Bristol-Myers Squibb Co | | 1,488,315 | | | 88,063,599 | |
| | GlaxoSmithKline PLC | | 2,515,499 | | | 47,474,301 | |
| | Merck & Co Inc | | 1,762,270 | | | 132,364,100 | |
| | Novartis AG | | 1,098,636 | | | 90,146,838 | |
| | Novo Nordisk A/S | | 508,879 | | | 48,954,952 | |
| | Roche Holding AG | | 223,319 | | | 81,503,049 | |
| | | 545,648,430 | |
Real Estate Management & Development – 0.4% | | | |
| | Aroundtown SA | | 3,100,017 | | | 21,413,973 | |
Semiconductor & Semiconductor Equipment – 5.5% | | | |
| | Broadcom Inc | | 211,530 | | | 102,577,243 | |
| | MediaTek Inc | | 1,526,000 | | | 49,192,439 | |
| | Powertech Technology Inc | | 2,604,000 | | | 9,631,071 | |
| | Taiwan Semiconductor Manufacturing Co Ltd (ADR) | | 798,924 | | | 89,199,865 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Equity Income Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Semiconductor & Semiconductor Equipment– (continued) | | | |
| | Texas Instruments Inc | | 153,368 | | | $29,478,863 | |
| | | 280,079,481 | |
Technology Hardware, Storage & Peripherals – 1.5% | | | |
| | Quanta Computer Inc | | 27,561,000 | | | 76,498,940 | |
Textiles, Apparel & Luxury Goods – 2.5% | | | |
| | Burberry Group PLC | | 2,917,433 | | | 71,024,070 | |
| | Cie Financiere Richemont SA (REG) | | 326,806 | | | 33,703,508 | |
| | VF Corp | | 297,308 | | | 19,916,663 | |
| | | 124,644,241 | |
Tobacco – 3.4% | | | |
| | British American Tobacco PLC | | 3,004,875 | | | 104,822,740 | |
| | Imperial Brands PLC | | 3,146,130 | | | 65,647,964 | |
| | | 170,470,704 | |
Wireless Telecommunication Services – 4.5% | | | |
| | KDDI Corp | | 1,806,500 | | | 59,708,371 | |
| | Tele2 AB# | | 6,122,388 | | | 90,475,533 | |
| | Vodafone Group PLC | | 51,234,945 | | | 77,488,571 | |
| | | 227,672,475 | |
Total Common Stocks (cost $4,800,541,402) | | 4,814,445,709 | |
Preferred Stocks– 1.9% | | | |
Technology Hardware, Storage & Peripherals – 1.9% | | | |
| | Samsung Electronics Co Ltd((cost $61,085,294) | | 1,654,166 | | | 96,904,386 | |
Investment Companies– 1.4% | | | |
Money Markets – 1.4% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $71,301,247) | | 71,294,118 | | | 71,301,247 | |
Investments Purchased with Cash Collateral from Securities Lending– 2.0% | | | |
Investment Companies – 1.6% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 78,584,373 | | | 78,584,373 | |
Time Deposits – 0.4% | | | |
| | Royal Bank of Canada, 0.0400%, 10/1/21 | | $19,646,093 | | | 19,646,093 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $98,230,466) | | 98,230,466 | |
Total Investments (total cost $5,031,158,409) – 100.5% | | 5,080,881,808 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.5)% | | (25,188,561) | |
Net Assets – 100% | | $5,055,693,247 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Global Equity Income Fund
Schedule of Investments
September 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $1,222,355,382 | | 24.1 | % |
United Kingdom | | 1,174,718,198 | | 23.1 | |
Switzerland | | 416,039,841 | | 8.2 | |
France | | 386,883,146 | | 7.6 | |
Netherlands | | 280,026,547 | | 5.5 | |
Canada | | 254,223,133 | | 5.0 | |
Japan | | 248,382,332 | | 4.9 | |
Taiwan | | 224,522,315 | | 4.4 | |
Sweden | | 193,519,550 | | 3.8 | |
Finland | | 157,689,265 | | 3.1 | |
Spain | | 126,516,901 | | 2.5 | |
South Korea | | 123,203,743 | | 2.4 | |
Italy | | 96,823,889 | | 1.9 | |
Denmark | | 85,445,853 | | 1.7 | |
Norway | | 49,687,317 | | 1.0 | |
Germany | | 21,413,973 | | 0.4 | |
Belgium | | 19,430,423 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $5,080,881,808 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/21 |
Investment Companies - 1.4% |
Money Markets - 1.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | $ | 66,460 | $ | - | $ | (4,951) | $ | 71,301,247 |
Investments Purchased with Cash Collateral from Securities Lending - 1.6% |
Investment Companies - 1.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 1,753,673∆ | | - | | - | | 78,584,373 |
Total Affiliated Investments - 3.0% | $ | 1,820,133 | $ | - | $ | (4,951) | $ | 149,885,620 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Equity Income Fund
Schedule of Investments
September 30, 2021
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Investment Companies - 1.4% |
Money Markets - 1.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 159,123,516 | | 2,348,036,549 | | (2,435,853,867) | | 71,301,247 |
Investments Purchased with Cash Collateral from Securities Lending - 1.6% |
Investment Companies - 1.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 172,014,381 | | 1,427,858,670 | | (1,521,288,678) | | 78,584,373 |
| | | | | | | |
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: | | | | | | | | |
British Pound | 10/27/21 | (249,062,606) | $ | 339,718,813 | $ | 4,174,115 | | |
Euro | 10/27/21 | (266,366,387) | | 312,645,437 | | 3,993,517 | | |
Total | | | | | $ | 8,167,632 | | |
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 September 30, 2021.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2021 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $8,167,632 |
| | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2021 |
Janus Henderson Global Equity Income Fund
Schedule of Investments
September 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 September 30, 2021.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2021 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $(14,103,901) |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ 6,867,866 |
| | | | | |
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 September 30, 2021 |
| |
| Market Value(a) |
Forward foreign currency exchange contracts, sold | $ 656,804,825 |
| | |
(a) Forward foreign currency exchange contracts are reported as the average ending monthly currency amount sold. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Equity Income Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI World IndexSM 85% MSCI ACWI ex-US High Div Yld/15% MSCI USA High Div Yld Index | MSCI World IndexSM reflects the equity market performance of global developed markets. 85% MSCI ACWI ex-US High Div Yld/15% MSCI USA High Div Yld Index is an internally-calculated, hypothetical combination of total returns from the MSCI All Country World ex-USA High Dividend Yield Index (85%) and the MSCI USA High Dividend Yield Index (15%). The underlying indices reflect the performance of higher dividend yield large and mid-cap equity from (i) global developed and emerging markets excluding the U.S. and (ii) the U.S. markets. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
REG | Registered |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2021. |
| | |
£ | The 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 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 Global Equity 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 September 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 | | | | | | |
Banks | $ | 51,490,294 | $ | 232,164,346 | $ | - |
Beverages | | 44,242,179 | | 36,490,901 | | - |
Biotechnology | | 46,067,933 | | - | | - |
Capital Markets | | 47,914,923 | | - | | - |
Chemicals | | 125,493,352 | | - | | - |
Communications Equipment | | 105,275,512 | | - | | - |
Consumer Finance | | 46,782,345 | | - | | - |
Diversified Telecommunication Services | | 104,230,982 | | 49,687,317 | | - |
Electrical Equipment | | 38,791,248 | | 98,115,306 | | - |
Equity Real Estate Investment Trusts (REITs) | | 48,534,536 | | - | | - |
Insurance | | 86,812,725 | | 385,489,453 | | - |
Multi-Utilities | | 92,117,046 | | 46,658,987 | | - |
Oil, Gas & Consumable Fuels | | 71,709,717 | | 246,018,051 | | - |
Pharmaceuticals | | 220,427,699 | | 325,220,731 | | - |
Semiconductor & Semiconductor Equipment | | 221,255,971 | | 58,823,510 | | - |
Textiles, Apparel & Luxury Goods | | 19,916,663 | | 104,727,578 | | - |
All Other | | - | | 1,859,986,404 | | - |
Preferred Stocks | | - | | 96,904,386 | | - |
Investment Companies | | - | | 71,301,247 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 98,230,466 | | - |
Total Investments in Securities | $ | 1,371,063,125 | $ | 3,709,818,683 | $ | - |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 8,167,632 | | - |
Total Assets | $ | 1,371,063,125 | $ | 3,717,986,315 | $ | - |
| | | | | | | |
(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 Equity Income Fund
Statement of Assets and Liabilities
September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $4,881,272,789)(1) | | $ | 4,930,996,188 | |
| Affiliated investments, at value (cost $149,885,620) | | | 149,885,620 | |
| Forward foreign currency exchange contracts | | | 8,167,632 | |
| Cash denominated in foreign currency (cost $1,581,262) | | | 1,581,262 | |
| Non-interested Trustees' deferred compensation | | | 124,804 | |
| Receivables: | | | | |
| | Investments sold | | | 46,250,474 | |
| | Foreign tax reclaims | | | 39,330,660 | |
| | Dividends | | | 14,318,953 | |
| | Fund shares sold | | | 14,150,232 | |
| | Dividends from affiliates | | | 9,725 | |
| Other assets | | | 586,509 | |
Total Assets | | | 5,205,402,059 | |
Liabilities: | | | | |
| Due to custodian | | | 129 | |
| Collateral for securities loaned (Note 3) | | | 98,230,466 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 36,518,304 | |
| | Dividends | | | 9,891,859 | |
| | Advisory fees | | | 2,796,895 | |
| | Transfer agent fees and expenses | | | 693,565 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 518,857 | |
| | Non-interested Trustees' deferred compensation fees | | | 124,804 | |
| | Custodian fees | | | 63,000 | |
| | Professional fees | | | 54,373 | |
| | Non-interested Trustees' fees and expenses | | | 36,608 | |
| | Affiliated fund administration fees payable | | | 10,626 | |
| | Accrued expenses and other payables | | | 769,326 | |
Total Liabilities | | | 149,708,812 | |
Net Assets | | $ | 5,055,693,247 | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2021 |
Janus Henderson Global Equity Income Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 6,176,874,521 | |
| Total distributable earnings (loss) | | | (1,121,181,274) | |
Total Net Assets | | $ | 5,055,693,247 | |
Net Assets - Class A Shares | | $ | 662,514,227 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 101,255,731 | |
Net Asset Value Per Share(2) | | $ | 6.54 | |
Maximum Offering Price Per Share(3) | | $ | 6.94 | |
Net Assets - Class C Shares | | $ | 437,512,167 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 67,768,181 | |
Net Asset Value Per Share(2) | | $ | 6.46 | |
Net Assets - Class D Shares | | $ | 13,132,355 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,014,050 | |
Net Asset Value Per Share | | $ | 6.52 | |
Net Assets - Class I Shares | | $ | 3,719,987,286 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 567,628,493 | |
Net Asset Value Per Share | | $ | 6.55 | |
Net Assets - Class N Shares | | $ | 134,486,001 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 20,526,969 | |
Net Asset Value Per Share | | $ | 6.55 | |
Net Assets - Class S Shares | | $ | 16,509,748 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,545,232 | |
Net Asset Value Per Share | | $ | 6.49 | |
Net Assets - Class T Shares | | $ | 71,551,463 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,977,356 | |
Net Asset Value Per Share | | $ | 6.52 | |
| |
(1) Includes $92,470,818 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 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Equity Income Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 438,832,126 | |
| Affiliated securities lending income, net | | 1,753,673 | |
| Dividends from affiliates | | 66,460 | |
| Interest | | 21,208 | |
| Unaffiliated securities lending income, net | | 9,279 | |
| Other income | | 182,211 | |
| Foreign tax withheld | | (31,785,457) | |
Total Investment Income | | 409,079,500 | |
Expenses: | | | |
| Advisory fees | | 31,993,797 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 1,666,902 | |
| | Class C Shares | | 4,570,876 | |
| | Class S Shares | | 36,714 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 12,547 | |
| | Class S Shares | | 36,887 | |
| | Class T Shares | | 213,602 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 1,313,700 | |
| | Class C Shares | | 349,409 | |
| | Class I Shares | | 2,946,523 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 39,703 | |
| | Class C Shares | | 23,371 | |
| | Class D Shares | | 3,005 | |
| | Class I Shares | | 141,407 | |
| | Class N Shares | | 4,501 | |
| | Class S Shares | | 147 | |
| | Class T Shares | | 888 | |
| Custodian fees | | 249,312 | |
| Shareholder reports expense | | 241,472 | |
| Registration fees | | 198,867 | |
| Affiliated fund administration fees | | 136,013 | |
| Professional fees | | 74,147 | |
| Non-interested Trustees’ fees and expenses | | 69,118 | |
| Other expenses | | 369,441 | |
Total Expenses | | 44,692,349 | |
Less: Excess Expense Reimbursement and Waivers | | (6,389) | |
Net Expenses | | 44,685,960 | |
Net Investment Income/(Loss) | | 364,393,540 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2021 |
Janus Henderson Global Equity Income Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (net of foreign taxes of $118,955) | $ | 328,017,449 | |
| Forward foreign currency exchange contracts | | (14,103,901) | |
Total Net Realized Gain/(Loss) on Investments | | 313,913,548 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 88,151,774 | |
| Investments in affiliates | | (4,951) | |
| Forward foreign currency exchange contracts | | 6,867,866 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 95,014,689 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 773,321,777 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Equity Income Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 364,393,540 | | $ | 359,079,666 | |
| Net realized gain/(loss) on investments | | 313,913,548 | | | (782,698,477) | |
| Change in unrealized net appreciation/depreciation | | 95,014,689 | | | 231,905,615 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 773,321,777 | | | (191,713,196) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (47,571,920) | | | (47,582,562) | |
| | Class C Shares | | (31,626,263) | | | (38,510,072) | |
| | Class D Shares | | (873,001) | | | (633,668) | |
| | Class I Shares | | (265,514,591) | | | (231,240,080) | |
| | Class N Shares | | (8,574,137) | | | (2,741,465) | |
| | Class S Shares | | (1,095,477) | | | (672,170) | |
| | Class T Shares | | (6,017,587) | | | (5,518,753) | |
Net Decrease from Dividends and Distributions to Shareholders | | (361,272,976) | | | (326,898,770) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (9,889,322) | | | (2,823,717) | |
| | Class C Shares | | (84,565,650) | | | (140,652,799) | |
| | Class D Shares | | 4,232,707 | | | 1,085,847 | |
| | Class I Shares | | 607,907,308 | | | 187,164,071 | |
| | Class N Shares | | 60,200,231 | | | 59,525,128 | |
| | Class S Shares | | 4,661,637 | | | 9,844,203 | |
| | Class T Shares | | (8,101,526) | | | 9,154,190 | |
Net Increase/(Decrease) from Capital Share Transactions | | 574,445,385 | | | 123,296,923 | |
Net Increase/(Decrease) in Net Assets | | 986,494,186 | | | (395,315,043) | |
Net Assets: | | | | | | |
| Beginning of period | | 4,069,199,061 | | | 4,464,514,104 | |
| End of period | $ | 5,055,693,247 | | $ | 4,069,199,061 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2021 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $5.90 | | | $6.58 | | | $7.16 | | | $7.80 | | | $7.78 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.49 | | | 0.51 | | | 0.46 | | | 0.49 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.64 | | | (0.72) | | | (0.56) | | | (0.65) | | | 0.05 | |
| Total from Investment Operations | | 1.13 | | | (0.21) | | | (0.10) | | | (0.16) | | | 0.13 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.49) | | | (0.47) | | | (0.48) | | | (0.48) | | | (0.11) | |
| Total Dividends and Distributions | | (0.49) | | | (0.47) | | | (0.48) | | | (0.48) | | | (0.11) | |
| Net Asset Value, End of Period | | $6.54 | | | $5.90 | | | $6.58 | | | $7.16 | | | $7.80 | |
| Total Return* | | 19.08% | | | (2.98)% | | | (1.22)% | | | (2.13)% | | | 1.63% | |
| Net Assets, End of Period (in thousands) | | $662,514 | | | $610,106 | | | $684,235 | | | $818,548 | | | $856,276 | |
| Average Net Assets for the Period (in thousands) | | $666,761 | | | $639,082 | | | $695,276 | | | $878,570 | | | $854,512 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.14% | | | 1.14% | | | 1.12% | | | 1.09% | | | 1.11% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.14% | | | 1.14% | | | 1.12% | | | 1.09% | | | 1.11% | |
| | Ratio of Net Investment Income/(Loss) | | 7.28% | | | 8.15% | | | 6.91% | | | 6.43% | | | 5.93% | |
| Portfolio Turnover Rate | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $5.83 | | | $6.53 | | | $7.11 | | | $7.75 | | | $7.73 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.44 | | | 0.47 | | | 0.42 | | | 0.44 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 0.64 | | | (0.73) | | | (0.56) | | | (0.65) | | | 0.04 | |
| Total from Investment Operations | | 1.08 | | | (0.26) | | | (0.14) | | | (0.21) | | | 0.11 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.45) | | | (0.44) | | | (0.44) | | | (0.43) | | | (0.09) | |
| Total Dividends and Distributions | | (0.45) | | | (0.44) | | | (0.44) | | | (0.43) | | | (0.09) | |
| Net Asset Value, End of Period | | $6.46 | | | $5.83 | | | $6.53 | | | $7.11 | | | $7.75 | |
| Total Return* | | 18.54% | | | (3.92)% | | | (1.88)% | | | (2.76)% | | | 1.46% | |
| Net Assets, End of Period (in thousands) | | $437,512 | | | $469,891 | | | $677,303 | | | $1,037,471 | | | $1,073,190 | |
| Average Net Assets for the Period (in thousands) | | $478,215 | | | $579,718 | | | $804,713 | | | $1,127,161 | | | $1,057,701 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.72% | | | 1.75% | | | 1.76% | | | 1.75% | | | 1.85% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.72% | | | 1.75% | | | 1.76% | | | 1.75% | | | 1.85% | |
| | Ratio of Net Investment Income/(Loss) | | 6.66% | | | 7.49% | | | 6.24% | | | 5.82% | | | 5.18% | |
| Portfolio Turnover Rate | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 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 | 21 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | |
Class A Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.29 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.47 | |
| | Net realized and unrealized gain/(loss) | | 0.50 | |
| Total from Investment Operations | | 0.97 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.48) | |
| Total Dividends and Distributions | | (0.48) | |
| Net Asset Value, End of Period | | $7.78 | |
| Total Return* | | 13.90% | |
| Net Assets, End of Period (in thousands) | | $861,163 | |
| Average Net Assets for the Period (in thousands) | | $788,169 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.09% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.09% | |
| | Ratio of Net Investment Income/(Loss) | | 6.40% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| | | | | | | |
Class C Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.24 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.41 | |
| | Net realized and unrealized gain/(loss) | | 0.51 | |
| Total from Investment Operations | | 0.92 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.43) | |
| Total Dividends and Distributions | | (0.43) | |
| Net Asset Value, End of Period | | $7.73 | |
| Total Return* | | 13.18% | |
| Net Assets, End of Period (in thousands) | | $1,047,109 | |
| Average Net Assets for the Period (in thousands) | | $1,018,868 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.81% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.81% | |
| | Ratio of Net Investment Income/(Loss) | | 5.57% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2021 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $5.88 | | | $6.57 | | | $7.15 | | | $7.79 | | | $7.78 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.51 | | | 0.54 | | | 0.48 | | | 0.53 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.63 | | | (0.74) | | | (0.57) | | | (0.67) | | | 0.04 | |
| Total from Investment Operations | | 1.14 | | | (0.20) | | | (0.09) | | | (0.14) | | | 0.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.50) | | | (0.49) | | | (0.49) | | | (0.50) | | | (0.11) | |
| Total Dividends and Distributions | | (0.50) | | | (0.49) | | | (0.49) | | | (0.50) | | | (0.11) | |
| Net Asset Value, End of Period | | $6.52 | | | $5.88 | | | $6.57 | | | $7.15 | | | $7.79 | |
| Total Return* | | 19.43% | | | (2.92)% | | | (1.06)% | | | (1.91)% | | | 1.56% | |
| Net Assets, End of Period (in thousands) | | $13,132 | | | $8,277 | | | $8,028 | | | $8,359 | | | $2,985 | |
| Average Net Assets for the Period (in thousands) | | $11,156 | | | $8,001 | | | $7,928 | | | $7,765 | | | $2,334 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.89% | | | 0.92% | | | 0.99% | | | 0.88% | | | 0.84% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.89% | | | 0.92% | | | 0.99% | | | 0.88% | | | 0.84% | |
| | Ratio of Net Investment Income/(Loss) | | 7.60% | | | 8.59% | | | 7.17% | | | 7.02% | | | 6.30% | |
| Portfolio Turnover Rate | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $5.91 | | | $6.60 | | | $7.18 | | | $7.81 | | | $7.80 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.52 | | | 0.54 | | | 0.49 | | | 0.53 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.63 | | | (0.73) | | | (0.57) | | | (0.66) | | | 0.04 | |
| Total from Investment Operations | | 1.15 | | | (0.19) | | | (0.08) | | | (0.13) | | | 0.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.51) | | | (0.50) | | | (0.50) | | | (0.50) | | | (0.11) | |
| Total Dividends and Distributions | | (0.51) | | | (0.50) | | | (0.50) | | | (0.50) | | | (0.11) | |
| Net Asset Value, End of Period | | $6.55 | | | $5.91 | | | $6.60 | | | $7.18 | | | $7.81 | |
| Total Return* | | 19.43% | | | (2.78)% | | | (0.89)% | | | (1.68)% | | | 1.58% | |
| Net Assets, End of Period (in thousands) | | $3,719,987 | | | $2,830,699 | | | $3,008,858 | | | $3,509,735 | | | $3,075,563 | |
| Average Net Assets for the Period (in thousands) | | $3,469,535 | | | $2,946,792 | | | $2,998,950 | | | $3,534,302 | | | $2,981,623 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.78% | | | 0.78% | | | 0.79% | | | 0.76% | | | 0.78% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.78% | | | 0.78% | | | 0.79% | | | 0.76% | | | 0.78% | |
| | Ratio of Net Investment Income/(Loss) | | 7.70% | | | 8.62% | | | 7.30% | | | 6.88% | | | 6.26% | |
| Portfolio Turnover Rate | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 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 | 23 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | |
Class D Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $7.83 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 0.07 | |
| Total from Investment Operations | | 0.14 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.19) | |
| Total Dividends and Distributions | | (0.19) | |
| Net Asset Value, End of Period | | $7.78 | |
| Total Return* | | 1.86% | |
| Net Assets, End of Period (in thousands) | | $1,941 | |
| Average Net Assets for the Period (in thousands) | | $1,027 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.19% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.96% | |
| | Ratio of Net Investment Income/(Loss) | | 5.97% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| | | | | | | |
Class I Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.30 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | 0.51 | |
| Total from Investment Operations | | 1.00 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.50) | |
| Total Dividends and Distributions | | (0.50) | |
| Net Asset Value, End of Period | | $7.80 | |
| Total Return* | | 14.32% | |
| Net Assets, End of Period (in thousands) | | $2,866,944 | |
| Average Net Assets for the Period (in thousands) | | $2,411,600 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 0.81% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.81% | |
| | Ratio of Net Investment Income/(Loss) | | 6.67% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| |
* Total return 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 July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2021 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $5.91 | | | $6.60 | | | $7.18 | | | $7.81 | | | $7.80 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.53 | | | 0.51 | | | 0.50 | | | 0.52 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.62 | | | (0.70) | | | (0.57) | | | (0.64) | | | 0.04 | |
| Total from Investment Operations | | 1.15 | | | (0.19) | | | (0.07) | | | (0.12) | | | 0.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.51) | | | (0.50) | | | (0.51) | | | (0.51) | | | (0.11) | |
| Total Dividends and Distributions | | (0.51) | | | (0.50) | | | (0.51) | | | (0.51) | | | (0.11) | |
| Net Asset Value, End of Period | | $6.55 | | | $5.91 | | | $6.60 | | | $7.18 | | | $7.81 | |
| Total Return* | | 19.51% | | | (2.71)% | | | (0.82)% | | | (1.64)% | | | 1.59% | |
| Net Assets, End of Period (in thousands) | | $134,486 | | | $68,993 | | | $12,886 | | | $6,841 | | | $5,099 | |
| Average Net Assets for the Period (in thousands) | | $106,437 | | | $27,720 | | | $10,817 | | | $5,880 | | | $4,537 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.70% | | | 0.72% | | | 0.75% | | | 0.72% | | | 0.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.70% | | | 0.72% | | | 0.75% | | | 0.72% | | | 0.70% | |
| | Ratio of Net Investment Income/(Loss) | | 7.85% | | | 8.37% | | | 7.53% | | | 6.83% | | | 6.40% | |
| Portfolio Turnover Rate | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $5.86 | | | $6.56 | | | $7.15 | | | $7.79 | | | $7.77 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.49 | | | 0.59 | | | 0.49 | | | 0.54 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.62 | | | (0.82) | | | (0.60) | | | (0.70) | | | 0.04 | |
| Total from Investment Operations | | 1.11 | | | (0.23) | | | (0.11) | | | (0.16) | | | 0.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.48) | | | (0.47) | | | (0.48) | | | (0.48) | | | (0.10) | |
| Total Dividends and Distributions | | (0.48) | | | (0.47) | | | (0.48) | | | (0.48) | | | (0.10) | |
| Net Asset Value, End of Period | | $6.49 | | | $5.86 | | | $6.56 | | | $7.15 | | | $7.79 | |
| Total Return* | | 19.01% | | | (3.30)% | | | (1.31)% | | | (2.16)% | | | 1.58% | |
| Net Assets, End of Period (in thousands) | | $16,510 | | | $10,825 | | | $2,470 | | | $232 | | | $51 | |
| Average Net Assets for the Period (in thousands) | | $14,755 | | | $6,983 | | | $1,805 | | | $127 | | | $51 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.21% | | | 1.25% | | | 1.38% | | | 2.37% | | | 1.21% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.21% | | | 1.25% | | | 1.34% | | | 1.27% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | 7.31% | | | 9.83% | | | 7.35% | | | 7.23% | | | 6.01% | |
| Portfolio Turnover Rate | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 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 Global Equity Income Fund
Financial Highlights
| | | | | | | |
Class N Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.30 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.54 | |
| | Net realized and unrealized gain/(loss) | | 0.47 | |
| Total from Investment Operations | | 1.01 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.51) | |
| Total Dividends and Distributions | | (0.51) | |
| Net Asset Value, End of Period | | $7.80 | |
| Total Return* | | 14.39% | |
| Net Assets, End of Period (in thousands) | | $4,156 | |
| Average Net Assets for the Period (in thousands) | | $2,945 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 0.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | |
| | Ratio of Net Investment Income/(Loss) | | 7.26% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| | | | | | | |
Class S Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(3) | |
| Net Asset Value, Beginning of Period | | $7.83 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 0.06 | |
| Total from Investment Operations | | 0.13 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.19) | |
| Total Dividends and Distributions | | (0.19) | |
| Net Asset Value, End of Period | | $7.77 | |
| Total Return* | | 1.71% | |
| Net Assets, End of Period (in thousands) | | $51 | |
| Average Net Assets for the Period (in thousands) | | $50 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.19% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.19% | |
| | Ratio of Net Investment Income/(Loss) | | 5.89% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| |
* 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) Period from June 5, 2017 (inception date) through July 31, 2017. |
| | |
See Notes to Financial Statements. |
| |
26 | SEPTEMBER 30, 2021 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $5.88 | | | $6.57 | | | $7.15 | | | $7.78 | | | $7.77 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.52 | | | 0.52 | | | 0.49 | | | 0.54 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.62 | | | (0.72) | | | (0.58) | | | (0.68) | | | 0.04 | |
| Total from Investment Operations | | 1.14 | | | (0.20) | | | (0.09) | | | (0.14) | | | 0.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.50) | | | (0.49) | | | (0.49) | | | (0.49) | | | (0.11) | |
| Total Dividends and Distributions | | (0.50) | | | (0.49) | | | (0.49) | | | (0.49) | | | (0.11) | |
| Net Asset Value, End of Period | | $6.52 | | | $5.88 | | | $6.57 | | | $7.15 | | | $7.78 | |
| Total Return* | | 19.35% | | | (2.94)% | | | (1.04)% | | | (1.84)% | | | 1.56% | |
| Net Assets, End of Period (in thousands) | | $71,551 | | | $70,408 | | | $70,735 | | | $53,548 | | | $30,421 | |
| Average Net Assets for the Period (in thousands) | | $85,441 | | | $71,828 | | | $65,061 | | | $55,040 | | | $17,484 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.94% | | | 0.95% | | | 0.97% | | | 0.94% | | | 0.98% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.94% | | | 0.94% | | | 0.95% | | | 0.93% | | | 0.98% | |
| | Ratio of Net Investment Income/(Loss) | | 7.70% | | | 8.29% | | | 7.41% | | | 7.12% | | | 6.52% | |
| Portfolio Turnover Rate | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 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 | 27 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | |
Class T Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $7.83 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | 0.07 | |
| Total from Investment Operations | | 0.13 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.19) | |
| Total Dividends and Distributions | | (0.19) | |
| Net Asset Value, End of Period | | $7.77 | |
| Total Return* | | 1.74% | |
| Net Assets, End of Period (in thousands) | | $8,619 | |
| Average Net Assets for the Period (in thousands) | | $4,061 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 0.96% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.96% | |
| | Ratio of Net Investment Income/(Loss) | | 5.03% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| |
* Total return 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 July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
28 | SEPTEMBER 30, 2021 |
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Global Equity 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 to achieve a high level of current income and, as a secondary objective, steady growth of capital. 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 Global Equity 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. The Fund's first fiscal year end was July 31, 2017. Subsequent to July 31, 2017, the Fund changed its fiscal year end to September 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 original 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.
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
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 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 Global Equity Income 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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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 Global Equity Income 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 September 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 Global Equity Income 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 Global Equity Income 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 are 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 realized 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 decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
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 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 Equity Income 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.
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 Global Equity Income 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.
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 September 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 | $ | 8,167,632 | $ | — | $ | — | $ | 8,167,632 |
JPMorgan Chase Bank, National Association | | 92,470,818 | | — | | (92,470,818) | | — |
| | | | | | | | | |
Total | $ | 100,638,450 | $ | — | $ | (92,470,818) | $ | 8,167,632 |
(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.
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
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.
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.
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
As of September 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $92,470,818. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2021 is $98,230,466, resulting in the net amount due to the counterparty of $5,759,648.
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 | 0.85 |
Next $1 Billion | 0.65 |
Over $2 Billion | 0.60 |
The Fund’s actual investment advisory fee rate for the reporting period was 0.66% 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 January 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 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 Equity Income 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 $339,713 was paid to the Chief Compliance Officer and
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $217,424.
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 September 30, 2021, redeeming shareholders of Class A Shares paid CDSCs of $4,880 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 September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $21,161.
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
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
control as determined in accordance with United States of America generally accepted accounting principles ("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.
| | | | | | | | |
| | | 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) | |
$ 32,126,822 | $ - | $(1,153,073,830) | $ - | $ - | $ 438,709 | $ (672,975) | |
Accumulated capital losses noted below represent net capital loss carryovers, as of September 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 September 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(894,291,612) | $(258,782,218) | $(1,153,073,830) | | |
During the year ended September 30, 2021, capital loss carryovers of $317,112,774 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 September 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) |
$ 5,081,554,783 | $ 357,668,137 | $ (358,341,112) | $ (672,975) |
Information on the tax components of derivatives as of September 30, 2021 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 8,167,632 | $ - | $ - | $ - |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Janus Henderson Global Equity Income 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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 361,272,976 | $ - | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 326,898,770 | $ - | $ - | $ - | |
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 |
$ (1,689) | $ 6,756,751 | $ (6,755,062) |
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 30,176,328 | $ 204,549,615 | | 52,543,375 | $ 345,054,490 |
Reinvested dividends and distributions | 5,608,120 | 37,672,140 | | 6,692,992 | 39,876,504 |
Shares repurchased | (37,899,973) | (252,111,077) | | (59,795,406) | (387,754,711) |
Net Increase/(Decrease) | (2,115,525) | $ (9,889,322) | | (559,039) | $ (2,823,717) |
Class C Shares: | | | | | |
Shares sold | 10,026,600 | $ 67,608,705 | | 30,957,427 | $ 209,847,237 |
Reinvested dividends and distributions | 4,419,518 | 29,312,763 | | 5,848,928 | 34,429,134 |
Shares repurchased | (27,235,267) | (181,487,118) | | (59,928,979) | (384,929,170) |
Net Increase/(Decrease) | (12,789,149) | $ (84,565,650) | | (23,122,624) | $ (140,652,799) |
Class D Shares: | | | | | |
Shares sold | 929,926 | $ 6,382,496 | | 588,433 | $ 3,650,726 |
Reinvested dividends and distributions | 122,986 | 823,397 | | 100,822 | 596,294 |
Shares repurchased | (446,174) | (2,973,186) | | (503,469) | (3,161,173) |
Net Increase/(Decrease) | 606,738 | $ 4,232,707 | | 185,786 | $ 1,085,847 |
Class I Shares: | | | | | |
Shares sold | 180,870,695 | $1,227,854,603 | | 198,136,313 | $1,240,088,500 |
Reinvested dividends and distributions | 35,370,434 | 237,791,085 | | 34,445,866 | 205,134,572 |
Shares repurchased | (127,740,329) | (857,738,380) | | (209,362,806) | (1,258,059,001) |
Net Increase/(Decrease) | 88,500,800 | $ 607,907,308 | | 23,219,373 | $ 187,164,071 |
Class N Shares: | | | | | |
Shares sold | 13,748,966 | $ 92,754,224 | | 11,137,920 | $ 68,262,336 |
Reinvested dividends and distributions | 732,139 | 4,925,185 | | 284,736 | 1,686,803 |
Shares repurchased | (5,636,693) | (37,479,178) | | (1,693,091) | (10,424,011) |
Net Increase/(Decrease) | 8,844,412 | $ 60,200,231 | | 9,729,565 | $ 59,525,128 |
Class S Shares: | | | | | |
Shares sold | 808,110 | $ 5,403,626 | | 1,649,192 | $ 10,941,813 |
Reinvested dividends and distributions | 164,475 | 1,095,477 | | 116,639 | 671,619 |
Shares repurchased | (275,737) | (1,837,466) | | (294,230) | (1,769,229) |
Net Increase/(Decrease) | 696,848 | $ 4,661,637 | | 1,471,601 | $ 9,844,203 |
Class T Shares: | | | | | |
Shares sold | 8,813,926 | $ 59,293,455 | | 11,303,375 | $ 71,821,131 |
Reinvested dividends and distributions | 882,872 | 5,914,028 | | 918,488 | 5,476,980 |
Shares repurchased | (10,697,705) | (73,309,009) | | (11,011,277) | (68,143,921) |
Net Increase/(Decrease) | (1,000,907) | $ (8,101,526) | | 1,210,586 | $ 9,154,190 |
7. Purchases and Sales of Investment Securities
For the year ended September 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 |
$ 6,259,313,231 | $ 5,679,797,141 | - | - |
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 other than the following:
On November 11, 2021 the Fund received payment of $15,835,750 from the French tax authority relating to recovery of previously withheld taxes. The receipt of this payment is not a guarantee of future payments and Janus Capital continues to evaluate developments from European courts for potential impacts to filed claims and associated professional and foreign withholding tax reclaims fees, if any.
Janus Henderson Global Equity Income Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Equity 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 Global Equity Income Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 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 September 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 September 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 September 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
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Global Equity 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 Global Equity 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 Global Equity 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 Global Equity 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 Global Equity 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 Global Equity 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 Global Equity 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 Global Equity 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 Global Equity 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 Global Equity 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 Global Equity 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 Global Equity 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.
Janus Henderson Global Equity 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 September 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 Bloomberg 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 Equity 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.
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.
Janus Henderson Global Equity Income Fund
Useful Information About Your Fund Report (unaudited)
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 Equity Income Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Foreign Taxes Paid | $23,693,969 |
Foreign Source Income | $209,026,171 |
Dividends Received Deduction Percentage | 10% |
Qualified Dividend Income Percentage | 80% |
Janus Henderson Global Equity 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 Global Equity 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Global Equity 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 Global Equity 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Equity 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Global Equity 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Equity 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 |
Alex Crooke
151 Detroit Street
Denver, CO 80206
DOB: 1969 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Equity Income Fund | 6/17-Present (predecessor fund since inception 11/06) | 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). |
Job Curtis
151 Detroit Street
Denver, CO 80206
DOB: 1961 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Equity Income Fund | 6/17-Present (predecessor fund since inception 11/06) | Director of Global Equity Income of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Ben Lofthouse
151 Detroit Street
Denver, CO 80206
DOB: 1976 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Equity Income Fund | 6/17-Present (predecessor fund since 11/14) | Head of Global Equity Income of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
* 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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Janus Henderson Global Equity 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, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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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Janus Henderson Global Equity 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Equity Income Fund
Notes
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Janus Henderson Global Equity Income Fund
Notes
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Janus Henderson Global Equity Income 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 September 30, 2021 |
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| | Janus Henderson Global Life Sciences 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 Life Sciences Fund
Janus Henderson Global Life Sciences Fund (unaudited)
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FUND SNAPSHOT We believe in the power of deep fundamental research to identify life sciences companies trading at a significant discount to intrinsic value. We feel the quality of our team, the depth of our research and our disciplined long-term approach set us apart in pursuing superior risk-adjusted results for our clients. | | | | | 
Andy Acker Portfolio Manager |
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PERFORMANCE
Janus Henderson Global Life Sciences Fund I Shares returned 17.96% for the 12-month period ended September 30, 2021, underperforming its primary benchmark, the MSCI World Health Care IndexSM, which delivered 18.62%, and secondary benchmark, the S&P 500® Index, which gained 30.00% during the period.
INVESTMENT ENVIRONMENT
Like the broader equity market, health care stocks delivered double-digit gains during the 12-month period. But the sector lagged the S&P 500® Index due to a market rotation into more economically sensitive stocks and a rout in small- and mid-cap biotechnology stocks. The drawdown was one for the record books. In fact, from February 8 through August 19, small- and mid-cap biotech underperformed the health care sector by almost 50% (the widest margin in more than 15 years), weighed down by concerns about drug-pricing reform in the U.S., an unpredictable Food and Drug Administration (FDA), and worries that mergers and acquisitions (M&A) could face stricter regulatory oversight.
However, these headwinds were offset by strong performance in other areas of the sector, including health care facilities and services, which experienced robust demand amid the pandemic, and device makers, which benefited from a rebound in routine medical procedures following COVID-19 lockdowns. Increased spending on research and development aided life sciences tools and services firms, and biotech companies continued to hit innovation milestones, including delivering the first clinical trial data validating in-vivo gene editing.
PERFORMANCE DISCUSSION
The Fund’s positioning in small-cap biotechnology detracted the most from relative performance, while stock selection in pharmaceuticals, as well as an underweight to the subsector, aided returns.
Looking at individual holdings, ACADIA Pharmaceuticals was the top detractor. The company’s lead drug Nuplazid is being developed as a treatment for hallucinations and delusions associated with dementia-related psychosis. However, despite a breakthrough therapy designation and two positive phase 3 trials, the FDA denied approval in April due to a lack of statistical significance for some patient subgroups. The decision came as a surprise since the issues flagged were not part of agreed-upon criteria for approval. Unfortunately, ACADIA will likely have to begin a new clinical trial, pushing out a potential launch by several years.
Global Blood Therapeutics also weighed on performance. Global Blood is a commercial-stage biopharmaceutical firm that markets Oxbryta for the treatment of sickle cell disease, a devastating genetic condition affecting roughly 100,000 people in the U.S. Global Blood reported disappointing sales in recent quarters, due to COVID-19 headwinds (patients not meeting with their health care providers) and attrition (some patients not filling or refilling prescriptions). However, we think the stock is now overly discounted, particularly in light of the large addressable market and a follow-on compound that could provide a further improved clinical profile.
On the positive side, GW Pharmaceuticals was a top contributor, as the company was acquired by Jazz Pharmaceuticals for more than $7 billion, representing a substantial return from our initial purchase in 2014. We believe Jazz was attracted to the strong profile and sales performance of Epidiolex, a cannabinoid for patients with severe childhood-onset epilepsy. GW also has a second drug in development, nabiximols, a cannabinoid to manage spasticity in multiple sclerosis and spinal cord injury
Janus Henderson Global Life Sciences Fund (unaudited)
patients. Nabiximols is entering multiple pivotal-stage trials that could lead to approval over the coming years.
VelosBio was another top contributor. This precision oncology firm is developing therapies that target ROR1, a protein found at high levels in multiple tumor types. In early clinical trials, the company’s lead molecule, an antibody drug conjugate, demonstrated positive activity in patients with mantle cell lymphoma and diffuse large B-cell lymphoma, and was also being developed for solid tumors, such as breast cancer and lung cancer. Recognizing the potential, in late 2020, Merck & Co. announced it would acquire VelosBio for $2.75 billion, representing a strong return from our private investment in the company earlier in the year.
OUTLOOK
The sell-off that has taken place in small- and mid-cap biotech for much of 2021 may be coming to an end, with the S&P Biotechnology Select Index (a benchmark of small- and mid-cap biotech stocks) consistently trading above a low hit in August. Throughout, we believed these headwinds were largely transitory, and we are beginning to see signs of recovery. For one, low valuations have attracted the interest of large-cap biopharma, with several multibillion-dollar biotech deals announced in recent months. Historically, investor sentiment for biotech has improved as M&A heats up. The FDA – despite lacking a permanent commissioner and being inundated with applications for COVID-19 treatments – is on track to approve a near record number of novel drugs in 2021. And drug-pricing reform has met with stiff resistance in Washington, D.C., making drastic proposals such as widespread direct drug price negotiation by the government less likely to pass, in our view.
Meanwhile, health care’s innovation engine is running at full throttle, with advances continuing to be made in biologics, precision medicines, medical devices and health care delivery. Although demand for routine medical care could face near-term challenges from supply-chain and staffing shortages and the Delta variant, the momentum created by long-term trends such as advanced biological understanding, new treatment modalities and aging populations remains firmly in place. What’s more, the pressure to compete while keeping costs in check has focused companies on prioritizing medical breakthroughs and finding efficiencies, which in turn are leading to new end markets. In short, we believe the health care sector remains well positioned for growth and that small- and mid-cap biotech’s recent pullback, while unsettling, should be viewed as an opportunity for long-term investors rather than a cause for concern.
Thank you for your continued investment in Janus Henderson Global Life Sciences Fund.
Janus Henderson Global Life Sciences Fund (unaudited)
Fund At A Glance
September 30, 2021
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| GW Pharmaceuticals PLC (ADR) | 0.35% | | 0.96% | | ACADIA Pharmaceuticals Inc | 0.70% | | -0.82% |
| VelosBio Inc | 0.10% | | 0.78% | | Moderna Inc | 0.30% | | -0.71% |
| ALX Oncology Holdings Inc | 0.71% | | 0.48% | | Global Blood Therapeutics Inc | 0.61% | | -0.67% |
| Johnson & Johnson | 1.23% | | 0.37% | | Vertex Pharmaceuticals Inc | 1.96% | | -0.63% |
| Fate Therapeutics Inc | 0.50% | | 0.34% | | Seres Therapeutics Inc | 0.34% | | -0.61% |
| | | | | | | |
| 1 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Health Care Index |
| | | Contribution | | Average Weight | Average Weight |
| Materials | | 0.06% | | 0.03% | 0.00% |
| | | | | | |
| | | | | | |
| 2 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Health Care Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | -1.30% | | 99.27% | 100.00% |
| Other** | | -0.10% | | 0.70% | 0.00% |
| | | | | | | |
| 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 Global Life Sciences Fund (unaudited)
Fund At A Glance
September 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
AstraZeneca PLC | |
Pharmaceuticals | 4.6% |
UnitedHealth Group Inc | |
Health Care Providers & Services | 4.2% |
Roche Holding AG | |
Pharmaceuticals | 2.7% |
Merck & Co Inc | |
Pharmaceuticals | 2.7% |
Thermo Fisher Scientific Inc | |
Life Sciences Tools & Services | 2.6% |
| | 16.8% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.8% | |
Preferred Stocks | | 2.1% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.4% | |
Investment Companies | | 0.3% | |
Rights | | 0.0% | |
Other | | 0.4% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
|
Janus Henderson Global Life Sciences Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 17.70% | 14.31% | 19.08% | 11.93% | | | 0.98% |
Class A Shares at MOP | | 10.93% | 12.96% | 18.38% | 11.64% | | | |
Class C Shares at NAV | | 16.88% | 13.48% | 18.19% | 11.10% | | | 1.76% |
Class C Shares at CDSC | | 15.88% | 13.48% | 18.19% | 11.10% | | | |
Class D Shares | | 17.91% | 14.51% | 19.30% | 12.11% | | | 0.81% |
Class I Shares | | 17.96% | 14.58% | 19.37% | 12.14% | | | 0.76% |
Class N Shares | | 18.06% | 14.60% | 19.29% | 12.10% | | | 0.67% |
Class S Shares | | 17.48% | 14.10% | 18.89% | 11.75% | | | 1.18% |
Class T Shares | | 17.78% | 14.40% | 19.19% | 12.05% | | | 0.92% |
MSCI World Health Care Index | | 18.62% | 12.54% | 14.49% | 7.14% | | | |
S&P 500 Index | | 30.00% | 16.90% | 16.63% | 7.68% | | | |
Morningstar Quartile - Class T Shares | | 3rd | 2nd | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Health Funds | | 87/167 | 55/138 | 23/122 | 8/57 | | | |
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, Environmental, Social and Governance (ESG) factors, 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 Life Sciences Fund (unaudited)
Performance
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
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 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 of the Fund commenced operations on January 26, 2018. Performance shown for Class N Shares for periods prior to January 26, 2018, reflects the historical 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.
© 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 31, 1998
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Life Sciences 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,060.90 | $5.01 | | $1,000.00 | $1,020.21 | $4.91 | 0.97% |
Class C Shares | $1,000.00 | $1,056.80 | $8.87 | | $1,000.00 | $1,016.44 | $8.69 | 1.72% |
Class D Shares | $1,000.00 | $1,061.90 | $4.14 | | $1,000.00 | $1,021.06 | $4.05 | 0.80% |
Class I Shares | $1,000.00 | $1,062.20 | $3.88 | | $1,000.00 | $1,021.31 | $3.80 | 0.75% |
Class N Shares | $1,000.00 | $1,062.40 | $3.46 | | $1,000.00 | $1,021.71 | $3.40 | 0.67% |
Class S Shares | $1,000.00 | $1,059.80 | $6.04 | | $1,000.00 | $1,019.20 | $5.92 | 1.17% |
Class T Shares | $1,000.00 | $1,061.20 | $4.70 | | $1,000.00 | $1,020.51 | $4.61 | 0.91% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 Life Sciences Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 96.8% | | | |
Biotechnology – 28.2% | | | |
| | 4D Molecular Therapeutics Inc* | | 337,045 | | | $9,090,104 | |
| | AbbVie Inc | | 1,169,942 | | | 126,201,644 | |
| | ACADIA Pharmaceuticals Inc* | | 625,784 | | | 10,394,272 | |
| | Acceleron Pharma Inc* | | 198,363 | | | 34,138,272 | |
| | Akero Therapeutics Inc* | | 1,006,586 | | | 22,497,197 | |
| | Aligos Therapeutics Inc*,§ | | 157,662 | | | 2,323,071 | |
| | Aligos Therapeutics Inc* | | 599,804 | | | 9,302,960 | |
| | Allakos Inc* | | 301,642 | | | 31,934,839 | |
| | ALX Oncology Holdings Inc* | | 317,493 | | | 23,450,033 | |
| | Amicus Therapeutics Inc* | | 2,090,787 | | | 19,967,016 | |
| | Arena Pharmaceuticals Inc* | | 368,988 | | | 21,973,235 | |
| | Argenx SE (ADR)* | | 165,791 | | | 50,068,882 | |
| | Ascendis Pharma A/S (ADR)* | | 478,456 | | | 76,261,102 | |
| | Bicycle Therapeutics Ltd (ADR)* | | 487,257 | | | 20,265,019 | |
| | BioAtla LLC* | | 510,838 | | | 15,039,071 | |
| | Biohaven Pharmaceutical Holding Co Ltd* | | 223,241 | | | 31,010,407 | |
| | BioMarin Pharmaceutical Inc* | | 591,125 | | | 45,688,051 | |
| | Biomea Fusion Inc*,# | | 665,526 | | | 7,966,346 | |
| | Bridgebio Pharma Inc* | | 385,098 | | | 18,049,543 | |
| | C4 Therapeutics Inc*,# | | 350,734 | | | 15,670,795 | |
| | Cardiff Oncology Inc*,# | | 769,928 | | | 5,127,720 | |
| | Caribou Biosciences Inc* | | 497,707 | | | 11,880,266 | |
| | Centessa Pharmacuticals PLC (ADR)* | | 81,218 | | | 1,356,341 | |
| | Cyteir Therapeutics Inc*,§ | | 549,652 | | | 9,164,073 | |
| | Cyteir Therapeutics Inc*,# | | 122,495 | | | 2,149,787 | |
| | Day One Biopharmaceuticals*,§ | | 406,888 | | | 9,172,680 | |
| | Design Therapeutics Inc*,§ | | 522,185 | | | 7,287,353 | |
| | Edgewise Therapeutics Inc*,§ | | 544,046 | | | 8,579,605 | |
| | ESSA Pharma Inc* | | 455,083 | | | 3,640,664 | |
| | Fate Therapeutics Inc* | | 233,711 | | | 13,852,051 | |
| | Gilead Sciences Inc | | 647,606 | | | 45,235,279 | |
| | Global Blood Therapeutics Inc* | | 711,050 | | | 18,117,554 | |
| | Graphite Bio Inc*,§ | | 309,302 | | | 4,815,987 | |
| | Graphite Bio Inc*,# | | 192,036 | | | 3,147,470 | |
| | Icosavax Inc*,§ | | 337,717 | | | 8,993,741 | |
| | Icosavax Inc*,# | | 194,214 | | | 5,746,792 | |
| | Insmed Inc* | | 1,855,292 | | | 51,094,742 | |
| | Intellia Therapeutics Inc* | | 80,938 | | | 10,857,833 | |
| | Janux Therapeutics Inc*,§ | | 245,474 | | | 5,044,122 | |
| | Janux Therapeutics Inc* | | 464,936 | | | 10,056,566 | |
| | KalVista Pharmaceuticals Inc* | | 363,698 | | | 6,346,530 | |
| | Kodiak Sciences Inc* | | 105,784 | | | 10,153,148 | |
| | LEXEO Therapeutics Inc*,¢,§ | | 883,469 | | | 1,520,000 | |
| | Mirati Therapeutics Inc* | | 124,941 | | | 22,103,312 | |
| | Moderna Inc* | | 75,766 | | | 29,159,303 | |
| | Myovant Sciences Ltd* | | 1,439,279 | | | 32,297,421 | |
| | Natera Inc* | | 175,525 | | | 19,560,506 | |
| | Neurocrine Biosciences Inc* | | 895,545 | | | 85,891,721 | |
| | Nuvalent Inc*,§ | | 310,897 | | | 6,309,655 | |
| | Nuvalent Inc - Class A*,# | | 258,679 | | | 5,833,211 | |
| | Olema Pharmaceuticals Inc* | | 758,135 | | | 20,894,201 | |
| | Praxis Precision Medicines Inc* | | 742,912 | | | 13,736,443 | |
| | PTC Therapeutics Inc* | | 604,787 | | | 22,504,124 | |
| | Regeneron Pharmaceuticals Inc* | | 55,057 | | | 33,319,395 | |
| | Rhythm Pharmaceuticals Inc* | | 1,058,410 | | | 13,822,835 | |
| | Rocket Pharmaceuticals Inc* | | 283,657 | | | 8,478,508 | |
| | Sage Therapeutics Inc* | | 300,297 | | | 13,306,160 | |
| | Sarepta Therapeutics Inc* | | 993,901 | | | 91,915,964 | |
| | Travere Therapeutics Inc* | | 1,006,079 | | | 24,397,416 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2021 |
Janus Henderson Global Life Sciences Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Biotechnology– (continued) | | | |
| | Vaxcyte Inc*,# | | 479,749 | | | $12,171,232 | |
| | Vertex Pharmaceuticals Inc* | | 459,220 | | | 83,297,916 | |
| | Verve Therapeutics Inc*,§ | | 260,405 | | | 11,627,083 | |
| | Verve Therapeutics Inc*,# | | 63,478 | | | 2,983,466 | |
| | | 1,398,242,035 | |
Health Care Equipment & Supplies – 22.8% | | | |
| | Abbott Laboratories | | 1,044,884 | | | 123,432,147 | |
| | Align Technology Inc* | | 126,529 | | | 84,196,192 | |
| | Boston Scientific Corp* | | 2,833,408 | | | 122,941,573 | |
| | Cooper Cos Inc | | 122,564 | | | 50,656,927 | |
| | Danaher Corp | | 382,145 | | | 116,340,224 | |
| | Dentsply Sirona Inc | | 798,483 | | | 46,351,938 | |
| | DexCom Inc* | | 138,738 | | | 75,870,263 | |
| | Edwards Lifesciences Corp* | | 712,944 | | | 80,712,390 | |
| | Globus Medical Inc* | | 493,536 | | | 37,814,728 | |
| | ICU Medical Inc* | | 102,944 | | | 24,025,071 | |
| | Insulet Corp* | | 123,585 | | | 35,126,565 | |
| | Intuitive Surgical Inc* | | 49,544 | | | 49,254,168 | |
| | Medtronic PLC | | 793,204 | | | 99,428,121 | |
| | Silk Road Medical Inc* | | 307,211 | | | 16,905,821 | |
| | STERIS PLC | | 187,111 | | | 38,223,035 | |
| | Stryker Corp | | 193,051 | | | 50,911,410 | |
| | Tandem Diabetes Care Inc* | | 283,573 | | | 33,852,945 | |
| | Teleflex Inc | | 118,417 | | | 44,589,921 | |
| | | 1,130,633,439 | |
Health Care Providers & Services – 10.7% | | | |
| | agilon health Inc* | | 407,515 | | | 10,680,968 | |
| | Anthem Inc | | 197,545 | | | 73,644,776 | |
| | Centene Corp* | | 991,953 | | | 61,808,591 | |
| | Humana Inc | | 303,853 | | | 118,244,395 | |
| | LifeStance Health Group Inc* | | 1,242,034 | | | 18,009,493 | |
| | Privia Health Group Inc* | | 449,037 | | | 10,579,312 | |
| | Quest Diagnostics Inc | | 187,792 | | | 27,288,056 | |
| | UnitedHealth Group Inc | | 530,397 | | | 207,247,324 | |
| | | 527,502,915 | |
Health Care Technology – 0.8% | | | |
| | Accolade Inc* | | 427,507 | | | 18,027,970 | |
| | Health Catalyst Inc* | | 462,091 | | | 23,109,171 | |
| | | 41,137,141 | |
Life Sciences Tools & Services – 6.7% | | | |
| | ICON PLC* | | 89,964 | | | 23,572,367 | |
| | Illumina Inc* | | 133,093 | | | 53,983,852 | |
| | IQVIA Holdings Inc* | | 282,432 | | | 67,653,761 | |
| | Lonza Group AG | | 26,054 | | | 19,522,562 | |
| | NeoGenomics Inc* | | 503,623 | | | 24,294,774 | |
| | Sotera Health Co* | | 559,119 | | | 14,620,962 | |
| | Thermo Fisher Scientific Inc | | 224,579 | | | 128,308,720 | |
| | | 331,956,998 | |
Pharmaceuticals – 27.6% | | | |
| | Astellas Pharma Inc | | 3,158,400 | | | 52,084,769 | |
| | AstraZeneca PLC | | 1,911,529 | | | 230,084,551 | |
| | Bristol-Myers Squibb Co | | 1,524,631 | | | 90,212,416 | |
| | Catalent Inc* | | 322,713 | | | 42,943,419 | |
| | Collegium Pharmaceutical Inc* | | 799,603 | | | 15,784,163 | |
| | DICE Therapeutics Inc*,# | | 393,600 | | | 12,890,400 | |
| | Elanco Animal Health Inc* | | 1,376,601 | | | 43,899,806 | |
| | Eli Lilly & Co | | 387,928 | | | 89,630,764 | |
| | Everest Medicines Ltd (144A)* | | 1,411,419 | | | 8,876,427 | |
| | Harmony Biosciences Holdings Inc* | | 384,770 | | | 14,748,234 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Life Sciences Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Pharmaceuticals– (continued) | | | |
| | Horizon Therapeutics PLC* | | 623,603 | | | $68,309,473 | |
| | Jazz Pharmaceuticals PLC* | | 299,183 | | | 38,956,618 | |
| | Johnson & Johnson | | 289,939 | | | 46,825,149 | |
| | Merck & Co Inc | | 1,747,858 | | | 131,281,614 | |
| | Novartis AG (ADR) | | 1,336,843 | | | 109,327,021 | |
| | Novo Nordisk A/S | | 681,617 | | | 65,572,616 | |
| | Phathom Pharmaceuticals Inc* | | 452,047 | | | 14,510,709 | |
| | Roche Holding AG | | 367,759 | | | 134,218,226 | |
| | Royalty Pharma PLC - Class A | | 751,016 | | | 27,141,718 | |
| | Sanofi | | 931,506 | | | 89,659,299 | |
| | Takeda Pharmaceutical Co Ltd | | 740,636 | | | 24,553,753 | |
| | United Medicines Biopharma*,§ | | 785,378 | | | 12,460,022 | |
| | | 1,363,971,167 | |
Total Common Stocks (cost $3,213,053,179) | | 4,793,443,695 | |
Preferred Stocks– 2.1% | | | |
Biotechnology – 1.5% | | | |
| | Asher Biotherapeutics Inc PP*,¢,§ | | 1,214,301 | | | 2,438,924 | |
| | Attralus Inc PP*,¢,§ | | 669,935 | | | 5,198,696 | |
| | DiCE Molecules Holdings LLC PP*,§ | | 192,261 | | | 5,666,893 | |
| | Disc Medicine Inc PP*,¢,§ | | 1,084,584 | | | 2,603,002 | |
| | Element Biosciences Inc PP*,¢,§ | | 425,023 | | | 8,737,070 | |
| | Flame Biosciences PP*,¢,§ | | 919,200 | | | 6,020,760 | |
| | HemoShear Therapeutics LLC PP*,¢,§ | | 289,280 | | | 3,839,396 | |
| | LEXEO Therapeutics Inc PP*,¢,§ | | 3,643,715 | | | 6,268,975 | |
| | Pyxis Oncology Inc PP*,¢,§ | | 1,819,227 | | | 2,994,084 | |
| | SomaLogic Inc PP*,§ | | 1,211,403 | | | 15,009,283 | |
| | Sonoma Biotherapeutics Inc PP*,¢,§ | | 1,255,200 | | | 2,480,652 | |
| | Synthekine Inc PP*,¢,§ | | 2,192,937 | | | 6,290,001 | |
| | TwinStrand Biosciences Inc PP*,¢,§ | | 344,314 | | | 2,750,001 | |
| | Ventyx Biosciences Inc PP*,¢,§ | | 2,279,838 | | | 3,017,138 | |
| | Ventyx Biosciences Inc Series B PP*,¢,§ | | 566,731 | | | 750,012 | |
| | | 74,064,887 | |
Health Care Providers & Services – 0.2% | | | |
| | Bigfoot Biomedical Inc - Series B PP*,¢,§ | | 1,035,873 | | | 9,808,940 | |
| | Bigfoot Biomedical Inc - Series C-1 PP*,¢,§ | | 168,418 | | | 1,594,792 | |
| | | 11,403,732 | |
Health Care Technology – 0% | | | |
| | Freenome Inc PP*,¢,§ | | 337,474 | | | 2,231,817 | |
Pharmaceuticals – 0.4% | | | |
| | Amunix Pharmaceuticals Inc PP*,¢,§ | | 3,083,148 | | | 5,450,081 | |
| | CANbridge Pharmaceuticals Inc PP*,¢,§ | | 296,003 | | | 4,371,964 | |
| | Neurogene Inc PP*,¢,§ | | 1,336,317 | | | 3,260,613 | |
| | VALENZABio Series A PP*,¢,§ | | 700,559 | | | 6,235,276 | |
| | | 19,317,934 | |
Total Preferred Stocks (cost $90,123,509) | | 107,018,370 | |
Rights– 0% | | | |
Biotechnology – 0% | | | |
| | Clementia Pharmaceuticals Inc CVR*,¢((cost $1,180,320) | | 874,311 | | | 0 | |
Investment Companies– 0.3% | | | |
Money Markets – 0.3% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $13,474,132) | | 13,472,784 | | | 13,474,132 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.4% | | | |
Investment Companies – 0.3% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 14,830,192 | | | 14,830,192 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Global Life Sciences Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Investments Purchased with Cash Collateral from Securities Lending– (continued) | | | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.0400%, 10/1/21 | | $3,707,548 | | | $3,707,548 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $18,537,740) | | 18,537,740 | |
Total Investments (total cost $3,336,368,880) – 99.6% | | 4,932,473,937 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.4% | | 20,432,786 | |
Net Assets – 100% | | $4,952,906,723 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $4,020,394,715 | | 81.5 | % |
Switzerland | | 263,067,809 | | 5.3 | |
United Kingdom | | 250,349,570 | | 5.1 | |
Denmark | | 141,833,718 | | 2.9 | |
France | | 89,659,299 | | 1.8 | |
Japan | | 76,638,522 | | 1.5 | |
Belgium | | 50,068,882 | | 1.0 | |
Ireland | | 23,572,367 | | 0.5 | |
China | | 13,248,391 | | 0.3 | |
Canada | | 3,640,664 | | 0.1 | |
| | | | | | |
| | | | | | |
Total | | $4,932,473,937 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Life Sciences Fund
Schedule of Investments
September 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/21 |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | $ | 22,836 | $ | (437) | $ | (109) | $ | 13,474,132 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 454,217∆ | | - | | - | | 14,830,192 |
Total Affiliated Investments - 0.6% | $ | 477,053 | $ | (437) | $ | (109) | $ | 28,304,324 |
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 35,187,278 | | 650,697,882 | | (672,410,482) | | 13,474,132 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 60,161,577 | | 412,231,511 | | (457,562,896) | | 14,830,192 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2021 |
Janus Henderson Global Life Sciences Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI World Health Care IndexSM | MSCI World Health Care IndexSM reflects the performance of health care stocks from global developed markets. |
| | |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
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 September 30, 2021 is $8,876,427, which represents 0.2% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2021. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2021 is $87,862,194, which represents 1.8% 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 Global Life Sciences Fund
Notes to Schedule of Investments and Other Information
| | | | | �� | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2021) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Aligos Therapeutics Inc | 12/20/19-10/6/20 | $ | 1,654,213 | $ | 2,323,071 | | 0.1 | % |
Amunix Pharmaceuticals Inc PP | 2/26/21 | | 5,450,081 | | 5,450,081 | | 0.1 | |
Asher Biotherapeutics Inc PP | 8/23/21 | | 2,438,924 | | 2,438,924 | | 0.0 | |
Attralus Inc PP | 8/31/21 | | 5,198,696 | | 5,198,696 | | 0.1 | |
Bigfoot Biomedical Inc - Series B PP | 11/21/17 | | 9,808,940 | | 9,808,940 | | 0.2 | |
Bigfoot Biomedical Inc - Series C-1 PP | 12/27/19 | | 1,355,580 | | 1,594,792 | | 0.0 | |
CANbridge Pharmaceuticals Inc PP | 4/27/21 | | 4,371,964 | | 4,371,964 | | 0.1 | |
Cyteir Therapeutics Inc | 2/5/21 | | 6,880,567 | | 9,164,073 | | 0.2 | |
Day One Biopharmaceuticals | 2/2/21 | | 5,488,122 | | 9,172,680 | | 0.2 | |
Design Therapeutics Inc | 1/25/21 | | 5,575,111 | | 7,287,353 | | 0.1 | |
DiCE Molecules Holdings LLC PP | 8/20/21 | | 2,594,601 | | 5,666,893 | | 0.1 | |
Disc Medicine Inc PP | 8/23/21 | | 2,603,002 | | 2,603,002 | | 0.1 | |
Edgewise Therapeutics Inc | 12/3/20 | | 3,989,709 | | 8,579,605 | | 0.2 | |
Element Biosciences Inc PP | 6/21/21 | | 8,737,070 | | 8,737,070 | | 0.2 | |
Flame Biosciences PP | 9/28/20 | | 6,020,760 | | 6,020,760 | | 0.1 | |
Freenome Inc PP | 8/14/20 | | 2,231,817 | | 2,231,817 | | 0.0 | |
Graphite Bio Inc | 3/11/21 | | 3,806,253 | | 4,815,987 | | 0.1 | |
HemoShear Therapeutics LLC PP | 2/5/21 | | 3,839,496 | | 3,839,396 | | 0.1 | |
Icosavax Inc | 3/19/21 | | 3,960,154 | | 8,993,741 | | 0.2 | |
Janux Therapeutics Inc | 4/15/21 | | 2,979,991 | | 5,044,122 | | 0.1 | |
LEXEO Therapeutics Inc | 8/10/21 | | 1,520,000 | | 1,520,000 | | 0.0 | |
LEXEO Therapeutics Inc PP | 11/20/20-7/30/21 | | 3,643,715 | | 6,268,975 | | 0.1 | |
Neurogene Inc PP | 12/15/20-9/22/21 | | 3,260,613 | | 3,260,613 | | 0.1 | |
Nuvalent Inc | 4/30/21 | | 3,463,382 | | 6,309,655 | | 0.1 | |
Pyxis Oncology Inc PP | 3/5/21 | | 2,994,084 | | 2,994,084 | | 0.1 | |
SomaLogic Inc PP | 12/21/20 | | 4,894,507 | | 15,009,283 | | 0.3 | |
Sonoma Biotherapeutics Inc PP | 7/23/21 | | 2,480,652 | | 2,480,652 | | 0.0 | |
Synthekine Inc PP | 6/3/21 | | 6,290,001 | | 6,290,001 | | 0.1 | |
TwinStrand Biosciences Inc PP | 4/30/21 | | 2,750,001 | | 2,750,001 | | 0.1 | |
United Medicines Biopharma | 1/29/21 | | 8,639,164 | | 12,460,022 | | 0.3 | |
VALENZABio Series A PP | 3/25/21 | | 6,235,276 | | 6,235,276 | | 0.1 | |
Ventyx Biosciences Inc PP | 2/26/21-6/10/21 | | 2,173,729 | | 3,017,138 | | 0.1 | |
Ventyx Biosciences Inc Series B PP | 9/9/21 | | 750,000 | | 750,012 | | 0.0 | |
Verve Therapeutics Inc | 1/14/21 | | 2,937,344 | | 11,627,083 | | 0.2 | |
Total | | $ | 141,017,519 | $ | 194,315,762 | | 3.9 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2021. The issuer incurs all registration costs. | |
Janus Henderson Global Life Sciences 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 September 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 | | | | | | |
Biotechnology | $ | 1,323,404,665 | $ | 73,317,370 | $ | 1,520,000 |
Life Sciences Tools & Services | | 312,434,436 | | 19,522,562 | | - |
Pharmaceuticals | | 746,461,504 | | 617,509,663 | | - |
All Other | | 1,699,273,495 | | - | | - |
Preferred Stocks | | - | | 20,676,176 | | 86,342,194 |
Rights | | - | | - | | 0 |
Investment Companies | | - | | 13,474,132 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 18,537,740 | | - |
Total Assets | $ | 4,081,574,100 | $ | 763,037,643 | $ | 87,862,194 |
| | | | | | | |
| | | | | | | | |
Level 3 Valuation Reconciliation of Assets (for the year ended September 30, 2021) |
| | | | | | | |
| Balance
as of
September 30, 2020 | Realized
Gain/(Loss) | Change in
Unrealized
Appreciation/
Depreciation(a) | Gross
Purchases | Gross
Sales | Transfers In
and/or
Out of Level 3 | Balance
as of
September 30, 2021 |
Investment in Securities: | | | | | | | |
Common Stocks | | | | | | | |
Biotechnology | $ 14,524,110 | $ - | $ - | $ 1,520,000 | $ - | $(14,524,110) | $ 1,520,000 |
Pharmaceuticals | 10,332,377 | - | - | - | - | (10,332,377) | - |
Preferred Stocks | | | | | | | |
Biotechnology | 53,459,970 | 42,485,485 | (13,311,381) | 43,899,370 | (67,623,786)(b) | (5,520,947) | 53,388,711 |
Health Care Providers & Services | 11,403,732 | - | - | - | - | - | 11,403,732 |
Health Care Technology | 2,231,817 | - | - | - | - | - | 2,231,817 |
Pharmaceuticals | 6,163,169 | - | - | 19,317,934 | (6,163,169) (b) | - | 19,317,934 |
Rights | | | | | | | |
Biotechnology | - | - | - | - | - | - | - |
Total | $ 98,115,175 | $42,485,485 | $ (13,311,381) | $64,737,304 | $(73,786,955) | $(30,377,434) | $ 87,862,194 |
(a) Included in "Change in unrealized net appreciation/depreciation of investments, foreign currency translations and non-interested Trustees' deferred compensation" on the Statement of Operations. |
(b) All or a portion is the result of a corporate action. |
| | | | | | | |
| | | | | | | |
Janus Henderson Global Life Sciences Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,308,064,556)(1) | | $ | 4,904,169,613 | |
| Affiliated investments, at value (cost $28,304,324) | | | 28,304,324 | |
| Cash | | | 1,122 | |
| Non-interested Trustees' deferred compensation | | | 123,570 | |
| Receivables: | | | | |
| | Investments sold | | | 46,269,299 | |
| | Foreign tax reclaims | | | 6,926,280 | |
| | Dividends | | | 3,986,888 | |
| | Fund shares sold | | | 3,300,745 | |
| | Dividends from affiliates | | | 1,004 | |
| Other assets | | | 121,593 | |
Total Assets | | | 4,993,204,438 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 18,537,740 | |
| Payables: | | | — | |
| | Investments purchased | | | 12,843,336 | |
| | Fund shares repurchased | | | 4,841,796 | |
| | Advisory fees | | | 2,704,110 | |
| | Transfer agent fees and expenses | | | 678,835 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 201,104 | |
| | Non-interested Trustees' deferred compensation fees | | | 123,570 | |
| | Professional fees | | | 57,867 | |
| | Non-interested Trustees' fees and expenses | | | 37,719 | |
| | Custodian fees | | | 17,493 | |
| | Affiliated fund administration fees payable | | | 10,563 | |
| | Accrued expenses and other payables | | | 243,582 | |
Total Liabilities | | | 40,297,715 | |
Net Assets | | $ | 4,952,906,723 | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2021 |
Janus Henderson Global Life Sciences Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 2,974,784,322 | |
| Total distributable earnings (loss) | | | 1,978,122,401 | |
Total Net Assets | | $ | 4,952,906,723 | |
Net Assets - Class A Shares | | $ | 285,239,136 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,948,668 | |
Net Asset Value Per Share(2) | | $ | 72.24 | |
Maximum Offering Price Per Share(3) | | $ | 76.65 | |
Net Assets - Class C Shares | | $ | 157,110,314 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,427,035 | |
Net Asset Value Per Share(2) | | $ | 64.73 | |
Net Assets - Class D Shares | | $ | 1,848,983,404 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 25,065,267 | |
Net Asset Value Per Share | | $ | 73.77 | |
Net Assets - Class I Shares | | $ | 1,079,080,886 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 14,596,897 | |
Net Asset Value Per Share | | $ | 73.93 | |
Net Assets - Class N Shares | | $ | 176,575,911 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,396,050 | |
Net Asset Value Per Share | | $ | 73.69 | |
Net Assets - Class S Shares | | $ | 27,575,219 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 389,926 | |
Net Asset Value Per Share | | $ | 70.72 | |
Net Assets - Class T Shares | | $ | 1,378,341,853 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 18,795,740 | |
Net Asset Value Per Share | | $ | 73.33 | |
| |
(1) Includes $15,065,272 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 | 17 |
Janus Henderson Global Life Sciences Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 53,987,360 | |
| Affiliated securities lending income, net | | 454,217 | |
| Dividends from affiliates | | 22,836 | |
| Unaffiliated securities lending income, net | | 6,370 | |
| Other income | | 510,686 | |
| Foreign tax withheld | | (2,365,163) | |
Total Investment Income | | 52,616,306 | |
Expenses: | | | |
| Advisory fees | | 31,351,432 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 660,838 | |
| | Class C Shares | | 1,547,377 | |
| | Class S Shares | | 69,281 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,071,052 | |
| | Class S Shares | | 69,234 | |
| | Class T Shares | | 3,486,116 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 139,650 | |
| | Class C Shares | | 134,403 | |
| | Class I Shares | | 839,752 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 15,661 | |
| | Class C Shares | | 8,083 | |
| | Class D Shares | | 213,326 | |
| | Class I Shares | | 43,456 | |
| | Class N Shares | | 5,098 | |
| | Class S Shares | | 337 | |
| | Class T Shares | | 12,917 | |
| Shareholder reports expense | | 330,000 | |
| Registration fees | | 194,339 | |
| Professional fees | | 167,477 | |
| Affiliated fund administration fees | | 136,815 | |
| Custodian fees | | 97,513 | |
| Non-interested Trustees’ fees and expenses | | 77,524 | |
| Other expenses | | 307,945 | |
Total Expenses | | 41,979,626 | |
Less: Excess Expense Reimbursement and Waivers | | (125,441) | |
Net Expenses | | 41,854,185 | |
Net Investment Income/(Loss) | | 10,762,121 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2021 |
Janus Henderson Global Life Sciences Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 471,577,320 | |
| Investments in affiliates | | (437) | |
Total Net Realized Gain/(Loss) on Investments | | 471,576,883 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 292,699,085 | |
| Investments in affiliates | | (109) | |
Total Change in Unrealized Net Appreciation/Depreciation | | 292,698,976 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 775,037,980 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Life Sciences Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 10,762,121 | | $ | 32,357,068 | |
| Net realized gain/(loss) on investments | | 471,576,883 | | | 314,292,002 | |
| Change in unrealized net appreciation/depreciation | | 292,698,976 | | | 706,109,341 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 775,037,980 | | | 1,052,758,411 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (18,584,738) | | | (11,824,220) | |
| | Class C Shares | | (12,865,282) | | | (9,638,429) | |
| | Class D Shares | | (135,531,132) | | | (93,668,579) | |
| | Class I Shares | | (75,698,067) | | | (46,992,205) | |
| | Class N Shares | | (15,855,433) | | | (6,322,369) | |
| | Class S Shares | | (2,041,558) | | | (1,341,666) | |
| | Class T Shares | | (103,625,067) | | | (73,795,954) | |
Net Decrease from Dividends and Distributions to Shareholders | | (364,201,277) | | | (243,583,422) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 35,581,878 | | | 10,164,225 | |
| | Class C Shares | | (11,323,552) | | | (23,308,399) | |
| | Class D Shares | | 37,946,936 | | | (27,283,962) | |
| | Class I Shares | | 79,042,566 | | | 55,388,243 | |
| | Class N Shares | | 21,543,883 | | | 29,987,153 | |
| | Class S Shares | | 1,021,030 | | | 927,127 | |
| | Class T Shares | | (8,784,551) | | | (72,006,120) | |
Net Increase/(Decrease) from Capital Share Transactions | | 155,028,190 | | | (26,131,733) | |
Net Increase/(Decrease) in Net Assets | | 565,864,893 | | | 783,043,256 | |
Net Assets: | | | | | | |
| Beginning of period | | 4,387,041,830 | | | 3,603,998,574 | |
| End of period | $ | 4,952,906,723 | | $ | 4,387,041,830 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2021 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $66.20 | | | $53.89 | | | $64.96 | | | $55.76 | | | $49.16 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.07 | | | 0.41(2) | | | 0.17 | | | 0.01 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 11.44 | | | 15.62 | | | (4.52) | | | 9.74 | | | 7.01 | |
| Total from Investment Operations | | 11.51 | | | 16.03 | | | (4.35) | | | 9.75 | | | 7.06 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.66) | | | (0.40) | | | — | | | (0.07) | | | (0.03) | |
| | Distributions (from capital gains) | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Total Dividends and Distributions | | (5.47) | | | (3.72) | | | (6.72) | | | (0.55) | | | (0.46) | |
| Net Asset Value, End of Period | | $72.24 | | | $66.20 | | | $53.89 | | | $64.96 | | | $55.76 | |
| Total Return* | | 17.70% | | | 30.58% | | | (5.85)% | | | 17.70% | | | 14.58% | |
| Net Assets, End of Period (in thousands) | | $285,239 | | | $228,005 | | | $177,862 | | | $195,674 | | | $188,407 | |
| Average Net Assets for the Period (in thousands) | | $264,335 | | | $198,807 | | | $182,919 | | | $181,464 | | | $206,577 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.97% | | | 0.98% | | | 1.00% | | | 0.99% | | | 1.02% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.97% | | | 0.98% | | | 1.00% | | | 0.99% | | | 1.02% | |
| | Ratio of Net Investment Income/(Loss) | | 0.10% | | | 0.69%(2) | | | 0.30% | | | 0.02% | | | 0.10% | |
| Portfolio Turnover Rate | | 32% | | | 43% | | | 36% | | | 46% | | | 38% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.83 | | | $49.00 | | | $60.16 | | | $52.00 | | | $46.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.39) | | | —(2)(3) | | | (0.21) | | | (0.40) | | | (0.27) | |
| | Net realized and unrealized gain/(loss) | | 10.32 | | | 14.15 | | | (4.23) | | | 9.04 | | | 6.52 | |
| Total from Investment Operations | | 9.93 | | | 14.15 | | | (4.44) | | | 8.64 | | | 6.25 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.22) | | | —(3) | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Total Dividends and Distributions | | (5.03) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Net Asset Value, End of Period | | $64.73 | | | $59.83 | | | $49.00 | | | $60.16 | | | $52.00 | |
| Total Return* | | 16.86% | | | 29.66% | | | (6.53)% | | | 16.81% | | | 13.76% | |
| Net Assets, End of Period (in thousands) | | $157,110 | | | $155,599 | | | $148,147 | | | $182,894 | | | $180,251 | |
| Average Net Assets for the Period (in thousands) | | $165,379 | | | $156,935 | | | $163,407 | | | $173,167 | | | $175,301 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.69% | | | 1.69% | | | 1.71% | | | 1.75% | | | 1.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.69% | | | 1.69% | | | 1.71% | | | 1.75% | | | 1.76% | |
| | Ratio of Net Investment Income/(Loss) | | (0.61)% | | | (0.01)%(2) | | | (0.42)% | | | (0.74)% | | | (0.59)% | |
| Portfolio Turnover Rate | | 32% | | | 43% | | | 36% | | | 46% | | | 38% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Allergan PLC in May 2020. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.29 and 0.49%, respectively, for Class A Shares and $0.27 and 0.49%, respectively, for Class C Shares. (3) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $67.47 | | | $54.86 | | | $65.89 | | | $56.59 | | | $49.90 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.20 | | | 0.53(2) | | | 0.27 | | | 0.12 | | | 0.18 | |
| | Net realized and unrealized gain/(loss) | | 11.66 | | | 15.90 | | | (4.58) | | | 9.86 | | | 7.07 | |
| Total from Investment Operations | | 11.86 | | | 16.43 | | | (4.31) | | | 9.98 | | | 7.25 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.75) | | | (0.50) | | | — | | | (0.20) | | | (0.13) | |
| | Distributions (from capital gains) | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Total Dividends and Distributions | | (5.56) | | | (3.82) | | | (6.72) | | | (0.68) | | | (0.56) | |
| Net Asset Value, End of Period | | $73.77 | | | $67.47 | | | $54.86 | | | $65.89 | | | $56.59 | |
| Total Return* | | 17.91% | | | 30.80% | | | (5.69)% | | | 17.91% | | | 14.81% | |
| Net Assets, End of Period (in thousands) | | $1,848,983 | | | $1,653,849 | | | $1,372,808 | | | $1,549,599 | | | $1,406,708 | |
| Average Net Assets for the Period (in thousands) | | $1,837,079 | | | $1,526,148 | | | $1,449,521 | | | $1,404,624 | | | $1,315,724 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.80% | | | 0.81% | | | 0.82% | | | 0.82% | | | 0.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | | | 0.81% | | | 0.82% | | | 0.82% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | 0.28% | | | 0.87%(2) | | | 0.48% | | | 0.20% | | | 0.36% | |
| Portfolio Turnover Rate | | 32% | | | 43% | | | 36% | | | 46% | | | 38% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $67.61 | | | $54.96 | | | $65.96 | | | $56.66 | | | $49.96 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.23 | | | 0.57(2) | | | 0.30 | | | 0.15 | | | 0.22 | |
| | Net realized and unrealized gain/(loss) | | 11.69 | | | 15.93 | | | (4.58) | | | 9.87 | | | 7.08 | |
| Total from Investment Operations | | 11.92 | | | 16.50 | | | (4.28) | | | 10.02 | | | 7.30 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.79) | | | (0.53) | | | — | | | (0.24) | | | (0.17) | |
| | Distributions (from capital gains) | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Total Dividends and Distributions | | (5.60) | | | (3.85) | | | (6.72) | | | (0.72) | | | (0.60) | |
| Net Asset Value, End of Period | | $73.93 | | | $67.61 | | | $54.96 | | | $65.96 | | | $56.66 | |
| Total Return* | | 17.96% | | | 30.89% | | | (5.63)% | | | 17.97% | | | 14.90% | |
| Net Assets, End of Period (in thousands) | | $1,079,081 | | | $911,963 | | | $692,575 | | | $762,127 | | | $629,650 | |
| Average Net Assets for the Period (in thousands) | | $1,033,591 | | | $790,645 | | | $719,800 | | | $688,302 | | | $493,309 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.75% | | | 0.75% | | | 0.77% | | | 0.76% | | | 0.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.75% | | | 0.75% | | | 0.77% | | | 0.76% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | 0.32% | | | 0.93%(2) | | | 0.53% | | | 0.26% | | | 0.43% | |
| Portfolio Turnover Rate | | 32% | | | 43% | | | 36% | | | 46% | | | 38% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Allergan PLC in May 2020. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.30 and 0.49%, respectively. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2021 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018(1) | |
| Net Asset Value, Beginning of Period | | $67.41 | | | $54.81 | | | $65.76 | | | $59.59 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.31 | | | 0.66(3) | | | 0.36 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 11.62 | | | 15.85 | | | (4.59) | | | 6.01 | |
| Total from Investment Operations | | 11.93 | | | 16.51 | | | (4.23) | | | 6.17 | |
| Less Dividends and Distributions: | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.84) | | | (0.59) | | | — | | | — | |
| | Distributions (from capital gains) | | (4.81) | | | (3.32) | | | (6.72) | | | — | |
| Total Dividends and Distributions | | (5.65) | | | (3.91) | | | (6.72) | | | — | |
| Net Asset Value, End of Period | | $73.69 | | | $67.41 | | | $54.81 | | | $65.76 | |
| Total Return* | | 18.04% | | | 30.99% | | | (5.57)% | | | 10.35% | |
| Net Assets, End of Period (in thousands) | | $176,576 | | | $144,543 | | | $90,958 | | | $104,903 | |
| Average Net Assets for the Period (in thousands) | | $176,137 | | | $110,308 | | | $99,924 | | | $24,212 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.67% | | | 0.67% | | | 0.68% | | | 0.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.67% | | | 0.68% | | | 0.70% | |
| | Ratio of Net Investment Income/(Loss) | | 0.43% | | | 1.08%(3) | | | 0.63% | | | 0.39% | |
| Portfolio Turnover Rate | | 32% | | | 43% | | | 36% | | | 46% | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $64.93 | | | $52.94 | | | $64.07 | | | $55.09 | | | $48.62 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.07) | | | 0.31(3) | | | 0.07 | | | (0.08) | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 11.21 | | | 15.31 | | | (4.48) | | | 9.60 | | | 6.90 | |
| Total from Investment Operations | | 11.14 | | | 15.62 | | | (4.41) | | | 9.52 | | | 6.91 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.54) | | | (0.31) | | | — | | | (0.06) | | | (0.01) | |
| | Distributions (from capital gains) | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Total Dividends and Distributions | | (5.35) | | | (3.63) | | | (6.72) | | | (0.54) | | | (0.44) | |
| Net Asset Value, End of Period | | $70.72 | | | $64.93 | | | $52.94 | | | $64.07 | | | $55.09 | |
| Total Return* | | 17.46% | | | 30.33% | | | (6.04)% | | | 17.49% | | | 14.43% | |
| Net Assets, End of Period (in thousands) | | $27,575 | | | $24,287 | | | $18,981 | | | $20,113 | | | $17,189 | |
| Average Net Assets for the Period (in thousands) | | $27,694 | | | $22,312 | | | $19,870 | | | $18,269 | | | $15,685 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.17% | | | 1.18% | | | 1.19% | | | 1.18% | | | 1.17% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.18% | | | 1.18% | | | 1.17% | | | 1.16% | |
| | Ratio of Net Investment Income/(Loss) | | (0.09)% | | | 0.52%(3) | | | 0.14% | | | (0.14)% | | | 0.02% | |
| Portfolio Turnover Rate | | 32% | | | 43% | | | 36% | | | 46% | | | 38% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 January 26, 2018 (inception date) through September 30, 2018. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Allergan PLC in May 2020. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.30 and 0.49%, respectively, for Class N Shares and $0.29 and 0.49%, respectively, for Class S Shares. (4) Less than 0.005%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $67.11 | | | $54.59 | | | $65.66 | | | $56.39 | | | $49.71 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.12 | | | 0.46(2) | | | 0.22 | | | 0.06 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | 11.60 | | | 15.82 | | | (4.57) | | | 9.84 | | | 7.06 | |
| Total from Investment Operations | | 11.72 | | | 16.28 | | | (4.35) | | | 9.90 | | | 7.19 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.69) | | | (0.44) | | | — | | | (0.15) | | | (0.08) | |
| | Distributions (from capital gains) | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Total Dividends and Distributions | | (5.50) | | | (3.76) | | | (6.72) | | | (0.63) | | | (0.51) | |
| Net Asset Value, End of Period | | $73.33 | | | $67.11 | | | $54.59 | | | $65.66 | | | $56.39 | |
| Total Return* | | 17.78% | | | 30.66% | | | (5.78)% | | | 17.80% | | | 14.71% | |
| Net Assets, End of Period (in thousands) | | $1,378,342 | | | $1,268,796 | | | $1,102,667 | | | $1,293,953 | | | $1,323,853 | |
| Average Net Assets for the Period (in thousands) | | $1,394,446 | | | $1,191,342 | | | $1,180,068 | | | $1,230,729 | | | $1,282,363 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.92% | | | 0.92% | | | 0.92% | | | 0.92% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | 0.17% | | | 0.76%(2) | | | 0.38% | | | 0.10% | | | 0.26% | |
| Portfolio Turnover Rate | | 32% | | | 43% | | | 36% | | | 46% | | | 38% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Allergan PLC in May 2020. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.30 and 0.49%, respectively. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2021 |
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Global Life Sciences 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.
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 original 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 Global Life Sciences 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 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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Notes to Financial Statements
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. For private placements where observable inputs are limited, assumptions about market activity and risk are used in employing valuation techniques such as the market approach, the income approach, or the cost approach, as defined under ASC 820. These are categorized as Level 3 in the hierarchy.
For significant fair value measurements categorized within Level 3 of the fair value hierarchy, the table below summarizes the valuation techniques and provides quantitative information about the significant unobservable inputs. In addition, the table provides a narrative description of the uncertainty of the fair value measurement based on the use of significant unobservable inputs that have been different, or that reasonable could have been different, at the reporting date.
| | | | | | | |
Asset | Fair Value at September 30, 2021 | Valuation Technique | Unobservable Input | Input Amount or Range | Weighted Average(1) | Impact to Valuation from an Increase in Input |
Common Stock | | | | | | |
Biotechnology | $1,520,000 | Market Approach | Transaction Price | $1.72 | $1.72 | Increase |
Preferred Stock | | | | | | |
Biotechnology | $53,388,710 | Market Approach | Transaction Price | $1.32 - $20.56 | $7.25 | Increase |
Health Care Providers & Services | $11,403,732 | Market Approach | Transaction Price | $9.47 | $9.47 | Increase |
Health Care Technology | $2,231,817 | Market Approach | Transaction Price | $6.61 | $6.61 | Increase |
Pharmaceuticals | $19,317,934 | Market Approach | Transaction Price | $1.77-$14.77 | $7.13 | Increase |
| | | | | | | |
(1) Unobservable inputs were weighted by the relative fair value of securities.
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 September 30, 2021 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” and "Level 3 Valuation Reconciliation of Assets" in the Notes to Schedule of Investments and Other Information.
The following describes the amounts of transfers into or out of Level 3 of the fair value hierarchy during the period.
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Notes to Financial Statements
Financial assets of $20,045,057 were transferred out of Level 3 to Level 1 since certain securities prices were determined using quoted prices at the end of the current fiscal year and significant unobservable inputs at the end of the prior fiscal year
Financial assets of $10,332,377 were transferred out of Level 3 to Level 2 since certain securities prices were determined using other significant observable inputs at the end of the current fiscal year and significant unobservable inputs at the end of the prior fiscal year.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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.
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
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Notes to Financial Statements
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. 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
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
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 |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 15,065,272 | $ | — | $ | (15,065,272) | $ | — |
| | | | | | | | | |
(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.
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
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 September 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $15,065,272. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2021 is $18,537,740, resulting in the net amount due to the counterparty of $3,472,468.
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 0.64% of its average daily net assets.
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
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
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 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
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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.
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $89,833.
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 September 30, 2021, redeeming shareholders of Class A Shares paid CDSCs of $1,478 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 September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $11,102.
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 September 30, 2021, the Fund engaged in cross trades amounting to $3,208,094 in sales, resulting in a net realized loss of $8,943,281. 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.
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
| | | | | | | | |
| | | 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) | |
$ 179,518,269 | $ 259,099,340 | $ - | $ - | $ - | $ (33,087) | $1,539,537,879 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 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) |
$ 3,392,936,058 | $1,630,916,804 | $(91,378,925) | $ 1,539,537,879 |
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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 50,690,323 | $ 313,510,954 | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 29,802,179 | $ 213,781,243 | $ - | $ - | |
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 |
$ 24,843,766 | $ 37,229,118 | $ (62,072,884) |
Capital has been adjusted by $24,843,766, including $15,128,096 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 987,440 | $ 69,959,356 | | 838,965 | $ 51,062,932 |
Reinvested dividends and distributions | 185,271 | 12,904,091 | | 153,997 | 9,104,318 |
Shares repurchased | (668,185) | (47,281,569) | | (849,194) | (50,003,025) |
Net Increase/(Decrease) | 504,526 | $ 35,581,878 | | 143,768 | $ 10,164,225 |
Class C Shares: | | | | | |
Shares sold | 318,940 | $ 20,349,513 | | 362,507 | $ 19,581,246 |
Reinvested dividends and distributions | 189,458 | 11,894,185 | | 154,916 | 8,322,065 |
Shares repurchased | (682,174) | (43,567,250) | | (940,176) | (51,211,710) |
Net Increase/(Decrease) | (173,776) | $ (11,323,552) | | (422,753) | $ (23,308,399) |
Class D Shares: | | | | | |
Shares sold | 1,219,273 | $ 87,819,205 | | 1,514,736 | $ 91,751,200 |
Reinvested dividends and distributions | 1,852,297 | 131,568,627 | | 1,514,538 | 91,129,766 |
Shares repurchased | (2,518,669) | (181,440,896) | | (3,543,002) | (210,164,928) |
Net Increase/(Decrease) | 552,901 | $ 37,946,936 | | (513,728) | $ (27,283,962) |
Class I Shares: | | | | | |
Shares sold | 3,555,786 | $257,040,480 | | 4,243,641 | $254,608,293 |
Reinvested dividends and distributions | 863,183 | 61,415,492 | | 643,798 | 38,801,690 |
Shares repurchased | (3,310,779) | (239,413,406) | | (3,999,419) | (238,021,740) |
Net Increase/(Decrease) | 1,108,190 | $ 79,042,566 | | 888,020 | $ 55,388,243 |
Class N Shares: | | | | | |
Shares sold | 2,265,994 | $162,865,089 | | 1,565,547 | $ 95,985,196 |
Reinvested dividends and distributions | 223,607 | 15,851,522 | | 105,285 | 6,322,369 |
Shares repurchased | (2,237,919) | (157,172,728) | | (1,186,035) | (72,320,412) |
Net Increase/(Decrease) | 251,682 | $ 21,543,883 | | 484,797 | $ 29,987,153 |
Class S Shares: | | | | | |
Shares sold | 87,091 | $ 6,027,153 | | 165,149 | $ 9,749,118 |
Reinvested dividends and distributions | 29,891 | 2,041,558 | | 23,104 | 1,341,666 |
Shares repurchased | (101,125) | (7,047,681) | | (172,748) | (10,163,657) |
Net Increase/(Decrease) | 15,857 | $ 1,021,030 | | 15,505 | $ 927,127 |
Class T Shares: | | | | | |
Shares sold | 1,915,324 | $137,627,328 | | 2,217,912 | $134,344,428 |
Reinvested dividends and distributions | 1,432,638 | 101,244,513 | | 1,205,916 | 72,234,340 |
Shares repurchased | (3,457,768) | (247,656,392) | | (4,718,719) | (278,584,888) |
Net Increase/(Decrease) | (109,806) | $ (8,784,551) | | (1,294,891) | $ (72,006,120) |
6. Purchases and Sales of Investment Securities
For the year ended September 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 |
$1,563,617,415 | $1,782,459,084 | $ - | $ - |
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 Life Sciences Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Life Sciences 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 Life Sciences Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 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 September 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 September 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 September 30, 2021 by correspondence with the custodian, transfer agent, investee 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
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Global Life Sciences 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 Life Sciences 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 Life Sciences 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 Life Sciences 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 Life Sciences 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 Life Sciences 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 Life Sciences 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 Life Sciences 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 Life Sciences 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 Life Sciences 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 Life Sciences 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 Life Sciences 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.
Janus Henderson Global Life Sciences 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 September 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 Bloomberg 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 Life Sciences 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.
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.
Janus Henderson Global Life Sciences Fund
Useful Information About Your Fund Report (unaudited)
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 Life Sciences Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Capital Gain Distributions | $328,639,050 |
Dividends Received Deduction Percentage | 16% |
Qualified Dividend Income Percentage | 25% |
Janus Henderson Global Life Sciences 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 Life Sciences 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Global Life Sciences 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 Life Sciences 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Life Sciences 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Global Life Sciences 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Life Sciences 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 |
Andrew Acker
151 Detroit Street
Denver, CO 80206
DOB: 1972 | Executive Vice President and Portfolio Manager
Janus Henderson Global Life Sciences Fund | 5/07-Present | 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, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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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Janus Henderson Global Life Sciences 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Life Sciences Fund
Notes
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Janus Henderson Global Life Sciences Fund
Notes
NotesPage2
Janus Henderson Global Life Sciences 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 |
| | | | 125-02-93043 11-21 |
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| | | ANNUAL REPORT September 30, 2021 |
| | |
| | Janus Henderson Global Real Estate 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 Real Estate Fund
Janus Henderson Global Real Estate Fund (unaudited)
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FUND SNAPSHOT A global equity fund that seeks to provide investors total returns – both capital appreciation and current income – associated with global real estate growth and development. The Fund seeks to own a portfolio of the most compelling real estate equities listed on regulated exchanges throughout the world. These companies will derive the main part of their revenue from the ownership, management and/or development of real estate. Our strategy is long only with the objective of producing strong relative performance while providing genuine exposure to global real estate fundamentals and managing risk by being benchmark-aware. | | | 
Greg Kuhl co-portfolio manager | 
Tim Gibson co-portfolio manager | 
Guy Barnard co-portfolio manager |
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PERFORMANCE
The Janus Henderson Global Real Estate Fund I Shares returned 22.56% over the 12-month period ended September 30, 2021. The Fund’s primary benchmark, the FTSE EPRA Nareit Global Index, returned 27.14%, while its secondary benchmark, the FTSE EPRA Nareit Global Net Index, returned 26.08%.
INVESTMENT ENVIRONMENT
Global equity markets rose strongly over the period, with the MSCI World IndexSM up 29.39%, slightly outperforming the 27.14% return from the Fund’s primary global real estate benchmark.
Equity markets climbed higher as investors welcomed positive news on COVID-19 vaccines in November 2020 and the U.S. presidential election result removed uncertainty. The vaccine rollout spurred increased confidence in a “return to normal” scenario over the course of 2021, which fostered recovery in the more cyclical segments of the market. Global real estate investment trusts (REITs) also delivered attractive returns, led by U.S. stocks. The more cyclical property types within the sector, and those perceived to be reopening beneficiaries such as retail, hotels and apartment landlords, rallied sharply. Conversely, sectors that performed well during the pandemic, such as industrial/logistics, data centers and cell towers, lagged amid broader investor appetite for risk despite delivering solid share price performance driven by ongoing strength in operating fundamentals.
The period saw an acceleration in REIT mergers and acquisitions (M&A) globally. There was a continuation of large private-equity companies announcing intentions for take-private transactions or to build stakes in a number of listed real estate stocks, at premiums to where those stocks traded in the public market. This reflected the continued pricing disconnect between listed and private real estate. Notable deals included German residential landlord Vonovia – the largest listed property company in Europe – making a cash offer to shareholders for Berlin-focused peer and second-largest European property company Deutsche Wohnen, at a significant premium versus the previous closing price. In the U.S., there were several M&A announcements across a number of property sectors, including open-air shopping centers, data centers, senior housing and net lease. Toward period end, gaming REIT VICI Properties announced a deal to acquire Las Vegas-focused peer MGP for $17.2 billion, which provided further valuation support for scarce gaming assets in the U.S. Generally, direct market transactions across almost all real estate sectors continued to demonstrate strong demand for assets and rising values, as investors globally continued to increase allocations in search of a combination of yield and growth.
PERFORMANCE DISCUSSION
Despite strong absolute returns, the Fund underperformed its benchmark over the 12-month period. Property sector positioning, rather than weaker stock selection, predominantly drove relative underperformance.
Detractors included exposure in China, where stocks lagged the global upswing, as well as exposure to cold storage. An absence of holdings in the retail and storage sectors in the U.S. also proved detrimental over the period. Notable contributors included U.S. reopening beneficiaries such as Pebblebrook (a hotel REIT) and apartments
Janus Henderson Global Real Estate Fund (unaudited)
landlords Essex and UDR. Our positioning in the German residential space also added value as our holding in a Berlin-focused property company received a cash offer from its largest listed peer.
From a positioning perspective, we continued to maintain a relatively neutral country stance, preferring to focus on bottom-up stock selection to drive returns. The pandemic gave us even greater conviction in the divergent outlook for different property types, where existing trends were accelerating. We sought those companies operating in parts of the real estate market where we believed structural demand would help offset the economic fallout from the pandemic and where the longer-term drivers of demand in these sectors would remain intact or even be strengthened. We also remained heavily focused on balance sheet quality.
We made few material changes to positioning from a top-down perspective, remaining close to index weights at a regional level and therefore continuing to provide well-diversified global exposure. The core of the portfolio remained focused on areas of structural growth such as industrial/logistics, affordable rental residential housing, technology real estate and alternative sectors such as life science and gaming. There, we added to Asian data center operators and European cell towers.
Following the pandemic sell-off, we also sought to increase exposure to companies that we viewed as offering “cheap but not broken” characteristics. These are companies that were severely punished by the stock market, but potentially still could offer a reasonable path to sustainable growth and benefit from improving sentiment around a recovery. Here, we increased exposure to U.S. apartments as we were encouraged by clear evidence of stabilizing rent trends and improving asset values. We also added to U.S. health care, particularly senior housing due to adverse impact on the sector by patient admission freezes during the outset of COVID. We also added hotel exposure globally, given our view that the sector was at the early stages of a multi-year cyclical recovery. Finally, we added retail exposure in Hong Kong/China, where significant derating resulted in particularly attractive valuations.
On the sell side, we remained selective in office REITs and reduced exposure over the year given slowing leasing fundamentals driven by work-from-home dynamics. We also took some profit from stronger performers on relative value grounds, including in the logistics sector. Additionally, we reduced U.S. single-family rentals following outperformance and sold out of cold storage due to supply chain challenges and labor shortages. Post-takeover bids, we also rotated exposure within U.S. net lease, German residential and European office names.
OUTLOOK
Looking ahead, we anticipate that underlying real estate fundamentals likely will reflect a wide divergence across different sectors in the years ahead, driven by the themes of changing demographics, digitization, sustainability and the convenience lifestyle. It therefore remains important, in our view, to remain selective when investing in the sector and understanding that not all parts of the market will return to the same “normal” post-pandemic.
We remain focused on “quality compounders” operating in areas of structural growth, where underlying demand from both tenants and investors in many cases has strengthened through the pandemic. We also maintain selective exposure in those parts of the market we see as “cheap but not broken.”
Listed real estate offers lower correlations to many other asset classes and provides investors the benefits of portfolio enhancement by potentially increasing risk-adjusted returns within a balanced portfolio. In addition, against a backdrop of low interest rates and rising inflationary pressures, many parts of the real estate sector continue to provide an attractive and growing income stream for investors.
Thank you for investing in the Janus Henderson Global Real Estate Fund.
Janus Henderson Global Real Estate Fund (unaudited)
Fund At A Glance
September 30, 2021
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Pebblebrook Hotel Trust | 0.71% | | 1.07% | | Shimao Property Holdings Ltd | 1.45% | | -1.51% |
| Vonovia SE | 0.65% | | 0.87% | | Americold Realty Trust | 2.10% | | -0.91% |
| UDR Inc | 2.75% | | 0.69% | | GDS Holdings Ltd - Class A | 1.42% | | -0.89% |
| Essex Property Trust Inc | 2.22% | | 0.42% | | National Health Investors Inc | 0.78% | | -0.48% |
| VGP NV | 1.40% | | 0.40% | | China Vanke Co Ltd | 0.96% | | -0.46% |
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| 2 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | FTSE EPRA Nareit Global Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | 0.17% | | 1.02% | 0.26% |
| Health Care | | -0.01% | | 0.00% | 0.11% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | FTSE EPRA Nareit Global Index |
| | | Contribution | | Average Weight | Average Weight |
| Real Estate | | -1.19% | | 93.53% | 99.60% |
| Information Technology | | -1.14% | | 2.42% | 0.00% |
| Other** | | -0.50% | | 1.95% | 0.04% |
| Industrials | | -0.23% | | 0.26% | 0.00% |
| Communication Services | | -0.07% | | 0.82% | 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 Global Real Estate Fund (unaudited)
Fund At A Glance
September 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Prologis Inc | |
Equity Real Estate Investment Trusts (REITs) | 6.3% |
Sun Communities Inc | |
Equity Real Estate Investment Trusts (REITs) | 3.9% |
Alexandria Real Estate Equities Inc | |
Equity Real Estate Investment Trusts (REITs) | 3.7% |
Duke Realty Corp | |
Equity Real Estate Investment Trusts (REITs) | 3.0% |
Essex Property Trust Inc | |
Equity Real Estate Investment Trusts (REITs) | 2.9% |
| | 19.8% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.6% | |
Investment Companies | | 2.1% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.4% | |
Other | | (0.1)% |
| | | 100.0% |
Emerging markets comprised 6.1% of total net assets.
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
|
Janus Henderson Global Real Estate 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 September 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 22.32% | 10.23% | 11.25% | 6.58% | | | 1.25% |
Class A Shares at MOP | | 15.31% | 8.94% | 10.59% | 6.13% | | | |
Class C Shares at NAV | | 21.34% | 9.38% | 10.41% | 5.83% | | | 2.06% |
Class C Shares at CDSC | | 20.34% | 9.38% | 10.41% | 5.83% | | | |
Class D Shares | | 22.59% | 10.41% | 11.44% | 6.06% | | | 1.08% |
Class I Shares | | 22.56% | 10.52% | 11.56% | 6.86% | | | 1.03% |
Class N Shares | | 22.80% | 10.60% | 11.60% | 6.89% | | | 0.92% |
Class S Shares | | 22.03% | 10.01% | 11.08% | 6.42% | | | 1.46% |
Class T Shares | | 22.49% | 10.36% | 11.40% | 6.30% | | | 1.16% |
FTSE EPRA Nareit Global Index | | 27.14% | 5.31% | 8.82% | 3.91% | | | |
FTSE EPRA Nareit Global Net Index | | 26.08% | 4.39% | 7.95% | N/A** | | | |
Morningstar Quartile - Class I Shares | | 4th | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Global Real Estate Funds | | 157/200 | 7/193 | 6/152 | 4/117 | | | |
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.
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, Environmental, Social and Governance (ESG) factors, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and
Janus Henderson Global Real Estate Fund (unaudited)
Performance
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, after the reorganization of each class of Janus Adviser Global Real Estate Fund (“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 February 16, 2010. Performance shown for periods prior to February 16, 2010, 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 fee and expense limitations or waivers.
Class N Shares of the Fund commenced operations on January 26, 2018. Performance shown for Class N Shares reflects the historical performance of the Fund's Class I Shares from July 6, 2009 to January 26, 2018, calculated using the fees and expenses of Class I Shares, net of any applicable fee and expense limitations or waivers. Performance shown for Class N Shares 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 I Shares of the predecessor fund, net of any applicable fee and expense limitations or waivers.
Class T Shares commenced operations on July 6, 2009. Performance shown for Class T Shares 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.
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 – November 28, 2007
**Since inception index return is not available for indices created subsequent to fund inception.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Real Estate 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,086.80 | $6.38 | | $1,000.00 | $1,018.95 | $6.17 | 1.22% |
Class C Shares | $1,000.00 | $1,082.90 | $10.50 | | $1,000.00 | $1,014.99 | $10.15 | 2.01% |
Class D Shares | $1,000.00 | $1,087.80 | $5.44 | | $1,000.00 | $1,019.85 | $5.27 | 1.04% |
Class I Shares | $1,000.00 | $1,088.00 | $5.13 | | $1,000.00 | $1,020.16 | $4.96 | 0.98% |
Class N Shares | $1,000.00 | $1,088.80 | $4.61 | | $1,000.00 | $1,020.66 | $4.46 | 0.88% |
Class S Shares | $1,000.00 | $1,085.30 | $7.37 | | $1,000.00 | $1,018.00 | $7.13 | 1.41% |
Class T Shares | $1,000.00 | $1,087.80 | $5.91 | | $1,000.00 | $1,019.40 | $5.72 | 1.13% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 Real Estate Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 97.6% | | | |
Diversified Telecommunication Services – 1.0% | | | |
| | Cellnex Telecom SA (144A)* | | 141,193 | | | $8,702,272 | |
Equity Real Estate Investment Trusts (REITs) – 69.3% | | | |
| | Activia Properties Inc | | 1,990 | | | 8,176,068 | |
| | Aedifica SA | | 29,621 | | | 3,677,772 | |
| | Alexandria Real Estate Equities Inc | | 169,291 | | | 32,346,431 | |
| | American Tower Corp | | 57,855 | | | 15,355,296 | |
| | Americold Realty Trust | | 348,651 | | | 10,128,312 | |
| | CapitaLand Mall Trust | | 4,229,260 | | | 6,288,122 | |
| | Douglas Emmett Inc | | 391,915 | | | 12,388,433 | |
| | Duke Realty Corp | | 545,373 | | | 26,107,006 | |
| | Equity LifeStyle Properties Inc | | 312,921 | | | 24,439,130 | |
| | Essex Property Trust Inc | | 78,920 | | | 25,233,881 | |
| | Gecina SA | | 67,000 | | | 8,980,689 | |
| | Goodman Group | | 948,116 | | | 14,714,918 | |
| | Hulic Inc | | 3,816 | | | 6,016,311 | |
| | Industrial & Infrastructure Fund Investment Corp | | 3,938 | | | 7,154,045 | |
| | Invitation Homes Inc | | 504,837 | | | 19,350,402 | |
| | Japan Hotel Investment Corp | | 13,630 | | | 8,198,710 | |
| | Japan Retail Fund Investment Corp | | 10,279 | | | 9,883,157 | |
| | Land Securities Group PLC | | 800,000 | | | 7,445,036 | |
| | LaSalle Logiport | | 4,173 | | | 7,027,516 | |
| | Life Storage Inc | | 72,084 | | | 8,270,918 | |
| | Mapletree Industrial Trust | | 4,621,145 | | | 9,449,668 | |
| | Mapletree Logistics Trust | | 5,221,400 | | | 7,790,335 | |
| | Merlin Properties Socimi SA* | | 780,000 | | | 8,003,344 | |
| | MGM Growth Properties LLC | | 496,299 | | | 19,008,252 | |
| | National Retail Properties Inc | | 471,150 | | | 20,348,968 | |
| | Nomura Real Estate Master Fund Inc | | 5,374 | | | 7,745,142 | |
| | Park Hotels & Resorts Inc* | | 905,980 | | | 17,340,457 | |
| | Prologis Inc | | 441,846 | | | 55,355,262 | |
| | Rexford Industrial Realty Inc | | 354,768 | | | 20,133,084 | |
| | Sabra Health Care Inc | | 530,794 | | | 7,813,288 | |
| | Safestore Holdings PLC | | 485,000 | | | 6,820,932 | |
| | SBA Communications Corp | | 28,706 | | | 9,489,342 | |
| | Segro PLC | | 970,000 | | | 15,562,699 | |
| | Spirit Realty Capital Inc | | 540,918 | | | 24,903,865 | |
| | Sun Communities Inc | | 184,314 | | | 34,116,521 | |
| | UDR Inc | | 475,882 | | | 25,212,228 | |
| | UNITE Group PLC | | 435,000 | | | 6,321,739 | |
| | Ventas Inc | | 358,532 | | | 19,794,552 | |
| | VICI Properties Inc | | 628,526 | | | 17,856,424 | |
| | Vicinity Centres | | 9,116,368 | | | 10,859,664 | |
| | Workspace Group PLC | | 303,761 | | | 3,342,797 | |
| | | 608,450,716 | |
Hotels, Restaurants & Leisure – 2.8% | | | |
| | Hilton Worldwide Holdings Inc* | | 185,598 | | | 24,519,352 | |
Information Technology Services – 1.1% | | | |
| | GDS Holdings Ltd - Class A* | | 1,408,256 | | | 10,022,351 | |
Real Estate Management & Development – 23.4% | | | |
| | Capitaland Investment Ltd/Singapore* | | 1,875,100 | | | 4,696,383 | |
| | China Resources Land Ltd | | 4,426,000 | | | 18,617,090 | |
| | China Vanke Co Ltd | | 4,946,000 | | | 13,519,079 | |
| | CTP NV (144A) | | 375,444 | | | 8,177,018 | |
| | Fastighets AB Balder* | | 217,000 | | | 13,020,654 | |
| | Hang Lung Properties Ltd | | 2,998,000 | | | 6,815,224 | |
| | Helical PLC | | 1,045,000 | | | 6,171,236 | |
| | Instone Real Estate Group AG (144A) | | 368,711 | | | 10,520,768 | |
| | Jones Lang LaSalle Inc* | | 63,219 | | | 15,684,002 | |
| | LEG Immobilien AG# | | 85,970 | | | 12,161,603 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2021 |
Janus Henderson Global Real Estate Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Real Estate Management & Development– (continued) | | | |
| | Mitsui Fudosan Co Ltd | | 1,005,000 | | | $23,942,230 | |
| | New World Development Co Ltd | | 2,212,000 | | | 8,975,967 | |
| | Shimao Property Holdings Ltd | | 6,385,000 | | | 11,650,328 | |
| | Sun Hung Kai Properties Ltd | | 659,750 | | | 8,199,214 | |
| | Swire Properties Ltd | | 3,640,800 | | | 9,109,929 | |
| | Tokyu Fudosan Holdings Corp | | 996,900 | | | 6,139,938 | |
| | VGP NV | | 50,676 | | | 11,638,952 | |
| | Vonovia SE | | 275,000 | | | 16,528,947 | |
| | | 205,568,562 | |
Total Common Stocks (cost $734,386,157) | | 857,263,253 | |
Investment Companies– 2.1% | | | |
Money Markets – 2.1% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $18,131,688) | | 18,129,875 | | | 18,131,688 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.4% | | | |
Investment Companies – 0.3% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 3,032,104 | | | 3,032,104 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.0400%, 10/1/21 | | $758,026 | | | 758,026 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $3,790,130) | | 3,790,130 | |
Total Investments (total cost $756,307,975) – 100.1% | | 879,185,071 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | | (1,280,845) | |
Net Assets – 100% | | $877,904,226 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $507,117,224 | | 57.7 | % |
Japan | | 84,283,117 | | 9.6 | |
China | | 53,808,848 | | 6.1 | |
United Kingdom | | 45,664,439 | | 5.2 | |
Germany | | 39,211,318 | | 4.5 | |
Hong Kong | | 33,100,334 | | 3.8 | |
Singapore | | 28,224,508 | | 3.2 | |
Australia | | 25,574,582 | | 2.9 | |
Spain | | 16,705,616 | | 1.9 | |
Belgium | | 15,316,724 | | 1.7 | |
Sweden | | 13,020,654 | | 1.5 | |
France | | 8,980,689 | | 1.0 | |
Netherlands | | 8,177,018 | | 0.9 | |
| | | | | | |
| | | | | | |
Total | | $879,185,071 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Real Estate Fund
Schedule of Investments
September 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/21 |
Investment Companies - 2.1% |
Money Markets - 2.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | $ | 11,286 | $ | (386) | $ | - | $ | 18,131,688 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 13,268∆ | | - | | - | | 3,032,104 |
Total Affiliated Investments - 2.4% | $ | 24,554 | $ | (386) | $ | - | $ | 21,163,792 |
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Investment Companies - 2.1% |
Money Markets - 2.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 35,282,354 | | 199,975,789 | | (217,126,069) | | 18,131,688 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 5,716,758 | | 82,369,560 | | (85,054,214) | | 3,032,104 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Global Real Estate Fund
Notes to Schedule of Investments and Other Information
| | |
FTSE EPRA Nareit Global Index | FTSE EPRA Nareit Global Index tracks the performance of real estate companies and real estate investment trusts (REITs) from developed and emerging markets, and is shown gross or net of foreign withholding taxes. |
| | |
LLC | Limited Liability 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 September 30, 2021 is $27,400,058, which represents 3.1% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at September 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 September 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 | | | | | | |
Equity Real Estate Investment Trusts (REITs) | $ | 444,992,052 | $ | 163,458,664 | $ | - |
Hotels, Restaurants & Leisure | | 24,519,352 | | - | | - |
Real Estate Management & Development | | 20,380,385 | | 185,188,177 | | - |
All Other | | - | | 18,724,623 | | - |
Investment Companies | | - | | 18,131,688 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 3,790,130 | | - |
Total Assets | $ | 489,891,789 | $ | 389,293,282 | $ | - |
| | | | | | | |
Janus Henderson Global Real Estate Fund
Statement of Assets and Liabilities
September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $735,144,183)(1) | | $ | 858,021,279 | |
| Affiliated investments, at value (cost $21,163,792) | | | 21,163,792 | |
| Cash denominated in foreign currency (cost $1,947) | | | 1,947 | |
| Non-interested Trustees' deferred compensation | | | 21,814 | |
| Receivables: | | | | |
| | Investments sold | | | 20,175,334 | |
| | Dividends | | | 4,266,821 | |
| | Fund shares sold | | | 810,896 | |
| | Foreign tax reclaims | | | 175,335 | |
| | Dividends from affiliates | | | 1,152 | |
| Other assets | | | 2,819 | |
Total Assets | | | 904,641,189 | |
Liabilities: | | | | |
| Due to custodian | | | 38 | |
| Collateral for securities loaned (Note 2) | | | 3,790,130 | |
| Payables: | | | — | |
| | Investments purchased | | | 19,957,238 | |
| | Fund shares repurchased | | | 1,546,719 | |
| | Advisory fees | | | 633,422 | |
| | Dividends | | | 522,223 | |
| | Transfer agent fees and expenses | | | 104,497 | |
| | Professional fees | | | 54,820 | |
| | Non-interested Trustees' deferred compensation fees | | | 21,814 | |
| | Custodian fees | | | 13,617 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 11,040 | |
| | Non-interested Trustees' fees and expenses | | | 5,491 | |
| | Affiliated fund administration fees payable | | | 1,890 | |
| | Accrued expenses and other payables | | | 74,024 | |
Total Liabilities | | | 26,736,963 | |
Net Assets | | $ | 877,904,226 | |
| | |
See Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2021 |
Janus Henderson Global Real Estate Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 731,189,158 | |
| Total distributable earnings (loss) | | | 146,715,068 | |
Total Net Assets | | $ | 877,904,226 | |
Net Assets - Class A Shares | | $ | 15,294,389 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,043,804 | |
Net Asset Value Per Share(2) | | $ | 14.65 | |
Maximum Offering Price Per Share(3) | | $ | 15.54 | |
Net Assets - Class C Shares | | $ | 6,765,888 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 471,906 | |
Net Asset Value Per Share(2) | | $ | 14.34 | |
Net Assets - Class D Shares | | $ | 58,871,718 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,985,602 | |
Net Asset Value Per Share | | $ | 14.77 | |
Net Assets - Class I Shares | | $ | 551,129,187 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 37,357,996 | |
Net Asset Value Per Share | | $ | 14.75 | |
Net Assets - Class N Shares | | $ | 114,927,968 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 7,787,230 | |
Net Asset Value Per Share | | $ | 14.76 | |
Net Assets - Class S Shares | | $ | 9,177,976 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 628,883 | |
Net Asset Value Per Share | | $ | 14.59 | |
Net Assets - Class T Shares | | $ | 121,737,100 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 8,256,068 | |
Net Asset Value Per Share | | $ | 14.75 | |
| |
(1) Includes $3,546,061 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 Real Estate Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 20,631,106 | |
| Non-cash dividends | | 6,489,575 | |
| Affiliated securities lending income, net | | 13,268 | |
| Dividends from affiliates | | 11,286 | |
| Unaffiliated securities lending income, net | | 509 | |
| Other income | | 41,916 | |
| Foreign tax withheld | | (690,110) | |
Total Investment Income | | 26,497,550 | |
Expenses: | | | |
| Advisory fees | | 6,459,156 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 32,159 | |
| | Class C Shares | | 64,289 | |
| | Class S Shares | | 19,118 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 55,969 | |
| | Class S Shares | | 19,118 | |
| | Class T Shares | | 268,808 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 8,221 | |
| | Class C Shares | | 5,867 | |
| | Class I Shares | | 498,133 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 847 | |
| | Class C Shares | | 335 | |
| | Class D Shares | | 12,128 | |
| | Class I Shares | | 20,639 | |
| | Class N Shares | | 3,117 | |
| | Class S Shares | | 266 | |
| | Class T Shares | | 1,245 | |
| Registration fees | | 121,828 | |
| Custodian fees | | 64,015 | |
| Professional fees | | 62,621 | |
| Shareholder reports expense | | 59,786 | |
| Affiliated fund administration fees | | 21,740 | |
| Non-interested Trustees’ fees and expenses | | 11,519 | |
| Other expenses | | 101,004 | |
Total Expenses | | 7,911,928 | |
Less: Excess Expense Reimbursement and Waivers | | (3,454) | |
Net Expenses | | 7,908,474 | |
Net Investment Income/(Loss) | | 18,589,076 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2021 |
Janus Henderson Global Real Estate Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (net of foreign taxes of $521,631) | $ | 58,760,291 | |
| Investments in affiliates | | (386) | |
Total Net Realized Gain/(Loss) on Investments | | 58,759,905 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation (net of decrease in deferred foreign taxes of $112,205) | | 68,822,681 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 68,822,681 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 146,171,662 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Real Estate Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 18,589,076 | | $ | 9,382,007 | |
| Net realized gain/(loss) on investments | | 58,759,905 | | | (23,748,459) | |
| Change in unrealized net appreciation/depreciation | | 68,822,681 | | | (5,878,438) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 146,171,662 | | | (20,244,890) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (218,230) | | | (548,918) | |
| | Class C Shares | | (87,047) | | | (270,826) | |
| | Class D Shares | | (873,853) | | | (2,114,764) | |
| | Class I Shares | | (8,514,426) | | | (11,725,695) | |
| | Class N Shares | | (1,821,131) | | | (3,260,256) | |
| | Class S Shares | | (125,581) | | | (245,985) | |
| | Class T Shares | | (1,837,581) | | | (3,831,344) | |
Net Decrease from Dividends and Distributions to Shareholders | | (13,477,849) | | | (21,997,788) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 3,314,454 | | | 2,258,809 | |
| | Class C Shares | | (230,118) | | | (1,416,457) | |
| | Class D Shares | | 8,121,071 | | | 1,293,102 | |
| | Class I Shares | | 58,822,137 | | | 216,396,123 | |
| | Class N Shares | | 8,064,462 | | | 22,770,007 | |
| | Class S Shares | | 1,261,319 | | | 2,067,250 | |
| | Class T Shares | | 12,025,332 | | | 20,060,308 | |
Net Increase/(Decrease) from Capital Share Transactions | | 91,378,657 | | | 263,429,142 | |
Net Increase/(Decrease) in Net Assets | | 224,072,470 | | | 221,186,464 | |
Net Assets: | | | | | | |
| Beginning of period | | 653,831,756 | | | 432,645,292 | |
| End of period | $ | 877,904,226 | | $ | 653,831,756 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2021 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.18 | | | $13.00 | | | $11.68 | | | $11.28 | | | $10.88 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.32 | | | 0.18 | | | 0.18 | | | 0.18 | | | 0.19 | |
| | Net realized and unrealized gain/(loss) | | 2.38 | | | (0.49) | | | 1.72 | | | 0.68 | | | 0.65 | |
| Total from Investment Operations | | 2.70 | | | (0.31) | | | 1.90 | | | 0.86 | | | 0.84 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.23) | | | (0.37) | | | (0.36) | | | (0.46) | | | (0.33) | |
| | Distributions (from capital gains) | | — | | | (0.14) | | | (0.22) | | | — | | | (0.11) | |
| Total Dividends and Distributions | | (0.23) | | | (0.51) | | | (0.58) | | | (0.46) | | | (0.44) | |
| Net Asset Value, End of Period | | $14.65 | | | $12.18 | | | $13.00 | | | $11.68 | | | $11.28 | |
| Total Return* | | 22.32% | | | (2.53)% | | | 17.12% | | | 7.76% | | | 8.16% | |
| Net Assets, End of Period (in thousands) | | $15,294 | | | $9,857 | | | $9,167 | | | $5,828 | | | $4,675 | |
| Average Net Assets for the Period (in thousands) | | $12,864 | | | $11,509 | | | $7,245 | | | $5,093 | | | $7,879 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.23% | | | 1.25% | | | 1.36% | | | 1.26% | | | 1.15% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.23% | | | 1.25% | | | 1.35% | | | 1.26% | | | 1.15% | |
| | Ratio of Net Investment Income/(Loss) | | 2.25% | | | 1.42% | | | 1.46% | | | 1.60% | | | 1.77% | |
| Portfolio Turnover Rate | | 77% | | | 69% | | | 61% | | | 78% | | | 72% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $11.98 | | | $12.81 | | | $11.53 | | | $11.14 | | | $10.77 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.08 | | | 0.09 | | | 0.10 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 2.37 | | | (0.49) | | | 1.69 | | | 0.67 | | | 0.64 | |
| Total from Investment Operations | | 2.55 | | | (0.41) | | | 1.78 | | | 0.77 | | | 0.75 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.19) | | | (0.28) | | | (0.28) | | | (0.38) | | | (0.27) | |
| | Distributions (from capital gains) | | — | | | (0.14) | | | (0.22) | | | — | | | (0.11) | |
| Total Dividends and Distributions | | (0.19) | | | (0.42) | | | (0.50) | | | (0.38) | | | (0.38) | |
| Net Asset Value, End of Period | | $14.34 | | | $11.98 | | | $12.81 | | | $11.53 | | | $11.14 | |
| Total Return* | | 21.34% | | | (3.33)% | | | 16.19% | | | 7.01% | | | 7.34% | |
| Net Assets, End of Period (in thousands) | | $6,766 | | | $5,908 | | | $8,020 | | | $6,970 | | | $6,432 | |
| Average Net Assets for the Period (in thousands) | | $6,420 | | | $7,522 | | | $7,211 | | | $6,717 | | | $6,520 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.03% | | | 2.03% | | | 2.09% | | | 2.00% | | | 1.88% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.03% | | | 2.03% | | | 2.09% | | | 2.00% | | | 1.88% | |
| | Ratio of Net Investment Income/(Loss) | | 1.31% | | | 0.65% | | | 0.73% | | | 0.84% | | | 1.01% | |
| Portfolio Turnover Rate | | 77% | | | 69% | | | 61% | | | 78% | | | 72% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.26 | | | $13.09 | | | $11.76 | | | $11.35 | | | $10.97 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.34 | | | 0.20 | | | 0.20 | | | 0.20 | | | 0.20 | |
| | Net realized and unrealized gain/(loss) | | 2.41 | | | (0.50) | | | 1.73 | | | 0.69 | | | 0.66 | |
| Total from Investment Operations | | 2.75 | | | (0.30) | | | 1.93 | | | 0.89 | | | 0.86 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.24) | | | (0.39) | | | (0.38) | | | (0.48) | | | (0.37) | |
| | Distributions (from capital gains) | | — | | | (0.14) | | | (0.22) | | | — | | | (0.11) | |
| Total Dividends and Distributions | | (0.24) | | | (0.53) | | | (0.60) | | | (0.48) | | | (0.48) | |
| Net Asset Value, End of Period | | $14.77 | | | $12.26 | | | $13.09 | | | $11.76 | | | $11.35 | |
| Total Return* | | 22.59% | | | (2.39)% | | | 17.31% | | | 7.98% | | | 8.26% | |
| Net Assets, End of Period (in thousands) | | $58,872 | | | $42,584 | | | $46,239 | | | $36,579 | | | $35,330 | |
| Average Net Assets for the Period (in thousands) | | $49,730 | | | $47,764 | | | $39,590 | | | $35,963 | | | $36,226 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.06% | | | 1.08% | | | 1.16% | | | 1.08% | | | 0.98% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.06% | | | 1.08% | | | 1.16% | | | 1.08% | | | 0.98% | |
| | Ratio of Net Investment Income/(Loss) | | 2.41% | | | 1.62% | | | 1.65% | | | 1.75% | | | 1.87% | |
| Portfolio Turnover Rate | | 77% | | | 69% | | | 61% | | | 78% | | | 72% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.25 | | | $13.08 | | | $11.75 | | | $11.33 | | | $10.95 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.34 | | | 0.22 | | | 0.20 | | | 0.22 | | | 0.22 | |
| | Net realized and unrealized gain/(loss) | | 2.41 | | | (0.51) | | | 1.74 | | | 0.69 | | | 0.65 | |
| Total from Investment Operations | | 2.75 | | | (0.29) | | | 1.94 | | | 0.91 | | | 0.87 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.25) | | | (0.40) | | | (0.39) | | | (0.49) | | | (0.38) | |
| | Distributions (from capital gains) | | — | | | (0.14) | | | (0.22) | | | — | | | (0.11) | |
| Total Dividends and Distributions | | (0.25) | | | (0.54) | | | (0.61) | | | (0.49) | | | (0.49) | |
| Net Asset Value, End of Period | | $14.75 | | | $12.25 | | | $13.08 | | | $11.75 | | | $11.33 | |
| Total Return* | | 22.56% | | | (2.31)% | | | 17.41% | | | 8.21% | | | 8.39% | |
| Net Assets, End of Period (in thousands) | | $551,129 | | | $408,928 | | | $211,998 | | | $147,863 | | | $114,658 | |
| Average Net Assets for the Period (in thousands) | | $484,077 | | | $291,765 | | | $186,262 | | | $120,270 | | | $110,825 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.00% | | | 1.02% | | | 1.09% | | | 0.96% | | | 0.87% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.00% | | | 1.02% | | | 1.09% | | | 0.96% | | | 0.87% | |
| | Ratio of Net Investment Income/(Loss) | | 2.44% | | | 1.83% | | | 1.68% | | | 1.91% | | | 2.00% | |
| Portfolio Turnover Rate | | 77% | | | 69% | | | 61% | | | 78% | | | 72% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018(1) | |
| Net Asset Value, Beginning of Period | | $12.24 | | | $13.07 | | | $11.75 | | | $11.81 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.35 | | | 0.23 | | | 0.27 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 2.42 | | | (0.51) | | | 1.67 | | | (0.10) | |
| Total from Investment Operations | | 2.77 | | | (0.28) | | | 1.94 | | | 0.07 | |
| Less Dividends and Distributions: | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.25) | | | (0.41) | | | (0.40) | | | (0.13) | |
| | Distributions (from capital gains) | | — | | | (0.14) | | | (0.22) | | | — | |
| Total Dividends and Distributions | | (0.25) | | | (0.55) | | | (0.62) | | | (0.13) | |
| Net Asset Value, End of Period | | $14.76 | | | $12.24 | | | $13.07 | | | $11.75 | |
| Total Return* | | 22.80% | | | (2.22)% | | | 17.43% | | | 0.59% | |
| Net Assets, End of Period (in thousands) | | $114,928 | | | $88,550 | | | $71,472 | | | $35,316 | |
| Average Net Assets for the Period (in thousands) | | $104,011 | | | $80,627 | | | $34,671 | | | $28,132 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.90% | | | 0.92% | | | 0.99% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.92% | | | 0.99% | | | 0.93% | |
| | Ratio of Net Investment Income/(Loss) | | 2.49% | | | 1.84% | | | 2.28% | | | 2.14% | |
| Portfolio Turnover Rate | | 77% | | | 69% | | | 61% | | | 78% | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.15 | | | $12.97 | | | $11.66 | | | $11.26 | | | $10.88 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.29 | | | 0.16 | | | 0.15 | | | 0.16 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 2.37 | | | (0.49) | | | 1.72 | | | 0.67 | | | 0.65 | |
| Total from Investment Operations | | 2.66 | | | (0.33) | | | 1.87 | | | 0.83 | | | 0.82 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.22) | | | (0.35) | | | (0.34) | | | (0.43) | | | (0.33) | |
| | Distributions (from capital gains) | | — | | | (0.14) | | | (0.22) | | | — | | | (0.11) | |
| Total Dividends and Distributions | | (0.22) | | | (0.49) | | | (0.56) | | | (0.43) | | | (0.44) | |
| Net Asset Value, End of Period | | $14.59 | | | $12.15 | | | $12.97 | | | $11.66 | | | $11.26 | |
| Total Return* | | 22.03% | | | (2.69)% | | | 16.86% | | | 7.56% | | | 7.95% | |
| Net Assets, End of Period (in thousands) | | $9,178 | | | $6,692 | | | $5,177 | | | $2,464 | | | $2,662 | |
| Average Net Assets for the Period (in thousands) | | $7,647 | | | $6,265 | | | $3,433 | | | $2,615 | | | $2,928 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.43% | | | 1.46% | | | 1.57% | | | 1.45% | | | 1.30% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.43% | | | 1.46% | | | 1.53% | | | 1.45% | | | 1.30% | |
| | Ratio of Net Investment Income/(Loss) | | 2.06% | | | 1.30% | | | 1.28% | | | 1.35% | | | 1.56% | |
| Portfolio Turnover Rate | | 77% | | | 69% | | | 61% | | | 78% | | | 72% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 January 26, 2018 (inception date) through September 30, 2018. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $12.25 | | | $13.08 | | | $11.75 | | | $11.34 | | | $10.95 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.32 | | | 0.19 | | | 0.19 | | | 0.19 | | | 0.20 | |
| | Net realized and unrealized gain/(loss) | | 2.42 | | | (0.50) | | | 1.74 | | | 0.69 | | | 0.66 | |
| Total from Investment Operations | | 2.74 | | | (0.31) | | | 1.93 | | | 0.88 | | | 0.86 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.24) | | | (0.38) | | | (0.38) | | | (0.47) | | | (0.36) | |
| | Distributions (from capital gains) | | — | | | (0.14) | | | (0.22) | | | — | | | (0.11) | |
| Total Dividends and Distributions | | (0.24) | | | (0.52) | | | (0.60) | | | (0.47) | | | (0.47) | |
| Net Asset Value, End of Period | | $14.75 | | | $12.25 | | | $13.08 | | | $11.75 | | | $11.34 | |
| Total Return* | | 22.49% | | | (2.47)% | | | 17.27% | | | 7.90% | | | 8.29% | |
| Net Assets, End of Period (in thousands) | | $121,737 | | | $91,313 | | | $80,573 | | | $43,490 | | | $53,339 | |
| Average Net Assets for the Period (in thousands) | | $107,523 | | | $95,019 | | | $54,353 | | | $51,128 | | | $55,685 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.14% | | | 1.16% | | | 1.23% | | | 1.14% | | | 1.04% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.14% | | | 1.16% | | | 1.23% | | | 1.14% | | | 1.04% | |
| | Ratio of Net Investment Income/(Loss) | | 2.30% | | | 1.57% | | | 1.59% | | | 1.64% | | | 1.84% | |
| Portfolio Turnover Rate | | 77% | | | 69% | | | 61% | | | 78% | | | 72% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Global Real Estate 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 a combination of capital appreciation and current 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 original 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 Global Real Estate 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 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.
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends of net investment income are generally declared and distributed quarterly, 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
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
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 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
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
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.
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 | $ | 3,546,061 | $ | — | $ | (3,546,061) | $ | — |
| | | | | | | | | |
(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 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.
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
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 September 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $3,546,061. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2021 is $3,790,130, resulting in the net amount due to the counterparty of $244,069.
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 Global Real Estate 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 0.75%, and the Fund’s benchmark index used in the calculation is the FTSE EPRA Nareit Global 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 September 30, 2021, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.84%.
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 any performance adjustments to management fees (if applicable), 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 January 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 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 Global Real Estate 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 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
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $6,239.
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 September 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
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
of the Class C Shares redeemed. During the year ended September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $506.
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) | |
$ 16,462,617 | $ 23,989,272 | $ - | $ - | $ - | $ (32,687) | $106,295,866 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 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) |
$ 772,889,205 | $136,132,822 | $(29,836,956) | $ 106,295,866 |
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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 13,477,849 | $ - | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 17,760,621 | $ 4,237,167 | $ - | $ - | |
Janus Henderson Global Real Estate 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 |
$ 4,306,547 | $ 11,549,227 | $ (15,855,774) |
Capital has been adjusted by $4,307,975, all of which is long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 416,186 | $ 5,829,137 | | 796,852 | $ 10,321,137 |
Reinvested dividends and distributions | 13,023 | 180,706 | | 38,910 | 496,086 |
Shares repurchased | (194,664) | (2,695,389) | | (731,519) | (8,558,414) |
Net Increase/(Decrease) | 234,545 | $ 3,314,454 | | 104,243 | $ 2,258,809 |
Class C Shares: | | | | | |
Shares sold | 204,019 | $ 2,734,463 | | 111,903 | $ 1,437,050 |
Reinvested dividends and distributions | 5,850 | 79,612 | | 19,688 | 248,823 |
Shares repurchased | (231,177) | (3,044,193) | | (264,371) | (3,102,330) |
Net Increase/(Decrease) | (21,308) | $ (230,118) | | (132,780) | $ (1,416,457) |
Class D Shares: | | | | | |
Shares sold | 1,214,758 | $ 17,785,841 | | 1,350,348 | $ 17,533,982 |
Reinvested dividends and distributions | 61,609 | 859,013 | | 163,322 | 2,080,000 |
Shares repurchased | (762,784) | (10,523,783) | | (1,572,910) | (18,320,880) |
Net Increase/(Decrease) | 513,583 | $ 8,121,071 | | (59,240) | $ 1,293,102 |
Class I Shares: | | | | | |
Shares sold | 13,964,809 | $195,161,807 | | 33,493,330 | $406,294,595 |
Reinvested dividends and distributions | 547,064 | 7,610,971 | | 826,128 | 10,412,737 |
Shares repurchased | (10,548,274) | (143,950,641) | | (17,136,838) | (200,311,209) |
Net Increase/(Decrease) | 3,963,599 | $ 58,822,137 | | 17,182,620 | $216,396,123 |
Class N Shares: | | | | | |
Shares sold | 2,375,838 | $ 32,887,203 | | 3,004,219 | $ 37,732,049 |
Reinvested dividends and distributions | 76,598 | 1,077,336 | | 131,754 | 1,656,929 |
Shares repurchased | (1,897,809) | (25,900,077) | | (1,369,755) | (16,618,971) |
Net Increase/(Decrease) | 554,627 | $ 8,064,462 | | 1,766,218 | $ 22,770,007 |
Class S Shares: | | | | | |
Shares sold | 257,001 | $ 3,663,716 | | 335,117 | $ 4,255,468 |
Reinvested dividends and distributions | 9,077 | 125,581 | | 19,379 | 245,702 |
Shares repurchased | (188,196) | (2,527,978) | | (202,486) | (2,433,920) |
Net Increase/(Decrease) | 77,882 | $ 1,261,319 | | 152,010 | $ 2,067,250 |
Class T Shares: | | | | | |
Shares sold | 3,327,595 | $ 47,129,030 | | 5,972,262 | $ 75,461,527 |
Reinvested dividends and distributions | 130,475 | 1,816,882 | | 298,990 | 3,795,716 |
Shares repurchased | (2,656,538) | (36,920,580) | | (4,976,874) | (59,196,935) |
Net Increase/(Decrease) | 801,532 | $ 12,025,332 | | 1,294,378 | $ 20,060,308 |
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the year ended September 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 |
$682,490,302 | $ 574,474,733 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 Real Estate Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Real Estate 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 Real Estate Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 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 September 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 September 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 September 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
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Global Real Estate 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 Real Estate 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 Real Estate 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 Real Estate 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 Real Estate 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 Real Estate 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 Real Estate 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 Real Estate 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 Real Estate 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 Real Estate 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 Real Estate 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 Real Estate 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.
Janus Henderson Global Real Estate 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 September 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 Bloomberg 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 Real Estate 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.
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.
Janus Henderson Global Real Estate Fund
Useful Information About Your Fund Report (unaudited)
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 Real Estate Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Capital Gain Distributions | $4,307,975 |
Qualified Dividend Income Percentage | 11% |
Janus Henderson Global Real Estate 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 Real Estate 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Global Real Estate 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 Real Estate 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Real Estate 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Global Real Estate 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Real Estate 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 |
Guy Barnard
151 Detroit Street
Denver, CO 80206
DOB: 1981 | Executive Vice President and Co-Portfolio Manager Janus Henderson Global Real Estate Fund | 6/17-Present | Co-Head of Global Property Equities of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Tim Gibson
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Executive Vice President and Co-Portfolio Manager Janus Henderson Global Real Estate Fund | 6/17-Present | Co-Head of Global Property Equities of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Greg Kuhl
151 Detroit Street
Denver, CO 80206
DOB: 1983 | Executive Vice President and Co-Portfolio Manager Janus Henderson Global Real Estate Fund | 3/19-Present | Portfolio Manager of other Janus Henderson accounts. |
* 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 Real Estate 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, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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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Janus Henderson Global Real Estate 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Real Estate Fund
Notes
NotesPage1
Janus Henderson Global Real Estate 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 |
| | | | 125-02-93044 11-21 |
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| | | ANNUAL REPORT September 30, 2021 |
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| | Janus Henderson Global Research 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 Research Fund
Janus Henderson Global Research Fund (unaudited)
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FUND SNAPSHOT We seek to create a diversified, high-conviction portfolio reflecting the best ideas of the Janus Henderson research team. | | | | | Team-Based Approach Led by Matthew Peron, Director of Centralized Equity Research |
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PERFORMANCE OVERVIEW
The Janus Henderson Global Research Fund I Shares returned 27.78% for the 12-month period ended September 30, 2021, while its primary benchmark, the MSCI World IndexSM, returned 28.82%, and its secondary benchmark, the MSCI All Country World IndexSM returned 27.44%.
INVESTMENT ENVIRONMENT
The approval and rollout of COVID-19 vaccines at the start of the period, as well as ongoing accommodative policies from central banks around the world, put the global economy firmly on a path to recovery. While fiscal and monetary programs supported the recovery, increasing expectations for growth and inflation pushed global bond yields higher, with the widely watched 10-year U.S. Treasury yield rising sharply in March. This fueled a rotation out of technology stocks, where high valuations were supported by the notion that growth and cost of capital will remain low, and into stocks that generally perform well in a rising rate environment. Despite continued growth in the global economy, the yield on the 10-year U.S. Treasury note pulled back in August. At the Federal Open Market Committee meeting in September, policy makers held benchmark interest rates near zero but adopted a slightly more hawkish outlook for rates and indicated that they may raise rates as early as 2022. Although persistent global inflation, uncertainty around fiscal policy, supply chain bottlenecks and increased regulatory scrutiny in China fueled market volatility in the final months of the reporting period, markets finished the period with strong gains.
PERFORMANCE DISCUSSION
The Fund underperformed its primary benchmark but outperformed its secondary benchmark for the year. While we aim to outperform over shorter periods, our goal is to provide consistent outperformance long term by focusing on what we consider our strengths: picking stocks and avoiding macroeconomic risks. Stocks are selected by our seven global sector teams, which employ a bottom-up, fundamental approach to identify what we consider the best global opportunities.
Areas of relative weakness in the Fund included the financials and health care sectors. Fidelity National Information Services (FIS) led declines among our financials holdings. The market appears to have decided that the provider of software solutions for the financial services industry is now “legacy” tech and thus a secular share donor to new fintech competitors. Our research suggests otherwise – we believe FIS is well positioned to grow across both its merchant and banking segments and trades at a favorable valuation. Mastercard also contributed to our underperformance in financials. Concerns that the COVID Delta variant would slow a recovery in international travel and business activity hurt the company’s stock. We believe that Mastercard’s payments network among merchants is a competitive moat that positions the business as a key beneficiary as more transactions migrate from cash and check to credit card and electronic payments.
Key detractors also included select China-based holdings, which declined following the government’s announcement that it will increase regulatory oversight in a number of industries. Detractors included resorts developer and operator Sands China, which also suffered from a slower-than-expected recovery in travel. Although we have revised our earnings estimates for Sands and other China-based holdings based on known and expected regulatory changes, we maintained our position in the company, as we believe China is committed to sustaining access to foreign investor capital.
While we were disappointed with the Fund’s weak relative results, positive stock selection within the technology and energy sectors boosted relative performance. On an individual stock basis, top relative contributors included semiconductor capital equipment manufacturer ASML Holding. The stock gained on optimism around expanding
Janus Henderson Global Research Fund (unaudited)
capital investment plans across the industry, driven by long-term secular demand for chips. Particularly notable are sizable investments planned by Samsung and Taiwan Semiconductor Manufacturing Company. Broadening adoption of extreme ultraviolet lithography (EUV) across device types along with accelerated investment in upgrading leading-edge semiconductor manufacturing continue to support our positive long-term outlook for ASML.
Standout performers also included UK-based global sports betting firm Entain. The company’s stock soared following a $22 billion takeover bid by U.S. competitor DraftKings and speculation that the proposal may spark competitive bids. DraftKings’ offer valued Entain at a 46% premium to its stock price, which is more than double what MGM Resorts offered for the company earlier this year. Entain rejected MGM’s proposal on the basis that it believed it significantly undervalued the company, but, at this writing, had not yet accepted DraftKings’ bid. We believe DraftKings’ offering price validates our investment thesis, which is that Entain’s proprietary online betting technology gives it an industry advantage.
Alternative asset management firm Blackstone Group also contributed materially to relative results. Performance in the company’s portfolios has been generally strong as a result of economic reopening, and Blackstone has been favorably positioned to capture capital migrating to alternatives - a long-term secular trend we believe is likely to continue. Blackstone recently reported strong quarterly results and announced a partnership with insurer American International Group (AIG) to manage a portion of AIG’s assets, significantly increasing Blackstone’s insurance assets under management.
OUTLOOK
We were pleased to see evidence of continued economic growth during the period and are optimistic that a global recovery is still underway. Nonetheless, the recent rise in COVID variant infection rates, continued fallout from supply chain disruptions and concerns related to policy makers’ response to inflation have tempered our near-term growth expectations for the U.S. and global economy. With that said, these concerns are balanced with our optimism about the strong corporate earnings growth we’ve seen in recent quarters, as history has shown that stocks typically follow earnings higher.
Against this backdrop, we have maintained our strategy of investing in businesses that are participating in and driving secular growth trends such as e-commerce, cloud computing, digital payments and health care innovation. At the same time, we have made modest adjustments to the Fund. For example, within health care, we’ve shifted our focus to developers of life sciences technologies and tools, as we believe these are the businesses supporting the latest wave of innovation in health care. Meanwhile, in technology, we have trimmed our exposure to standard semiconductor manufacturers and reallocated some of those assets to specialty chip manufacturers more directly leveraged to secular themes such as artificial intelligence and high-performance applications, including 5G and autonomous driving. In anticipation that the economy will gather momentum and continue to progress toward the mid-business cycle, we believe these and other refinements will allow the Fund to stay aligned with our longer-term investment goals and objectives.
Thank you for your investment in Janus Henderson Global Research Fund.
Janus Henderson Global Research Fund (unaudited)
Fund At A Glance
September 30, 2021
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| ASML Holding NV | 2.57% | | 1.19% | | Sands China Ltd | 0.78% | | -0.69% |
| Entain PLC | 1.23% | | 0.91% | | Unilever PLC | 1.62% | | -0.60% |
| Blackstone Group Inc | 0.98% | | 0.67% | | Fidelity National Information Services Inc | 0.96% | | -0.45% |
| JPMorgan Chase & Co | 1.91% | | 0.41% | | Air Products & Chemicals Inc | 1.00% | | -0.42% |
| CAE Inc | 0.66% | | 0.40% | | Mastercard Inc | 1.76% | | -0.35% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Technology | | 1.24% | | 18.51% | 18.31% |
| Energy | | 0.77% | | 6.05% | 5.91% |
| Industrials | | 0.67% | | 17.12% | 17.30% |
| Communications | | 0.25% | | 10.65% | 10.66% |
| Consumer | | 0.20% | | 16.58% | 16.60% |
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| 3 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -2.09% | | 18.13% | 18.17% |
| Healthcare | | -1.14% | | 12.70% | 12.87% |
| Other** | | -0.06% | | 0.26% | 0.18% |
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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. |
* | The sectors listed above reflect those covered by the six analyst teams who comprise the Janus Henderson Research Team. |
** | Not a GICS classified sector. |
Janus Henderson Global Research Fund (unaudited)
Fund At A Glance
September 30, 2021
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5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 4.5% |
Alphabet Inc - Class C | |
Interactive Media & Services | 3.3% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 3.3% |
ASML Holding NV | |
Semiconductor & Semiconductor Equipment | 2.8% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 2.4% |
| | 16.3% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 100.0% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.3% | |
Preferred Stocks | | 0.3% | |
Other | | (0.6)% |
| | | 100.0% |
Emerging markets comprised 5.9% of total net assets.
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
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Janus Henderson Global Research 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 September 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 27.28% | 14.78% | 12.82% | 10.00% | | | 1.21% |
Class A Shares at MOP | | 19.96% | 13.43% | 12.15% | 9.60% | | | |
Class C Shares at NAV | | 26.43% | 14.05% | 12.01% | 9.19% | | | 1.89% |
Class C Shares at CDSC | | 25.43% | 14.05% | 12.01% | 9.19% | | | |
Class D Shares | | 27.68% | 15.14% | 13.09% | 10.18% | | | 0.89% |
Class I Shares | | 27.78% | 15.24% | 13.19% | 10.25% | | | 0.81% |
Class N Shares | | 27.85% | 15.26% | 13.11% | 10.18% | | | 0.76% |
Class R Shares | | 26.87% | 14.42% | 12.47% | 9.61% | | | 1.54% |
Class S Shares | | 27.23% | 14.74% | 12.71% | 9.83% | | | 1.24% |
Class T Shares | | 27.55% | 15.04% | 13.00% | 10.12% | | | 0.99% |
MSCI World Index | | 28.82% | 13.74% | 12.68% | 7.93% | | | |
MSCI All Country World Index | | 27.44% | 13.20% | 11.90% | 7.75% | | | |
Morningstar Quartile - Class T Shares | | 2nd | 3rd | 3rd | 1st | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | 113/354 | 228/295 | 174/216 | 49/162 | | | |
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.
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),
Janus Henderson Global Research Fund (unaudited)
Performance
non-diversification, Environmental, Social and Governance (ESG) factors, 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, 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 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 August 4, 2017. Performance shown for periods prior to August 4, 2017, reflects the performance for 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.
Class R Shares commenced operations on March 15, 2013. Performance shown for periods prior to March 15, 2013 reflects the historical performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class R 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.”
*The Fund’s inception date – February 25, 2005
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Research 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,082.70 | $6.00 | | $1,000.00 | $1,019.30 | $5.82 | 1.15% |
Class C Shares | $1,000.00 | $1,079.30 | $9.33 | | $1,000.00 | $1,016.09 | $9.05 | 1.79% |
Class D Shares | $1,000.00 | $1,084.50 | $4.28 | | $1,000.00 | $1,020.96 | $4.15 | 0.82% |
Class I Shares | $1,000.00 | $1,084.90 | $3.92 | | $1,000.00 | $1,021.31 | $3.80 | 0.75% |
Class N Shares | $1,000.00 | $1,085.20 | $3.61 | | $1,000.00 | $1,021.61 | $3.50 | 0.69% |
Class R Shares | $1,000.00 | $1,081.10 | $7.67 | | $1,000.00 | $1,017.70 | $7.44 | 1.47% |
Class S Shares | $1,000.00 | $1,082.50 | $6.21 | | $1,000.00 | $1,019.10 | $6.02 | 1.19% |
Class T Shares | $1,000.00 | $1,083.90 | $4.86 | | $1,000.00 | $1,020.41 | $4.71 | 0.93% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 Research Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 100.0% | | | |
Aerospace & Defense – 2.1% | | | |
| | Airbus SE* | | 290,171 | | | $38,093,050 | |
| | L3Harris Technologies Inc | | 168,502 | | | 37,110,880 | |
| | | 75,203,930 | |
Air Freight & Logistics – 1.2% | | | |
| | United Parcel Service Inc | | 226,348 | | | 41,217,971 | |
Airlines – 0.7% | | | |
| | Ryanair Holdings PLC (ADR)* | | 210,580 | | | 23,176,435 | |
Auto Components – 0.9% | | | |
| | Aptiv PLC* | | 220,877 | | | 32,904,047 | |
Banks – 4.7% | | | |
| | BNP Paribas SA | | 480,135 | | | 30,751,223 | |
| | Citigroup Inc | | 576,136 | | | 40,433,224 | |
| | HDFC Bank Ltd | | 903,597 | | | 19,373,128 | |
| | JPMorgan Chase & Co | | 462,767 | | | 75,750,330 | |
| | | 166,307,905 | |
Beverages – 3.2% | | | |
| | Constellation Brands Inc | | 282,363 | | | 59,491,060 | |
| | Pernod Ricard SA | | 248,802 | | | 54,402,649 | |
| | | 113,893,709 | |
Biotechnology – 2.5% | | | |
| | AbbVie Inc | | 299,593 | | | 32,317,097 | |
| | Ascendis Pharma A/S (ADR)* | | 68,657 | | | 10,943,239 | |
| | Global Blood Therapeutics Inc* | | 120,738 | | | 3,076,404 | |
| | Neurocrine Biosciences Inc* | | 135,109 | | | 12,958,304 | |
| | Sarepta Therapeutics Inc* | | 111,845 | | | 10,343,426 | |
| | Vertex Pharmaceuticals Inc* | | 94,121 | | | 17,072,608 | |
| | | 86,711,078 | |
Building Products – 1.9% | | | |
| | Assa Abloy AB | | 1,134,295 | | | 32,901,527 | |
| | Daikin Industries Ltd | | 158,000 | | | 33,988,589 | |
| | | 66,890,116 | |
Capital Markets – 3.5% | | | |
| | Apollo Global Management Inc | | 480,530 | | | 29,595,843 | |
| | Blackstone Group Inc | | 308,662 | | | 35,909,737 | |
| | London Stock Exchange Group PLC | | 183,998 | | | 18,380,059 | |
| | Morgan Stanley | | 389,483 | | | 37,900,591 | |
| | | 121,786,230 | |
Chemicals – 1.8% | | | |
| | Air Products & Chemicals Inc | | 103,667 | | | 26,550,155 | |
| | Sherwin-Williams Co | | 132,738 | | | 37,130,801 | |
| | | 63,680,956 | |
Consumer Finance – 2.0% | | | |
| | Nexi SpA (144A)* | | 1,426,310 | | | 26,606,827 | |
| | OneMain Holdings Inc | | 325,133 | | | 17,989,609 | |
| | Synchrony Financial | | 511,970 | | | 25,025,094 | |
| | | 69,621,530 | |
Diversified Financial Services – 0% | | | |
| | Jackson Financial Inc* | | 23,168 | | | 602,368 | |
Electric Utilities – 0.2% | | | |
| | NextEra Energy Inc | | 112,039 | | | 8,797,302 | |
Electronic Equipment, Instruments & Components – 1.7% | | | |
| | Hexagon AB - Class B | | 3,791,141 | | | 58,436,588 | |
Entertainment – 3.4% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 723,519 | | | 37,196,112 | |
| | Netflix Inc* | | 91,800 | | | 56,029,212 | |
| | Sea Ltd (ADR)* | | 79,214 | | | 25,247,878 | |
| | | 118,473,202 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2021 |
Janus Henderson Global Research Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Health Care Equipment & Supplies – 3.0% | | | |
| | Abbott Laboratories | | 235,391 | | | $27,806,739 | |
| | Boston Scientific Corp* | | 719,148 | | | 31,203,832 | |
| | Dentsply Sirona Inc | | 237,151 | | | 13,766,616 | |
| | DexCom Inc* | | 25,715 | | | 14,062,505 | |
| | Edwards Lifesciences Corp* | | 168,170 | | | 19,038,526 | |
| | | 105,878,218 | |
Health Care Providers & Services – 1.1% | | | |
| | Centene Corp* | | 257,399 | | | 16,038,532 | |
| | Humana Inc | | 57,042 | | | 22,197,894 | |
| | | 38,236,426 | |
Hotels, Restaurants & Leisure – 2.7% | | | |
| | GVC Holdings PLC* | | 1,678,874 | | | 48,052,245 | |
| | McDonald's Corp | | 139,468 | | | 33,627,129 | |
| | Sands China Ltd* | | 7,171,600 | | | 14,697,590 | |
| | | 96,376,964 | |
Household Durables – 0.5% | | | |
| | Roku Inc* | | 59,937 | | | 18,781,259 | |
Independent Power and Renewable Electricity Producers – 1.5% | | | |
| | NRG Energy Inc | | 822,209 | | | 33,570,793 | |
| | Vistra Energy Corp | | 1,082,569 | | | 18,511,930 | |
| | | 52,082,723 | |
Industrial Conglomerates – 1.0% | | | |
| | Honeywell International Inc | | 158,361 | | | 33,616,873 | |
Information Technology Services – 4.6% | | | |
| | Fidelity National Information Services Inc | | 244,522 | | | 29,753,437 | |
| | Mastercard Inc | | 180,517 | | | 62,762,151 | |
| | Visa Inc | | 266,590 | | | 59,382,922 | |
| | Wix.com Ltd* | | 59,394 | | | 11,639,442 | |
| | | 163,537,952 | |
Insurance – 3.8% | | | |
| | AIA Group Ltd | | 3,042,700 | | | 35,035,201 | |
| | Aon PLC - Class A | | 96,530 | | | 27,585,378 | |
| | Beazley PLC* | | 2,731,695 | | | 13,842,979 | |
| | Intact Financial Corp | | 124,277 | | | 16,435,496 | |
| | Progressive Corp | | 239,401 | | | 21,639,456 | |
| | Prudential PLC | | 912,964 | | | 17,720,437 | |
| | | 132,258,947 | |
Interactive Media & Services – 6.1% | | | |
| | Alphabet Inc - Class C* | | 43,888 | | | 116,975,125 | |
| | Facebook Inc* | | 170,887 | | | 57,997,339 | |
| | Snap Inc* | | 328,582 | | | 24,272,352 | |
| | Tencent Holdings Ltd | | 288,600 | | | 16,922,379 | |
| | | 216,167,195 | |
Internet & Direct Marketing Retail – 6.3% | | | |
| | Amazon.com Inc* | | 34,910 | | | 114,680,746 | |
| | Booking Holdings Inc* | | 15,787 | | | 37,476,286 | |
| | DoorDash Inc - Class A* | | 89,823 | | | 18,501,741 | |
| | Meituan Dianping (144A)* | | 362,700 | | | 11,326,287 | |
| | MercadoLibre Inc* | | 23,449 | | | 39,380,251 | |
| | | 221,365,311 | |
Life Sciences Tools & Services – 0.9% | | | |
| | Thermo Fisher Scientific Inc | | 53,736 | | | 30,700,989 | |
Machinery – 1.4% | | | |
| | Parker-Hannifin Corp | | 113,011 | | | 31,600,136 | |
| | Sany Heavy Industry Co Ltd | | 4,138,279 | | | 16,335,598 | |
| | | 47,935,734 | |
Metals & Mining – 1.8% | | | |
| | Freeport-McMoRan Inc | | 510,026 | | | 16,591,146 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Research Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Metals & Mining– (continued) | | | |
| | Rio Tinto PLC | | 303,354 | | | $20,026,330 | |
| | Teck Resources Ltd | | 1,102,577 | | | 27,451,242 | |
| | | 64,068,718 | |
Multi-Utilities – 0.4% | | | |
| | RWE AG | | 373,185 | | | 13,190,868 | |
Oil, Gas & Consumable Fuels – 4.1% | | | |
| | Canadian Natural Resources Ltd | | 969,359 | | | 35,447,738 | |
| | Cheniere Energy Inc* | | 101,963 | | | 9,958,726 | |
| | ConocoPhillips | | 554,905 | | | 37,605,912 | |
| | Enterprise Products Partners LP | | 243,601 | | | 5,271,526 | |
| | Marathon Petroleum Corp | | 479,130 | | | 29,615,025 | |
| | Suncor Energy Inc | | 1,009,308 | | | 20,928,955 | |
| | Total SE | | 118,309 | | | 5,668,517 | |
| | | 144,496,399 | |
Personal Products – 1.4% | | | |
| | Unilever PLC | | 929,398 | | | 50,122,782 | |
Pharmaceuticals – 5.3% | | | |
| | AstraZeneca PLC | | 389,265 | | | 46,854,566 | |
| | Bristol-Myers Squibb Co | | 298,411 | | | 17,656,979 | |
| | Catalent Inc* | | 208,708 | | | 27,772,774 | |
| | Merck & Co Inc | | 464,208 | | | 34,866,663 | |
| | Novartis AG | | 352,012 | | | 28,883,788 | |
| | Roche Holding AG | | 84,424 | | | 30,811,590 | |
| | | 186,846,360 | |
Road & Rail – 1.7% | | | |
| | Full Truck Alliance Co (ADR)*,# | | 1,185,996 | | | 18,181,319 | |
| | Uber Technologies Inc* | | 931,698 | | | 41,740,070 | |
| | | 59,921,389 | |
Semiconductor & Semiconductor Equipment – 7.9% | | | |
| | Advanced Micro Devices Inc* | | 193,945 | | | 19,956,940 | |
| | ASML Holding NV | | 131,902 | | | 97,287,716 | |
| | Marvell Technology Inc | | 347,133 | | | 20,935,591 | |
| | NVIDIA Corp | | 238,648 | | | 49,438,320 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 2,537,000 | | | 52,320,286 | |
| | Texas Instruments Inc | | 191,595 | | | 36,826,475 | |
| | | 276,765,328 | |
Software – 8.5% | | | |
| | Adobe Inc* | | 115,593 | | | 66,549,202 | |
| | Autodesk Inc* | | 110,934 | | | 31,635,049 | |
| | Microsoft Corp | | 565,344 | | | 159,381,780 | |
| | SS&C Technologies Holdings Inc | | 198,783 | | | 13,795,540 | |
| | Workday Inc - Class A* | | 117,679 | | | 29,406,805 | |
| | | 300,768,376 | |
Technology Hardware, Storage & Peripherals – 2.4% | | | |
| | Apple Inc | | 593,487 | | | 83,978,410 | |
Textiles, Apparel & Luxury Goods – 1.7% | | | |
| | adidas AG | | 86,598 | | | 27,284,048 | |
| | NIKE Inc - Class B | | 230,073 | | | 33,413,502 | |
| | | 60,697,550 | |
Trading Companies & Distributors – 1.6% | | | |
| | Ferguson PLC | | 417,090 | | | 57,809,637 | |
Wireless Telecommunication Services – 0.5% | | | |
| | T-Mobile US Inc* | | 137,694 | | | 17,591,785 | |
Total Common Stocks (cost $2,195,398,313) | | 3,520,899,560 | |
Preferred Stocks– 0.3% | | | |
Health Care Providers & Services – 0.3% | | | |
| | API Holdings Private Ltd PP*,¢,§((cost $9,437,947) | | 117,653 | | | 9,352,360 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Global Research Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Investments Purchased with Cash Collateral from Securities Lending– 0.3% | | | |
Investment Companies – 0.2% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 8,814,292 | | | $8,814,292 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.0400%, 10/1/21 | | $2,203,573 | | | 2,203,573 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $11,017,865) | | 11,017,865 | |
Total Investments (total cost $2,215,854,125) – 100.6% | | 3,541,269,785 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.6)% | | (22,604,030) | |
Net Assets – 100% | | $3,518,665,755 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $2,443,768,583 | | 69.0 | % |
United Kingdom | | 164,876,616 | | 4.7 | |
Netherlands | | 147,410,498 | | 4.2 | |
France | | 128,915,439 | | 3.6 | |
Canada | | 100,263,431 | | 2.8 | |
Sweden | | 91,338,115 | | 2.6 | |
Taiwan | | 77,568,164 | | 2.2 | |
China | | 62,765,583 | | 1.8 | |
Switzerland | | 59,695,378 | | 1.7 | |
Hong Kong | | 49,732,791 | | 1.4 | |
Germany | | 40,474,916 | | 1.1 | |
Argentina | | 39,380,251 | | 1.1 | |
Japan | | 33,988,589 | | 1.0 | |
India | | 28,725,488 | | 0.8 | |
Italy | | 26,606,827 | | 0.7 | |
Ireland | | 23,176,435 | | 0.7 | |
Israel | | 11,639,442 | | 0.3 | |
Denmark | | 10,943,239 | | 0.3 | |
| | | | | | |
| | | | | | |
Total | | $3,541,269,785 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Research Fund
Schedule of Investments
September 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/21 |
Investment Companies - N/A |
Money Markets - N/A | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | $ | 4,836 | $ | (125) | $ | - | $ | - |
Investments Purchased with Cash Collateral from Securities Lending - 0.2% |
Investment Companies - 0.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 29,254∆ | | - | | - | | 8,814,292 |
Total Affiliated Investments - 0.2% | $ | 34,090 | $ | (125) | $ | - | $ | 8,814,292 |
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Investment Companies - N/A |
Money Markets - N/A | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 788,510 | | 285,019,914 | | (285,808,299) | | - |
Investments Purchased with Cash Collateral from Securities Lending - 0.2% |
Investment Companies - 0.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 9,213,600 | | 216,059,448 | | (216,458,756) | | 8,814,292 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2021 |
Janus Henderson Global Research Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI All Country World IndexSM | MSCI All Country World IndexSM reflects the equity market performance of global developed and emerging markets. |
MSCI World IndexSM | MSCI World IndexSM reflects the equity market performance of global developed markets. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
PP | Private Placement |
| | |
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 September 30, 2021 is $37,933,114, which represents 1.1% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2021. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2021 is $9,352,360, which represents 0.3% 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. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2021) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
API Holdings Private Ltd PP | 9/27/21 | $ | 9,437,947 | $ | 9,352,360 | | 0.3 | % |
| | | | | | | | | |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2021. The issuer incurs all registration costs. | |
Janus Henderson Global Research 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 September 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 | | | | | | |
Aerospace & Defense | $ | 37,110,880 | $ | 38,093,050 | $ | - |
Banks | | 116,183,554 | | 50,124,351 | | - |
Beverages | | 59,491,060 | | 54,402,649 | | - |
Building Products | | - | | 66,890,116 | | - |
Capital Markets | | 103,406,171 | | 18,380,059 | | - |
Consumer Finance | | 43,014,703 | | 26,606,827 | | - |
Electronic Equipment, Instruments & Components | | - | | 58,436,588 | | - |
Hotels, Restaurants & Leisure | | 33,627,129 | | 62,749,835 | | - |
Insurance | | 65,660,330 | | 66,598,617 | | - |
Interactive Media & Services | | 199,244,816 | | 16,922,379 | | - |
Internet & Direct Marketing Retail | | 210,039,024 | | 11,326,287 | | - |
Machinery | | 31,600,136 | | 16,335,598 | | - |
Metals & Mining | | 44,042,388 | | 20,026,330 | | - |
Multi-Utilities | | - | | 13,190,868 | | - |
Oil, Gas & Consumable Fuels | | 138,827,882 | | 5,668,517 | | - |
Personal Products | | - | | 50,122,782 | | - |
Pharmaceuticals | | 80,296,416 | | 106,549,944 | | - |
Semiconductor & Semiconductor Equipment | | 127,157,326 | | 149,608,002 | | - |
Textiles, Apparel & Luxury Goods | | 33,413,502 | | 27,284,048 | | - |
Trading Companies & Distributors | | - | | 57,809,637 | | - |
All Other | | 1,280,657,759 | | - | | - |
Preferred Stocks | | - | | - | | 9,352,360 |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 11,017,865 | | - |
Total Assets | $ | 2,603,773,076 | $ | 928,144,349 | $ | 9,352,360 |
| | | | | | | |
Janus Henderson Global Research Fund
Statement of Assets and Liabilities
September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $2,207,039,833)(1) | | $ | 3,532,455,493 | |
| Affiliated investments, at value (cost $8,814,292) | | | 8,814,292 | |
| Cash denominated in foreign currency (cost $69,233) | | | 69,233 | |
| Non-interested Trustees' deferred compensation | | | 87,771 | |
| Receivables: | | | | |
| | Fund shares sold | | | 2,875,829 | |
| | Dividends | | | 1,447,188 | |
| | Foreign tax reclaims | | | 1,285,224 | |
| Other assets | | | 85,589 | |
Total Assets | | | 3,547,120,619 | |
Liabilities: | | | | |
| Due to custodian | | | 994,962 | |
| Collateral for securities loaned (Note 2) | | | 11,017,865 | |
| Payables: | | | — | |
| | Investments purchased | | | 9,437,947 | |
| | Fund shares repurchased | | | 3,489,313 | |
| | Advisory fees | | | 2,025,726 | |
| | Transfer agent fees and expenses | | | 544,057 | |
| | Foreign tax liability | | | 487,918 | |
| | Non-interested Trustees' deferred compensation fees | | | 87,771 | |
| | Professional fees | | | 52,485 | |
| | Non-interested Trustees' fees and expenses | | | 25,475 | |
| | Custodian fees | | | 22,223 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 18,368 | |
| | Affiliated fund administration fees payable | | | 7,541 | |
| | Accrued expenses and other payables | | | 243,213 | |
Total Liabilities | | | 28,454,864 | |
Net Assets | | $ | 3,518,665,755 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Research Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,831,406,057 | |
| Total distributable earnings (loss) (includes $487,918 of foreign capital gains tax) | | | 1,687,259,698 | |
Total Net Assets | | $ | 3,518,665,755 | |
Net Assets - Class A Shares | | $ | 24,309,769 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 220,635 | |
Net Asset Value Per Share(2) | | $ | 110.18 | |
Maximum Offering Price Per Share(3) | | $ | 116.90 | |
Net Assets - Class C Shares | | $ | 4,490,669 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 42,141 | |
Net Asset Value Per Share(2) | | $ | 106.56 | |
Net Assets - Class D Shares | | $ | 1,959,177,353 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 17,957,234 | |
Net Asset Value Per Share | | $ | 109.10 | |
Net Assets - Class I Shares | | $ | 145,610,157 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,312,269 | |
Net Asset Value Per Share | | $ | 110.96 | |
Net Assets - Class N Shares | | $ | 43,521,421 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 399,296 | |
Net Asset Value Per Share | | $ | 109.00 | |
Net Assets - Class R Shares | | $ | 9,736,317 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 89,580 | |
Net Asset Value Per Share | | $ | 108.69 | |
Net Assets - Class S Shares | | $ | 24,087,701 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 218,312 | |
Net Asset Value Per Share | | $ | 110.34 | |
Net Assets - Class T Shares | | $ | 1,307,732,368 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,010,734 | |
Net Asset Value Per Share | | $ | 108.88 | |
| |
(1) Includes $10,897,024 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. |
| |
16 | SEPTEMBER 30, 2021 |
Janus Henderson Global Research Fund
Statement of Operations
For the year ended September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 49,151,811 | |
| Affiliated securities lending income, net | | 29,254 | |
| Dividends from affiliates | | 4,836 | |
| Unaffiliated securities lending income, net | | 859 | |
| Interest | | 159 | |
| Other income | | 49,789 | |
| Foreign tax withheld | | (1,823,420) | |
Total Investment Income | | 47,413,288 | |
Expenses: | | | |
| Advisory fees | | 23,526,834 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 61,094 | |
| | Class C Shares | | 48,195 | |
| | Class R Shares | | 43,702 | |
| | Class S Shares | | 61,873 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,110,299 | |
| | Class R Shares | | 21,942 | |
| | Class S Shares | | 64,359 | |
| | Class T Shares | | 3,157,210 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 45,552 | |
| | Class C Shares | | 3,638 | |
| | Class I Shares | | 89,841 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 1,468 | |
| | Class C Shares | | 256 | |
| | Class D Shares | | 272,345 | |
| | Class I Shares | | 6,091 | |
| | Class N Shares | | 1,276 | |
| | Class R Shares | | 129 | |
| | Class S Shares | | 291 | |
| | Class T Shares | | 12,770 | |
| Shareholder reports expense | | 339,100 | |
| Registration fees | | 128,265 | |
| Custodian fees | | 107,348 | |
| Affiliated fund administration fees | | 95,054 | |
| Professional fees | | 74,309 | |
| Non-interested Trustees’ fees and expenses | | 52,549 | |
| Other expenses | | 239,461 | |
Total Expenses | | 30,565,251 | |
Less: Excess Expense Reimbursement and Waivers | | (106,161) | |
Net Expenses | | 30,459,090 | |
Net Investment Income/(Loss) | | 16,954,198 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Research Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 366,010,075 | |
| Investments in affiliates | | (125) | |
Total Net Realized Gain/(Loss) on Investments | | 366,009,950 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation (net of increase in deferred foreign taxes of $487,918) | | 411,833,902 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 411,833,902 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 794,798,050 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2021 |
Janus Henderson Global Research Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 16,954,198 | | $ | 17,877,075 | |
| Net realized gain/(loss) on investments | | 366,009,950 | | | 85,085,781 | |
| Change in unrealized net appreciation/depreciation | | 411,833,902 | | | 296,798,050 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 794,798,050 | | | 399,760,906 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (837,329) | | | (889,197) | |
| | Class C Shares | | (183,533) | | | (223,733) | |
| | Class D Shares | | (65,556,809) | | | (74,362,419) | |
| | Class I Shares | | (5,229,791) | | | (6,746,253) | |
| | Class N Shares | | (1,659,352) | | | (1,725,480) | |
| | Class R Shares | | (268,840) | | | (282,408) | |
| | Class S Shares | | (752,697) | | | (5,760,123) | |
| | Class T Shares | | (43,456,205) | | | (49,566,236) | |
Net Decrease from Dividends and Distributions to Shareholders | | (117,944,556) | | | (139,555,849) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (4,020,585) | | | 3,360,857 | |
| | Class C Shares | | (1,534,613) | | | (943,684) | |
| | Class D Shares | | (21,083,449) | | | (26,414,149) | |
| | Class I Shares | | (19,497,565) | | | (15,725,639) | |
| | Class N Shares | | (6,237,164) | | | 6,416,568 | |
| | Class R Shares | | 228,904 | | | 621,405 | |
| | Class S Shares | | (111,942,696) | | | 7,369,239 | |
| | Class T Shares | | (2,733,097) | | | (45,979,075) | |
Net Increase/(Decrease) from Capital Share Transactions | | (166,820,265) | | | (71,294,478) | |
Net Increase/(Decrease) in Net Assets | | 510,033,229 | | | 188,910,579 | |
Net Assets: | | | | | | |
| Beginning of period | | 3,008,632,526 | | | 2,819,721,947 | |
| End of period | $ | 3,518,665,755 | | $ | 3,008,632,526 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $89.60 | | | $81.67 | | | $85.80 | | | $76.26 | | | $64.32 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.23 | | | 0.31 | | | 0.65 | | | 0.57 | | | 0.44 | |
| | Net realized and unrealized gain/(loss) | | 23.77 | | | 11.47 | | | (0.20) | | | 9.25 | | | 11.82 | |
| Total from Investment Operations | | 24.00 | | | 11.78 | | | 0.45 | | | 9.82 | | | 12.26 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.16) | | | (0.61) | | | (0.46) | | | (0.28) | | | (0.32) | |
| | Distributions (from capital gains) | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (3.42) | | | (3.85) | | | (4.58) | | | (0.28) | | | (0.32) | |
| Net Asset Value, End of Period | | $110.18 | | | $89.60 | | | $81.67 | | | $85.80 | | | $76.26 | |
| Total Return* | | 27.28% | | | 14.71% | | | 1.43% | | | 12.90% | | | 19.16% | |
| Net Assets, End of Period (in thousands) | | $24,310 | | | $23,470 | | | $18,247 | | | $16,478 | | | $15,642 | |
| Average Net Assets for the Period (in thousands) | | $24,438 | | | $19,926 | | | $17,274 | | | $15,685 | | | $16,679 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.17% | | | 1.21% | | | 1.32% | | | 1.14% | | | 1.14% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.20% | | | 1.16% | | | 1.00% | | | 1.04% | |
| | Ratio of Net Investment Income/(Loss) | | 0.23% | | | 0.37% | | | 0.83% | | | 0.70% | | | 0.64% | |
| Portfolio Turnover Rate | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $87.19 | | | $79.50 | | | $83.65 | | | $74.57 | | | $62.97 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.45) | | | (0.22) | | | 0.13 | | | 0.04 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | 23.08 | | | 11.15 | | | (0.16) | | | 9.04 | | | 11.56 | |
| Total from Investment Operations | | 22.63 | | | 10.93 | | | (0.03) | | | 9.08 | | | 11.60 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Net Asset Value, End of Period | | $106.56 | | | $87.19 | | | $79.50 | | | $83.65 | | | $74.57 | |
| Total Return* | | 26.42% | | | 13.98% | | | 0.78% | | | 12.18% | | | 18.42% | |
| Net Assets, End of Period (in thousands) | | $4,491 | | | $5,005 | | | $5,564 | | | $7,746 | | | $8,954 | |
| Average Net Assets for the Period (in thousands) | | $4,880 | | | $5,323 | | | $6,303 | | | $8,343 | | | $9,330 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.85% | | | 1.84% | | | 1.80% | | | 1.64% | | | 1.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.85% | | | 1.84% | | | 1.80% | | | 1.64% | | | 1.67% | |
| | Ratio of Net Investment Income/(Loss) | | (0.45)% | | | (0.27)% | | | 0.17% | | | 0.05% | | | 0.06% | |
| Portfolio Turnover Rate | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $88.69 | | | $80.85 | | | $84.93 | | | $75.50 | | | $63.68 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.56 | | | 0.55 | | | 0.88 | | | 0.82 | | | 0.69 | |
| | Net realized and unrealized gain/(loss) | | 23.50 | | | 11.36 | | | (0.21) | | | 9.14 | | | 11.65 | |
| Total from Investment Operations | | 24.06 | | | 11.91 | | | 0.67 | | | 9.96 | | | 12.34 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.39) | | | (0.83) | | | (0.63) | | | (0.53) | | | (0.52) | |
| | Distributions (from capital gains) | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (3.65) | | | (4.07) | | | (4.75) | | | (0.53) | | | (0.52) | |
| Net Asset Value, End of Period | | $109.10 | | | $88.69 | | | $80.85 | | | $84.93 | | | $75.50 | |
| Total Return* | | 27.68% | | | 15.06% | | | 1.76% | | | 13.25% | | | 19.54% | |
| Net Assets, End of Period (in thousands) | | $1,959,177 | | | $1,607,701 | | | $1,493,928 | | | $1,564,083 | | | $1,461,778 | |
| Average Net Assets for the Period (in thousands) | | $1,873,058 | | | $1,511,011 | | | $1,463,525 | | | $1,527,522 | | | $1,362,959 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.86% | | | 0.89% | | | 0.83% | | | 0.69% | | | 0.74% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.86% | | | 0.89% | | | 0.83% | | | 0.69% | | | 0.74% | |
| | Ratio of Net Investment Income/(Loss) | | 0.54% | | | 0.68% | | | 1.13% | | | 1.02% | | | 1.01% | |
| Portfolio Turnover Rate | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $90.13 | | | $82.10 | | | $86.16 | | | $76.57 | | | $64.58 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.64 | | | 0.63 | | | 0.95 | | | 0.91 | | | 0.78 | |
| | Net realized and unrealized gain/(loss) | | 23.90 | | | 11.54 | | | (0.20) | | | 9.27 | | | 11.79 | |
| Total from Investment Operations | | 24.54 | | | 12.17 | | | 0.75 | | | 10.18 | | | 12.57 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.45) | | | (0.90) | | | (0.69) | | | (0.59) | | | (0.58) | |
| | Distributions (from capital gains) | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (3.71) | | | (4.14) | | | (4.81) | | | (0.59) | | | (0.58) | |
| Net Asset Value, End of Period | | $110.96 | | | $90.13 | | | $82.10 | | | $86.16 | | | $76.57 | |
| Total Return* | | 27.78% | | | 15.15% | | | 1.85% | | | 13.36% | | | 19.64% | |
| Net Assets, End of Period (in thousands) | | $145,610 | | | $135,394 | | | $139,584 | | | $179,093 | | | $162,788 | |
| Average Net Assets for the Period (in thousands) | | $145,201 | | | $132,597 | | | $146,672 | | | $167,007 | | | $157,847 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.81% | | | 0.74% | | | 0.60% | | | 0.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.81% | | | 0.74% | | | 0.60% | | | 0.65% | |
| | Ratio of Net Investment Income/(Loss) | | 0.61% | | | 0.76% | | | 1.21% | | | 1.11% | | | 1.13% | |
| Portfolio Turnover Rate | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $88.60 | | | $80.77 | | | $84.85 | | | $75.44 | | | $73.87 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.69 | | | 0.66 | | | 1.02 | | | 0.96 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 23.48 | | | 11.36 | | | (0.25) | | | 9.11 | | | 1.46 | |
| Total from Investment Operations | | 24.17 | | | 12.02 | | | 0.77 | | | 10.07 | | | 1.57 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.51) | | | (0.95) | | | (0.73) | | | (0.66) | | | — | |
| | Distributions (from capital gains) | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (3.77) | | | (4.19) | | | (4.85) | | | (0.66) | | | — | |
| Net Asset Value, End of Period | | $109.00 | | | $88.60 | | | $80.77 | | | $84.85 | | | $75.44 | |
| Total Return* | | 27.85% | | | 15.23% | | | 1.91% | | | 13.42% | | | 2.13% | |
| Net Assets, End of Period (in thousands) | | $43,521 | | | $40,607 | | | $31,393 | | | $38,195 | | | $28,326 | |
| Average Net Assets for the Period (in thousands) | | $44,557 | | | $30,617 | | | $37,778 | | | $36,802 | | | $17,865 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.73% | | | 0.76% | | | 0.68% | | | 0.54% | | | 0.63% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.73% | | | 0.76% | | | 0.68% | | | 0.54% | | | 0.63% | |
| | Ratio of Net Investment Income/(Loss) | | 0.67% | | | 0.81% | | | 1.32% | | | 1.19% | | | 1.01% | |
| Portfolio Turnover Rate | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | |
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Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $88.57 | | | $80.78 | | | $84.95 | | | $75.55 | | | $63.73 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.10) | | | 0.02 | | | 0.39 | | | 0.32 | | | 0.30 | |
| | Net realized and unrealized gain/(loss) | | 23.48 | | | 11.34 | | | (0.18) | | | 9.15 | | | 11.67 | |
| Total from Investment Operations | | 23.38 | | | 11.36 | | | 0.21 | | | 9.47 | | | 11.97 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.33) | | | (0.26) | | | (0.07) | | | (0.15) | |
| | Distributions (from capital gains) | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (3.26) | | | (3.57) | | | (4.38) | | | (0.07) | | | (0.15) | |
| Net Asset Value, End of Period | | $108.69 | | | $88.57 | | | $80.78 | | | $84.95 | | | $75.55 | |
| Total Return* | | 26.87% | | | 14.33% | | | 1.11% | | | 12.55% | | | 18.84% | |
| Net Assets, End of Period (in thousands) | | $9,736 | | | $7,802 | | | $6,574 | | | $6,417 | | | $6,196 | |
| Average Net Assets for the Period (in thousands) | | $8,777 | | | $6,410 | | | $6,232 | | | $6,245 | | | $5,724 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.50% | | | 1.54% | | | 1.47% | | | 1.31% | | | 1.32% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.50% | | | 1.54% | | | 1.47% | | | 1.31% | | | 1.32% | |
| | Ratio of Net Investment Income/(Loss) | | (0.10)% | | | 0.03% | | | 0.50% | | | 0.40% | | | 0.44% | |
| Portfolio Turnover Rate | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 September 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
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See Notes to Financial Statements. |
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22 | SEPTEMBER 30, 2021 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $89.62 | | | $81.85 | | | $85.96 | | | $76.40 | | | $64.41 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.28 | | | 0.27 | | | 0.61 | | | 0.51 | | | 0.45 | |
| | Net realized and unrealized gain/(loss) | | 23.70 | | | 11.48 | | | (0.18) | | | 9.30 | | | 11.82 | |
| Total from Investment Operations | | 23.98 | | | 11.75 | | | 0.43 | | | 9.81 | | | 12.27 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.74) | | | (0.42) | | | (0.25) | | | (0.28) | |
| | Distributions (from capital gains) | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (3.26) | | | (3.98) | | | (4.54) | | | (0.25) | | | (0.28) | |
| Net Asset Value, End of Period | | $110.34 | | | $89.62 | | | $81.85 | | | $85.96 | | | $76.40 | |
| Total Return* | | 27.23% | | | 14.66% | | | 1.40% | | | 12.86% | | | 19.14% | |
| Net Assets, End of Period (in thousands) | | $24,088 | | | $131,161 | | | $109,878 | | | $62,331 | | | $81,729 | |
| Average Net Assets for the Period (in thousands) | | $25,744 | | | $128,108 | | | $64,355 | | | $67,144 | | | $68,266 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.21% | | | 1.24% | | | 1.18% | | | 1.04% | | | 1.07% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.21% | | | 1.24% | | | 1.18% | | | 1.04% | | | 1.07% | |
| | Ratio of Net Investment Income/(Loss) | | 0.27% | | | 0.33% | | | 0.77% | | | 0.63% | | | 0.66% | |
| Portfolio Turnover Rate | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $88.54 | | | $80.73 | | | $84.82 | | | $75.41 | | | $63.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.45 | | | 0.48 | | | 0.82 | | | 0.75 | | | 0.64 | |
| | Net realized and unrealized gain/(loss) | | 23.47 | | | 11.34 | | | (0.21) | | | 9.13 | | | 11.63 | |
| Total from Investment Operations | | 23.92 | | | 11.82 | | | 0.61 | | | 9.88 | | | 12.27 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.32) | | | (0.77) | | | (0.58) | | | (0.47) | | | (0.47) | |
| | Distributions (from capital gains) | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (3.58) | | | (4.01) | | | (4.70) | | | (0.47) | | | (0.47) | |
| Net Asset Value, End of Period | | $108.88 | | | $88.54 | | | $80.73 | | | $84.82 | | | $75.41 | |
| Total Return* | | 27.55% | | | 14.96% | | | 1.67% | | | 13.16% | | | 19.44% | |
| Net Assets, End of Period (in thousands) | | $1,307,732 | | | $1,057,492 | | | $1,014,552 | | | $1,054,640 | | | $997,013 | |
| Average Net Assets for the Period (in thousands) | | $1,262,884 | | | $1,009,337 | | | $988,429 | | | $1,033,780 | | | $932,646 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.97% | | | 0.99% | | | 0.93% | | | 0.79% | | | 0.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.96% | | | 0.99% | | | 0.92% | | | 0.78% | | | 0.81% | |
| | Ratio of Net Investment Income/(Loss) | | 0.44% | | | 0.59% | | | 1.05% | | | 0.93% | | | 0.93% | |
| Portfolio Turnover Rate | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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. |
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Janus Investment Fund | 23 |
Janus Henderson Global Research Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Global Research 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 original 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 R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
Janus Henderson Global Research Fund
Notes to Financial Statements
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.
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
Janus Henderson Global Research Fund
Notes to Financial Statements
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 September 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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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
Janus Henderson Global Research Fund
Notes to Financial Statements
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. 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
Janus Henderson Global Research Fund
Notes to Financial Statements
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.
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 Research 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 | $ | 10,897,024 | $ | — | $ | (10,897,024) | $ | — |
| | | | | | | | | |
(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.
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 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.
Janus Henderson Global Research Fund
Notes to Financial Statements
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
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 September 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $10,897,024. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2021 is $11,017,865, resulting in the net amount due to the counterparty of $120,841.
Janus Henderson Global Research Fund
Notes to Financial Statements
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 0.60%, and the Fund’s benchmark index used in the calculation is the MSCI World IndexSM.
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 ±6.00%. 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 September 30, 2021, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.69%.
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 (if applicable), 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 0.86% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 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 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 Henderson Global Research Fund
Notes to Financial Statements
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 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 Henderson Global Research Fund
Notes to Financial Statements
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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $1,978.
Janus Henderson Global Research 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 September 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 September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $77.
As of September 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 | 41 | | 1 | | |
Class R Shares | - | | - | | |
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 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 September 30, 2021, the Fund engaged in cross trades amounting to $4,654,718 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 (reduced by foreign tax liability).
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) | |
$ 39,151,199 | $ 317,113,077 | $ - | $ - | $ - | $ (4,052) | $1,330,999,474 | |
Janus Henderson Global Research 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 September 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) |
$ 2,209,782,393 | $ 1,379,385,663 | $(47,898,271) | $ 1,331,487,392 |
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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 11,866,817 | $ 106,077,739 | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 31,685,719 | $ 107,870,130 | $ - | $ - | |
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 |
$ - | $ (1,131,518) | $ 1,131,518 |
Janus Henderson Global Research Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 47,006 | $ 4,813,707 | | 121,190 | $ 10,001,476 |
Reinvested dividends and distributions | 5,588 | 545,222 | | 7,114 | 600,882 |
Shares repurchased | (93,896) | (9,379,514) | | (89,793) | (7,241,501) |
Net Increase/(Decrease) | (41,302) | $ (4,020,585) | | 38,511 | $ 3,360,857 |
Class C Shares: | | | | | |
Shares sold | 5,609 | $ 557,392 | | 8,679 | $ 690,969 |
Reinvested dividends and distributions | 1,836 | 174,183 | | 2,423 | 200,129 |
Shares repurchased | (22,710) | (2,266,188) | | (23,687) | (1,834,782) |
Net Increase/(Decrease) | (15,265) | $ (1,534,613) | | (12,585) | $ (943,684) |
Class D Shares: | | | | | |
Shares sold | 390,481 | $ 39,919,687 | | 393,238 | $ 31,364,810 |
Reinvested dividends and distributions | 647,933 | 62,447,782 | | 851,335 | 70,984,342 |
Shares repurchased | (1,208,431) | (123,450,918) | | (1,595,048) | (128,763,301) |
Net Increase/(Decrease) | (170,017) | $ (21,083,449) | | (350,475) | $(26,414,149) |
Class I Shares: | | | | | |
Shares sold | 261,600 | $ 27,657,572 | | 265,584 | $ 21,627,812 |
Reinvested dividends and distributions | 42,943 | 4,206,664 | | 63,891 | 5,410,890 |
Shares repurchased | (494,413) | (51,361,801) | | (527,534) | (42,764,341) |
Net Increase/(Decrease) | (189,870) | $ (19,497,565) | | (198,059) | $(15,725,639) |
Class N Shares: | | | | | |
Shares sold | 70,228 | $ 7,347,983 | | 249,192 | $ 21,236,675 |
Reinvested dividends and distributions | 16,998 | 1,634,877 | | 20,666 | 1,719,602 |
Shares repurchased | (146,269) | (15,220,024) | | (200,195) | (16,539,709) |
Net Increase/(Decrease) | (59,043) | $ (6,237,164) | | 69,663 | $ 6,416,568 |
Class R Shares: | | | | | |
Shares sold | 23,033 | $ 2,418,306 | | 30,742 | $ 2,579,255 |
Reinvested dividends and distributions | 2,767 | 266,998 | | 3,231 | 270,398 |
Shares repurchased | (24,314) | (2,456,400) | | (27,264) | (2,228,248) |
Net Increase/(Decrease) | 1,486 | $ 228,904 | | 6,709 | $ 621,405 |
Class S Shares: | | | | | |
Shares sold | 38,545 | $ 3,945,043 | | 696,608 | $ 56,893,997 |
Reinvested dividends and distributions | 7,697 | 752,260 | | 68,169 | 5,759,611 |
Shares repurchased | (1,291,417) | (116,639,999) | | (643,719) | (55,284,369) |
Net Increase/(Decrease) | (1,245,175) | $(111,942,696) | | 121,058 | $ 7,369,239 |
Class T Shares: | | | | | |
Shares sold | 2,228,564 | $ 213,989,572 | | 642,267 | $ 51,969,973 |
Reinvested dividends and distributions | 441,931 | 42,540,264 | | 580,992 | 48,396,660 |
Shares repurchased | (2,603,434) | (259,262,933) | | (1,846,557) | (146,345,708) |
Net Increase/(Decrease) | 67,061 | $ (2,733,097) | | (623,298) | $(45,979,075) |
6. Purchases and Sales of Investment Securities
For the year ended September 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 |
$828,856,693 | $1,086,424,827 | $ - | $ - |
Janus Henderson Global Research Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 Research Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Research 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 Research Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 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 September 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 September 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 September 30, 2021 by correspondence with the custodian, transfer agent, investee company 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
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Global Research 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 Research 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 Research 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 Research 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 Research 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 Research 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 Research 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 Research 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 Research 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 Research 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 Research 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 Research 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.
Janus Henderson Global Research 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 September 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 Bloomberg 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 Research 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.
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.
Janus Henderson Global Research Fund
Useful Information About Your Fund Report (unaudited)
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 Research Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Capital Gain Distributions | $106,077,739 |
Dividends Received Deduction Percentage | 66% |
Qualified Dividend Income Percentage | 100% |
Janus Henderson Global Research 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 Research 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Global Research 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 Research 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Research 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Global Research 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Research 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, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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 Research 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Research Fund
Notes
NotesPage1
Janus Henderson Global Research Fund
Notes
NotesPage2
Janus Henderson Global Research 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 |
| | | | 125-02-93045 11-21 |
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| | | |
| | | ANNUAL REPORT September 30, 2021 |
| | |
| | Janus Henderson Global Select Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Select Fund
Janus Henderson Global Select Fund (unaudited)
| | | | | | |
FUND SNAPSHOT Our focus is on generating excess returns by capitalizing on the dislocation between market expectations and our assessment of a company’s free-cash-flow growth. We think success depends on incorporating independent and uncorrelated sources of insight, while executing fundamental and behavioral analyses to identify the most attractive investment opportunities. | | | | 
Julian McManus co-portfolio manager | 
George Maris co-portfolio manager |
| | | |
PERFORMANCE
The Janus Henderson Global Select Fund I Shares returned 33.31% for the 12-month period ended September 30, 2021. The Fund’s benchmark, the MSCI All Country World IndexSM returned 27.44%.
INVESTMENT ENVIRONMENT
The approval and rollout of COVID-19 vaccines at the start of the period, as well as ongoing accommodative policies from central banks around the world, put the global economy firmly on a path to recovery. While fiscal and monetary programs supported the recovery, increasing expectations for growth and inflation pushed global bond yields higher with the widely watched 10-year U.S. Treasury yield rising sharply in March. This fueled a rotation out of technology stocks where high valuations were supported by the notion that both macro-economic growth and cost of capital would remain low, and into cyclical stocks that generally perform well in a rising rate environment. Despite continued growth in the global economy, the yield on the 10-year U.S. Treasury note pulled back in August as a rise in COVID-19 cases created fears over renewed economic declines. At the Federal Open Market Committee meeting in September, policy makers held benchmark interest rates near zero but adopted a slightly more hawkish outlook for rates and indicated a tapering of quantitative easing was on the horizon and that they may raise rates as early as 2022. Although persistent global inflation, uncertainty around fiscal policy, supply chain bottlenecks and increased regulatory scrutiny in China fueled market volatility in the final months of the reporting period, markets finished the period with strong gains.
PERFORMANCE DISCUSSION
We employ a high-conviction investment approach seeking strong risk-adjusted performance over the long term. Over time, we think we can generate excess returns in a risk-efficient manner by identifying companies whose free-cash-flow growth is underestimated by the market. We were pleased to see our conviction rewarded once again this year, as many company- and industry-specific views we expressed in our portfolio crystallized and drove stocks associated with those views higher.
Improving economic conditions supported gains in a number of our financial holdings, including U.S.-based Morgan Stanley. The wealth management firm’s share price appreciated on strength in capital markets and optimism about market share gains. While pleased with the stock’s strong performance, we believe Morgan Stanley is misclassified as a capital markets business and more closely resembles a wealth management company. We think the stock deserves to trade alongside higher-valuation wealth management peers and are optimistic the market will ultimately recognize this.
Another area of relative strength in the Fund was the consumer discretionary sector, where a number of our holdings benefited from relaxed social distancing guidance and improved mobility sentiment as COVID-19 vaccination rates increased. A notable contributor within this sector was UK-based global sports betting and gaming company Entain (formerly GVC Holdings). The return of major sporting events and growth in online betting supported gains in the stock, which rallied further on news of a $22 billion takeover bid by U.S. competitor DraftKings, a price more than double what MGM Resorts offered in a takeover bid earlier this year. We believe Entain’s proprietary technology provides a competitive advantage by allowing it to provide better customer experiences. Furthermore, we are excited to see improving momentum in online betting and gaming in the U.S., where Entain gained market share.
Improved mobility also benefited natural gas and oil producer Canadian Natural Resources. A recovery in oil demand as economic growth and travel picked up provided a positive backdrop for the company. OPEC’s decision to extend oil production cuts and a subsequent
Janus Henderson Global Select Fund (unaudited)
increase in crude oil prices also contributed to share strength. A major capital investment program yielding operating efficiencies added to our conviction in the company.
While pleased with the Fund’s outperformance, select holdings weighed on results. Notable detractors were stocks caught in the downdraft caused by China’s increased regulation of private enterprises, including social media and gaming company Tencent Holdings and e-commerce giant Alibaba Group Holding. Under a common prosperity theme, the government implemented intrusive policy changes across a swath of industries. Although concerns about the impact of tighter regulation and signs of a slowdown in China’s economy led us to adjust our earnings estimates for China-exposed holdings, including Tencent and Alibaba, we retained positions in these companies as both are in alignment with government objectives and possess positive free cash flow growth outlooks.
Another challenging development during the period was COVID-related global supply chain disruption. After the closure of manufacturing facilities at the peak of the pandemic, economies and factories reopened and demand for goods snapped back. However, cost-cutting measures and labor shortages made it difficult for manufacturers to fulfill demand, leading to shortages of manufacturing components and materials, order backlogs and delivery delays. Despite robust demand in the U.S. for homes driven by low mortgage rates and high consumer confidence, a shortage of building materials forced homebuilder Pulte Homes to reduce its delivery forecast and cut its third quarter and full-year guidance. With the near-term outlook for Pulte less positive, the stock traded lower. We are encouraged by the company’s strong balance sheet and cash flow generation and maintained our position in the stock.
OUTLOOK
Our outlook for markets and the global economy remains clouded, causing us to remain vigilant. In China, for example, where the shifting regulatory landscape and decelerating economic growth changed risk/return dynamics for some companies, we revisited our investment theses for all of our holdings with the goal of narrowing our focus to businesses we think align with the country’s goal of common prosperity. We also increased our scrutiny of non-Chinese holdings impacted by recent developments.
Global supply constraints and the higher price of goods also remain on our radar. All eyes are on the Federal Reserve and the other leading global central banks as they attempt to manage inflation without jeopardizing economic growth and employment. We think normalizing interest rates could resolve the disconnect between the valuations and earnings of select companies. The pandemic also continues to be a risk we are monitoring, especially in emerging markets where variants of the virus spread rapidly during the quarter. Although we think the possibility of large-scale economic shutdowns is unlikely, we do not think the battle against COVID-19 is yet won.
Despite these variables, we think market volatility will provide us opportunities to invest in companies where our research suggests stock valuations may not reflect underlying growth prospects. We also believe our thorough analysis and disciplined investment approach will continue to serve us well in our pursuit of strong risk-adjusted returns over the long term.
Thank you for your continued investment in Janus Henderson Global Select Fund.
Janus Henderson Global Select Fund (unaudited)
Fund At A Glance
September 30, 2021
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Morgan Stanley | 3.43% | | 1.92% | | Alibaba Group Holding Ltd | 2.21% | | -1.83% |
| Entain PLC | 2.15% | | 1.59% | | PulteGroup Inc | 2.67% | | -0.85% |
| Canadian Natural Resources Ltd | 1.75% | | 1.31% | | Tencent Holdings Ltd | 2.75% | | -0.84% |
| Teck Resources Ltd | 2.67% | | 1.23% | | Merck & Co Inc | 1.74% | | -0.57% |
| Citigroup Inc | 3.74% | | 1.20% | | Alphabet Inc - Class A | 1.11% | | -0.57% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | 1.90% | | 16.95% | 12.76% |
| Financials | | 1.87% | | 18.36% | 13.86% |
| Industrials | | 1.31% | | 11.49% | 9.81% |
| Utilities | | 1.12% | | 4.82% | 2.86% |
| Materials | | 0.97% | | 6.16% | 4.95% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | -1.17% | | 9.78% | 11.73% |
| Communication Services | | -0.53% | | 8.79% | 9.39% |
| Other** | | -0.48% | | 1.58% | 0.00% |
| Real Estate | | 0.13% | | 0.00% | 2.63% |
| Consumer Staples | | 0.58% | | 3.76% | 7.10% |
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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 Global Select Fund (unaudited)
Fund At A Glance
September 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
NRG Energy Inc | |
Independent Power and Renewable Electricity Producers | 4.7% |
Microsoft Corp | |
Software | 4.7% |
Morgan Stanley | |
Capital Markets | 4.1% |
Citigroup Inc | |
Banks | 3.9% |
Teck Resources Ltd | |
Metals & Mining | 3.4% |
| | 20.8% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 98.9% | |
Investment Companies | | 1.2% | |
Convertible Preferred Stocks | | 0.0% | |
Other | | (0.1)% |
| | | 100.0% |
Emerging markets comprised 9.2% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
|
Janus Henderson Global Select Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended September 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 | | 32.96% | 14.53% | 11.09% | 4.80% | | | 1.06% | 1.06% |
Class A Shares at MOP | | 25.31% | 13.19% | 10.43% | 4.51% | | | | |
Class C Shares at NAV | | 31.84% | 13.59% | 10.17% | 3.98% | | | 2.08% | 1.98% |
Class C Shares at CDSC | | 30.84% | 13.59% | 10.17% | 3.98% | | | | |
Class D Shares | | 33.28% | 14.76% | 11.30% | 4.93% | | | 0.84% | 0.84% |
Class I Shares | | 33.31% | 14.85% | 11.40% | 4.99% | | | 0.78% | 0.78% |
Class N Shares | | 33.41% | 14.92% | 11.34% | 4.94% | | | 0.68% | 0.68% |
Class R Shares | | 32.19% | 13.92% | 10.57% | 4.33% | | | 3.20% | 1.64% |
Class S Shares | | 32.57% | 14.23% | 10.91% | 4.63% | | | 2.48% | 1.38% |
Class T Shares | | 33.15% | 14.70% | 11.24% | 4.89% | | | 0.92% | 0.92% |
MSCI All Country World Index | | 27.44% | 13.20% | 11.90% | 5.65% | | | | |
Morningstar Quartile - Class T Shares | | 1st | 1st | 3rd | 4th | | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | 32/346 | 21/293 | 141/212 | 64/76 | | | | |
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 January 28, 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 Global Select Fund (unaudited)
Performance
non-diversification, Environmental, Social and Governance (ESG) factors, 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 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 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 August 4, 2017. Performance shown for periods prior to August 4, 2017, 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.”
Effective March 1, 2021, George Maris and Julian McManus are Co-Portfolio Managers of the Fund.
*The Fund’s inception date – June 30, 2000
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Select 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,058.60 | $5.26 | | $1,000.00 | $1,019.95 | $5.16 | 1.02% |
Class C Shares | $1,000.00 | $1,054.30 | $9.63 | | $1,000.00 | $1,015.69 | $9.45 | 1.87% |
Class D Shares | $1,000.00 | $1,059.50 | $4.23 | | $1,000.00 | $1,020.96 | $4.15 | 0.82% |
Class I Shares | $1,000.00 | $1,060.30 | $3.98 | | $1,000.00 | $1,021.21 | $3.90 | 0.77% |
Class N Shares | $1,000.00 | $1,060.50 | $3.51 | | $1,000.00 | $1,021.66 | $3.45 | 0.68% |
Class R Shares | $1,000.00 | $1,055.00 | $8.35 | | $1,000.00 | $1,016.95 | $8.19 | 1.62% |
Class S Shares | $1,000.00 | $1,056.80 | $7.01 | | $1,000.00 | $1,018.25 | $6.88 | 1.36% |
Class T Shares | $1,000.00 | $1,059.40 | $4.70 | | $1,000.00 | $1,020.51 | $4.61 | 0.91% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 Select Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 98.9% | | | |
Aerospace & Defense – 3.2% | | | |
| | Airbus SE* | | 345,032 | | | $45,295,088 | |
| | L3Harris Technologies Inc | | 165,098 | | | 36,361,184 | |
| | | 81,656,272 | |
Air Freight & Logistics – 2.9% | | | |
| | United Parcel Service Inc | | 394,038 | | | 71,754,320 | |
Auto Components – 1.5% | | | |
| | Aptiv PLC* | | 251,190 | | | 37,419,774 | |
Banks – 5.8% | | | |
| | China Construction Bank Corp | | 53,349,000 | | | 37,844,246 | |
| | Citigroup Inc | | 1,405,634 | | | 98,647,394 | |
| | Permanent TSB Group Holdings PLC* | | 5,262,077 | | | 8,831,909 | |
| | | 145,323,549 | |
Beverages – 3.1% | | | |
| | Heineken NV | | 383,135 | | | 39,822,705 | |
| | Monster Beverage Corp* | | 432,524 | | | 38,421,107 | |
| | | 78,243,812 | |
Biotechnology – 2.4% | | | |
| | AbbVie Inc | | 185,066 | | | 19,963,069 | |
| | Ascendis Pharma A/S (ADR)* | | 88,178 | | | 14,054,691 | |
| | Neurocrine Biosciences Inc* | | 271,920 | | | 26,079,847 | |
| | | 60,097,607 | |
Capital Markets – 4.1% | | | |
| | Morgan Stanley | | 1,061,966 | | | 103,339,911 | |
Chemicals – 1.3% | | | |
| | Air Products & Chemicals Inc | | 127,920 | | | 32,761,591 | |
Containers & Packaging – 1.9% | | | |
| | Crown Holdings Inc | | 478,386 | | | 48,211,741 | |
Diversified Financial Services – 0.1% | | | |
| | Jackson Financial Inc* | | 36,296 | | | 943,696 | |
| | Linklogis Inc - Class B* | | 854,819 | | | 872,292 | |
| | | 1,815,988 | |
Electronic Equipment, Instruments & Components – 1.9% | | | |
| | Hexagon AB - Class B | | 3,179,421 | | | 49,007,545 | |
Entertainment – 3.5% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 810,667 | | | 41,676,390 | |
| | Nintendo Co Ltd | | 53,100 | | | 25,834,450 | |
| | Sea Ltd (ADR)* | | 68,648 | | | 21,880,177 | |
| | | 89,391,017 | |
Health Care Providers & Services – 1.0% | | | |
| | Humana Inc | | 67,240 | | | 26,166,446 | |
Hotels, Restaurants & Leisure – 4.6% | | | |
| | Caesars Entertainment Inc* | | 458,377 | | | 51,466,570 | |
| | GVC Holdings PLC* | | 2,273,092 | | | 65,059,780 | |
| | | 116,526,350 | |
Household Durables – 2.4% | | | |
| | PulteGroup Inc | | 1,302,638 | | | 59,817,137 | |
Independent Power and Renewable Electricity Producers – 4.7% | | | |
| | NRG Energy Inc | | 2,920,596 | | | 119,247,935 | |
Information Technology Services – 0.6% | | | |
| | Mastercard Inc | | 39,832 | | | 13,848,790 | |
Insurance – 6.2% | | | |
| | AIA Group Ltd | | 1,860,000 | | | 21,416,990 | |
| | Beazley PLC* | | 3,483,289 | | | 17,651,713 | |
| | NN Group NV | | 617,536 | | | 32,223,493 | |
| | Prudential PLCž | | 1,451,864 | | | 28,180,372 | |
| | Prudential PLCž | | 206,350 | | | 3,931,206 | |
| | Travelers Cos Inc | | 340,569 | | | 51,769,894 | |
| | | 155,173,668 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2021 |
Janus Henderson Global Select Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Interactive Media & Services – 4.2% | | | |
| | Alphabet Inc - Class A* | | 17,908 | | | $47,877,396 | |
| | NAVER Corp | | 70,134 | | | 22,872,082 | |
| | Tencent Holdings Ltd | | 605,200 | | | 35,486,569 | |
| | | 106,236,047 | |
Internet & Direct Marketing Retail – 3.4% | | | |
| | Alibaba Group Holding Ltd* | | 1,665,884 | | | 30,986,457 | |
| | Amazon.com Inc* | | 16,438 | | | 53,999,488 | |
| | | 84,985,945 | |
Machinery – 1.5% | | | |
| | Wabtec Corp | | 433,069 | | | 37,334,879 | |
Metals & Mining – 3.4% | | | |
| | Teck Resources Ltd | | 3,466,856 | | | 86,315,516 | |
Oil, Gas & Consumable Fuels – 4.4% | | | |
| | Canadian Natural Resources Ltd | | 1,531,298 | | | 55,953,629 | |
| | Marathon Petroleum Corp | | 886,236 | | | 54,778,247 | |
| | | 110,731,876 | |
Pharmaceuticals – 5.6% | | | |
| | AstraZeneca PLC | | 620,615 | | | 74,701,416 | |
| | Merck & Co Inc | | 530,582 | | | 39,852,014 | |
| | Organon & Co | | 792,547 | | | 25,987,616 | |
| | | 140,541,046 | |
Road & Rail – 1.7% | | | |
| | Central Japan Railway Co | | 272,200 | | | 43,511,917 | |
Semiconductor & Semiconductor Equipment – 4.1% | | | |
| | ASML Holding NV | | 56,456 | | | 41,640,576 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 2,948,000 | | | 60,796,296 | |
| | | 102,436,872 | |
Software – 7.2% | | | |
| | Adobe Inc* | | 41,261 | | | 23,754,783 | |
| | Microsoft Corp | | 418,848 | | | 118,081,628 | |
| | RingCentral Inc* | | 36,539 | | | 7,947,233 | |
| | Workday Inc - Class A* | | 75,749 | | | 18,928,918 | |
| | Zendesk Inc* | | 119,116 | | | 13,863,911 | |
| | | 182,576,473 | |
Technology Hardware, Storage & Peripherals – 0.8% | | | |
| | Samsung Electronics Co Ltd | | 338,127 | | | 21,062,410 | |
Textiles, Apparel & Luxury Goods – 4.8% | | | |
| | Samsonite International SA (144A)* | | 16,451,700 | | | 35,253,495 | |
| | Under Armour Inc* | | 4,817,867 | | | 84,409,030 | |
| | | 119,662,525 | |
Thrifts & Mortgage Finance – 3.0% | | | |
| | MGIC Investment Corp | | 5,094,140 | | | 76,208,334 | |
Trading Companies & Distributors – 2.3% | | | |
| | Ferguson PLC | | 418,629 | | | 58,022,946 | |
Wireless Telecommunication Services – 1.3% | | | |
| | T-Mobile US Inc* | | 260,036 | | | 33,222,199 | |
Total Common Stocks (cost $1,720,615,862) | | 2,492,652,438 | |
Convertible Preferred Stocks– 0% | | | |
Software – 0% | | | |
| | Magic Leap Inc PP - Series D*,¢,§((cost $9,254,547) | | 342,761 | | | 0 | |
Investment Companies– 1.2% | | | |
Money Markets – 1.2% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $30,836,984) | | 30,833,901 | | | 30,836,984 | |
Total Investments (total cost $1,760,707,393) – 100.1% | | 2,523,489,422 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | | (3,593,768) | |
Net Assets – 100% | | $2,519,895,654 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Select Fund
Schedule of Investments
September 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $1,603,002,402 | | 63.5 | % |
United Kingdom | | 189,524,487 | | 7.5 | |
Canada | | 142,269,145 | | 5.6 | |
Netherlands | | 113,686,774 | | 4.5 | |
China | | 105,189,564 | | 4.2 | |
Taiwan | | 82,676,473 | | 3.3 | |
Japan | | 69,346,367 | | 2.8 | |
Hong Kong | | 56,670,485 | | 2.2 | |
Sweden | | 49,007,545 | | 1.9 | |
France | | 45,295,088 | | 1.8 | |
South Korea | | 43,934,492 | | 1.7 | |
Denmark | | 14,054,691 | | 0.6 | |
Ireland | | 8,831,909 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $2,523,489,422 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/21 |
Investment Companies - 1.2% |
Money Markets - 1.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | $ | 26,073 | $ | 230 | $ | (32) | $ | 30,836,984 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 16,361∆ | | - | | - | | - |
Total Affiliated Investments - 1.2% | $ | 42,434 | $ | 230 | $ | (32) | $ | 30,836,984 |
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Investment Companies - 1.2% |
Money Markets - 1.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 28,092,313 | | 356,605,566 | | (353,861,093) | | 30,836,984 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 218,530 | | 179,069,118 | | (179,287,648) | | - |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Global Select Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI All Country World IndexSM | MSCI All Country World IndexSM reflects the equity market performance of global developed and emerging markets. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
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 September 30, 2021 is $35,253,495, which represents 1.4% of net assets. |
| | |
* | Non-income producing security. |
| | |
ž | Issued by the same entity and traded on separate exchanges. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2021. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2021 is $0, 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. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2021) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Magic Leap Inc PP - Series D | 10/5/17 | $ | 9,254,547 | $ | 0 | | 0.0 | % |
| | | | | | | | | |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2021. The issuer incurs all registration costs. | |
Janus Henderson Global Select 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 September 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 | | | | | | |
Aerospace & Defense | $ | 36,361,184 | $ | 45,295,088 | $ | - |
Banks | | 98,647,394 | | 46,676,155 | | - |
Beverages | | 38,421,107 | | 39,822,705 | | - |
Electronic Equipment, Instruments & Components | | - | | 49,007,545 | | - |
Entertainment | | 63,556,567 | | 25,834,450 | | - |
Hotels, Restaurants & Leisure | | 51,466,570 | | 65,059,780 | | - |
Insurance | | 51,769,894 | | 103,403,774 | | - |
Interactive Media & Services | | 47,877,396 | | 58,358,651 | | - |
Internet & Direct Marketing Retail | | 53,999,488 | | 30,986,457 | | - |
Pharmaceuticals | | 65,839,630 | | 74,701,416 | | - |
Road & Rail | | - | | 43,511,917 | | - |
Semiconductor & Semiconductor Equipment | | - | | 102,436,872 | | - |
Technology Hardware, Storage & Peripherals | | - | | 21,062,410 | | - |
Textiles, Apparel & Luxury Goods | | 84,409,030 | | 35,253,495 | | - |
Trading Companies & Distributors | | - | | 58,022,946 | | - |
All Other | | 1,100,870,517 | | - | | - |
Convertible Preferred Stocks | | - | | - | | 0 |
Investment Companies | | - | | 30,836,984 | | - |
Total Assets | $ | 1,693,218,777 | $ | 830,270,645 | $ | 0 |
| | | | | | | |
Janus Henderson Global Select Fund
Statement of Assets and Liabilities
September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $1,729,870,409) | | $ | 2,492,652,438 | |
| Affiliated investments, at value (cost $30,836,984) | | | 30,836,984 | |
| Cash | | | 3,969 | |
| Non-interested Trustees' deferred compensation | | | 62,853 | |
| Receivables: | | | | |
| | Dividends | | | 1,972,047 | |
| | Fund shares sold | | | 898,060 | |
| | Foreign tax reclaims | | | 564,585 | |
| | Dividends from affiliates | | | 1,979 | |
| Other assets | | | 10,780 | |
Total Assets | | | 2,527,003,695 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Investments purchased | | | 3,854,892 | |
| | Advisory fees | | | 1,368,323 | |
| | Fund shares repurchased | | | 1,146,491 | |
| | Transfer agent fees and expenses | | | 373,613 | |
| | Non-interested Trustees' deferred compensation fees | | | 62,853 | |
| | Professional fees | | | 52,327 | |
| | Custodian fees | | | 22,709 | |
| | Non-interested Trustees' fees and expenses | | | 18,319 | |
| | Affiliated fund administration fees payable | | | 5,347 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 2,073 | |
| | Accrued expenses and other payables | | | 201,094 | |
Total Liabilities | | | 7,108,041 | |
Net Assets | | $ | 2,519,895,654 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Select Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,479,353,068 | |
| Total distributable earnings (loss) | | | 1,040,542,586 | |
Total Net Assets | | $ | 2,519,895,654 | |
Net Assets - Class A Shares | | $ | 7,038,679 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 357,248 | |
Net Asset Value Per Share(1) | | $ | 19.70 | |
Maximum Offering Price Per Share(2) | | $ | 20.90 | |
Net Assets - Class C Shares | | $ | 585,814 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 31,134 | |
Net Asset Value Per Share(1) | | $ | 18.82 | |
Net Assets - Class D Shares | | $ | 1,876,373,781 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 95,742,209 | |
Net Asset Value Per Share | | $ | 19.60 | |
Net Assets - Class I Shares | | $ | 22,346,931 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,135,732 | |
Net Asset Value Per Share | | $ | 19.68 | |
Net Assets - Class N Shares | | $ | 26,129,707 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,330,760 | |
Net Asset Value Per Share | | $ | 19.64 | |
Net Assets - Class R Shares | | $ | 122,877 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,346 | |
Net Asset Value Per Share | | $ | 19.36 | |
Net Assets - Class S Shares | | $ | 138,797 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 7,042 | |
Net Asset Value Per Share | | $ | 19.71 | |
Net Assets - Class T Shares | | $ | 587,159,068 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 29,916,573 | |
Net Asset Value Per Share | | $ | 19.63 | |
| |
(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 | SEPTEMBER 30, 2021 |
Janus Henderson Global Select Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 40,357,189 | |
| Dividends from affiliates | | 26,073 | |
| Affiliated securities lending income, net | | 16,361 | |
| Unaffiliated securities lending income, net | | 317 | |
| Other income | | 19 | |
| Foreign tax withheld | | (1,968,066) | |
Total Investment Income | | 38,431,893 | |
Expenses: | | | |
| Advisory fees | | 15,487,472 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 16,814 | |
| | Class C Shares | | 6,138 | |
| | Class R Shares | | 561 | |
| | Class S Shares | | 472 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,031,735 | |
| | Class R Shares | | 295 | |
| | Class S Shares | | 474 | |
| | Class T Shares | | 1,404,042 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 4,327 | |
| | Class C Shares | | 410 | |
| | Class I Shares | | 16,371 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 429 | |
| | Class C Shares | | 47 | |
| | Class D Shares | | 381,764 | |
| | Class I Shares | | 876 | |
| | Class N Shares | | 824 | |
| | Class R Shares | | 17 | |
| | Class S Shares | | 18 | |
| | Class T Shares | | 7,306 | |
| Shareholder reports expense | | 425,301 | |
| Registration fees | | 122,820 | |
| Custodian fees | | 96,552 | |
| Affiliated fund administration fees | | 68,037 | |
| Professional fees | | 67,032 | |
| Non-interested Trustees’ fees and expenses | | 37,696 | |
| Other expenses | | 187,867 | |
Total Expenses | | 20,365,697 | |
Less: Excess Expense Reimbursement and Waivers | | (61,737) | |
Net Expenses | | 20,303,960 | |
Net Investment Income/(Loss) | | 18,127,933 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Select Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (net of foreign taxes of $2,915) | $ | 270,669,200 | |
| Investments in affiliates | | 230 | |
Total Net Realized Gain/(Loss) on Investments | | 270,669,430 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation (net of decrease in deferred foreign taxes of $32) | | 363,289,909 | |
| Investments in affiliates | | (32) | |
Total Change in Unrealized Net Appreciation/Depreciation | | 363,289,877 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 652,087,240 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2021 |
Janus Henderson Global Select Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 18,127,933 | | $ | 17,563,430 | |
| Net realized gain/(loss) on investments | | 270,669,430 | | | 98,279,715 | |
| Change in unrealized net appreciation/depreciation | | 363,289,877 | | | 35,956,057 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 652,087,240 | | | 151,799,202 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (314,417) | | | (233,534) | |
| | Class C Shares | | (33,972) | | | (42,035) | |
| | Class D Shares | | (84,743,417) | | | (68,239,377) | |
| | Class I Shares | | (862,095) | | | (912,093) | |
| | Class N Shares | | (1,453,322) | | | (1,831,246) | |
| | Class R Shares | | (4,979) | | | (7,407) | |
| | Class S Shares | | (12,027) | | | (9,338) | |
| | Class T Shares | | (26,126,702) | | | (21,685,206) | |
Net Decrease from Dividends and Distributions to Shareholders | | (113,550,931) | | | (92,960,236) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (246,769) | | | 230,754 | |
| | Class C Shares | | (251,299) | | | (522,190) | |
| | Class D Shares | | (19,243,397) | | | (46,025,751) | |
| | Class I Shares | | 3,345,265 | | | (1,915,639) | |
| | Class N Shares | | (4,477,743) | | | (14,378,964) | |
| | Class R Shares | | (10,727) | | | (74,442) | |
| | Class S Shares | | (141,920) | | | (26,146) | |
| | Class T Shares | | (2,542,605) | | | (30,635,919) | |
Net Increase/(Decrease) from Capital Share Transactions | | (23,569,195) | | | (93,348,297) | |
Net Increase/(Decrease) in Net Assets | | 514,967,114 | | | (34,509,331) | |
Net Assets: | | | | | | |
| Beginning of period | | 2,004,928,540 | | | 2,039,437,871 | |
| End of period | $ | 2,519,895,654 | | $ | 2,004,928,540 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $15.56 | | | $15.01 | | | $17.64 | | | $16.16 | | | $12.97 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.10 | | | 0.10 | | | 0.14 | | | 0.09 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | 4.91 | | | 1.10 | | | (0.58) | | | 1.52 | | | 3.21 | |
| Total from Investment Operations | | 5.01 | | | 1.20 | | | (0.44) | | | 1.61 | | | 3.31 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.12) | | | (0.13) | | | (0.06) | | | (0.13) | | | (0.12) | |
| | Distributions (from capital gains) | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (0.87) | | | (0.65) | | | (2.19) | | | (0.13) | | | (0.12) | |
| Net Asset Value, End of Period | | $19.70 | | | $15.56 | | | $15.01 | | | $17.64 | | | $16.16 | |
| Total Return* | | 32.96% | | | 7.96% | | | (0.72)% | | | 9.99% | | | 25.74% | |
| Net Assets, End of Period (in thousands) | | $7,039 | | | $5,788 | | | $5,380 | | | $4,666 | | | $3,951 | |
| Average Net Assets for the Period (in thousands) | | $6,717 | | | $5,354 | | | $4,885 | | | $4,885 | | | $4,294 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.03% | | | 1.06% | | | 1.08% | | | 1.03% | | | 1.03% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.03% | | | 1.06% | | | 1.08% | | | 1.03% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | 0.56% | | | 0.70% | | | 0.97% | | | 0.54% | | | 0.67% | |
| Portfolio Turnover Rate | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $14.92 | | | $14.42 | | | $17.10 | | | $15.69 | | | $12.59 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.06) | | | (0.04) | | | —(2) | | | (0.05) | | | (0.02) | |
| | Net realized and unrealized gain/(loss) | | 4.71 | | | 1.06 | | | (0.55) | | | 1.49 | | | 3.13 | |
| Total from Investment Operations | | 4.65 | | | 1.02 | | | (0.55) | | | 1.44 | | | 3.11 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | (0.03) | | | (0.01) | |
| | Distributions (from capital gains) | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (0.75) | | | (0.52) | | | (2.13) | | | (0.03) | | | (0.01) | |
| Net Asset Value, End of Period | | $18.82 | | | $14.92 | | | $14.42 | | | $17.10 | | | $15.69 | |
| Total Return* | | 31.84% | | | 7.00% | | | (1.55)% | | | 9.15% | | | 24.76% | |
| Net Assets, End of Period (in thousands) | | $586 | | | $676 | | | $1,197 | | | $2,229 | | | $2,521 | |
| Average Net Assets for the Period (in thousands) | | $650 | | | $1,005 | | | $1,534 | | | $2,591 | | | $2,738 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.14% | | | 2.01% | | | 1.94% | | | 1.84% | | | 1.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.88% | | | 1.91% | | | 1.94% | | | 1.84% | | | 1.82% | |
| | Ratio of Net Investment Income/(Loss) | | (0.33)% | | | (0.26)% | | | (0.01)% | | | (0.27)% | | | (0.13)% | |
| Portfolio Turnover Rate | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $15.47 | | | $14.93 | | | $17.55 | | | $16.06 | | | $12.90 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.14 | | | 0.13 | | | 0.17 | | | 0.13 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 4.88 | | | 1.10 | | | (0.57) | | | 1.51 | | | 3.19 | |
| Total from Investment Operations | | 5.02 | | | 1.23 | | | (0.40) | | | 1.64 | | | 3.31 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.17) | | | (0.09) | | | (0.15) | | | (0.15) | |
| | Distributions (from capital gains) | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (0.89) | | | (0.69) | | | (2.22) | | | (0.15) | | | (0.15) | |
| Net Asset Value, End of Period | | $19.60 | | | $15.47 | | | $14.93 | | | $17.55 | | | $16.06 | |
| Total Return* | | 33.28% | | | 8.18% | | | (0.51)% | | | 10.22% | | | 25.91% | |
| Net Assets, End of Period (in thousands) | | $1,876,374 | | �� | $1,494,051 | | | $1,493,415 | | | $1,615,089 | | | $1,560,200 | |
| Average Net Assets for the Period (in thousands) | | $1,803,402 | | | $1,455,934 | | | $1,479,323 | | | $1,629,405 | | | $1,427,056 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.82% | | | 0.84% | | | 0.85% | | | 0.84% | | | 0.86% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.82% | | | 0.84% | | | 0.85% | | | 0.84% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 0.77% | | | 0.91% | | | 1.15% | | | 0.75% | | | 0.87% | |
| Portfolio Turnover Rate | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $15.53 | | | $14.99 | | | $17.61 | | | $16.12 | | | $12.94 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.16 | | | 0.14 | | | 0.19 | | | 0.15 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 4.89 | | | 1.10 | | | (0.58) | | | 1.49 | | | 3.18 | |
| Total from Investment Operations | | 5.05 | | | 1.24 | | | (0.39) | | | 1.64 | | | 3.34 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.15) | | | (0.18) | | | (0.10) | | | (0.15) | | | (0.16) | |
| | Distributions (from capital gains) | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (0.90) | | | (0.70) | | | (2.23) | | | (0.15) | | | (0.16) | |
| Net Asset Value, End of Period | | $19.68 | | | $15.53 | | | $14.99 | | | $17.61 | | | $16.12 | |
| Total Return* | | 33.31% | | | 8.25% | | | (0.39)% | | | 10.22% | | | 26.13% | |
| Net Assets, End of Period (in thousands) | | $22,347 | | | $14,853 | | | $17,024 | | | $17,043 | | | $16,745 | |
| Average Net Assets for the Period (in thousands) | | $19,681 | | | $16,194 | | | $16,875 | | | $15,444 | | | $28,860 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.77% | | | 0.78% | | | 0.80% | | | 0.77% | | | 0.73% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.77% | | | 0.78% | | | 0.80% | | | 0.77% | | | 0.73% | |
| | Ratio of Net Investment Income/(Loss) | | 0.83% | | | 0.91% | | | 1.27% | | | 0.86% | | | 1.09% | |
| Portfolio Turnover Rate | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $15.50 | | | $14.96 | | | $17.58 | | | $16.09 | | | $15.60 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.17 | | | 0.14 | | | 0.19 | | | 0.16 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | 4.88 | | | 1.12 | | | (0.56) | | | 1.50 | | | 0.45 | |
| Total from Investment Operations | | 5.05 | | | 1.26 | | | (0.37) | | | 1.66 | | | 0.49 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.16) | | | (0.20) | | | (0.12) | | | (0.17) | | | — | |
| | Distributions (from capital gains) | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (0.91) | | | (0.72) | | | (2.25) | | | (0.17) | | | — | |
| Net Asset Value, End of Period | | $19.64 | | | $15.50 | | | $14.96 | | | $17.58 | | | $16.09 | |
| Total Return* | | 33.41% | | | 8.38% | | | (0.28)% | | | 10.34% | | | 3.14% | |
| Net Assets, End of Period (in thousands) | | $26,130 | | | $24,271 | | | $37,810 | | | $33,278 | | | $29,133 | |
| Average Net Assets for the Period (in thousands) | | $27,543 | | | $29,294 | | | $31,647 | | | $33,126 | | | $18,338 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.68% | | | 0.68% | | | 0.69% | | | 0.68% | | | 0.74% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.68% | | | 0.68% | | | 0.69% | | | 0.68% | | | 0.74% | |
| | Ratio of Net Investment Income/(Loss) | | 0.90% | | | 0.97% | | | 1.32% | | | 0.92% | | | 1.61% | |
| Portfolio Turnover Rate | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $15.29 | | | $14.76 | | | $17.39 | | | $15.99 | | | $12.84 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | —(3) | | | 0.01 | | | 0.05 | | | —(3) | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 4.82 | | | 1.08 | | | (0.55) | | | 1.49 | | | 3.18 | |
| Total from Investment Operations | | 4.82 | | | 1.09 | | | (0.50) | | | 1.49 | | | 3.23 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.04) | | | — | | | (0.09) | | | (0.08) | |
| | Distributions (from capital gains) | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (0.75) | | | (0.56) | | | (2.13) | | | (0.09) | | | (0.08) | |
| Net Asset Value, End of Period | | $19.36 | | | $15.29 | | | $14.76 | | | $17.39 | | | $15.99 | |
| Total Return* | | 32.19% | | | 7.29% | | | (1.21)% | | | 9.32% | | | 25.25% | |
| Net Assets, End of Period (in thousands) | | $123 | | | $107 | | | $188 | | | $230 | | | $484 | |
| Average Net Assets for the Period (in thousands) | | $118 | | | $170 | | | $198 | | | $459 | | | $366 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 3.94% | | | 3.20% | | | 2.95% | | | 1.76% | | | 1.45% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.60% | | | 1.63% | | | 1.63% | | | 1.56% | | | 1.45% | |
| | Ratio of Net Investment Income/(Loss) | | (0.02)% | | | 0.05% | | | 0.37% | | | 0.01% | | | 0.35% | |
| Portfolio Turnover Rate | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 September 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. |
| |
20 | SEPTEMBER 30, 2021 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $15.57 | | | $15.02 | | | $17.74 | | | $16.24 | | | $13.04 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.03 | | | 0.06 | | | 0.10 | | | 0.04 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | 4.93 | | | 1.09 | | | (0.58) | | | 1.53 | | | 3.21 | |
| Total from Investment Operations | | 4.96 | | | 1.15 | | | (0.48) | | | 1.57 | | | 3.30 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.07) | | | (0.08) | | | (0.11) | | | (0.07) | | | (0.10) | |
| | Distributions (from capital gains) | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (0.82) | | | (0.60) | | | (2.24) | | | (0.07) | | | (0.10) | |
| Net Asset Value, End of Period | | $19.71 | | | $15.57 | | | $15.02 | | | $17.74 | | | $16.24 | |
| Total Return* | | 32.57% | | | 7.61% | | | (0.97)% | | | 9.69% | | | 25.51% | |
| Net Assets, End of Period (in thousands) | | $139 | | | $227 | | | $248 | | | $251 | | | $379 | |
| Average Net Assets for the Period (in thousands) | | $189 | | | $231 | | | $234 | | | $259 | | | $349 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.76% | | | 2.48% | | | 2.47% | | | 1.75% | | | 1.19% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.36% | | | 1.37% | | | 1.36% | | | 1.29% | | | 1.16% | |
| | Ratio of Net Investment Income/(Loss) | | 0.16% | | | 0.38% | | | 0.66% | | | 0.25% | | | 0.60% | |
| Portfolio Turnover Rate | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $15.50 | | | $14.96 | | | $17.57 | | | $16.08 | | | $12.91 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.13 | | | 0.12 | | | 0.16 | | | 0.12 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 4.88 | | | 1.10 | | | (0.57) | | | 1.51 | | | 3.19 | |
| Total from Investment Operations | | 5.01 | | | 1.22 | | | (0.41) | | | 1.63 | | | 3.31 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.16) | | | (0.07) | | | (0.14) | | | (0.14) | |
| | Distributions (from capital gains) | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (0.88) | | | (0.68) | | | (2.20) | | | (0.14) | | | (0.14) | |
| Net Asset Value, End of Period | | $19.63 | | | $15.50 | | | $14.96 | | | $17.57 | | | $16.08 | |
| Total Return* | | 33.15% | | | 8.08% | | | (0.54)% | | | 10.17% | | | 25.89% | |
| Net Assets, End of Period (in thousands) | | $587,159 | | | $464,956 | | | $484,175 | | | $533,974 | | | $518,679 | |
| Average Net Assets for the Period (in thousands) | | $561,617 | | | $464,019 | | | $481,731 | | | $539,796 | | | $478,930 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.92% | | | 0.93% | | | 0.92% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.91% | | | 0.91% | | | 0.92% | | | 0.91% | | | 0.92% | |
| | Ratio of Net Investment Income/(Loss) | | 0.68% | | | 0.83% | | | 1.08% | | | 0.68% | | | 0.81% | |
| Portfolio Turnover Rate | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Global Select Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Global Select 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 original 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 R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
Janus Henderson Global Select Fund
Notes to Financial Statements
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.
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
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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 September 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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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
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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. 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
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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.
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 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.
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale
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restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
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.
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
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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 September 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 Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.64% 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 0.87% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 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 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
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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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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
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September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $280.
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 September 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 September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $5.
As of September 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 | 80 | | 1 | | |
Class R Shares | - | | - | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
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Notes to Financial Statements
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 September 30, 2021, the Fund engaged in cross trades amounting to $7,061,430 in sales, resulting in a net realized gain of $1,425,224. 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) | |
$ 31,483,871 | $ 252,772,200 | $ - | $ - | $ - | $ (58,002) | $756,344,517 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 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) |
$ 1,767,144,905 | $ 805,841,410 | $ (49,496,893) | $ 756,344,517 |
Janus Henderson Global Select 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, 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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 36,610,566 | $ 76,940,365 | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 22,619,954 | $ 70,340,282 | $ - | $ - | |
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:
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ - | $ (461,740) | $ 461,740 |
Janus Henderson Global Select Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 26,042 | $ 483,191 | | 51,250 | $ 760,683 |
Reinvested dividends and distributions | 16,436 | 285,002 | | 14,168 | 224,284 |
Shares repurchased | (57,117) | (1,014,962) | | (51,864) | (754,213) |
Net Increase/(Decrease) | (14,639) | $ (246,769) | | 13,554 | $ 230,754 |
Class C Shares: | | | | | |
Shares sold | 3,454 | $ 64,583 | | 4,248 | $ 65,312 |
Reinvested dividends and distributions | 2,038 | 33,972 | | 2,042 | 31,209 |
Shares repurchased | (19,642) | (349,854) | | (44,037) | (618,711) |
Net Increase/(Decrease) | (14,150) | $ (251,299) | | (37,747) | $ (522,190) |
Class D Shares: | | | | | |
Shares sold | 2,203,328 | $ 41,284,931 | | 1,882,542 | $ 26,742,488 |
Reinvested dividends and distributions | 4,780,532 | 82,320,764 | | 4,226,826 | 66,403,429 |
Shares repurchased | (7,797,820) | (142,849,092) | | (9,564,305) | (139,171,668) |
Net Increase/(Decrease) | (813,960) | $(19,243,397) | | (3,454,937) | $(46,025,751) |
Class I Shares: | | | | | |
Shares sold | 273,675 | $ 5,140,916 | | 489,207 | $ 7,375,578 |
Reinvested dividends and distributions | 47,200 | 815,610 | | 55,162 | 869,356 |
Shares repurchased | (141,642) | (2,611,261) | | (723,653) | (10,160,573) |
Net Increase/(Decrease) | 179,233 | $ 3,345,265 | | (179,284) | $ (1,915,639) |
Class N Shares: | | | | | |
Shares sold | 193,821 | $ 3,594,074 | | 152,770 | $ 2,254,051 |
Reinvested dividends and distributions | 84,348 | 1,453,322 | | 116,491 | 1,831,246 |
Shares repurchased | (513,747) | (9,525,139) | | (1,230,553) | (18,464,261) |
Net Increase/(Decrease) | (235,578) | $ (4,477,743) | | (961,292) | $(14,378,964) |
Class R Shares: | | | | | |
Shares sold | 255 | $ 4,687 | | 2,962 | $ 43,213 |
Reinvested dividends and distributions | 287 | 4,911 | | 367 | 5,740 |
Shares repurchased | (1,204) | (20,325) | | (9,059) | (123,395) |
Net Increase/(Decrease) | (662) | $ (10,727) | | (5,730) | $ (74,442) |
Class S Shares: | | | | | |
Shares sold | 248 | $ 4,464 | | 1,002 | $ 15,341 |
Reinvested dividends and distributions | 692 | 12,027 | | 588 | 9,338 |
Shares repurchased | (8,458) | (158,411) | | (3,566) | (50,825) |
Net Increase/(Decrease) | (7,518) | $ (141,920) | | (1,976) | $ (26,146) |
Class T Shares: | | | | | |
Shares sold | 1,900,455 | $ 35,428,430 | | 1,827,681 | $ 27,288,925 |
Reinvested dividends and distributions | 1,481,771 | 25,560,543 | | 1,345,180 | 21,186,591 |
Shares repurchased | (3,460,887) | (63,531,578) | | (5,549,772) | (79,111,435) |
Net Increase/(Decrease) | (78,661) | $ (2,542,605) | | (2,376,911) | $(30,635,919) |
6. Purchases and Sales of Investment Securities
For the year ended September 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 |
$859,004,929 | $ 979,097,878 | $ - | $ - |
Janus Henderson Global Select Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 Select Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Select 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 Select Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 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 September 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 September 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 September 30, 2021 by correspondence with the custodian, transfer agent and broker; 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
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Global Select 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 Select 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 Select 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 Select 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 Select 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 Select 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 Select 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 Select 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 Select 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 Select 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 Select 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 Select 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.
Janus Henderson Global Select 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 September 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 Bloomberg 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 Select 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.
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.
Janus Henderson Global Select Fund
Useful Information About Your Fund Report (unaudited)
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 Select Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Capital Gain Distributions | $76,940,365 |
Dividends Received Deduction Percentage | 62% |
Qualified Dividend Income Percentage | 100% |
Janus Henderson Global Select 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 Select 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Global Select 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 Select 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Select 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Global Select 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Select 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 |
George P. Maris 151 Detroit Street Denver, CO 80206 DOB: 1968 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Select Fund | 8/12-Present | Co-Head of Equities - Americas of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Julian McManus 151 Detroit Street Denver, CO 80206 DOB: 1970 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Select Fund | 1/18-Present | Portfolio Manager for other Janus Henderson accounts and Analyst for Janus Capital. |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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 Select 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Select Fund
Notes
NotesPage1
Janus Henderson Global Select Fund
Notes
NotesPage2
| | | | | | | | |
| | | | | |
| | | | |
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 |
| | | | 125-02-93046 11-21 |
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| | | |
| | | ANNUAL REPORT September 30, 2021 |
| | |
| | Janus Henderson Global Sustainable Equity Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Sustainable Equity Fund
Janus Henderson Global Sustainable Equity Fund (unaudited)
| | | | | | |
FUND SNAPSHOT We believe there is a strong link between sustainable development, innovation and long-term compounding growth. Our investment framework focuses on companies that have a positive impact on the environment and society, while at the same time helping us stay on the right side of disruption. We believe this approach will provide clients with a persistent return source, deliver future compound growth and help mitigate downside risk. | | | | 
Aaron Scully co-portfolio manager | 
Hamish Chamberlayne co-portfolio manager |
| | | |
PERFORMANCE
The Janus Henderson Global Sustainable Equity Fund I Shares returned 27.25% for the 12-month period ended September 30, 2021, underperforming its benchmark, the MSCI World IndexSM, which returned 28.82%.
INVESTMENT ENVIRONMENT
There was plenty to drive stock markets higher over the 12-month period. Monetary and fiscal stimulus was plentiful and designed to keep both consumers and businesses solvent through the lockdown measures. We witnessed an impressive ability of many companies to adapt to this new world and transition physical business models to digital and virtual ones. With the travel and dining industries locked down, spending on experiences shifted for many consumers toward spending on things, driving earnings growth where we may not have expected it. As societies and economies reopened over the course of the year, improved demand was coupled with a tight control on corporate expenses, leading to impressive operating leverage and strong overall market earnings growth. This all came with a backdrop of "lower-for-longer" interest rate expectations.
Investors may have had ample cause for enthusiasm, but as is often the case, the positives did not come without unintended consequences. Perhaps it was this realization that led to the weaker stock market conditions we saw toward period end. What were once highly efficient global supply chains were not quite so efficient amid sharp spikes in demand: There were severe shipping bottlenecks and factory closures as COVID-19 measures took a toll on worker availability. These frictions in turn led to price inflation, higher interest rate expectations and concerns over companies' ability to deliver the volumes previously expected. In addition, uncertainty increased due to the concerns over the leverage of the property development sector in China, and the path of public policy pronouncements there. At period end, equity markets began digesting what these conditions could mean for the second half of 2021's corporate earnings, and what it may ultimately mean for longer-term interest rates and discount rates.
From a sustainability perspective, stark warnings came from two clear directions – the publication of the Intergovernmental Panel on Climate Change's (IPCC) sixth assessment report (AR6), and the tangible and dramatic effects of climate change on global food supply. One of the most striking findings from the IPCC report was that even under its most ambitious emission reduction scenarios there is an estimate of a less than 50% chance of staying below the Paris Agreement's 1.5°C warming target. Less scientific but more anecdotal evidence of the dangers of climate change was in the numerous cases of agricultural destruction that hit the global headlines this quarter: crippling frosts in Brazil, devastating floods in China and Germany, droughts and wildfires across the U.S. and Canadian plains. The damage to harvests and the consequent food shortages and dramatic price rises were another warning that climate change is hurting our economy and societies in the present moment, not in some distant future.
Encouragingly, we have seen high-profile policy announcements from the world’s most influential governments with regard to low-carbon initiatives. In the U.S., the Biden administration stated its aim to reduce U.S. emissions by 50%-52% by 2030 based on 2005 levels, while Chinese President Xi Jinping announced intentions to phase out coal use over a five-year period beginning in 2026 and strictly limit the increase in coal consumption until then. Elsewhere, the UK government announced the world’s most ambitious climate change target – to cut emissions by 78% by 2035 compared to 1990 levels. The European Union’s (EU) “Fit for 55” package of detailed legislation aimed to cut greenhouse gas emissions by at least 55% by 2030, and in Japan, the government announced an energy plan to reduce the mix of fossil
Janus Henderson Global Sustainable Equity Fund (unaudited)
fuels in the country's electricity generation mix from 75% in 2020 to 41% by 2030.
A report published by the International Energy Agency (IEA) explored how to transition to a net-zero energy system by 2050 while ensuring stable and affordable energy supplies, providing universal energy access and enabling robust economic growth. A step change in investment in clean technologies is required this decade, with a fourfold increase in annual renewable energy investment and a twentyfold increase in electric car production. Overall, the IEA sees a requirement for $100 trillion in total clean energy investment over the next three decades. Whether net zero is achievable or not by 2050, one thing is certain: an enormous investment opportunity lies ahead of us. The investment logic for low carbon investing has never been stronger.
PERFORMANCE DISCUSSION
One of the largest detractors to our relative performance over the period came from outside the portfolio, given strong performance in certain technology names that we do not own. Within our portfolio, underperformance came from Japanese consumer electronics and video game company Nintendo, health insurance provider Humana and cloud-based software company Salesforce.
Nintendo’s announcement in July of a new Nintendo SwitchTM model with only modest upgrades was regarded as disappointing in the face of investor expectations of a high-performance Switch Pro model. Nintendo’s products aim to improve quality of life across a range of demographics, helping gamers to stay fit, entertained and engaged. We believed that with its large established base of users, Nintendo’s continued shift to digital and mobile content potentially could enable the company to realize more value from its unique and under-monetized intellectual property.
While Humana reported robust revenue growth in the third quarter of 2021, the market was underwhelmed by a lack of near-term upside due to COVID-19-related headwinds and higher-than-expected non-COVID-19 utilizations for the second half of 2021. We viewed these issues as likely transitory in nature, and the fact that Humana maintained its full-year guidance in the face of these headwinds was, we believed, a good indicator of the strength of its core operations.
Salesforce lost some previous gains upon the announcement of its intended acquisition of software communications provider Slack. Salesforce’s business strategy is shaped by the vision of the “Social Enterprise” and this acquisition might play a key part in realizing that. However, the market reacted negatively to the high valuation of the deal.
The Fund’s biggest contributors to relative performance were semiconductor equipment manufacturer Lam Research, commercial real estate financing company Walker & Dunlop and semiconductor manufacturer NVIDIA.
One of the most notable global economic dynamics in the first quarter of 2021 was the shortage in availability of semiconductors, curtailing production of automobiles, white goods, computers and smartphones. Thanks to the accelerated adoption of economic digitalization throughout the pandemic, there was a massive increase in demand for semiconductors over the period. Data center buildouts, demand for mobile computing and gaming devices and rising digitalization of the auto vehicle fleet all contributed to higher demand. Meanwhile, production shortfalls caused by natural disasters that impacted manufacturing plants in both Japan and Texas were further exacerbated by sanctions imposed against some Chinese manufacturers. This led to several of the biggest semiconductor manufacturers stepping up capital expenditure plans along with policy support in the U.S. for the building of more domestic production. As a result, stock prices of many semiconductor-related companies strengthened. Lam Research was a clear beneficiary. Growing optimism around the strength and duration of the memory cycle and an expectation that President Biden may adopt a softer approach toward U.S.-China relations also benefited the stock.
Walker & Dunlop has successfully positioned itself as a leader in the multi-family, green building and affordable housing lending space. At the end of 2020, Walker & Dunlop rose by more than 60% after reporting results that demonstrated better-than-expected resilience and holding a well-received investor day at which the company’s growth strategy and five-year objectives were elucidated. Then, toward period end, shares responded positively to the news of the company’s acquisition of Alliant Capital, an asset manager focused on the affordable housing sector. We believed that, as well as potentially improving Walker & Dunlop’s growth prospects, the transaction could enhance financial resilience by potentially increasing the proportion of recurring revenue.
NVIDIA is a key platform for next-generation computing and its products enable customers to access the power of
Janus Henderson Global Sustainable Equity Fund (unaudited)
artificial intelligence as well as improve the energy efficiency of computing. The company delivered strong earnings in May, reporting an 84% increase in revenue year-over-year. It saw great support for its proposed $40 billion acquisition of SoftBank Group's Arm Holdings, a semiconductor and software design company. NVIDIA already has a strong presence in the data center hardware space, and this deal potentially could expand NVIDIA's presence into software solutions in markets where Arm Holdings is already dominant. We anticipated that this deal could also bring about new and innovative ideas while driving down costs.
During the period, we initiated a new position in a financial technology company that provides Software as a Service, cloud-based payments products. The company’s mission is to make it simple to connect and do business, and it does this by providing tools to help small- and medium-size enterprises make paper-based manual transaction processing paperless. NVIDIA, one of our top performers, was also added to the portfolio during the period.
Other new positions included a home improvement retailer, a health care benefits manager, a Chinese supply chain finance technology provider, a logistics real estate operator and a clinical research organization company.
OUTLOOK
On our near-term radar is the upcoming 2021 United Nations Climate Change Conference (COP26) in Glasgow, which will encompass 12 days of talks on tackling climate change, with leadership delegations from over 190 countries in attendance. We expect to see further commitments and action plans put into place to tackle climate change head-on. Keeping warming to 1.5°C is of fundamental importance and we hope to see further consensus on a way to achieve this.
Regarding the market environment, we are paying close attention to signs of more persistent inflation. After such a long period of relative calmness in global stock markets, we are long overdue a period of higher volatility. We expect further gyrations as the global economy digests supply chain dislocations and businesses navigate inflationary pressures. We always keep in mind, however, that higher prices contain the seeds of their own destruction, since this incentivizes businesses to invest in efficiency or substitution. Ultimately, we view an inflationary environment as being supportive for the growth of many of the companies that we invest in.
We remain focused on the digitalization, electrification and decarbonization trends as they become the driving features of our global economy, and this continues to drive our investment decisions and portfolio construction. Our investment approach is all about identifying the companies that are on the right side of these long-duration sustainability themes, and that are playing a positive role in the transformation of the global economy toward a more sustainable one. We spend our time looking for the companies that could see exciting growth opportunities as a result of this transformation, and that have cultures of innovation and built-in financial resilience. We are excited by the diverse range of opportunities we see, and our portfolio holdings reflect this.
Thank you for investing in the Janus Henderson Global Sustainable Equity Fund.
Janus Henderson Global Sustainable Equity Fund (unaudited)
Fund At A Glance
September 30, 2021
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| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Lam Research Corp | 3.22% | | 1.48% | | Nintendo Co Ltd | 2.29% | | -0.99% |
| Walker & Dunlop Inc | 1.81% | | 1.10% | | Humana Inc | 2.59% | | -0.96% |
| NVIDIA Corp | 1.39% | | 0.99% | | salesforce.com Inc | 1.03% | | -0.85% |
| Evoqua Water Technologies Corp | 2.11% | | 0.92% | | SAP SE | 0.67% | | -0.77% |
| Atlassian Corp PLC - Class A | 1.25% | | 0.88% | | IPG Photonics Corp | 1.82% | | -0.76% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | 2.55% | | 42.78% | 21.90% |
| Consumer Discretionary | | 1.56% | | 7.93% | 12.00% |
| Consumer Staples | | 1.22% | | 0.61% | 7.30% |
| Industrials | | 0.87% | | 13.34% | 10.59% |
| Materials | | 0.76% | | 2.55% | 4.49% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -2.67% | | 11.97% | 13.25% |
| Communication Services | | -1.65% | | 2.71% | 9.05% |
| Other** | | -1.24% | | 3.60% | 0.00% |
| Energy | | -1.08% | | 0.00% | 2.94% |
| Real Estate | | -1.00% | | 4.29% | 2.71% |
| | | | | | | |
| 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 Global Sustainable Equity Fund (unaudited)
Fund At A Glance
September 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 5.6% |
Autodesk Inc | |
Software | 3.6% |
Adobe Inc | |
Software | 3.1% |
NVIDIA Corp | |
Semiconductor & Semiconductor Equipment | 2.9% |
Evoqua Water Technologies Corp | |
Machinery | 2.8% |
| | 18.0% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.1% | |
Investment Companies | | 4.6% | |
Other | | (1.7)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
|
Janus Henderson Global Sustainable Equity Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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| | | | | | | |
| | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 27.05% | 31.95% | | | 1.47% | 1.16% |
Class A Shares at MOP | | 19.76% | 25.92% | | | | |
Class C Shares at NAV | | 26.91% | 31.65% | | | 2.26% | 1.95% |
Class C Shares at CDSC | | 25.91% | 31.65% | | | | |
Class D Shares | | 27.15% | 32.03% | | | 1.37% | 1.00% |
Class I Shares | | 27.25% | 32.21% | | | 1.22% | 0.91% |
Class N Shares | | 27.30% | 32.25% | | | 1.17% | 0.86% |
Class R Shares | | 26.43% | 31.34% | | | 1.91% | 1.60% |
Class S Shares | | 27.05% | 31.86% | | | 1.66% | 1.35% |
Class T Shares | | 27.02% | 31.93% | | | 1.41% | 1.10% |
MSCI World Index | | 28.82% | 30.17% | | | | |
Morningstar Quartile - Class I Shares | | 2nd | 2nd | | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | 124/354 | 117/352 | | | | |
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 January 28, 2021.
The expense ratios shown are estimated.
Janus Henderson Global Sustainable Equity Fund (unaudited)
Performance
Until the earlier of three years from inception or the Fund’s assets meeting the first fee breakpoint, expenses previously waived or reimbursed may be recovered if the expense ratio falls below certain limits.
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, Environmental, Social and Governance (ESG) factors, 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 R Shares commenced operations on January 28, 2021. Performance shown for periods prior to January 28, 2021, reflects the historical performance of the Funds’s Class I Shares, calculated using the fees and expenses of Class R Shares, net of any applicable fee and expense limitations or waivers.
If Class R Shares of the Fund had been available during periods prior to January 28, 2021, the performance shown may have been different. The performance shown for periods following the Fund's commencement of Class R Shares reflects the fees and expenses of Class R Shares, net of any applicable fee and expense limitations or waivers.
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 – June 25, 2020
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Sustainable Equity 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,079.30 | $5.73 | | $1,000.00 | $1,019.55 | $5.57 | 1.10% |
Class C Shares | $1,000.00 | $1,078.60 | $7.24 | | $1,000.00 | $1,018.10 | $7.03 | 1.39% |
Class D Shares | $1,000.00 | $1,080.70 | $5.16 | | $1,000.00 | $1,020.10 | $5.01 | 0.99% |
Class I Shares | $1,000.00 | $1,080.70 | $4.54 | | $1,000.00 | $1,020.71 | $4.41 | 0.87% |
Class N Shares | $1,000.00 | $1,081.30 | $4.49 | | $1,000.00 | $1,020.76 | $4.36 | 0.86% |
Class R Shares | $1,000.00 | $1,077.80 | $7.34 | | $1,000.00 | $1,018.00 | $7.13 | 1.41% |
Class S Shares | $1,000.00 | $1,080.20 | $6.10 | | $1,000.00 | $1,019.20 | $5.92 | 1.17% |
Class T Shares | $1,000.00 | $1,080.00 | $5.68 | | $1,000.00 | $1,019.60 | $5.52 | 1.09% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 Sustainable Equity Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 97.1% | | | |
Auto Components – 2.0% | | | |
| | Aptiv PLC* | | 5,039 | | | $750,660 | |
Automobiles – 0.4% | | | |
| | Tesla Inc* | | 190 | | | 147,341 | |
Containers & Packaging – 2.7% | | | |
| | Avery Dennison Corp | | 2,162 | | | 447,988 | |
| | DS Smith PLC | | 102,734 | | | 567,130 | |
| | | 1,015,118 | |
Diversified Financial Services – 0.4% | | | |
| | Linklogis Inc - Class B* | | 87,492 | | | 89,280 | |
| | Linklogis Inc - Class B (144A)* | | 59,500 | | | 60,716 | |
| | | 149,996 | |
Diversified Telecommunication Services – 0.4% | | | |
| | Orange SA | | 12,305 | | | 133,287 | |
Electric Utilities – 1.5% | | | |
| | SSE PLC | | 27,588 | | | 579,222 | |
Electrical Equipment – 5.1% | | | |
| | Legrand SA | | 7,207 | | | 772,874 | |
| | Nidec Corp | | 3,200 | | | 355,041 | |
| | Schneider Electric SE | | 4,929 | | | 819,389 | |
| | | 1,947,304 | |
Electronic Equipment, Instruments & Components – 7.5% | | | |
| | IPG Photonics Corp* | | 3,897 | | | 617,285 | |
| | Murata Manufacturing Co Ltd | | 8,400 | | | 747,825 | |
| | Shimadzu Corp | | 15,500 | | | 680,950 | |
| | TE Connectivity Ltd | | 5,806 | | | 796,699 | |
| | | 2,842,759 | |
Entertainment – 2.3% | | | |
| | Nintendo Co Ltd | | 1,800 | | | 875,744 | |
Equity Real Estate Investment Trusts (REITs) – 3.8% | | | |
| | Crown Castle International Corp | | 2,787 | | | 483,043 | |
| | Equinix Inc | | 707 | | | 558,622 | |
| | Prologis Inc | | 3,050 | | | 382,562 | |
| | | 1,424,227 | |
Food Products – 0.4% | | | |
| | McCormick & Co Inc/MD | | 1,868 | | | 151,364 | |
Health Care Equipment & Supplies – 0.4% | | | |
| | Nanosonics Ltd* | | 32,750 | | | 147,266 | |
Health Care Providers & Services – 4.0% | | | |
| | Encompass Health Corp | | 8,329 | | | 625,008 | |
| | Humana Inc | | 2,262 | | | 880,257 | |
| | | 1,505,265 | |
Health Care Technology – 0.5% | | | |
| | Accolade Inc* | | 4,195 | | | 176,903 | |
Independent Power and Renewable Electricity Producers – 2.7% | | | |
| | Boralex Inc - Class A | | 17,104 | | | 505,124 | |
| | Innergex Renewable Energy Inc | | 33,168 | | | 531,548 | |
| | | 1,036,672 | |
Information Technology Services – 1.7% | | | |
| | Mastercard Inc | | 1,841 | | | 640,079 | |
Insurance – 10.1% | | | |
| | AIA Group Ltd | | 63,400 | | | 730,020 | |
| | Aon PLC - Class A | | 3,640 | | | 1,040,203 | |
| | Intact Financial Corp | | 6,043 | | | 799,180 | |
| | Marsh & McLennan Cos Inc | | 5,082 | | | 769,567 | |
| | Progressive Corp | | 5,392 | | | 487,383 | |
| | | 3,826,353 | |
Leisure Products – 2.0% | | | |
| | Shimano Inc | | 2,600 | | | 757,534 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Sustainable Equity Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Life Sciences Tools & Services – 1.7% | | | |
| | ICON PLC* | | 2,442 | | | $639,853 | |
Machinery – 7.4% | | | |
| | Evoqua Water Technologies Corp* | | 27,960 | | | 1,050,178 | |
| | Knorr-Bremse AG | | 5,715 | | | 613,194 | |
| | Wabtec Corp | | 6,383 | | | 550,278 | |
| | Xylem Inc/NY | | 4,711 | | | 582,657 | |
| | | 2,796,307 | |
Professional Services – 1.4% | | | |
| | Wolters Kluwer NV | | 5,063 | | | 535,104 | |
Semiconductor & Semiconductor Equipment – 13.4% | | | |
| | ASML Holding NV | | 984 | | | 725,775 | |
| | Lam Research Corp | | 1,447 | | | 823,560 | |
| | Microchip Technology Inc | | 4,359 | | | 669,063 | |
| | NVIDIA Corp | | 5,363 | | | 1,110,999 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 47,000 | | | 969,276 | |
| | Texas Instruments Inc | | 3,897 | | | 749,042 | |
| | | 5,047,715 | |
Software – 20.1% | | | |
| | Adobe Inc* | | 2,004 | | | 1,153,743 | |
| | Atlassian Corp PLC - Class A* | | 1,689 | | | 661,108 | |
| | Autodesk Inc* | | 4,791 | | | 1,366,249 | |
| | Avalara Inc* | | 4,407 | | | 770,211 | |
| | Bill.com Holdings Inc* | | 1,575 | | | 420,446 | |
| | Cadence Design Systems Inc* | | 3,523 | | | 533,523 | |
| | Microsoft Corp | | 7,535 | | | 2,124,267 | |
| | Zendesk Inc* | | 4,887 | | | 568,798 | |
| | | 7,598,345 | |
Specialty Retail – 0.9% | | | |
| | Home Depot Inc | | 1,050 | | | 344,673 | |
Textiles, Apparel & Luxury Goods – 2.4% | | | |
| | adidas AG | | 1,695 | | | 534,036 | |
| | NIKE Inc - Class B | | 2,612 | | | 379,341 | |
| | | 913,377 | |
Thrifts & Mortgage Finance – 1.9% | | | |
| | Walker & Dunlop Inc | | 6,441 | | | 731,054 | |
Total Common Stocks (cost $31,557,600) | | 36,713,522 | |
Investment Companies– 4.6% | | | |
Money Markets – 4.6% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $1,726,176) | | 1,726,041 | | | 1,726,214 | |
Total Investments (total cost $33,283,776) – 101.7% | | 38,439,736 | |
Liabilities, net of Cash, Receivables and Other Assets – (1.7)% | | (637,559) | |
Net Assets – 100% | | $37,802,177 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Global Sustainable Equity Fund
Schedule of Investments
September 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $24,609,260 | | 64.0 | % |
Japan | | 3,417,094 | | 8.9 | |
Canada | | 1,835,852 | | 4.8 | |
France | | 1,725,550 | | 4.5 | |
Netherlands | | 1,260,879 | | 3.3 | |
Germany | | 1,147,230 | | 3.0 | |
United Kingdom | | 1,146,352 | | 3.0 | |
Taiwan | | 969,276 | | 2.5 | |
Australia | | 808,374 | | 2.1 | |
Hong Kong | | 730,020 | | 1.9 | |
Ireland | | 639,853 | | 1.6 | |
China | | 149,996 | | 0.4 | |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/21 |
Investment Companies - 4.6% |
Money Markets - 4.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | $ | 887 | $ | (51) | $ | 1 | $ | 1,726,214 |
| |
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Investment Companies - 4.6% |
Money Markets - 4.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 545,997 | | 23,956,638 | | (22,776,371) | | 1,726,214 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Sustainable Equity Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI World IndexSM | MSCI World IndexSM reflects the equity market performance of global developed markets. |
| | |
LLC | Limited Liability 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 September 30, 2021 is $60,716, which represents 0.2% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 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. |
| | | | | | | | | | | | | |
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 September 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 | | | | | | |
Containers & Packaging | $ | 447,988 | $ | 567,130 | $ | - |
Diversified Financial Services | | 89,280 | | 60,716 | | - |
Diversified Telecommunication Services | | - | | 133,287 | | - |
Electric Utilities | | - | | 579,222 | | - |
Electrical Equipment | | - | | 1,947,304 | | - |
Electronic Equipment, Instruments & Components | | 1,413,984 | | 1,428,775 | | - |
Entertainment | | - | | 875,744 | | - |
Health Care Equipment & Supplies | | - | | 147,266 | | - |
Insurance | | 3,096,333 | | 730,020 | | - |
Leisure Products | | - | | 757,534 | | - |
Professional Services | | - | | 535,104 | | - |
Semiconductor & Semiconductor Equipment | | 3,352,664 | | 1,695,051 | | - |
Textiles, Apparel & Luxury Goods | | 379,341 | | 534,036 | | - |
All Other | | 17,942,743 | | - | | - |
Investment Companies | | - | | 1,726,214 | | - |
Total Assets | $ | 26,722,333 | $ | 11,717,403 | $ | - |
| | | | | | | |
Janus Henderson Global Sustainable Equity Fund
Statement of Assets and Liabilities
September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $31,557,600) | | $ | 36,713,522 | |
| Affiliated investments, at value (cost $1,726,176) | | | 1,726,214 | |
| Cash denominated in foreign currency (cost $3,470) | | | 3,470 | |
| Non-interested Trustees' deferred compensation | | | 942 | |
| Receivables: | | | | |
| | Due from adviser | | | 41,971 | |
| | Dividends | | | 25,746 | |
| | Fund shares sold | | | 22,538 | |
| | Foreign tax reclaims | | | 6,661 | |
| | Dividends from affiliates | | | 122 | |
| Other assets | | | 544 | |
Total Assets | | | 38,541,730 | |
Liabilities: | | | | |
| Due to custodian | | | 494 | |
| Payables: | | | — | |
| | Investments purchased | | | 621,012 | |
| | Professional fees | | | 47,949 | |
| | Non-affiliated fund administration fees payable | | | 36,679 | |
| | Advisory fees | | | 23,776 | |
| | Transfer agent fees and expenses | | | 3,681 | |
| | Custodian fees | | | 3,058 | |
| | Non-interested Trustees' deferred compensation fees | | | 942 | |
| | Non-interested Trustees' fees and expenses | | | 167 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 139 | |
| | Affiliated fund administration fees payable | | | 79 | |
| | Accrued expenses and other payables | | | 1,577 | |
Total Liabilities | | | 739,553 | |
Net Assets | | $ | 37,802,177 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Sustainable Equity Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 32,369,794 | |
| Total distributable earnings (loss) | | | 5,432,383 | |
Total Net Assets | | $ | 37,802,177 | |
Net Assets - Class A Shares | | $ | 180,946 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,777 | |
Net Asset Value Per Share(1) | | $ | 14.16 | |
Maximum Offering Price Per Share(2) | | $ | 15.02 | |
Net Assets - Class C Shares | | $ | 76,575 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,421 | |
Net Asset Value Per Share(1) | | $ | 14.13 | |
Net Assets - Class D Shares | | $ | 23,920,688 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,684,808 | |
Net Asset Value Per Share | | $ | 14.20 | |
Net Assets - Class I Shares | | $ | 11,353,207 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 800,117 | |
Net Asset Value Per Share | | $ | 14.19 | |
Net Assets - Class N Shares | | $ | 1,448,585 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 101,814 | |
Net Asset Value Per Share | | $ | 14.23 | |
Net Assets - Class R Shares | | $ | 54,489 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,855 | |
Net Asset Value Per Share | | $ | 14.13 | |
Net Assets - Class S Shares | | $ | 70,934 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,014 | |
Net Asset Value Per Share | | $ | 14.15 | |
Net Assets - Class T Shares | | $ | 696,753 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 49,136 | |
Net Asset Value Per Share | | $ | 14.18 | |
| |
(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 | SEPTEMBER 30, 2021 |
Janus Henderson Global Sustainable Equity Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 324,731 | |
| Dividends from affiliates | | 887 | |
| Other income | | 81 | |
| Foreign tax withheld | | (20,313) | |
Total Investment Income | | 305,386 | |
Expenses: | | | |
| Advisory fees | | 195,716 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 188 | |
| | Class C Shares | | 210 | |
| | Class R Shares | | 136 | |
| | Class S Shares | | 52 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 18,850 | |
| | Class R Shares | | 90 | |
| | Class S Shares | | 167 | |
| | Class T Shares | | 968 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 50 | |
| | Class C Shares | | — | |
| | Class I Shares | | 880 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 18 | |
| | Class C Shares | | 14 | |
| | Class D Shares | | 5,536 | |
| | Class I Shares | | 589 | |
| | Class N Shares | | 52 | |
| | Class R Shares | | 4 | |
| | Class S Shares | | 11 | |
| | Class T Shares | | 29 | |
| Registration fees | | 143,680 | |
| Non-affiliated fund administration fees | | 73,385 | |
| Professional fees | | 49,887 | |
| Custodian fees | | 15,422 | |
| Shareholder reports expense | | 9,452 | |
| Affiliated fund administration fees | | 746 | |
| Non-interested Trustees’ fees and expenses | | 351 | |
| Other expenses | | 5,705 | |
Total Expenses | | 522,188 | |
Less: Excess Expense Reimbursement and Waivers | | (272,655) | |
Net Expenses | | 249,533 | |
Net Investment Income/(Loss) | | 55,853 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Sustainable Equity Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 234,224 | |
| Investments in affiliates | | (51) | |
Total Net Realized Gain/(Loss) on Investments | | 234,173 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 4,375,105 | |
| Investments in affiliates | | 1 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 4,375,106 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 4,665,132 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2021 |
Janus Henderson Global Sustainable Equity Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021(1) | | Period ended
September 30, 2020(2) | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 55,853 | | $ | 11,002 | |
| Net realized gain/(loss) on investments | | 234,173 | | | 15,298 | |
| Change in unrealized net appreciation/depreciation | | 4,375,106 | | | 780,372 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 4,665,132 | | | 806,672 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (237) | | | — | |
| | Class C Shares | | (149) | | | — | |
| | Class D Shares | | (12,247) | | | — | |
| | Class I Shares | | (21,225) | | | — | |
| | Class N Shares | | (466) | | | — | |
| | Class S Shares | | (186) | | | — | |
| | Class T Shares | | (251) | | | — | |
Net Decrease from Dividends and Distributions to Shareholders | | (34,761) | | | — | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 91,700 | | | 60,093 | |
| | Class C Shares | | 6,149 | | | 50,078 | |
| | Class D Shares | | 15,901,862 | | | 5,005,667 | |
| | Class I Shares | | 4,421,540 | | | 4,764,212 | |
| | Class N Shares | | 1,137,369 | | | 185,015 | |
| | Class R Shares | | 50,000 | | | N/A | |
| | Class S Shares | | 186 | | | 50,078 | |
| | Class T Shares | | 550,080 | | | 91,105 | |
Net Increase/(Decrease) from Capital Share Transactions | | 22,158,886 | | | 10,206,248 | |
Net Increase/(Decrease) in Net Assets | | 26,789,257 | | | 11,012,920 | |
Net Assets: | | | | | | |
| Beginning of period | | 11,012,920 | | | — | |
| End of period | $ | 37,802,177 | | $ | 11,012,920 | |
| | | | | | | | |
| |
(1) Period from January 28, 2021 (inception date) through September 30, 2021 for Class R Shares. (2) Period from June 25, 2020 (inception date) through September 30, 2020. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | |
Class A Shares | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $11.18 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | |
| | Net investment income/(loss)(2) | | 0.02 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 3.00 | | | 1.17 | |
| Total from Investment Operations | | 3.02 | | | 1.18 | |
| Less Dividends and Distributions: | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | — | |
| | Distributions (from capital gains) | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.04) | | | — | |
| Net Asset Value, End of Period | | $14.16 | | | $11.18 | |
| Total Return* | | 27.05% | | | 11.80% | |
| Net Assets, End of Period (in thousands) | | $181 | | | $67 | |
| Average Net Assets for the Period (in thousands) | | $123 | | | $63 | |
| Ratios to Average Net Assets**: | | | | | | |
| | Ratio of Gross Expenses | | 4.43% | | | 15.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.06% | | | 1.13% | |
| | Ratio of Net Investment Income/(Loss) | | 0.12% | | | 0.27% | |
| Portfolio Turnover Rate | | 12% | | | 11% | |
| | | | | | | | | | |
| | | | | | | | | | |
Class C Shares | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $11.16 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | |
| | Net investment income/(loss)(2) | | (0.01) | | | (0.01) | |
| | Net realized and unrealized gain/(loss) | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | 3.00 | | | 1.16 | |
| Less Dividends and Distributions: | | | | | | |
| | Dividends (from net investment income) | | (0.02) | | | — | |
| | Distributions (from capital gains) | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.03) | | | — | |
| Net Asset Value, End of Period | | $14.13 | | | $11.16 | |
| Total Return* | | 26.91% | | | 11.60% | |
| Net Assets, End of Period (in thousands) | | $77 | | | $56 | |
| Average Net Assets for the Period (in thousands) | | $67 | | | $54 | |
| Ratios to Average Net Assets**: | | | | | | |
| | Ratio of Gross Expenses | | 6.64% | | | 17.28% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.19% | | | 1.87% | |
| | Ratio of Net Investment Income/(Loss) | | (0.04)% | | | (0.46)% | |
| Portfolio Turnover Rate | | 12% | | | 11% | |
| | | | | | | | | | |
| |
* 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 25, 2020 (inception date) through September 30, 2020. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2021 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | |
Class D Shares | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $11.18 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | |
| | Net investment income/(loss)(2) | | 0.02 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | 3.03 | | | 1.18 | |
| Less Dividends and Distributions: | | | | | | |
| | Dividends (from net investment income) | | — | | | — | |
| | Distributions (from capital gains) | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.01) | | | — | |
| Net Asset Value, End of Period | | $14.20 | | | $11.18 | |
| Total Return* | | 27.15% | | | 11.80% | |
| Net Assets, End of Period (in thousands) | | $23,921 | | | $5,226 | |
| Average Net Assets for the Period (in thousands) | | $16,804 | | | $2,485 | |
| Ratios to Average Net Assets**: | | | | | | |
| | Ratio of Gross Expenses | | 1.97% | | | 10.52% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.00% | | | 0.98% | |
| | Ratio of Net Investment Income/(Loss) | | 0.18% | | | 0.50% | |
| Portfolio Turnover Rate | | 12% | | | 11% | |
| | | | | | | | | | |
| | | | | | | | | | |
Class I Shares | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $11.19 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | |
| | Net investment income/(loss)(2) | | 0.04 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | 3.00 | | | 1.17 | |
| Total from Investment Operations | | 3.04 | | | 1.19 | |
| Less Dividends and Distributions: | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | — | |
| | Distributions (from capital gains) | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.04) | | | — | |
| Net Asset Value, End of Period | | $14.19 | | | $11.19 | |
| Total Return* | | 27.25% | | | 11.90% | |
| Net Assets, End of Period (in thousands) | | $11,353 | | | $5,317 | |
| Average Net Assets for the Period (in thousands) | | $7,780 | | | $5,071 | |
| Ratios to Average Net Assets**: | | | | | | |
| | Ratio of Gross Expenses | | 1.86% | | | 10.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.87% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 0.29% | | | 0.55% | |
| Portfolio Turnover Rate | | 12% | | | 11% | |
| | | | | | | | | | |
| |
* 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 25, 2020 (inception date) through September 30, 2020. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | |
Class N Shares | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $11.19 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | |
| | Net investment income/(loss)(2) | | 0.05 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | 3.00 | | | 1.17 | |
| Total from Investment Operations | | 3.05 | | | 1.19 | |
| Less Dividends and Distributions: | | | | | | |
| | Dividends (from net investment income) | | — | | | — | |
| | Distributions (from capital gains) | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.01) | | | — | |
| Net Asset Value, End of Period | | $14.23 | | | $11.19 | |
| Total Return* | | 27.30% | | | 11.90% | |
| Net Assets, End of Period (in thousands) | | $1,449 | | | $192 | |
| Average Net Assets for the Period (in thousands) | | $831 | | | $83 | |
| Ratios to Average Net Assets**: | | | | | | |
| | Ratio of Gross Expenses | | 2.14% | | | 14.24% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.86% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 0.33% | | | 0.73% | |
| Portfolio Turnover Rate | | 12% | | | 11% | |
| | | | | | | | | | |
| | | | | | | |
Class R Shares | | | |
For a share outstanding during the period ended September 30 | | 2021(3) | |
| Net Asset Value, Beginning of Period | | $13.08 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | 1.08 | |
| Total from Investment Operations | | 1.05 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $14.13 | |
| Total Return* | | 8.03% | |
| Net Assets, End of Period (in thousands) | | $54 | |
| Average Net Assets for the Period (in thousands) | | $53 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 7.99% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.46% | |
| | Ratio of Net Investment Income/(Loss) | | (0.27)% | |
| Portfolio Turnover Rate | | 12% | |
| | | | | | | |
| |
* 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 25, 2020 (inception date) through September 30, 2020. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Period from January 28, 2021 (inception date) through September 30, 2021. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2021 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | |
Class S Shares | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $11.17 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | |
| | Net investment income/(loss)(2) | | —(3) | | | —(3) | |
| | Net realized and unrealized gain/(loss) | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | 3.01 | | | 1.17 | |
| Less Dividends and Distributions: | | | | | | |
| | Dividends (from net investment income) | | (0.02) | | | — | |
| | Distributions (from capital gains) | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.03) | | | — | |
| Net Asset Value, End of Period | | $14.15 | | | $11.17 | |
| Total Return* | | 27.05% | | | 11.70% | |
| Net Assets, End of Period (in thousands) | | $71 | | | $56 | |
| Average Net Assets for the Period (in thousands) | | $67 | | | $54 | |
| Ratios to Average Net Assets**: | | | | | | |
| | Ratio of Gross Expenses | | 6.65% | | | 16.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.11% | | | 1.37% | |
| | Ratio of Net Investment Income/(Loss) | | 0.03% | | | 0.04% | |
| Portfolio Turnover Rate | | 12% | | | 11% | |
| | | | | | | | | | |
| | | | | | | | | | |
Class T Shares | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020(3) | |
| Net Asset Value, Beginning of Period | | $11.18 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | |
| | Net investment income/(loss)(1) | | 0.01 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | 3.02 | | | 1.18 | |
| Less Dividends and Distributions: | | | | | | |
| | Dividends (from net investment income) | | (0.01) | | | — | |
| | Distributions (from capital gains) | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.02) | | | — | |
| Net Asset Value, End of Period | | $14.18 | | | $11.18 | |
| Total Return* | | 27.02% | | | 11.80% | |
| Net Assets, End of Period (in thousands) | | $697 | | | $99 | |
| Average Net Assets for the Period (in thousands) | | $387 | | | $77 | |
| Ratios to Average Net Assets**: | | | | | | |
| | Ratio of Gross Expenses | | 2.82% | | | 14.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.09% | | | 1.11% | |
| | Ratio of Net Investment Income/(Loss) | | 0.10% | | | 0.33% | |
| Portfolio Turnover Rate | | 12% | | | 11% | |
| | | | | | | | | | |
| |
* 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 25, 2020 (inception date) through September 30, 2020. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Global Sustainable Equity 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 original 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 R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
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.
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
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
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 period.
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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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.
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.
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
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.
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
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
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.
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.
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 | 0.75 |
Over $2 Billion | 0.70 |
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 0.85% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 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.
For the period of three years subsequent to the Fund’s commencement of operations, or until the Fund’s assets exceed the first breakpoint in the investment advisory fee schedule, whichever occurs first, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio including recovered expenses, falls below the expense limit. If applicable, this amount is disclosed as “Recoupment expense” on the Statement of Operations. During the year ended September 30, 2021, Janus Capital reimbursed the Fund $272,511 of fees and expense that are eligible for recoupment. As of September 30, 2021, the aggregate amount of recoupment that may potentially be made to Janus Capital is $482,558. The recoupment of such reimbursements expires at the latest June 25, 2023.
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
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 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
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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.
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $330.
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 September 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 September 30, 2021.
As of September 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 | 39 | % | - | %* | |
Class C Shares | 92 | | -* | | |
Class D Shares | -* | | -* | | |
Class I Shares | 59 | | 18 | | |
Class N Shares | 5 | | -* | | |
Class R Shares | 100 | | -* | | |
Class S Shares | 100 | | -* | | |
Class T Shares | 10 | | -* | | |
| | | | | | |
* | 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) | |
$ 291,108 | $ - | $ - | $ - | $ - | $ (1,424) | $ 5,142,699 | |
Janus Henderson Global Sustainable Equity 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 September 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) |
$ 33,297,037 | $ 5,762,325 | $ (619,626) | $ 5,142,699 |
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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 34,761 | $ - | $ - | $ - | |
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 |
$ 4,660 | $ (7,372) | $ 2,712 |
Capital has been adjusted by $4,660, none of which is long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021(1) | | Period ended September 30, 2020(2) |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 6,778 | $ 91,463 | | 5,981 | $ 60,093 |
Reinvested dividends and distributions | 18 | 237 | | - | - |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 6,796 | $ 91,700 | | 5,981 | $ 60,093 |
Class C Shares: | | | | | |
Shares sold | 409 | $ 6,000 | | 5,000 | $ 50,078 |
Reinvested dividends and distributions | 12 | 149 | | - | - |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 421 | $ 6,149 | | 5,000 | $ 50,078 |
Class D Shares: | | | | | |
Shares sold | 1,554,605 | $20,408,231 | | 474,383 | $5,082,293 |
Reinvested dividends and distributions | 932 | 11,975 | | - | - |
Shares repurchased | (338,219) | (4,518,344) | | (6,893) | (76,626) |
Net Increase/(Decrease) | 1,217,318 | $15,901,862 | | 467,490 | $5,005,667 |
Class I Shares: | | | | | |
Shares sold | 329,386 | $ 4,483,536 | | 475,247 | $4,764,212 |
Reinvested dividends and distributions | 1,654 | 21,224 | | - | - |
Shares repurchased | (6,170) | (83,220) | | - | - |
Net Increase/(Decrease) | 324,870 | $ 4,421,540 | | 475,247 | $4,764,212 |
Class N Shares: | | | | | |
Shares sold | 92,900 | $ 1,247,113 | | 17,169 | $ 185,015 |
Reinvested dividends and distributions | 36 | 466 | | - | - |
Shares repurchased | (8,291) | (110,210) | | - | - |
Net Increase/(Decrease) | 84,645 | $ 1,137,369 | | 17,169 | $ 185,015 |
Class R Shares: | | | | | |
Shares sold | 3,855 | $ 50,000 | | - | $ - |
Reinvested dividends and distributions | - | - | | - | - |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 3,855 | $ 50,000 | | - | $ - |
Class S Shares: | | | | | |
Shares sold | - | $ - | | 5,000 | $ 50,078 |
Reinvested dividends and distributions | 14 | 186 | | - | - |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 14 | $ 186 | | 5,000 | $ 50,078 |
Class T Shares: | | | | | |
Shares sold | 51,435 | $ 699,859 | | 8,872 | $ 91,105 |
Reinvested dividends and distributions | 19 | 250 | | - | - |
Shares repurchased | (11,190) | (150,029) | | - | - |
Net Increase/(Decrease) | 40,264 | $ 550,080 | | 8,872 | $ 91,105 |
(1) | Period from January 28, 2021 (inception date) through September 30, 2021 for Class R Shares. |
(2) | Period from June 25, 2020 (inception date) through September 30, 2020. |
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the year ended September 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 |
$24,632,434 | $ 3,006,127 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 Sustainable Equity Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Sustainable Equity 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 Sustainable Equity Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021 and the statement of changes in net assets for the year ended September 30, 2021 and for the period June 25, 2020 (commencement of operations) through September 30, 2020, 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 September 30, 2021, the results of its operations for the year then ended, the changes in its net assets for the year ended September 30, 2021 and for the period June 25, 2020 (commencement of operations) through September 30, 2020 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 September 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
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Global Sustainable Equity 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
FOR JANUS HENDERSON GLOBAL SUSTAINABLE EQUITY FUND
The Trustees of Janus Investment Fund, each of whom serves as an “independent” Trustee (the “Trustees”), and none of whom is affiliated with Janus Capital Management LLC (“Janus Capital”), the investment adviser of Janus Henderson Global Sustainable Equity Fund (the “GSE Fund”), met by videoconference and telephone in light of the novel coronavirus (COVID-19) and related government directives, on March 18, 2020 to consider the proposed investment advisory agreement for the GSE Fund. In the course of their consideration of this agreement, the Trustees met in executive session and were advised by their independent legal counsel. In this regard, prior to the meeting and at earlier meetings, the Trustees received and reviewed extensive information provided by Janus Capital. The Trustees also had been provided and had considered various data and information in connection with their annual consideration of the investment advisory agreements in place with Janus Capital, including information provided by their independent fee consultant, and certain of that data was relevant to their consideration of the proposed agreement with Janus Capital for the GSE Fund. Based on their evaluation of the information available to them, the Trustees unanimously approved the investment advisory agreement for the GSE Fund for an initial term through February 2022, subject to earlier termination as provided for in the agreement.
In considering the agreement and reaching their conclusions, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services to be provided by Janus Capital to the GSE Fund, taking into account the investment objective, strategies and policies of the 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, particularly noting those employees who were expected to provide investment and risk management services to the Fund. The Trustees also considered other services to be provided to the GSE Fund by Janus Capital, 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 GSE Fund, 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 GSE Fund’s 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 to the Trustees noted that Janus Capital provides a number of different services for the Janus Henderson Funds, 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
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
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 expected to be provided to the GSE Fund by Janus Capital were appropriate and consistent with the terms of the Fund’s investment advisory agreement. They also concluded that Janus Capital had sufficient personnel, with the appropriate education and experience, to serve the GSE Fund effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the GSE Fund
The Trustees noted that while the GSE Fund did not have performance results, Janus Capital provided performance results for the proposed portfolio managers of the GSE Fund with respect to their management of an investment strategy comparable to the GSE Fund’s investment strategy. The Trustees considered these performance results over various time periods.
Costs of Services Provided
The Trustees examined information regarding the proposed fees and expenses of the GSE Fund in comparison to similar information for other comparable funds as provided by Janus Capital. The Trustees also considered the methodology used by Janus Capital in determining compensation payable to GSE Funds’ 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 other mutual funds with comparable investment strategies and the fees charged by Janus Capital to a separate account client with a comparable investment strategy. Although the separate account fee rate for the investment strategy to be utilized by GSE was lower than the management fee rate for GSE Fund, the Trustees considered that Janus Capital noted that, under the terms of the proposed investment advisory agreement with GSE Fund, Janus Capital performs significant additional services for the Fund that it does not provide to this other client, 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.
As part of the annual 15c process, 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, while the Trustees did not consider the estimated profitability of the GSE Fund to Janus Capital, as the Fund had not yet commenced operations, as part of the annual 15c process 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 receives 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 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 advisory 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.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by GSE Fund to Janus Capital was reasonable in relation to the nature, extent, and quality of the services to be provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies and the fees Janus Capital charges to other clients with comparable investment strategies. The Trustees also concluded that GSE Fund’s estimated total expenses were reasonable, taking into account the size of the Fund, quality of services expected to be provided by Janus Capital, the investment performance of Janus Capital managing a similar strategy for another client, and the expense limitation agreed to and provided by Janus Capital to the Fund.
Economies of Scale
As part of the annual 15c process, 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 base fixed rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 64% of these Janus Henderson Funds’ share classes 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 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 a 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 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 scale economies 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. With respect the GSE Fund, the Trustees noted that the proposed management agreement with Janus Capital included a fee schedule with a breakpoint.
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 proposed fee structure of GSE Fund was reasonable and that the proposed rates of fees do reflect a sharing between Janus Capital and the Janus Henderson Fund of any potential economies of scale that may be initially be present for the GSE Fund.
Other Benefits to Janus Capital
As part of the annual 15c process, the Trustees also considered benefits that accrue to Janus Capital and its affiliates 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. The Trustees concluded that Janus Capital’s 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
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and Janus Capital 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 benefits 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 receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital. They further concluded that the success of any Janus Henderson Fund could attract other business to Janus Capital or other Janus Henderson funds, and that the success of Janus Capital could enhance Janus Capital’s ability to serve the Janus Henderson Funds. The Trustees concluded that Janus Capital was likely to enjoy similar benefits in connection with its management of the GSE Fund.
After full consideration of the above factors, as well as other factors, the Trustees, all of whom are independent Trustees, determined to approve the investment advisory agreement for the GSE Fund.
Janus Henderson Global Sustainable Equity 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 September 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 Bloomberg 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 Sustainable Equity 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.
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.
Janus Henderson Global Sustainable Equity Fund
Useful Information About Your Fund Report (unaudited)
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 Sustainable Equity Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Dividends Received Deduction Percentage | 36% |
Qualified Dividend Income Percentage | 92% |
Janus Henderson Global Sustainable Equity 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 Sustainable Equity 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Global Sustainable Equity 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 Sustainable Equity 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Sustainable Equity 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Global Sustainable Equity 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Sustainable Equity 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 |
Hamish Chamberlayne
151 Detroit Street
Denver, CO 80206
DOB: 1980 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Sustainable Equity Fund | 6/20-Present | Head of Global Sustainable Equities of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Aaron Scully
151 Detroit Street
Denver, CO 80206
DOB: 1976 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Sustainable Equity Fund | 6/20-Present | 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, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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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Janus Henderson Global Sustainable Equity 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 September 30, 2021 |
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| | Janus Henderson Global Technology and Innovation 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 Technology and Innovation Fund
Janus Henderson Global Technology and Innovation Fund (unaudited)
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FUND SNAPSHOT This global growth fund invests in companies that create and benefit from advances in technology. We invest in companies we believe to be resilient and also take smaller positions in companies that have optionality – meaning large potential upside under a specific scenario. The Fund seeks to provide strong long-term returns with volatility characteristics on par with its peers. | | | | | 
Denny Fish portfolio manager |
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PERFORMANCE OVERVIEW
For the 12 months ended September 30, 2021, Janus Henderson Global Technology and Innovation Fund Class I Shares returned 28.46%. By comparison, the Fund’s primary benchmark, the S&P 500® Index, returned 30.00% while the Fund’s secondary benchmark, the MSCI All Country World Information Technology IndexSM, returned 30.26%.
MARKET ENVIRONMENT
The global technology sector gained ground during the period, fueled by continued demand for the products and services that became essential during the depths of the pandemic to help businesses and households adopt to a more digital global economy. During the middle of the period tech stocks began to fall behind gains registered in broader equities as investors shifted toward more value-oriented names in expectation of the continued reopening of the global economy. Later in the period, the specter of higher interest rates weighed on the valuations of secular-growth, tech stocks. Despite these two episodes, returns in the tech sector modestly outpaced those of broader equities.
PERFORMANCE DISCUSSION
The Fund underperformed its primary benchmark, the S&P 500 Index, and also its secondary benchmark, the MSCI All Country World Information Technology Index, for the period. Since we believe technology markets are complex, we construct a portfolio with special attention to downside risk that seeks to balance resilience and optionality. We believe our focus on companies that we expect to be less volatile than the benchmark’s holdings and those that can benefit from the high pace of technological change can provide better performance long term.
The period proved to be a study in the crosscurrents capable of impacting the sector’s trajectory. On one hand, the digitization of the global economy continued, exemplified by the growth in cloud computing, the Internet of Things (IoT), artificial intelligence (AI) and 5G connectivity. These technologies, in our view, are the secular forces that will not only drive tech earnings growth in years to come, but also enable technology companies to increase their share of overall corporate earnings.
In contrast, other factors acted as headwinds for tech stocks: Supply chain constraints late in the period – especially within semiconductors – limited production capacity in tech and other sectors; the Chinese government increased regulatory scrutiny of consumer-facing tech companies; the COVID Delta variant has resulted in an uneven economic reopening – a development particularly felt by global payment processors; and lastly, the specter of higher interest rates weighed on the valuations of many longer-duration growth stocks.
The confluence of these forces resulted in one of the more complex environments for the sector in recent years. It also reaffirmed our philosophy of focusing on what we consider the “North Star” of tech investing: the potential for compounding earnings growth by companies associated with our favored secular themes.
Much of the Fund’s underperformance is a result of some companies not meeting high growth expectations. Companies that were able to maintain momentum by building on already impressive earnings results were rewarded. Those that fell short were largely punished despite impressive two-year growth rates. Two individual, relative detractors impacted by this phenomenon were Amazon and Wix. In the case of the latter, seasonality also played a role as web engagement tends to dip during warmer months which resulted in poorly received, late-period earnings results. Conversely, cloud computing company Atlassian was a leading contributor due, in part, to its ability to beat consensus earnings estimates.
Also detracting was our exposure to Chinese Internet stocks. We’ve followed developments in the regulatory
Janus Henderson Global Technology and Innovation Fund (unaudited)
landscape for the country’s customer-facing tech companies. With the range of potential outcomes having broadened in light of government policy possibly having a greater role in determining industry structure and corporate priorities, we reduced our exposure to Chinese technology, ultimately reaching 0%. While we believe this positioning should lower portfolio volatility in future quarters, the period’s residual exposure in names such as food-delivery company Meituan weighed on performance.
Two other contributors were semiconductor equipment manufacturer ASML Holding and Lam Research. Both companies are semiconductor capital equipment producers and benefited from the need to increase semi-chip capacity.
OUTLOOK
Much of the complexity facing the sector centers on which of the sources of volatility prove transient and which are structural. We believe the semiconductor shortage should normalize as global capacity is added. The path likely won’t be smooth, and we believe near-term bottlenecks will continue to impact multiple industries. Longer-term, the demand for capacity should be supportive of the technologies that enable chip production, especially as IoT is further deployed.
The shift in China’s approach toward the sector requires further observation. While we are comfortable with our zero weight, we believe that the government still recognizes the power of innovative technologies to drive economic growth and achieve certain desired social outcomes.
Much ink has been spilled on whether the recent rise in inflation is sticky or fleeting. This impacts the tech sector insofar as to how it influences interest rates. Higher rates tend to compress valuations of longer-duration assets, including secular growth stocks. Multiple compression, however, may present attractive entry points to secular growers previously deemed overpriced.
Given these crosscurrents, we anticipate additional choppiness in coming months. Longer term, we are positive on the sector. Secular themes remain intact and continued economic reopening should buttress cyclical growth stocks. The market must always contend with exogenous forces, but we firmly believe that long-term tech returns will ultimately be dictated by financial performance.
Thank you for your investment in Janus Henderson Global Technology and Innovation Fund.
Janus Henderson Global Technology and Innovation Fund (unaudited)
Fund At A Glance
September 30, 2021
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Alphabet Inc - Class C | 3.41% | | 1.32% | | Amazon.com Inc | 4.93% | | -1.46% |
| ASML Holding NV | 4.18% | | 1.23% | | Wix.com Ltd | 1.09% | | -0.88% |
| Lam Research Corp | 2.84% | | 0.97% | | salesforce.com Inc | 1.28% | | -0.73% |
| Snap Inc | 1.11% | | 0.91% | | Tencent Holdings Ltd | 1.36% | | -0.69% |
| Atlassian Corp PLC – Class A | 1.13% | | 0.84% | | Meituan Dianping | 0.51% | | -0.58% |
| | | | | | | |
| 2 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Information Technology Index |
| | | Contribution | | Average Weight | Average Weight |
| Communication Services | | 1.72% | | 13.64% | 0.00% |
| Information Technology | | 1.35% | | 70.04% | 100.00% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Information Technology Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | -1.56% | | 8.89% | 0.00% |
| Real Estate | | -1.19% | | 2.22% | 0.00% |
| Other** | | -0.85% | | 2.33% | 0.00% |
| Industrials | | -0.84% | | 2.54% | 0.00% |
| Financials | | -0.07% | | 0.34% | 0.00% |
| | | | | | | |
| 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 Global Technology and Innovation Fund (unaudited)
Fund At A Glance
September 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 9.6% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 5.2% |
ASML Holding NV | |
Semiconductor & Semiconductor Equipment | 4.9% |
NVIDIA Corp | |
Semiconductor & Semiconductor Equipment | 4.4% |
Mastercard Inc | |
Information Technology Services | 4.4% |
| | 28.5% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.3% | |
Investment Companies | | 2.4% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.9% | |
Private Investment in Public Equity (PIPES) | | 0.6% | |
Preferred Stocks | | 0.2% | |
Warrants | | 0.1% | |
Convertible Preferred Stocks | | 0.0% | |
Other | | (1.5)% |
| | | 100.0% |
Emerging markets comprised 6.6% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
|
Janus Henderson Global Technology and Innovation Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 28.17% | 28.69% | 22.85% | 11.52% | | | 0.99% |
Class A Shares at MOP | | 20.79% | 27.18% | 22.13% | 11.23% | | | |
Class C Shares at NAV | | 27.35% | 27.81% | 22.03% | 10.73% | | | 1.74% |
Class C Shares at CDSC | | 26.35% | 27.81% | 22.03% | 10.73% | | | |
Class D Shares | | 28.43% | 28.94% | 23.11% | 11.70% | | | 0.81% |
Class I Shares | | 28.46% | 29.02% | 23.19% | 11.75% | | | 0.75% |
Class N Shares | | 28.59% | 29.10% | 23.15% | 11.72% | | | 0.67% |
Class S Shares | | 27.93% | 28.45% | 22.69% | 11.36% | | | 1.19% |
Class T Shares | | 28.26% | 28.81% | 23.02% | 11.66% | | | 0.92% |
S&P 500 Index | | 30.00% | 16.90% | 16.63% | 7.68% | | | |
MSCI All Country World Information Technology Index | | 30.26% | 26.21% | 20.99% | 8.36% | | | |
Morningstar Quartile - Class T Shares | | 3rd | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Technology Funds | | 158/246 | 37/195 | 41/177 | 30/98 | | | |
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, Environmental, Social and Governance (ESG) factors, 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 Technology and Innovation Fund (unaudited)
Performance
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 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 January 27, 2017. Performance shown for periods prior to January 27, 2017, reflects the historical 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 31, 1998.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Technology and Innovation 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,109.00 | $5.18 | | $1,000.00 | $1,020.16 | $4.96 | 0.98% |
Class C Shares | $1,000.00 | $1,105.30 | $8.87 | | $1,000.00 | $1,016.65 | $8.49 | 1.68% |
Class D Shares | $1,000.00 | $1,110.10 | $4.18 | | $1,000.00 | $1,021.11 | $4.00 | 0.79% |
Class I Shares | $1,000.00 | $1,110.20 | $3.97 | | $1,000.00 | $1,021.31 | $3.80 | 0.75% |
Class N Shares | $1,000.00 | $1,110.80 | $3.55 | | $1,000.00 | $1,021.71 | $3.40 | 0.67% |
Class S Shares | $1,000.00 | $1,107.90 | $6.18 | | $1,000.00 | $1,019.20 | $5.92 | 1.17% |
Class T Shares | $1,000.00 | $1,109.40 | $4.81 | | $1,000.00 | $1,020.51 | $4.61 | 0.91% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 Technology and Innovation Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 97.3% | | | |
Aerospace & Defense – 0.3% | | | |
| | Axon Enterprise Inc* | | 103,374 | | | $18,092,517 | |
Diversified Consumer Services – 0.3% | | | |
| | Courser Inc* | | 594,183 | | | 18,805,892 | |
Diversified Financial Services – 0.3% | | | |
| | Altimeter Growth Corp - Class A*,# | | 1,687,095 | | | 17,242,111 | |
Entertainment – 1.7% | | | |
| | Netflix Inc* | | 70,356 | | | 42,941,081 | |
| | Sea Ltd (ADR)* | | 239,520 | | | 76,342,210 | |
| | | 119,283,291 | |
Equity Real Estate Investment Trusts (REITs) – 1.2% | | | |
| | Equinix Inc | | 106,848 | | | 84,423,810 | |
Information Technology Services – 14.1% | | | |
| | Adyen NV (144A)* | | 12,760 | | | 35,475,310 | |
| | Marqeta Inc - Class A*,# | | 540,408 | | | 11,953,825 | |
| | Mastercard Inc | | 862,263 | | | 299,791,600 | |
| | Okta Inc* | | 143,471 | | | 34,051,407 | |
| | Remitly Global Inc*,# | | 282,144 | | | 10,354,685 | |
| | Shopify Inc* | | 33,329 | | | 45,186,792 | |
| | Snowflake Inc - Class A* | | 224,347 | | | 67,849,263 | |
| | Square Inc* | | 132,827 | | | 31,857,228 | |
| | Toast Inc - Class A*,# | | 266,282 | | | 13,300,786 | |
| | Twilio Inc* | | 247,834 | | | 79,071,438 | |
| | Visa Inc | | 1,149,890 | | | 256,137,997 | |
| | Wix.com Ltd* | | 406,494 | | | 79,660,629 | |
| | | 964,690,960 | |
Interactive Media & Services – 11.0% | | | |
| | Alphabet Inc - Class C* | | 103,535 | | | 275,952,871 | |
| | Facebook Inc* | | 835,884 | | | 283,690,671 | |
| | Match Group Inc* | | 480,492 | | | 75,432,439 | |
| | Snap Inc* | | 1,227,237 | | | 90,655,997 | |
| | Thinkific Labs Inc*,# | | 402,610 | | | 4,530,316 | |
| | Twitter Inc* | | 401,884 | | | 24,269,775 | |
| | | 754,532,069 | |
Internet & Direct Marketing Retail – 9.0% | | | |
| | Amazon.com Inc* | | 108,977 | | | 357,993,804 | |
| | Booking Holdings Inc* | | 15,328 | | | 36,386,679 | |
| | Coupang Inc* | | 846,869 | | | 23,585,302 | |
| | DoorDash Inc - Class A* | | 132,372 | | | 27,265,985 | |
| | Farfetch Ltd - Class A* | | 742,158 | | | 27,816,082 | |
| | Global-E Online Ltd*,# | | 1,054,315 | | | 75,699,817 | |
| | MercadoLibre Inc* | | 40,001 | | | 67,177,679 | |
| | | 615,925,348 | |
Leisure Products – 0.3% | | | |
| | Peloton Interactive Inc - Class A* | | 243,877 | | | 21,229,493 | |
Professional Services – 1.5% | | | |
| | CoStar Group Inc* | | 1,168,350 | | | 100,548,201 | |
Real Estate Management & Development – 0.4% | | | |
| | Doma Holdings Inc*,# | | 1,706,117 | | | 12,625,266 | |
| | Redfin Corp* | | 299,186 | | | 14,989,219 | |
| | | 27,614,485 | |
Road & Rail – 1.0% | | | |
| | Uber Technologies Inc* | | 1,580,948 | | | 70,826,470 | |
Semiconductor & Semiconductor Equipment – 23.0% | | | |
| | Advanced Micro Devices Inc* | | 326,932 | | | 33,641,303 | |
| | Analog Devices Inc | | 318,811 | | | 53,394,466 | |
| | ASML Holding NV | | 450,476 | | | 332,260,170 | |
| | KLA Corp | | 277,069 | | | 92,682,351 | |
| | Lam Research Corp | | 266,664 | | | 151,771,816 | |
| | Marvell Technology Inc | | 463,022 | | | 27,924,857 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2021 |
Janus Henderson Global Technology and Innovation Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Semiconductor & Semiconductor Equipment– (continued) | | | |
| | NVIDIA Corp | | 1,457,292 | | | $301,892,611 | |
| | NXP Semiconductors NV | | 289,077 | | | 56,621,512 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 13,779,000 | | | 284,162,876 | |
| | Texas Instruments Inc | | 1,112,914 | | | 213,913,200 | |
| | Xilinx Inc | | 150,398 | | | 22,708,594 | |
| | | 1,570,973,756 | |
Software – 29.8% | | | |
| | Adobe Inc* | | 491,373 | | | 282,893,264 | |
| | Atlassian Corp PLC - Class A* | | 292,773 | | | 114,597,208 | |
| | Autodesk Inc* | | 321,203 | | | 91,597,459 | |
| | Avalara Inc* | | 393,591 | | | 68,787,899 | |
| | Cadence Design Systems Inc* | | 919,865 | | | 139,304,356 | |
| | CCC Intelligent Solutions Holdings Inc*,# | | 4,508,713 | | | 47,386,574 | |
| | Ceridian HCM Holding Inc* | | 606,145 | | | 68,264,050 | |
| | DocuSign Inc* | | 121,703 | | | 31,330,003 | |
| | Dynatrace Inc* | | 1,027,346 | | | 72,910,746 | |
| | HubSpot Inc* | | 20,971 | | | 14,178,283 | |
| | Microsoft Corp | | 2,336,351 | | | 658,664,074 | |
| | Nice Ltd (ADR)* | | 147,260 | | | 41,827,730 | |
| | Olo Inc - Class A* | | 164,884 | | | 4,951,466 | |
| | Paylocity Holding Corp* | | 34,551 | | | 9,688,100 | |
| | RingCentral Inc* | | 127,514 | | | 27,734,295 | |
| | SailPoint Technologies Holding Inc* | | 322,885 | | | 13,845,309 | |
| | Synopsys Inc* | | 55,355 | | | 16,573,841 | |
| | Tyler Technologies Inc* | | 79,658 | | | 36,535,142 | |
| | Unity Software Inc* | | 344,829 | | | 43,534,661 | |
| | Workday Inc - Class A* | | 571,825 | | | 142,893,349 | |
| | Zendesk Inc* | | 910,366 | | | 105,957,499 | |
| | | 2,033,455,308 | |
Technology Hardware, Storage & Peripherals – 3.4% | | | |
| | Apple Inc | | 1,631,595 | | | 230,870,692 | |
Total Common Stocks (cost $3,699,420,235) | | 6,648,514,403 | |
Private Investment in Public Equity (PIPES)– 0.6% | | | |
Diversified Financial Services – 0.6% | | | |
| | Altimeter Growth Corp*,§ | | 3,269,751 | | | 33,416,855 | |
| | CCC Intelligent Solutions Holdings Inc*,§ | | 887,637 | | | 9,329,065 | |
Total Private Investment in Public Equity (PIPES) (cost $41,573,880) | | 42,745,920 | |
Preferred Stocks– 0.2% | | | |
Professional Services – 0.2% | | | |
| | Apartment List Inc PP*,¢,§((cost $13,821,757) | | 3,783,673 | | | 13,821,757 | |
Convertible Preferred Stocks– 0% | | | |
Software – 0% | | | |
| | Magic Leap Inc PP - Series D*,¢,§((cost $9,160,263) | | 339,269 | | | 0 | |
Warrants– 0.1% | | | |
Diversified Financial Services – 0% | | | |
| | Altimeter Growth Corp, expires 9/30/25* | | 337,419 | | | 745,696 | |
Software – 0.1% | | | |
| | CCC Intelligent Solutions Holdings Inc, expires 8/14/25* | | 912,131 | | | 2,116,144 | |
Total Warrants (cost $2,957,617) | | 2,861,840 | |
Investment Companies– 2.4% | | | |
Money Markets – 2.4% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $161,739,830) | | 161,724,386 | | | 161,740,558 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.9% | | | |
Investment Companies – 0.5% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 36,541,524 | | | 36,541,524 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Technology and Innovation Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Investments Purchased with Cash Collateral from Securities Lending– (continued) | | | |
Time Deposits – 0.4% | | | |
| | Royal Bank of Canada, 0.0400%, 10/1/21 | | $26,752,544 | | | $26,752,544 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $63,294,068) | | 63,294,068 | |
Total Investments (total cost $3,991,967,650) – 101.5% | | 6,932,978,546 | |
Liabilities, net of Cash, Receivables and Other Assets – (1.5)% | | (102,446,347) | |
Net Assets – 100% | | $6,830,532,199 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $5,724,656,425 | | 82.6 | % |
Netherlands | | 367,735,480 | | 5.3 | |
Taiwan | | 360,505,086 | | 5.2 | |
Israel | | 197,188,176 | | 2.8 | |
Australia | | 114,597,208 | | 1.7 | |
Argentina | | 67,177,679 | | 1.0 | |
Canada | | 49,717,108 | | 0.7 | |
United Kingdom | | 27,816,082 | | 0.4 | |
South Korea | | 23,585,302 | | 0.3 | |
| | | | | | |
| | | | | | |
Total | | $6,932,978,546 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Global Technology and Innovation Fund
Schedule of Investments
September 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/21 |
Common Stocks - N/A |
Diversified Financial Services – N/A | |
| | Dragoneer Growth Opportunities Corp* | $ | - | $ | 31,864 | $ | (10,291,613) | $ | - |
| | Dragoneer Growth Opportunities Corp - Class A* | | - | | 32,262 | | - | | - |
Private Investment in Public Equity (PIPES) - N/A |
Diversified Financial Services - N/A | |
| | Dragoneer Growth Opportunities Corp* | | - | | - | | - | | - |
Warrants - N/A |
Diversified Financial Services - N/A | |
| | Dragoneer Growth Opportunities Corp, expires 8/14/25* | | - | | (418) | | - | | - |
Investment Companies - 2.4% |
Money Markets - 2.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 113,387 | | 76 | | (3,657) | | 161,740,558 |
Investments Purchased with Cash Collateral from Securities Lending - 0.5% |
Investment Companies - 0.5% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 2,031,052∆ | | - | | - | | 36,541,524 |
Total Affiliated Investments - 2.9% | $ | 2,144,439 | $ | 63,784 | $ | (10,295,270) | $ | 198,282,082 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2021, this column reflects amounts for the entire year ended September 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. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Technology and Innovation Fund
Schedule of Investments
September 30, 2021
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Common Stocks - N/A |
Diversified Financial Services – N/A | |
| | Dragoneer Growth Opportunities Corp* | | 56,032,113 | | - | | (45,772,364)Ð | | - |
| | Dragoneer Growth Opportunities Corp - Class A* | | - | | 43,707,047Ð | | (43,739,309)Ð | | - |
Private Investment in Public Equity (PIPES) - N/A |
Diversified Financial Services - N/A | |
| | Dragoneer Growth Opportunities Corp* | | - | | 8,876,370 | | (8,876,370) Ð | | - |
Warrants - N/A |
Diversified Financial Services - N/A | |
| | Dragoneer Growth Opportunities Corp, expires 8/14/25* | | - | | 1,961,850 | | (1,961,432)Ð | | - |
Investment Companies - 2.4% |
Money Markets - 2.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 183,716,029 | | 1,351,224,721 | | (1,373,196,611) | | 161,740,558 |
Investments Purchased with Cash Collateral from Securities Lending - 0.5% |
Investment Companies - 0.5% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 8,532,308 | | 464,867,065 | | (436,857,849) | | 36,541,524 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2021 |
Janus Henderson Global Technology and Innovation Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI All Country World Information Technology IndexSM | MSCI All Country World Information Technology IndexSM reflects the performance of information technology stocks from developed and emerging markets. |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
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 September 30, 2021 is $35,475,310, which represents 0.5% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2021. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2021 is $13,821,757, 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. |
| | |
Ð | All or a portion is the result of a corporate action. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2021) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Altimeter Growth Corp | 4/30/21 | $ | 32,697,510 | $ | 33,416,855 | | 0.5 | % |
Apartment List Inc PP | 11/2/21 | | 13,821,757 | | 13,821,757 | | 0.2 | |
CCC Intelligent Solutions Holdings Inc | 2/3/21 | | 8,876,370 | | 9,329,065 | | 0.1 | |
Magic Leap Inc PP - Series D | 10/5/17 | | 9,160,263 | | 0 | | 0.0 | |
Total | | $ | 64,555,900 | $ | 56,567,677 | | 0.8 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2021. The issuer incurs all registration costs. | |
Janus Henderson Global Technology and Innovation 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 September 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 | | | | | | |
Information Technology Services | $ | 929,215,650 | $ | 35,475,310 | $ | - |
Semiconductor & Semiconductor Equipment | | 954,550,710 | | 616,423,046 | | - |
All Other | | 4,112,849,687 | | - | | - |
Private Investment in Public Equity (PIPES) | | - | | 42,745,920 | | - |
Preferred Stocks | | - | | - | | 13,821,757 |
Convertible Preferred Stocks | | - | | - | | 0 |
Warrants | | 2,861,840 | | - | | - |
Investment Companies | | - | | 161,740,558 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 63,294,068 | | - |
Total Assets | $ | 5,999,477,887 | $ | 919,678,902 | $ | 13,821,757 |
| | | | | | | |
Janus Henderson Global Technology and Innovation Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,793,686,296)(1) | | $ | 6,734,696,464 | |
| Affiliated investments, at value (cost $198,281,354) | | | 198,282,082 | |
| Non-interested Trustees' deferred compensation | | | 170,421 | |
| Receivables: | | | | |
| | Fund shares sold | | | 8,278,188 | |
| | Dividends | | | 1,620,456 | |
| | Dividends from affiliates | | | 6,852 | |
| | Foreign tax reclaims | | | 4,834 | |
| Other assets | | | 552,627 | |
Total Assets | | | 6,943,611,924 | |
Liabilities: | | | | |
| Due to custodian | | | 16 | |
| Collateral for securities loaned (Note 2) | | | 63,294,068 | |
| Payables: | | | — | |
| | Investments purchased | | | 32,697,510 | |
| | Fund shares repurchased | | | 11,537,950 | |
| | Advisory fees | | | 3,801,587 | |
| | Transfer agent fees and expenses | | | 933,354 | |
| | Non-interested Trustees' deferred compensation fees | | | 170,421 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 163,797 | |
| | Professional fees | | | 56,620 | |
| | Non-interested Trustees' fees and expenses | | | 47,607 | |
| | Custodian fees | | | 35,997 | |
| | Affiliated fund administration fees payable | | | 14,850 | |
| | Accrued expenses and other payables | | | 325,948 | |
Total Liabilities | | | 113,079,725 | |
Net Assets | | $ | 6,830,532,199 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Technology and Innovation Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 2,968,563,026 | |
| Total distributable earnings (loss) | | | 3,861,969,173 | |
Total Net Assets | | $ | 6,830,532,199 | |
Net Assets - Class A Shares | | $ | 319,194,448 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,391,077 | |
Net Asset Value Per Share(2) | | $ | 59.21 | |
Maximum Offering Price Per Share(3) | | $ | 62.82 | |
Net Assets - Class C Shares | | $ | 101,859,746 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,967,718 | |
Net Asset Value Per Share(2) | | $ | 51.77 | |
Net Assets - Class D Shares | | $ | 3,058,181,970 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 50,043,214 | |
Net Asset Value Per Share | | $ | 61.11 | |
Net Assets - Class I Shares | | $ | 1,189,917,062 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 19,267,188 | |
Net Asset Value Per Share | | $ | 61.76 | |
Net Assets - Class N Shares | | $ | 175,739,859 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,879,450 | |
Net Asset Value Per Share | | $ | 61.03 | |
Net Assets - Class S Shares | | $ | 27,069,123 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 468,908 | |
Net Asset Value Per Share | | $ | 57.73 | |
Net Assets - Class T Shares | | $ | 1,958,569,991 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 32,355,319 | |
Net Asset Value Per Share | | $ | 60.53 | |
| |
(1) Includes $61,615,775 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. |
| |
16 | SEPTEMBER 30, 2021 |
Janus Henderson Global Technology and Innovation Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 31,644,326 | |
| Affiliated securities lending income, net | | 2,031,052 | |
| Dividends from affiliates | | 113,387 | |
| Unaffiliated securities lending income, net | | 4,044 | |
| Other income | | 6,677 | |
| Foreign tax withheld | | (1,423,064) | |
Total Investment Income | | 32,376,422 | |
Expenses: | | | |
| Advisory fees | | 40,926,833 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 749,451 | |
| | Class C Shares | | 885,326 | |
| | Class S Shares | | 64,938 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 3,242,370 | |
| | Class S Shares | | 64,903 | |
| | Class T Shares | | 4,650,897 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 191,740 | |
| | Class C Shares | | 66,752 | |
| | Class I Shares | | 904,435 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 17,233 | |
| | Class C Shares | | 4,669 | |
| | Class D Shares | | 269,727 | |
| | Class I Shares | | 43,478 | |
| | Class N Shares | | 4,580 | |
| | Class S Shares | | 240 | |
| | Class T Shares | | 15,347 | |
| Shareholder reports expense | | 424,083 | |
| Registration fees | | 306,100 | |
| Affiliated fund administration fees | | 178,743 | |
| Custodian fees | | 159,534 | |
| Non-interested Trustees’ fees and expenses | | 100,919 | |
| Professional fees | | 84,854 | |
| Other expenses | | 345,904 | |
Total Expenses | | 53,703,056 | |
Less: Excess Expense Reimbursement and Waivers | | (108,416) | |
Net Expenses | | 53,594,640 | |
Net Investment Income/(Loss) | | (21,218,218) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Technology and Innovation Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 957,648,351 | |
| Investments in affiliates | | 63,784 | |
Total Net Realized Gain/(Loss) on Investments | | 957,712,135 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 589,738,451 | |
| Investments in affiliates | | (10,295,270) | |
Total Change in Unrealized Net Appreciation/Depreciation | | 579,443,181 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 1,515,937,098 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2021 |
Janus Henderson Global Technology and Innovation Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (21,218,218) | | $ | (5,135,047) | |
| Net realized gain/(loss) on investments | | 957,712,135 | | | 504,731,259 | |
| Change in unrealized net appreciation/depreciation | | 579,443,181 | | | 1,188,404,036 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 1,515,937,098 | | | 1,688,000,248 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (24,126,815) | | | (15,779,816) | |
| | Class C Shares | | (9,512,616) | | | (6,310,449) | |
| | Class D Shares | | (228,155,423) | | | (141,340,841) | |
| | Class I Shares | | (84,659,567) | | | (39,002,202) | |
| | Class N Shares | | (11,937,362) | | | (4,258,121) | |
| | Class S Shares | | (2,161,126) | | | (1,103,803) | |
| | Class T Shares | | (150,400,901) | | | (85,139,222) | |
Net Decrease from Dividends and Distributions to Shareholders | | (510,953,810) | | | (292,934,454) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 20,777,355 | | | 10,980,078 | |
| | Class C Shares | | (959,381) | | | 710,754 | |
| | Class D Shares | | 174,903,766 | | | 178,670,648 | |
| | Class I Shares | | 129,009,173 | | | 252,062,397 | |
| | Class N Shares | | 34,445,636 | | | 51,341,200 | |
| | Class S Shares | | 2,232,031 | | | 6,962,642 | |
| | Class T Shares | | 66,730,556 | | | 256,738,549 | |
Net Increase/(Decrease) from Capital Share Transactions | | 427,139,136 | | | 757,466,268 | |
Net Increase/(Decrease) in Net Assets | | 1,432,122,424 | | | 2,152,532,062 | |
Net Assets: | | | | | | |
| Beginning of period | | 5,398,409,775 | | | 3,245,877,713 | |
| End of period | $ | 6,830,532,199 | | $ | 5,398,409,775 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $50.45 | | | $36.72 | | | $36.33 | | | $29.11 | | | $24.11 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.27) | | | (0.11) | | | (0.05) | | | (0.05) | | | (0.05) | |
| | Net realized and unrealized gain/(loss) | | 13.83 | | | 17.17 | | | 2.33 | | | 8.45 | | | 7.29 | |
| Total from Investment Operations | | 13.56 | | | 17.06 | | | 2.28 | | | 8.40 | | | 7.24 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | —(2) | | | —(2) | | | — | |
| | Distributions (from capital gains) | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Total Dividends and Distributions | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Net Asset Value, End of Period | | $59.21 | | | $50.45 | | | $36.72 | | | $36.33 | | | $29.11 | |
| Total Return* | | 28.19% | | | 49.64% | | | 7.70% | | | 29.63% | | | 31.84% | |
| Net Assets, End of Period (in thousands) | | $319,194 | | | $252,037 | | | $172,237 | | | $136,689 | | | $107,783 | |
| Average Net Assets for the Period (in thousands) | | $299,780 | | | $204,220 | | | $151,979 | | | $125,207 | | | $44,671 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.98% | | | 0.99% | | | 1.01% | | | 1.00% | | | 1.03% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.98% | | | 0.99% | | | 1.01% | | | 1.00% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | (0.47)% | | | (0.26)% | | | (0.14)% | | | (0.16)% | | | (0.18)% | |
| Portfolio Turnover Rate | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $44.91 | | | $33.24 | | | $33.31 | | | $26.96 | | | $22.63 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.56) | | | (0.36) | | | (0.26) | | | (0.27) | | | (0.23) | |
| | Net realized and unrealized gain/(loss) | | 12.22 | | | 15.36 | | | 2.08 | | | 7.80 | | | 6.80 | |
| Total from Investment Operations | | 11.66 | | | 15.00 | | | 1.82 | | | 7.53 | | | 6.57 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Total Dividends and Distributions | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Net Asset Value, End of Period | | $51.77 | | | $44.91 | | | $33.24 | | | $33.31 | | | $26.96 | |
| Total Return* | | 27.37% | | | 48.56% | | | 6.97% | | | 28.73% | | | 30.91% | |
| Net Assets, End of Period (in thousands) | | $101,860 | | | $89,141 | | | $64,636 | | | $89,817 | | | $70,002 | |
| Average Net Assets for the Period (in thousands) | | $98,033 | | | $75,085 | | | $66,888 | | | $79,328 | | | $27,163 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.64% | | | 1.69% | | | 1.70% | | | 1.72% | | | 1.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.64% | | | 1.69% | | | 1.70% | | | 1.72% | | | 1.77% | |
| | Ratio of Net Investment Income/(Loss) | | (1.13)% | | | (0.96)% | | | (0.85)% | | | (0.88)% | | | (0.91)% | |
| Portfolio Turnover Rate | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $51.89 | | | $37.62 | | | $37.14 | | | $29.69 | | | $24.50 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.16) | | | (0.03) | | | 0.01 | | | —(2) | | | —(2) | |
| | Net realized and unrealized gain/(loss) | | 14.23 | | | 17.63 | | | 2.40 | | | 8.63 | | | 7.43 | |
| Total from Investment Operations | | 14.07 | | | 17.60 | | | 2.41 | | | 8.63 | | | 7.43 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | — | | | (0.04) | | | —(2) | | | — | |
| | Distributions (from capital gains) | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Total Dividends and Distributions | | (4.85) | | | (3.33) | | | (1.93) | | | (1.18) | | | (2.24) | |
| Net Asset Value, End of Period | | $61.11 | | | $51.89 | | | $37.62 | | | $37.14 | | | $29.69 | |
| Total Return* | | 28.43% | | | 49.90% | | | 7.91% | | | 29.84% | | | 32.12% | |
| Net Assets, End of Period (in thousands) | | $3,058,182 | | | $2,426,380 | | | $1,603,112 | | | $1,570,846 | | | $1,147,818 | |
| Average Net Assets for the Period (in thousands) | | $2,878,436 | | | $1,911,725 | | | $1,501,953 | | | $1,400,342 | | | $958,246 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.80% | | | 0.83% | | | 0.83% | | | 0.85% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.80% | | | 0.83% | | | 0.83% | | | 0.85% | |
| | Ratio of Net Investment Income/(Loss) | | (0.29)% | | | (0.08)% | | | 0.03% | | | 0.01% | | | (0.01)% | |
| Portfolio Turnover Rate | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | �� | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $52.40 | | | $37.94 | | | $37.45 | | | $29.91 | | | $24.65 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.14) | | | (0.01) | | | 0.04 | | | 0.04 | | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | 14.38 | | | 17.80 | | | 2.41 | | | 8.69 | | | 7.47 | |
| Total from Investment Operations | | 14.24 | | | 17.79 | | | 2.45 | | | 8.73 | | | 7.50 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.08) | | | — | | | (0.07) | | | (0.01) | | | — | |
| | Distributions (from capital gains) | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Total Dividends and Distributions | | (4.88) | | | (3.33) | | | (1.96) | | | (1.19) | | | (2.24) | |
| Net Asset Value, End of Period | | $61.76 | | | $52.40 | | | $37.94 | | | $37.45 | | | $29.91 | |
| Total Return* | | 28.48% | | | 49.99% | | | 7.97% | | | 29.97% | | | 32.21% | |
| Net Assets, End of Period (in thousands) | | $1,189,917 | | | $890,656 | | | $418,834 | | | $353,236 | | | $176,639 | |
| Average Net Assets for the Period (in thousands) | | $1,074,031 | | | $606,085 | | | $356,404 | | | $248,537 | | | $85,627 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.75% | | | 0.75% | | | 0.76% | | | 0.75% | | | 0.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.75% | | | 0.75% | | | 0.76% | | | 0.75% | | | 0.75% | |
| | Ratio of Net Investment Income/(Loss) | | (0.24)% | | | (0.02)% | | | 0.11% | | | 0.10% | | | 0.10% | |
| Portfolio Turnover Rate | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | 21 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $51.81 | | | $37.52 | | | $37.05 | | | $29.59 | | | $24.62 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.09) | | | 0.02 | | | 0.07 | | | 0.06 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 14.21 | | | 17.60 | | | 2.37 | | | 8.60 | | | 6.04 | |
| Total from Investment Operations | | 14.12 | | | 17.62 | | | 2.44 | | | 8.66 | | | 6.09 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.10) | | | — | | | (0.08) | | | (0.02) | | | — | |
| | Distributions (from capital gains) | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (1.12) | |
| Total Dividends and Distributions | | (4.90) | | | (3.33) | | | (1.97) | | | (1.20) | | | (1.12) | |
| Net Asset Value, End of Period | | $61.03 | | | $51.81 | | | $37.52 | | | $37.05 | | | $29.59 | |
| Total Return* | | 28.59% | | | 50.10% | | | 8.06% | | | 30.04% | | | 25.10% | |
| Net Assets, End of Period (in thousands) | | $175,740 | | | $117,541 | | | $41,043 | | | $20,522 | | | $6,091 | |
| Average Net Assets for the Period (in thousands) | | $158,218 | | | $70,265 | | | $28,002 | | | $11,360 | | | $3,349 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.67% | | | 0.67% | | | 0.69% | | | 0.69% | | | 0.69% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.67% | | | 0.69% | | | 0.69% | | | 0.69% | |
| | Ratio of Net Investment Income/(Loss) | | (0.16)% | | | 0.06% | | | 0.19% | | | 0.17% | | | 0.28% | |
| Portfolio Turnover Rate | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $49.38 | | | $36.07 | | | $35.79 | | | $28.75 | | | $23.87 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.36) | | | (0.19) | | | (0.12) | | | (0.12) | | | (0.08) | |
| | Net realized and unrealized gain/(loss) | | 13.51 | | | 16.83 | | | 2.29 | | | 8.34 | | | 7.20 | |
| Total from Investment Operations | | 13.15 | | | 16.64 | | | 2.17 | | | 8.22 | | | 7.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Total Dividends and Distributions | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Net Asset Value, End of Period | | $57.73 | | | $49.38 | | | $36.07 | | | $35.79 | | | $28.75 | |
| Total Return* | | 27.95% | | | 49.35% | | | 7.49% | | | 29.36% | | | 31.65% | |
| Net Assets, End of Period (in thousands) | | $27,069 | | | $21,002 | | | $9,084 | | | $6,628 | | | $4,951 | |
| Average Net Assets for the Period (in thousands) | | $25,961 | | | $14,529 | | | $7,654 | | | $6,405 | | | $6,495 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.17% | | | 1.19% | | | 1.22% | | | 1.20% | | | 1.18% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.18% | | | 1.22% | | | 1.19% | | | 1.18% | |
| | Ratio of Net Investment Income/(Loss) | | (0.66)% | | | (0.46)% | | | (0.35)% | | | (0.36)% | | | (0.32)% | |
| Portfolio Turnover Rate | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 January 27, 2017 (inception date) through September 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2021 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $51.47 | | | $37.37 | | | $36.91 | | | $29.54 | | | $24.41 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.23) | | | (0.08) | | | (0.02) | | | (0.03) | | | (0.02) | |
| | Net realized and unrealized gain/(loss) | | 14.11 | | | 17.51 | | | 2.39 | | | 8.58 | | | 7.39 | |
| Total from Investment Operations | | 13.88 | | | 17.43 | | | 2.37 | | | 8.55 | | | 7.37 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.02) | | | — | | | (0.02) | | | — | | | — | |
| | Distributions (from capital gains) | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Total Dividends and Distributions | | (4.82) | | | (3.33) | | | (1.91) | | | (1.18) | | | (2.24) | |
| Net Asset Value, End of Period | | $60.53 | | | $51.47 | | | $37.37 | | | $36.91 | | | $29.54 | |
| Total Return* | | 28.26% | | | 49.77% | | | 7.82% | | | 29.70% | | | 31.99% | |
| Net Assets, End of Period (in thousands) | | $1,958,570 | | | $1,601,653 | | | $936,931 | | | $961,794 | | | $601,485 | |
| Average Net Assets for the Period (in thousands) | | $1,860,359 | | | $1,210,097 | | | $869,267 | | | $812,197 | | | $477,426 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.92% | | | 0.93% | | | 0.92% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.91% | | | 0.91% | | | 0.92% | | | 0.92% | | | 0.93% | |
| | Ratio of Net Investment Income/(Loss) | | (0.40)% | | | (0.18)% | | | (0.06)% | | | (0.08)% | | | (0.09)% | |
| Portfolio Turnover Rate | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | 23 |
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Global Technology and Innovation 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.
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 original 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 Global Technology and Innovation 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 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.
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
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 September 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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
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. 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 Global Technology and Innovation 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. 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 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 Global Technology and Innovation 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.
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 | $ | 61,615,775 | $ | — | $ | (61,615,775) | $ | — |
| | | | | | | | | |
(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 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.
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Private Investment in Public Equity
Private investments in public equity (“PIPEs”) are equity securities privately purchased from public companies (including special purpose acquisition companies) at a specified price. PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. Until the public registration process is completed, PIPEs are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect. To the extent that they increase the supply of a company’s stock in the market, PIPEs can potentially dilute the value of existing shares.
Special Purpose Acquisition Companies (SPAC)
The Fund may invest in stock, warrants, and other securities of special purpose acquisition companies (“SPACs”) or similar entities that pool funds to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC typically invests its assets (less a portion retained to cover expenses) in U.S. Government securities, money market fund securities, and cash. If an acquisition that meets the requirements for the SPAC is not completed within a pre-established period of time (typically two years), the invested funds are returned to the SPAC’s shareholders. Because SPACs and similar entities are in essence blank check companies without an operating history or ongoing business other than seeking acquisitions, the value of a SPAC’s securities is particularly dependent on the ability of the SPAC’s management to timely identify and complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. To the extent the SPAC is invested in cash or similar securities while awaiting an acquisition opportunity, a Fund’s ability to meet its investment objective may be negatively impacted. In addition, some SPACs may be traded in the over-the-counter market and may be considered illiquid and/or be subject to restrictions on resale.
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
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
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 September 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $61,615,775. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2021 is $63,294,068, resulting in the net amount due to the counterparty of $1,678,293.
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 0.64% 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 0.71% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 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 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 Global Technology and Innovation 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 Global Technology and Innovation 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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $92,967.
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 September 30, 2021, redeeming shareholders of Class A Shares paid CDSCs of $1,104 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 September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $16,496.
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
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 September 30, 2021, the Fund engaged in cross trades amounting to $4,709,567 in sales, resulting in a net realized loss of $2,522,601. 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) | |
$ 34,402,388 | $ 896,444,458 | $ - | $ - | $ - | $ (174,249) | $2,931,296,576 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 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) |
$ 4,001,681,970 | $ 2,996,948,113 | $ (65,651,537) | $ 2,931,296,576 |
Janus Henderson Global Technology and Innovation 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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 4,793,039 | $ 506,160,771 | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ - | $ 292,934,454 | $ - | $ - | |
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 |
$ 3,638,498 | $ 30,173,816 | $ (33,812,314) |
Capital has been adjusted by $3,638,498, including $3,504,026 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 1,549,800 | $ 87,810,243 | | 1,765,691 | $ 73,165,753 |
Reinvested dividends and distributions | 391,837 | 20,391,219 | | 376,220 | 14,074,375 |
Shares repurchased | (1,546,340) | (87,424,107) | | (1,836,385) | (76,260,050) |
Net Increase/(Decrease) | 395,297 | $ 20,777,355 | | 305,526 | $ 10,980,078 |
Class C Shares: | | | | | |
Shares sold | 392,494 | $ 19,087,641 | | 1,097,388 | $ 40,527,547 |
Reinvested dividends and distributions | 195,550 | 8,944,446 | | 156,212 | 5,231,530 |
Shares repurchased | (605,073) | (28,991,468) | | (1,213,508) | (45,048,323) |
Net Increase/(Decrease) | (17,029) | $ (959,381) | | 40,092 | $ 710,754 |
Class D Shares: | | | | | |
Shares sold | 5,633,990 | $321,381,945 | | 8,712,907 | $373,337,113 |
Reinvested dividends and distributions | 4,146,186 | 222,359,993 | | 3,594,157 | 138,087,523 |
Shares repurchased | (6,496,952) | (368,838,172) | | (8,160,734) | (332,753,988) |
Net Increase/(Decrease) | 3,283,224 | $174,903,766 | | 4,146,330 | $178,670,648 |
Class I Shares: | | | | | |
Shares sold | 7,875,296 | $456,468,434 | | 10,774,187 | $454,878,831 |
Reinvested dividends and distributions | 1,369,659 | 74,208,117 | | 868,550 | 33,682,364 |
Shares repurchased | (6,975,855) | (401,667,378) | | (5,684,513) | (236,498,798) |
Net Increase/(Decrease) | 2,269,100 | $129,009,173 | | 5,958,224 | $252,062,397 |
Class N Shares: | | | | | |
Shares sold | 1,460,792 | $ 83,346,222 | | 1,699,320 | $ 73,477,315 |
Reinvested dividends and distributions | 223,087 | 11,937,362 | | 111,091 | 4,258,121 |
Shares repurchased | (1,073,007) | (60,837,948) | | (635,737) | (26,394,236) |
Net Increase/(Decrease) | 610,872 | $ 34,445,636 | | 1,174,674 | $ 51,341,200 |
Class S Shares: | | | | | |
Shares sold | 142,000 | $ 7,600,543 | | 323,703 | $ 13,041,687 |
Reinvested dividends and distributions | 42,533 | 2,161,126 | | 30,093 | 1,103,803 |
Shares repurchased | (140,911) | (7,529,638) | | (180,324) | (7,182,848) |
Net Increase/(Decrease) | 43,622 | $ 2,232,031 | | 173,472 | $ 6,962,642 |
Class T Shares: | | | | | |
Shares sold | 7,511,806 | $425,071,108 | | 14,941,259 | $622,408,481 |
Reinvested dividends and distributions | 2,766,547 | 147,097,319 | | 2,183,954 | 83,296,008 |
Shares repurchased | (9,044,088) | (505,437,871) | | (11,074,151) | (448,965,940) |
Net Increase/(Decrease) | 1,234,265 | $ 66,730,556 | | 6,051,062 | $256,738,549 |
6. Purchases and Sales of Investment Securities
For the year ended September 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 |
$2,685,845,814 | $2,729,238,658 | $ - | $ - |
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 Technology and Innovation Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Technology and Innovation 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 Technology and Innovation Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 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 September 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 September 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 September 30, 2021 by correspondence with the custodian, transfer agent, investee 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
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Global Technology and Innovation 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 Technology and Innovation 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 Technology and Innovation 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 Technology and Innovation 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 Technology and Innovation 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 Technology and Innovation 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 Technology and Innovation 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 Technology and Innovation 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 Technology and Innovation 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 Technology and Innovation 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 Technology and Innovation 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 Technology and Innovation 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.
Janus Henderson Global Technology and Innovation 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 September 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 Bloomberg 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 Technology and Innovation 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.
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.
Janus Henderson Global Technology and Innovation Fund
Useful Information About Your Fund Report (unaudited)
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 Technology and Innovation Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Capital Gain Distributions | $509,664,797 |
Dividends Received Deduction Percentage | 59% |
Qualified Dividend Income Percentage | 71% |
Janus Henderson Global Technology and Innovation 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 Technology and Innovation 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Global Technology and Innovation 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 Technology and Innovation 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Technology and Innovation 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Global Technology and Innovation 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Technology and Innovation 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 |
Denny Fish
151 Detroit Street
Denver, CO 80206
DOB: 1971 | Executive Vice President and Portfolio Manager Janus Henderson Global Technology and Innovation Fund | 1/16-Present
| Portfolio Manager for other Janus Henderson accounts and Analyst for Janus Capital. |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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 Technology and Innovation 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Technology and Innovation Fund
Notes
NotesPage1
Janus Henderson Global Technology and Innovation Fund
Notes
NotesPage2
Janus Henderson Global Technology and Innovation 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 |
| | | | 125-02-93047 11-21 |
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| | | |
| | | ANNUAL REPORT September 30, 2021 |
| | |
| | Janus Henderson Growth and Income Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Growth and Income Fund
Janus Henderson Growth and Income Fund (unaudited)
| | | | | | |
FUND SNAPSHOT A large-cap equity total return fund that seeks to provide dampened volatility by delivering a portfolio of high-quality companies – defined by revenue growth, earnings growth and dividend increases. We believe these companies tend to participate in market gains while being potentially resilient on the downside. | | | | | 
Jeremiah Buckley Portfolio Manager |
| | | |
PERFORMANCE OVERVIEW
The Janus Henderson Growth and Income Fund I Shares returned 28.68% for the 12-month period ended September 30, 2021. The Fund’s benchmark, the S&P 500® Index, returned 30.00%.
MARKET ENVIRONMENT
The period began with many economically damaging social distancing measures still in place to mitigate the spread of COVID-19. However, U.S. equity markets continued to recover after bottoming out in March 2020 as significant monetary and fiscal stimulus supported markets and vaccine developments created optimism around the potential for an economic reopening. Indeed, vaccines were distributed at a faster-than-expected rate, contributing to strong economic growth. Equities finished the period with robust gains but performance across sectors varied significantly. Energy was the top-performing sector, benefiting from the strong rebound in oil prices. Financial stocks were aided by rising interest rates and a steeper yield curve. Traditionally defensive sectors such as utilities and consumer staples lagged.
PERFORMANCE DISCUSSION
Although the Fund captured the bulk of the market’s upside, it ultimately underperformed the S&P 500 Index. Our sector allocations, namely a zero weight in the strong-performing energy sector, weighed on relative results. Although oil prices have improved, disappointing returns on invested capital and a lack of control over supply has generally led us to avoid the industry.
At the security level, Merck led relative detractors. The company faced concerns over renewed political discussions calling for increased drug price regulation during the period. Supply chain issues resulted in apparel company VF Corp. also being among the top detractors. The temporary closure of select Asian factories due to COVID-19 directly impacted VF Corp.’s footwear and apparel businesses, while transportation bottlenecks related to coastal port backups affected the company’s ability to import product. Lastly, McDonald’s had performed well during the initial phase of the pandemic but did not participate to the same extent in the stock market’s recovery, especially as the market rotated toward cyclical, often smaller-cap stocks.
Detractors were partially offset by strong stock selection in the technology and consumer discretionary sectors. Digital-oriented companies continued to perform well, partially due to the pandemic-driven acceleration in technological shifts. Semiconductor company KLA was among the largest individual contributors to relative performance. Demand for its capital equipment remained strong as the application of semiconductors across industries continued to increase. Positions in Morgan Stanley and JP-Morgan also contributed to relative returns. Both companies benefited from recovering capital markets. Robust IPO (initial public offering) and debt issuance activity further supported their respective earnings results during the period.
OUTLOOK
We maintain a constructive outlook for equity markets and the potential for capital appreciation through future corporate earnings growth. A high level of consumer savings, the appreciation in asset levels and stronger employment growth should continue to drive strong consumer spending in the upcoming quarters. Increased vaccination rates, the development of additional medical advancements to treat COVID-19 and overall moderation of the Delta variant should gradually result in more people rejoining the workforce and help alleviate current supply chain constraints. We expect the shift toward a more
Janus Henderson Growth and Income Fund (unaudited)
digital economy to continue to result in large productivity gains for companies that will help offset cost inflation and improve margins over time.
However, we are monitoring an array of risks that could negatively affect our outlook. Supply chain disruptions and labor shortages have persisted for longer than we and most investors expected. This coupled with the potential for continued elevation in energy and raw materials prices may lead to overall inflation that could result in more hawkish monetary policy. We are monitoring the impact of inflation on consumer confidence and spending/savings rates. Political developments around the infrastructure bill, debt ceiling and tax reform also require a watchful eye to determine whether our current positioning could need adjustment.
Ultimately, we believe the Fund remains well positioned for the post-COVID environment, with a focus on higher-quality, cash flow generative companies we expect to be long-term winners amid the digital transformation. The Fund has considerable exposure to secular trends that continue to gain momentum, including cloud and software services, the shift to omnichannel commerce and innovation in health care diagnostics and treatments.
We have been pleased with the resilience of dividend payments in our universe of companies through the economic downturn caused by the pandemic. We have seen the resumption of strong dividend increases this year as the economy has recovered and we believe the prospect for future dividend growth for our holdings remains robust. Our focus continues to be on companies with ample free cash flow to support current dividend levels in various economic environments as well as future growth prospects driven by internal initiatives and productive deployment of excess cash flows.
Thank you for your investment in Janus Henderson Growth and Income Fund.
Janus Henderson Growth and Income Fund (unaudited)
Fund At A Glance
September 30, 2021
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| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Morgan Stanley | 1.94% | | 0.87% | | Merck & Co Inc | 2.21% | | -0.75% |
| KLA Corp | 2.22% | | 0.72% | | Lockheed Martin Corp | 1.37% | | -0.50% |
| JPMorgan Chase & Co | 3.21% | | 0.68% | | VF Corp | 1.32% | | -0.45% |
| American Express Co | 2.11% | | 0.60% | | McDonald's Corp | 2.40% | | -0.38% |
| Accenture PLC | 4.78% | | 0.56% | | Hasbro Inc | 1.54% | | -0.30% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | 1.62% | | 35.92% | 27.37% |
| Consumer Discretionary | | 0.69% | | 13.17% | 12.16% |
| Utilities | | 0.59% | | 0.08% | 2.68% |
| Consumer Staples | | 0.32% | | 4.82% | 6.20% |
| Other** | | -0.08% | | 0.21% | 0.00% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Communication Services | | -1.25% | | 4.48% | 11.04% |
| Energy | | -1.05% | | 0.00% | 2.56% |
| Health Care | | -0.46% | | 16.16% | 13.36% |
| Industrials | | -0.29% | | 12.01% | 8.50% |
| Materials | | -0.20% | | 1.10% | 2.65% |
| | | | | | | |
| 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 Growth and Income Fund (unaudited)
Fund At A Glance
September 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 8.7% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 7.5% |
Accenture PLC | |
Information Technology Services | 4.8% |
JPMorgan Chase & Co | |
Banks | 3.5% |
Texas Instruments Inc | |
Semiconductor & Semiconductor Equipment | 2.7% |
| | 27.2% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.9% | |
Investment Companies | | 0.2% | |
Other | | (0.1)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
|
Janus Henderson Growth and Income Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 28.28% | 15.80% | 15.85% | 11.10% | | | 0.99% |
Class A Shares at MOP | | 20.90% | 14.44% | 15.17% | 10.88% | | | |
Class C Shares at NAV | | 27.48% | 15.00% | 15.01% | 10.34% | | | 1.70% |
Class C Shares at CDSC | | 26.48% | 15.00% | 15.01% | 10.34% | | | |
Class D Shares | | 28.63% | 16.04% | 16.07% | 11.21% | | | 0.76% |
Class I Shares | | 28.68% | 16.11% | 16.14% | 11.24% | | | 0.71% |
Class N Shares | | 28.81% | 16.15% | 16.07% | 11.20% | | | 0.63% |
Class R Shares | | 27.82% | 15.30% | 15.35% | 10.66% | | | 1.41% |
Class S Shares | | 28.15% | 15.62% | 15.66% | 10.92% | | | 1.13% |
Class T Shares | | 28.49% | 15.92% | 15.96% | 11.17% | | | 0.87% |
S&P 500 Index | | 30.00% | 16.90% | 16.63% | 10.65% | | | |
Morningstar Quartile - Class T Shares | | 3rd | 2nd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Large Blend Funds | | 905/1,396 | 522/1,210 | 380/1,029 | 46/325 | | | |
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, Environmental, Social and Governance (ESG) factors, 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 Growth and Income Fund (unaudited)
Performance
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 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 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 August 4, 2017. Performance shown for periods prior to August 4, 2017, 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.”
Effective April 3, 2021, Jeremiah Buckley is Portfolio Manager of the Fund.
*The Fund’s inception date – May 15, 1991
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Growth and 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,082.20 | $5.22 | | $1,000.00 | $1,020.05 | $5.06 | 1.00% |
Class C Shares | $1,000.00 | $1,078.70 | $8.60 | | $1,000.00 | $1,016.80 | $8.34 | 1.65% |
Class D Shares | $1,000.00 | $1,083.70 | $3.87 | | $1,000.00 | $1,021.36 | $3.75 | 0.74% |
Class I Shares | $1,000.00 | $1,083.80 | $3.60 | | $1,000.00 | $1,021.61 | $3.50 | 0.69% |
Class N Shares | $1,000.00 | $1,084.30 | $3.24 | | $1,000.00 | $1,021.96 | $3.14 | 0.62% |
Class R Shares | $1,000.00 | $1,080.10 | $7.25 | | $1,000.00 | $1,018.10 | $7.03 | 1.39% |
Class S Shares | $1,000.00 | $1,081.50 | $5.84 | | $1,000.00 | $1,019.45 | $5.67 | 1.12% |
Class T Shares | $1,000.00 | $1,082.80 | $4.49 | | $1,000.00 | $1,020.76 | $4.36 | 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 183/365 (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 Growth and Income Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 99.9% | | | |
Aerospace & Defense – 2.3% | | | |
| | General Dynamics Corp | | 424,892 | | | $83,291,579 | |
| | Lockheed Martin Corp | | 235,942 | | | 81,423,584 | |
| | | 164,715,163 | |
Air Freight & Logistics – 1.8% | | | |
| | United Parcel Service Inc | | 696,644 | | | 126,858,872 | |
Banks – 3.5% | | | |
| | JPMorgan Chase & Co | | 1,529,733 | | | 250,401,995 | |
Biotechnology – 2.2% | | | |
| | AbbVie Inc | | 716,469 | | | 77,285,511 | |
| | Gilead Sciences Inc | | 1,105,493 | | | 77,218,686 | |
| | | 154,504,197 | |
Capital Markets – 5.0% | | | |
| | CME Group Inc | | 694,616 | | | 134,324,842 | |
| | Morgan Stanley | | 1,656,441 | | | 161,188,274 | |
| | S&P Global Inc | | 143,625 | | | 61,024,826 | |
| | | 356,537,942 | |
Chemicals – 1.1% | | | |
| | Air Products & Chemicals Inc | | 127,422 | | | 32,634,048 | |
| | Sherwin-Williams Co | | 174,249 | | | 48,742,673 | |
| | | 81,376,721 | |
Commercial Services & Supplies – 0.5% | | | |
| | Waste Management Inc | | 251,372 | | | 37,544,922 | |
Communications Equipment – 1.2% | | | |
| | Motorola Solutions Inc | | 367,855 | | | 85,460,074 | |
Consumer Finance – 2.4% | | | |
| | American Express Co | | 1,021,295 | | | 171,097,551 | |
Electrical Equipment – 1.0% | | | |
| | Rockwell Automation Inc | | 241,139 | | | 70,904,512 | |
Electronic Equipment, Instruments & Components – 2.8% | | | |
| | Corning Inc | | 1,602,862 | | | 58,488,434 | |
| | TE Connectivity Ltd | | 1,002,871 | | | 137,613,959 | |
| | | 196,102,393 | |
Entertainment – 2.2% | | | |
| | Activision Blizzard Inc | | 900,934 | | | 69,723,282 | |
| | Electronic Arts Inc | | 285,219 | | | 40,572,403 | |
| | Warner Music Group Corp - Class A | | 1,000,144 | | | 42,746,155 | |
| | | 153,041,840 | |
Food & Staples Retailing – 2.0% | | | |
| | Costco Wholesale Corp | | 231,943 | | | 104,223,587 | |
| | Sysco Corp | | 475,011 | | | 37,288,364 | |
| | | 141,511,951 | |
Food Products – 1.2% | | | |
| | Hershey Co | | 493,789 | | | 83,573,788 | |
Health Care Equipment & Supplies – 5.1% | | | |
| | Abbott Laboratories | | 1,065,407 | | | 125,856,529 | |
| | Dentsply Sirona Inc | | 723,804 | | | 42,016,822 | |
| | Medtronic PLC | | 1,126,760 | | | 141,239,366 | |
| | Stryker Corp | | 202,733 | | | 53,464,747 | |
| | | 362,577,464 | |
Health Care Providers & Services – 3.0% | | | |
| | Quest Diagnostics Inc | | 232,238 | | | 33,746,504 | |
| | UnitedHealth Group Inc | | 464,656 | | | 181,559,685 | |
| | | 215,306,189 | |
Hotels, Restaurants & Leisure – 3.6% | | | |
| | McDonald's Corp | | 702,898 | | | 169,475,737 | |
| | Starbucks Corp | | 785,534 | | | 86,652,256 | |
| | | 256,127,993 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2021 |
Janus Henderson Growth and Income Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Household Durables – 1.7% | | | |
| | Garmin Ltd | | 756,896 | | | $117,667,052 | |
Household Products – 1.8% | | | |
| | Procter & Gamble Co | | 937,038 | | | 130,997,912 | |
Industrial Conglomerates – 2.0% | | | |
| | Honeywell International Inc | | 651,458 | | | 138,291,504 | |
Information Technology Services – 8.3% | | | |
| | Accenture PLC | | 1,073,853 | | | 343,547,052 | |
| | Automatic Data Processing Inc | | 328,912 | | | 65,756,087 | |
| | Fidelity National Information Services Inc | | 342,108 | | | 41,627,701 | |
| | Visa Inc | | 617,698 | | | 137,592,230 | |
| | | 588,523,070 | |
Insurance – 1.5% | | | |
| | Travelers Cos Inc | | 690,637 | | | 104,983,730 | |
Internet & Direct Marketing Retail – 1.1% | | | |
| | eBay Inc | | 1,111,627 | | | 77,447,053 | |
Leisure Products – 1.4% | | | |
| | Hasbro Inc | | 1,101,415 | | | 98,268,246 | |
Machinery – 2.9% | | | |
| | Deere & Co | | 485,579 | | | 162,702,956 | |
| | Trane Technologies PLC | | 262,709 | | | 45,356,709 | |
| | | 208,059,665 | |
Media – 3.1% | | | |
| | Comcast Corp | | 3,374,338 | | | 188,726,724 | |
| | Interpublic Group of Cos Inc | | 775,000 | | | 28,419,250 | |
| | | 217,145,974 | |
Multiline Retail – 1.4% | | | |
| | Target Corp | | 434,510 | | | 99,402,853 | |
Pharmaceuticals – 5.3% | | | |
| | AstraZeneca PLC (ADR) | | 675,000 | | | 40,540,500 | |
| | Eli Lilly & Co | | 719,663 | | | 166,278,136 | |
| | Merck & Co Inc | | 1,383,857 | | | 103,941,499 | |
| | Zoetis Inc | | 319,241 | | | 61,977,448 | |
| | | 372,737,583 | |
Professional Services – 0.3% | | | |
| | Booz Allen Hamilton Holding Corp | | 275,000 | | | 21,821,250 | |
Road & Rail – 0.7% | | | |
| | Union Pacific Corp | | 244,452 | | | 47,915,037 | |
Semiconductor & Semiconductor Equipment – 5.3% | | | |
| | KLA Corp | | 544,744 | | | 182,222,316 | |
| | Texas Instruments Inc | | 998,730 | | | 191,965,893 | |
| | | 374,188,209 | |
Software – 10.9% | | | |
| | Intuit Inc | | 128,326 | | | 69,233,160 | |
| | Microsoft Corp | | 2,195,446 | | | 618,940,136 | |
| | Oracle Corp | | 1,016,487 | | | 88,566,512 | |
| | | 776,739,808 | |
Specialty Retail – 2.6% | | | |
| | Best Buy Co Inc | | 251,714 | | | 26,608,687 | |
| | Home Depot Inc | | 489,009 | | | 160,522,094 | |
| | | 187,130,781 | |
Technology Hardware, Storage & Peripherals – 7.5% | | | |
| | Apple Inc | | 3,778,136 | | | 534,606,244 | |
Textiles, Apparel & Luxury Goods – 1.2% | | | |
| | VF Corp | | 1,305,129 | | | 87,430,592 | |
Total Common Stocks (cost $3,450,699,357) | | 7,091,000,130 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Growth and Income Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Investment Companies– 0.2% | | | |
Money Markets – 0.2% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $13,284,317) | | 13,282,989 | | | $13,284,317 | |
Total Investments (total cost $3,463,983,674) – 100.1% | | 7,104,284,447 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | | (3,721,829) | |
Net Assets – 100% | | $7,100,562,618 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $7,063,743,947 | | 99.4 | % |
United Kingdom | | 40,540,500 | | 0.6 | |
| | | | | | |
| | | | | | |
Total | | $7,104,284,447 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/21 |
Investment Companies - 0.2% |
Money Markets - 0.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | $ | 5,590 | $ | (67) | $ | - | $ | 13,284,317 |
| |
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Investment Companies - 0.2% |
Money Markets - 0.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 6,884,982 | | 241,848,387 | | (235,448,985) | | 13,284,317 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Growth and Income Fund
Notes to Schedule of Investments and Other Information
| | |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
ºº | Rate shown is the 7-day yield as of September 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. |
| | | | | | | | | | | | | |
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 September 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 | $ | 7,091,000,130 | $ | - | $ | - |
Investment Companies | | - | | 13,284,317 | | - |
Total Assets | $ | 7,091,000,130 | $ | 13,284,317 | $ | - |
| | | | | | | |
Janus Henderson Growth and Income Fund
Statement of Assets and Liabilities
September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,450,699,357) | | $ | 7,091,000,130 | |
| Affiliated investments, at value (cost $13,284,317) | | | 13,284,317 | |
| Cash | | | 8,947 | |
| Non-interested Trustees' deferred compensation | | | 176,797 | |
| Receivables: | | | | |
| | Fund shares sold | | | 3,560,956 | |
| | Dividends | | | 3,310,971 | |
| | Foreign tax reclaims | | | 101,424 | |
| | Dividends from affiliates | | | 407 | |
| Other assets | | | 16,906 | |
Total Assets | | | 7,111,460,855 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 4,829,263 | |
| | Advisory fees | | | 3,645,407 | |
| | Transfer agent fees and expenses | | | 1,004,144 | |
| | Dividends | | | 475,853 | |
| | Compliance Office fees | | | 217,416 | |
| | Non-interested Trustees' deferred compensation fees | | | 176,797 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 74,148 | |
| | Professional fees | | | 62,268 | |
| | Non-interested Trustees' fees and expenses | | | 50,561 | |
| | Affiliated fund administration fees payable | | | 15,189 | |
| | Custodian fees | | | 7,252 | |
| | Accrued expenses and other payables | | | 339,939 | |
Total Liabilities | | | 10,898,237 | |
Net Assets | | $ | 7,100,562,618 | |
| | |
See Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2021 |
Janus Henderson Growth and Income Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,135,504,471 | |
| Total distributable earnings (loss) | | | 3,965,058,147 | |
Total Net Assets | | $ | 7,100,562,618 | |
Net Assets - Class A Shares | | $ | 91,735,110 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,240,440 | |
Net Asset Value Per Share(1) | | $ | 73.95 | |
Maximum Offering Price Per Share(2) | | $ | 78.46 | |
Net Assets - Class C Shares | | $ | 53,156,046 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 730,093 | |
Net Asset Value Per Share(1) | | $ | 72.81 | |
Net Assets - Class D Shares | | $ | 4,284,566,904 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 57,832,216 | |
Net Asset Value Per Share | | $ | 74.09 | |
Net Assets - Class I Shares | | $ | 458,387,214 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,183,996 | |
Net Asset Value Per Share | | $ | 74.12 | |
Net Assets - Class N Shares | | $ | 73,166,749 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 988,666 | |
Net Asset Value Per Share | | $ | 74.01 | |
Net Assets - Class R Shares | | $ | 7,329,318 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 99,802 | |
Net Asset Value Per Share | | $ | 73.44 | |
Net Assets - Class S Shares | | $ | 23,935,024 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 323,802 | |
Net Asset Value Per Share | | $ | 73.92 | |
Net Assets - Class T Shares | | $ | 2,108,286,253 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 28,485,109 | |
Net Asset Value Per Share | | $ | 74.01 | |
| |
(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 | 13 |
Janus Henderson Growth and Income Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 116,105,912 | |
| Dividends from affiliates | | 5,590 | |
| Other income | | 22 | |
| Foreign tax withheld | | (14,644) | |
Total Investment Income | | 116,096,880 | |
Expenses: | | | |
| Advisory fees | | 40,481,399 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 221,560 | |
| | Class C Shares | | 510,729 | |
| | Class R Shares | | 43,877 | |
| | Class S Shares | | 59,085 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 4,549,100 | |
| | Class R Shares | | 22,466 | |
| | Class S Shares | | 59,052 | |
| | Class T Shares | | 5,064,170 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 119,151 | |
| | Class C Shares | | 33,087 | |
| | Class I Shares | | 344,246 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 5,098 | |
| | Class C Shares | | 2,479 | |
| | Class D Shares | | 413,309 | |
| | Class I Shares | | 17,928 | |
| | Class N Shares | | 1,738 | |
| | Class R Shares | | 212 | |
| | Class S Shares | | 326 | |
| | Class T Shares | | 15,959 | |
| Shareholder reports expense | | 528,567 | |
| Affiliated fund administration fees | | 189,249 | |
| Registration fees | | 141,198 | |
| Non-interested Trustees’ fees and expenses | | 103,397 | |
| Professional fees | | 85,591 | |
| Custodian fees | | 32,044 | |
| Other expenses | | 365,234 | |
Total Expenses | | 53,410,251 | |
Less: Excess Expense Reimbursement and Waivers | | (204,956) | |
Net Expenses | | 53,205,295 | |
Net Investment Income/(Loss) | | 62,891,585 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2021 |
Janus Henderson Growth and Income Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | $ | 373,778,995 | |
| Investments in affiliates | | (67) | |
Total Net Realized Gain/(Loss) on Investments | | 373,778,928 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 1,201,908,352 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 1,201,908,352 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 1,638,578,865 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Growth and Income Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 62,891,585 | | $ | 95,979,048 | |
| Net realized gain/(loss) on investments | | 373,778,928 | | | 153,025,649 | |
| Change in unrealized net appreciation/depreciation | | 1,201,908,352 | | | 58,070,834 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 1,638,578,865 | | | 307,075,531 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (3,005,988) | | | (3,048,401) | |
| | Class C Shares | | (1,593,791) | | | (1,778,116) | |
| | Class D Shares | | (147,338,668) | | | (130,237,043) | |
| | Class I Shares | | (17,034,840) | | | (19,976,272) | |
| | Class N Shares | | (2,416,858) | | | (1,879,273) | |
| | Class R Shares | | (286,219) | | | (266,112) | |
| | Class S Shares | | (800,410) | | | (825,186) | |
| | Class T Shares | | (72,590,111) | | | (71,126,887) | |
Net Decrease from Dividends and Distributions to Shareholders | | (245,066,885) | | | (229,137,290) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (7,064,117) | | | (9,139,437) | |
| | Class C Shares | | (7,962,136) | | | (9,690,457) | |
| | Class D Shares | | (52,885,131) | | | (108,566,929) | |
| | Class I Shares | | (63,281,156) | | | (107,124,997) | |
| | Class N Shares | | 4,488,641 | | | 14,451,976 | |
| | Class R Shares | | (2,644,604) | | | 150,505 | |
| | Class S Shares | | (3,898,946) | | | (2,075,145) | |
| | Class T Shares | | (117,933,431) | | | (200,097,343) | |
Net Increase/(Decrease) from Capital Share Transactions | | (251,180,880) | | | (422,091,827) | |
Net Increase/(Decrease) in Net Assets | | 1,142,331,100 | | | (344,153,586) | |
Net Assets: | | | | | | |
| Beginning of period | | 5,958,231,518 | | | 6,302,385,104 | |
| End of period | $ | 7,100,562,618 | | $ | 5,958,231,518 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2021 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.77 | | | $58.49 | | | $59.20 | | | $51.66 | | | $46.21 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.49 | | | 0.80 | | | 1.00 | | | 0.91 | | | 0.88 | |
| | Net realized and unrealized gain/(loss) | | 16.06 | | | 2.53 | | | 2.27 | | | 8.49 | | | 8.59 | |
| Total from Investment Operations | | 16.55 | | | 3.33 | | | 3.27 | | | 9.40 | | | 9.47 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.51) | | | (0.83) | | | (1.01) | | | (0.91) | | | (1.04) | |
| | Distributions (from capital gains) | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (2.37) | | | (2.05) | | | (3.98) | | | (1.86) | | | (4.02) | |
| Net Asset Value, End of Period | | $73.95 | | | $59.77 | | | $58.49 | | | $59.20 | | | $51.66 | |
| Total Return* | | 28.28% | | | 5.81% | | | 6.53% | | | 18.48% | | | 21.54% | |
| Net Assets, End of Period (in thousands) | | $91,735 | | | $80,310 | | | $88,445 | | | $32,284 | | | $20,406 | |
| Average Net Assets for the Period (in thousands) | | $88,624 | | | $80,441 | | | $64,525 | | | $25,843 | | | $25,701 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.01% | | | 0.99% | | | 0.95% | | | 0.95% | | | 0.94% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.01% | | | 0.99% | | | 0.95% | | | 0.95% | | | 0.94% | |
| | Ratio of Net Investment Income/(Loss) | | 0.71% | | | 1.41% | | | 1.79% | | | 1.63% | | | 1.82% | |
| Portfolio Turnover Rate | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $58.90 | | | $57.68 | | | $58.46 | | | $51.07 | | | $45.75 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.43 | | | 0.56 | | | 0.49 | | | 0.55 | |
| | Net realized and unrealized gain/(loss) | | 15.82 | | | 2.49 | | | 2.26 | | | 8.39 | | | 8.47 | |
| Total from Investment Operations | | 15.87 | | | 2.92 | | | 2.82 | | | 8.88 | | | 9.02 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.10) | | | (0.48) | | | (0.63) | | | (0.54) | | | (0.72) | |
| | Distributions (from capital gains) | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (1.96) | | | (1.70) | | | (3.60) | | | (1.49) | | | (3.70) | |
| Net Asset Value, End of Period | | $72.81 | | | $58.90 | | | $57.68 | | | $58.46 | | | $51.07 | |
| Total Return* | | 27.48% | | | 5.12% | | | 5.75% | | | 17.59% | | | 20.68% | |
| Net Assets, End of Period (in thousands) | | $53,156 | | | $49,982 | | | $59,591 | | | $25,899 | | | $20,277 | |
| Average Net Assets for the Period (in thousands) | | $53,200 | | | $55,935 | | | $42,229 | | | $22,813 | | | $19,922 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.65% | | | 1.64% | | | 1.69% | | | 1.68% | | | 1.66% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.65% | | | 1.64% | | | 1.69% | | | 1.68% | | | 1.66% | |
| | Ratio of Net Investment Income/(Loss) | | 0.08% | | | 0.77% | | | 1.02% | | | 0.90% | | | 1.14% | |
| Portfolio Turnover Rate | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.87 | | | $58.58 | | | $59.27 | | | $51.71 | | | $46.25 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.67 | | | 0.93 | | | 1.09 | | | 1.01 | | | 0.98 | |
| | Net realized and unrealized gain/(loss) | | 16.11 | | | 2.54 | | | 2.28 | | | 8.51 | | | 8.58 | |
| Total from Investment Operations | | 16.78 | | | 3.47 | | | 3.37 | | | 9.52 | | | 9.56 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.70) | | | (0.96) | | | (1.09) | | | (1.01) | | | (1.12) | |
| | Distributions (from capital gains) | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (2.56) | | | (2.18) | | | (4.06) | | | (1.96) | | | (4.10) | |
| Net Asset Value, End of Period | | $74.09 | | | $59.87 | | | $58.58 | | | $59.27 | | | $51.71 | |
| Total Return* | | 28.63% | | | 6.07% | | | 6.71% | | | 18.69% | | | 21.74% | |
| Net Assets, End of Period (in thousands) | | $4,284,567 | | | $3,506,038 | | | $3,546,939 | | | $3,508,493 | | | $3,113,324 | |
| Average Net Assets for the Period (in thousands) | | $4,038,177 | | | $3,410,901 | | | $3,396,252 | | | $3,349,596 | | | $2,911,335 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.75% | | | 0.76% | | | 0.76% | | | 0.77% | | | 0.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.75% | | | 0.76% | | | 0.76% | | | 0.77% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | 0.97% | | | 1.64% | | | 1.95% | | | 1.80% | | | 2.04% | |
| Portfolio Turnover Rate | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.90 | | | $58.61 | | | $59.29 | | | $51.74 | | | $46.27 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.71 | | | 0.97 | | | 1.13 | | | 1.05 | | | 1.02 | |
| | Net realized and unrealized gain/(loss) | | 16.10 | | | 2.52 | | | 2.29 | | | 8.50 | | | 8.59 | |
| Total from Investment Operations | | 16.81 | | | 3.49 | | | 3.42 | | | 9.55 | | | 9.61 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.73) | | | (0.98) | | | (1.13) | | | (1.05) | | | (1.16) | |
| | Distributions (from capital gains) | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (2.59) | | | (2.20) | | | (4.10) | | | (2.00) | | | (4.14) | |
| Net Asset Value, End of Period | | $74.12 | | | $59.90 | | | $58.61 | | | $59.29 | | | $51.74 | |
| Total Return* | | 28.68% | | | 6.11% | | | 6.80% | | | 18.75% | | | 21.84% | |
| Net Assets, End of Period (in thousands) | | $458,387 | | | $429,567 | | | $537,792 | | | $175,321 | | | $99,108 | |
| Average Net Assets for the Period (in thousands) | | $443,087 | | | $500,070 | | | $359,418 | | | $129,552 | | | $75,159 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.70% | | | 0.71% | | | 0.71% | | | 0.69% | | | 0.71% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.70% | | | 0.71% | | | 0.71% | | | 0.69% | | | 0.71% | |
| | Ratio of Net Investment Income/(Loss) | | 1.03% | | | 1.70% | | | 2.02% | | | 1.88% | | | 2.11% | |
| Portfolio Turnover Rate | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $59.80 | | | $58.52 | | | $59.22 | | | $51.67 | | | $50.24 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.76 | | | 1.00 | | | 1.14 | | | 1.12 | | | 0.20 | |
| | Net realized and unrealized gain/(loss) | | 16.09 | | | 2.53 | | | 2.30 | | | 8.45 | | | 1.47 | |
| Total from Investment Operations | | 16.85 | | | 3.53 | | | 3.44 | | | 9.57 | | | 1.67 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.78) | | | (1.03) | | | (1.17) | | | (1.07) | | | (0.24) | |
| | Distributions (from capital gains) | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | — | |
| Total Dividends and Distributions | | (2.64) | | | (2.25) | | | (4.14) | | | (2.02) | | | (0.24) | |
| Net Asset Value, End of Period | | $74.01 | | | $59.80 | | | $58.52 | | | $59.22 | | | $51.67 | |
| Total Return* | | 28.81% | | | 6.20% | | | 6.85% | | | 18.83% | | | 3.33% | |
| Net Assets, End of Period (in thousands) | | $73,167 | | | $55,506 | | | $40,399 | | | $8,802 | | | $52 | |
| Average Net Assets for the Period (in thousands) | | $65,537 | | | $50,678 | | | $17,524 | | | $7,427 | | | $50 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.62% | | | 0.63% | | | 0.64% | | | 0.65% | | | 0.63% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.62% | | | 0.63% | | | 0.64% | | | 0.65% | | | 0.63% | |
| | Ratio of Net Investment Income/(Loss) | | 1.09% | | | 1.76% | | | 2.04% | | | 2.00% | | | 2.54% | |
| Portfolio Turnover Rate | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.35 | | | $58.10 | | | $58.86 | | | $51.40 | | | $46.02 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.23 | | | 0.57 | | | 0.72 | | | 0.65 | | | 0.69 | |
| | Net realized and unrealized gain/(loss) | | 15.95 | | | 2.51 | | | 2.27 | | | 8.44 | | | 8.52 | |
| Total from Investment Operations | | 16.18 | | | 3.08 | | | 2.99 | | | 9.09 | | | 9.21 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.23) | | | (0.61) | | | (0.78) | | | (0.68) | | | (0.85) | |
| | Distributions (from capital gains) | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (2.09) | | | (1.83) | | | (3.75) | | | (1.63) | | | (3.83) | |
| Net Asset Value, End of Period | | $73.44 | | | $59.35 | | | $58.10 | | | $58.86 | | | $51.40 | |
| Total Return* | | 27.82% | | | 5.38% | | | 6.03% | | | 17.92% | | | 21.01% | |
| Net Assets, End of Period (in thousands) | | $7,329 | | | $8,023 | | | $7,760 | | | $5,244 | | | $3,324 | |
| Average Net Assets for the Period (in thousands) | | $8,987 | | | $8,032 | | | $6,321 | | | $3,952 | | | $3,201 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.39% | | | 1.40% | | | 1.42% | | | 1.41% | | | 1.38% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.39% | | | 1.40% | | | 1.42% | | | 1.41% | | | 1.38% | |
| | Ratio of Net Investment Income/(Loss) | | 0.34% | | | 1.00% | | | 1.30% | | | 1.18% | | | 1.44% | |
| Portfolio Turnover Rate | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 September 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.74 | | | $58.47 | | | $59.17 | | | $51.63 | | | $46.19 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.42 | | | 0.72 | | | 0.89 | | | 0.80 | | | 0.82 | |
| | Net realized and unrealized gain/(loss) | | 16.05 | | | 2.53 | | | 2.28 | | | 8.50 | | | 8.56 | |
| Total from Investment Operations | | 16.47 | | | 3.25 | | | 3.17 | | | 9.30 | | | 9.38 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.43) | | | (0.76) | | | (0.90) | | | (0.81) | | | (0.96) | |
| | Distributions (from capital gains) | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (2.29) | | | (1.98) | | | (3.87) | | | (1.76) | | | (3.94) | |
| Net Asset Value, End of Period | | $73.92 | | | $59.74 | | | $58.47 | | | $59.17 | | | $51.63 | |
| Total Return* | | 28.15% | | | 5.67% | | | 6.34% | | | 18.27% | | | 21.34% | |
| Net Assets, End of Period (in thousands) | | $23,935 | | | $22,870 | | | $24,559 | | | $23,236 | | | $23,254 | |
| Average Net Assets for the Period (in thousands) | | $23,621 | | | $23,489 | | | $22,203 | | | $24,627 | | | $23,525 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.13% | | | 1.13% | | | 1.13% | | | 1.13% | | | 1.12% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.13% | | | 1.12% | | | 1.12% | | | 1.12% | |
| | Ratio of Net Investment Income/(Loss) | | 0.61% | | | 1.28% | | | 1.59% | | | 1.43% | | | 1.69% | |
| Portfolio Turnover Rate | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.81 | | | $58.53 | | | $59.22 | | | $51.68 | | | $46.22 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.60 | | | 0.88 | | | 1.04 | | | 0.95 | | | 0.94 | |
| | Net realized and unrealized gain/(loss) | | 16.08 | | | 2.52 | | | 2.28 | | | 8.49 | | | 8.58 | |
| Total from Investment Operations | | 16.68 | | | 3.40 | | | 3.32 | | | 9.44 | | | 9.52 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.62) | | | (0.90) | | | (1.04) | | | (0.95) | | | (1.08) | |
| | Distributions (from capital gains) | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (2.48) | | | (2.12) | | | (4.01) | | | (1.90) | | | (4.06) | |
| Net Asset Value, End of Period | | $74.01 | | | $59.81 | | | $58.53 | | | $59.22 | | | $51.68 | |
| Total Return* | | 28.49% | | | 5.95% | | | 6.62% | | | 18.56% | | | 21.65% | |
| Net Assets, End of Period (in thousands) | | $2,108,286 | | | $1,805,935 | | | $1,996,900 | | | $1,842,777 | | | $1,594,797 | |
| Average Net Assets for the Period (in thousands) | | $2,025,668 | | | $1,863,456 | | | $1,852,659 | | | $1,735,754 | | | $1,489,926 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.87% | | | 0.87% | | | 0.87% | | | 0.87% | | | 0.88% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.86% | | | 0.86% | | | 0.86% | | | 0.86% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 0.87% | | | 1.54% | | | 1.86% | | | 1.71% | | | 1.95% | |
| Portfolio Turnover Rate | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Growth and Income Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Growth and 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 long-term capital growth and current 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 original 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 Growth and Income 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 Growth and Income 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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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 Growth and Income 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 of net investment income are generally declared and distributed quarterly, 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.
Janus Henderson Growth and 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.
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 0.60% 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 0.67% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 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 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 Growth and Income 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 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 certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund,
Janus Henderson Growth and Income Fund
Notes to Financial Statements
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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $13,445.
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
Janus Henderson Growth and Income Fund
Notes to Financial Statements
year ended September 30, 2021, redeeming shareholders of Class A Shares paid CDSCs of $2,550 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 September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $3,777.
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) | |
$ 2,428,806 | $ 326,651,286 | $ - | $ - | $ - | $ (209,414) | $3,636,187,469 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 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) |
$ 3,468,096,978 | $3,648,771,026 | $(12,583,557) | $ 3,636,187,469 |
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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 67,093,208 | $ 177,973,677 | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 97,885,118 | $ 131,252,172 | $ - | $ - | |
Janus Henderson Growth and Income 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 |
$ 13,104,953 | $ (1,077) | $ (13,103,876) |
Capital has been adjusted by $13,104,953, all of which is long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 317,074 | $ 21,900,002 | | 466,269 | $ 26,457,587 |
Reinvested dividends and distributions | 38,554 | 2,496,983 | | 41,510 | 2,426,531 |
Shares repurchased | (458,894) | (31,461,102) | | (676,205) | (38,023,555) |
Net Increase/(Decrease) | (103,266) | $ (7,064,117) | | (168,426) | $ (9,139,437) |
Class C Shares: | | | | | |
Shares sold | 65,045 | $ 4,373,127 | | 185,860 | $ 10,548,555 |
Reinvested dividends and distributions | 22,908 | 1,440,854 | | 27,535 | 1,601,486 |
Shares repurchased | (206,455) | (13,776,117) | | (397,976) | (21,840,498) |
Net Increase/(Decrease) | (118,502) | $ (7,962,136) | | (184,581) | $ (9,690,457) |
Class D Shares: | | | | | |
Shares sold | 2,072,425 | $ 145,475,499 | | 2,160,911 | $ 119,410,044 |
Reinvested dividends and distributions | 2,190,254 | 142,830,614 | | 2,170,105 | 126,317,290 |
Shares repurchased | (4,993,327) | (341,191,244) | | (6,312,471) | (354,294,263) |
Net Increase/(Decrease) | (730,648) | $ (52,885,131) | | (1,981,455) | $(108,566,929) |
Class I Shares: | | | | | |
Shares sold | 1,655,059 | $ 115,739,516 | | 3,540,359 | $ 193,102,708 |
Reinvested dividends and distributions | 235,177 | 15,341,172 | | 306,665 | 17,885,546 |
Shares repurchased | (2,878,102) | (194,361,844) | | (5,851,097) | (318,113,251) |
Net Increase/(Decrease) | (987,866) | $ (63,281,156) | | (2,004,073) | $(107,124,997) |
Class N Shares: | | | | | |
Shares sold | 284,710 | $ 20,263,050 | | 509,796 | $ 29,988,990 |
Reinvested dividends and distributions | 35,695 | 2,332,353 | | 31,307 | 1,808,367 |
Shares repurchased | (259,866) | (18,106,762) | | (303,276) | (17,345,381) |
Net Increase/(Decrease) | 60,539 | $ 4,488,641 | | 237,827 | $ 14,451,976 |
Class R Shares: | | | | | |
Shares sold | 19,220 | $ 1,276,569 | | 63,553 | $ 3,624,932 |
Reinvested dividends and distributions | 4,494 | 285,834 | | 4,417 | 258,048 |
Shares repurchased | (59,092) | (4,207,007) | | (66,359) | (3,732,475) |
Net Increase/(Decrease) | (35,378) | $ (2,644,604) | | 1,611 | $ 150,505 |
Class S Shares: | | | | | |
Shares sold | 30,316 | $ 2,038,164 | | 67,641 | $ 3,784,583 |
Reinvested dividends and distributions | 12,366 | 797,994 | | 14,097 | 822,632 |
Shares repurchased | (101,712) | (6,735,104) | | (118,937) | (6,682,360) |
Net Increase/(Decrease) | (59,030) | $ (3,898,946) | | (37,199) | $ (2,075,145) |
Class T Shares: | | | | | |
Shares sold | 1,893,177 | $ 131,550,510 | | 3,020,750 | $ 172,452,075 |
Reinvested dividends and distributions | 1,088,846 | 70,761,595 | | 1,192,293 | 69,506,137 |
Shares repurchased | (4,689,839) | (320,245,536) | | (8,135,630) | (442,055,555) |
Net Increase/(Decrease) | (1,707,816) | $(117,933,431) | | (3,922,587) | $(200,097,343) |
Janus Henderson Growth and Income Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the year ended September 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 |
$722,218,245 | $1,161,492,261 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 Growth and Income Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Growth and 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 Growth and Income Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 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 September 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 September 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 September 30, 2021 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Growth and 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 Growth and 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 Growth and 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 Growth and 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 Growth and 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 Growth and 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 Growth and 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 Growth and 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 Growth and 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 Growth and 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 Growth and 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 Growth and 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.
Janus Henderson Growth and 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 September 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 Bloomberg 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 Growth and 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.
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.
Janus Henderson Growth and Income Fund
Useful Information About Your Fund Report (unaudited)
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 Growth and Income Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Capital Gain Distributions | $191,078,630 |
Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income Percentage | 100% |
Janus Henderson Growth and 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 Growth and 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Growth and 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 Growth and 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Growth and 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Growth and 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Growth and 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 |
Jeremiah Buckley
151 Detroit Street
Denver, CO 80206
DOB: 1976 | Executive Vice President and Portfolio Manager
Janus Henderson Growth and Income Fund | 7/14-Present | 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, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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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Janus Henderson Growth and 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Growth and Income Fund
Notes
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Janus Henderson Growth and Income 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. |
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| | | | 125-02-93048 11-21 |
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| | | ANNUAL REPORT September 30, 2021 |
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| | Janus Henderson International Opportunities 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 Opportunities Fund
Janus Henderson International Opportunities Fund (unaudited)
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FUND SNAPSHOT In today’s global markets, robust return opportunities may be outside the U.S. The Janus Henderson International Opportunities Fund is an international equity fund that seeks long-term growth of capital. The Fund employs a regional multi-sleeve approach where each underlying sub-portfolio management team is able to focus on their highest-conviction ideas. | | | | 
Paul O’Connor co-portfolio manager | 
Dean Cheeseman co-portfolio manager |
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PERFORMANCE
The Janus Henderson International Opportunities Fund lagged its benchmark, the MSCI All Country World ex-U.S. IndexSM, for the 12-month period ended September 30, 2021. The Fund’s I Shares returned 17.18% versus the benchmark’s return of 23.92%, resulting in 674 basis points (bps) of underperformance. Among the Fund’s six regional sleeves, the Europe 1 sleeve was the top performer, contributing 27.43%, while the Asia Pacific ex Japan sleeve was the top detractor, with a 3.40% return.
INVESTMENT ENVIRONMENT
As the 12-month period unfolded, financial markets shifted from being dominated by the simple “reopening reflation” theme that set the tone in the fourth quarter of 2020 and into the early months of 2021, to instead reflecting the growing impact of a more complicated tangle of macro influences. While the “everything rally” of the first two quarters of 2021 saw most asset classes deliver healthy returns, the third quarter was a very different story, with developed market equities generally flat and Asian and emerging markets posting negative returns. Central banks remained alert to the need to balance continued support as economies recover post-pandemic with the need to temper the stimulus as growth becomes more established. Supply chain bottlenecks created short-term inflationary pressures that the markets worried could result in policy errors, ultimately stalling the recovery before it even becomes fully established.
PERFORMANCE DISCUSSION
A deeper look into performance for the past 12 months reveals that while all six regional sleeves produced positive returns, regulatory changes and property market concerns in China had a negative impact. The Global Growth and Japan sleeves posted reasonably strong performance, though both slightly lagged their individual benchmarks. The real trouble spots in the Fund were the Asia Pacific ex Japan sub-portfolio, as noted above, and Emerging Markets. High exposure to Chinese and Hong Kong markets, low exposure to energy companies and the continuing direct and derivative impacts of the pandemic across Latin America caused these sleeves to lag their respective benchmarks by a meaningful margin.
On a sector basis, our stock selection in consumer staples, industrials and health care, along with overweight exposure to the latter, were the primary contributors to relative performance. While these results were encouraging, stock selection across financials, information technology and consumer discretionary proved too big a burden to overcome.
New Oriental, a Chinese provider of private educational services and platforms, was the largest detractor from relative performance at the individual stock level over the period. The education industry was an area of regulatory focus this year, with for-profit tutoring – New Oriental’s specialty – falling squarely in the crosshairs. The Chinese government announced changes in April and July that sent the company’s share price plummeting.
The top-performing holding over the year was Danish pharmaceutical company Novo Nordisk. Shares performed well on the broad recovery we saw in European equities over the period, along with positive momentum in drug testing results and growth in segments treating diabetes and obesity. The latter could potentially prove a true source of growth as therapeutics in obesity are somewhat lacking relative to other fields.
OUTLOOK
After a prolonged period of easy monetary policy and fiscal spending, markets now are having to contend with the removal of these supports. Growth momentum appears to have peaked while supply-side issues have pushed inflation above central bank targets. The hawkish shift at many central banks has clearly given investors pause. At the same time, a slowing Chinese economy with
Janus Henderson International Opportunities Fund (unaudited)
a more interventionist government increases economic risks.
The recent turbulence in financial markets reflects investors struggling to price in some fast-changing developments on the global economic and policy fronts. While the big picture is still of a strong global expansion carrying well into 2022, the outlook is complicated by a broadening range of global supply shortages and related wage and price squeezes in some economies. These macro dynamics raise awkward questions for fiscal and monetary policy makers, creating further uncertainties for investors to digest. On top of this, the third quarter of 2021 has seen several idiosyncratic, but globally significant developments in China that appear likely to demand investor attention well into next year.
It is hard to avoid the supposition that the near-term outlook for global equities is unusually opaque, given the number of conflicting economic and market dynamics now in play. Growth seems likely to remain strong in some regions, but downgrades loom elsewhere. Monetary and fiscal policy may be tightened in some countries but may still ease in others. Commodity squeezes could potentially create big winners and losers. To us, the balance of risks still looks most favorable in cyclical developed equity markets such as Europe and Japan. We remain concerned that recent adverse developments in China are not yet fully priced into Chinese stocks and could overshadow the outlook for these markets for some time to come.
Thank you for your continued investment in the Janus Henderson International Opportunities Fund.
Janus Henderson International Opportunities Fund (unaudited)
Fund At A Glance
September 30, 2021
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Novo Nordisk A/S | 2.64% | | 0.66% | | New Oriental Education & Technology Group Inc (ADR) | 1.06% | | -1.88% |
| Housing Development Finance Corp Ltd | 2.86% | | 0.63% | | Sands China Ltd | 1.32% | | -1.06% |
| UniCredit SpA | 2.24% | | 0.61% | | Ping An Insurance Group Co of China Ltd | 2.07% | | -1.04% |
| SK Hynix Inc | 0.40% | | 0.47% | | Grifols SA (ADR) | 1.81% | | -0.82% |
| Samsung Electronics Co Ltd | 2.63% | | 0.46% | | Nexi SpA | 0.86% | | -0.80% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-U.S. Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Staples | | 1.18% | | 6.95% | 8.68% |
| Health Care | | 0.63% | | 10.23% | 9.39% |
| Industrials | | 0.63% | | 7.07% | 11.79% |
| Real Estate | | 0.24% | | 1.23% | 2.59% |
| Utilities | | -0.28% | | 3.34% | 3.17% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-U.S. Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -2.56% | | 16.92% | 18.43% |
| Information Technology | | -2.05% | | 14.84% | 12.70% |
| Consumer Discretionary | | -1.82% | | 14.60% | 13.64% |
| Energy | | -0.83% | | 1.18% | 4.41% |
| Communication Services | | -0.81% | | 13.49% | 6.97% |
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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. |
Janus Henderson International Opportunities Fund (unaudited)
Fund At A Glance
September 30, 2021
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5 Largest Equity Holdings - (% of Net Assets) |
Novo Nordisk A/S | |
Pharmaceuticals | 3.2% |
Koninklijke DSM NV | |
Chemicals | 3.1% |
Housing Development Finance Corp Ltd | |
Thrifts & Mortgage Finance | 2.8% |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 2.7% |
Stellantis NV | |
Automobiles | 2.4% |
| | 14.2% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 89.4% | |
Investment Companies | | 6.9% | |
Preferred Stocks | | 2.3% | |
Other | | 1.4% |
| | | 100.0% |
Emerging markets comprised 23.2% of total net assets.
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
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Janus Henderson International Opportunities 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 September 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 | | 16.83% | 6.52% | 7.75% | 8.05% | | | 1.42% | 1.26% |
Class A Shares at MOP | | 10.12% | 5.27% | 7.12% | 7.73% | | | | |
Class C Shares at NAV | | 16.01% | 5.77% | 6.96% | 7.25% | | | 2.15% | 1.99% |
Class C Shares at CDSC | | 15.01% | 5.77% | 6.96% | 7.25% | | | | |
Class D Shares | | 17.05% | 6.70% | 7.84% | 8.09% | | | 1.41% | 1.04% |
Class I Shares | | 17.18% | 6.83% | 8.06% | 8.24% | | | 1.12% | 0.95% |
Class N Shares | | 17.22% | 6.87% | 7.95% | 8.15% | | | 1.05% | 0.88% |
Class R Shares | | 16.64% | 6.20% | 7.42% | 7.80% | | | 1.84% | 1.59% |
Class S Shares | | 17.13% | 6.46% | 7.70% | 8.02% | | | 4.71% | 1.39% |
Class T Shares | | 16.96% | 6.63% | 7.81% | 8.07% | | | 1.31% | 1.13% |
MSCI All Country World ex-U.S. Index | | 23.92% | 8.94% | 7.48% | 6.53% | | | | |
Morningstar Quartile - Class A Shares | | 4th | 4th | 3rd | 1st | | | | |
Morningstar Ranking - based on total returns for Foreign Large Blend Funds | | 703/778 | 595/673 | 340/533 | 20/320 | | | | |
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 January 28, 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 International Opportunities Fund (unaudited)
Performance
non-diversification, Environmental, Social and Governance (ESG) factors, 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 International Opportunities 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 R Shares, Class I Shares, Class IF Shares, and Class R6 Shares of the Predecessor Fund were reorganized into Class A Shares, Class C Shares, Class R Shares, Class I Shares (Class I Shares and Class IF Shares of the Predecessor Fund were reorganized into Class I Shares of the Fund), 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 R 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 August 31, 2001. Class R Shares, Class I Shares, Class R6 Shares, and Class IF Shares of the Predecessor Fund commenced operations on September 30, 2005, March 31, 2009, November 30, 2015, and March 31, 2016, 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 R Shares shown for periods prior to June 5, 2017, reflects the performance of Class R Shares of the Predecessor Fund, calculated using the fees and expenses of Class R 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 September 30, 2005, performance for Class R 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 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 March 31, 2009, 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.
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.
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.
Janus Henderson International Opportunities Fund (unaudited)
Performance
See important disclosures on the next page.
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 January 28, 2020, the Fund’s primary benchmark index changed from the MSCI EAFE Index to the MSCI All Country World ex-U.S. Index. Janus Henderson believes that the MSCI All Country World ex-U.S. Index represents a more appropriate benchmark for the Fund, given its exposure to developing markets.
*The Predecessor Fund’s inception date – August 31, 2001.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson International Opportunities 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $983.90 | $6.12 | | $1,000.00 | $1,018.90 | $6.23 | 1.23% |
Class C Shares | $1,000.00 | $980.30 | $9.73 | | $1,000.00 | $1,015.24 | $9.90 | 1.96% |
Class D Shares | $1,000.00 | $984.50 | $5.12 | | $1,000.00 | $1,019.90 | $5.22 | 1.03% |
Class I Shares | $1,000.00 | $985.20 | $4.73 | | $1,000.00 | $1,020.31 | $4.81 | 0.95% |
Class N Shares | $1,000.00 | $985.20 | $4.38 | | $1,000.00 | $1,020.66 | $4.46 | 0.88% |
Class R Shares | $1,000.00 | $982.20 | $7.45 | | $1,000.00 | $1,017.55 | $7.59 | 1.50% |
Class S Shares | $1,000.00 | $983.50 | $6.07 | | $1,000.00 | $1,018.95 | $6.17 | 1.22% |
Class T Shares | $1,000.00 | $984.20 | $5.52 | | $1,000.00 | $1,019.50 | $5.62 | 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 183/365 (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 Opportunities Fund
Schedule of Investments
September 30, 2021
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Shares
| | | Value | |
Common Stocks– 89.4% | | | |
Automobiles – 5.6% | | | |
| | Daimler AG | | 187,187 | | | $16,637,877 | |
| | Stellantis NV | | 1,589,931 | | | 30,355,706 | |
| | Toyota Motor Corp | | 1,355,000 | | | 24,241,788 | |
| | | 71,235,371 | |
Banks – 4.4% | | | |
| | HDFC Bank Ltd | | 1,198,167 | | | 25,688,712 | |
| | Itau Unibanco Holding SA (ADR) | | 992,387 | | | 5,229,879 | |
| | UniCredit SpA | | 1,974,383 | | | 26,112,832 | |
| | | 57,031,423 | |
Beverages – 3.1% | | | |
| | Asahi Group Holdings Ltd | | 266,000 | | | 12,887,296 | |
| | Carlsberg A/S | | 101,786 | | | 16,560,904 | |
| | Pernod Ricard SA | | 46,892 | | | 10,253,330 | |
| | | 39,701,530 | |
Biotechnology – 1.8% | | | |
| | Grifols SA (ADR) | | 1,620,527 | | | 23,675,899 | |
Building Products – 1.5% | | | |
| | Cie de Saint-Gobain | | 286,958 | | | 19,324,684 | |
Capital Markets – 1.3% | | | |
| | Allfunds Group PLC* | | 83,384 | | | 1,620,532 | |
| | Macquarie Group Ltd | | 110,561 | | | 14,502,877 | |
| | | 16,123,409 | |
Chemicals – 5.1% | | | |
| | Akzo Nobel NV | | 84,790 | | | 9,231,645 | |
| | Koninklijke DSM NV | | 200,605 | | | 40,091,444 | |
| | Shin-Etsu Chemical Co Ltd | | 95,500 | | | 16,109,649 | |
| | | 65,432,738 | |
Commercial Services & Supplies – 1.5% | | | |
| | SPIE SA | | 832,377 | | | 18,855,574 | |
Diversified Consumer Services – 0.3% | | | |
| | Afya Ltd* | | 213,751 | | | 4,219,445 | |
Diversified Financial Services – 0.3% | | | |
| | Linklogis Inc - Class B (144A)* | | 4,004,000 | | | 4,085,842 | |
Diversified Telecommunication Services – 0.2% | | | |
| | Telecom Italia SpA/Milano | | 7,884,838 | | | 3,089,537 | |
Electric Utilities – 1.5% | | | |
| | EDP - Energias de Portugal SA | | 3,676,143 | | | 19,281,398 | |
Electronic Equipment, Instruments & Components – 1.1% | | | |
| | TDK Corp | | 284,000 | | | 10,261,512 | |
| | Wingtech Technology Co Ltd - Class A | | 260,532 | | | 3,752,141 | |
| | | 14,013,653 | |
Entertainment – 2.2% | | | |
| | Netflix Inc* | | 17,738 | | | 10,826,211 | |
| | Sea Ltd (ADR)* | | 54,778 | | | 17,459,392 | |
| | | 28,285,603 | |
Food & Staples Retailing – 1.0% | | | |
| | Seven & i Holdings Co Ltd | | 280,000 | | | 12,707,978 | |
Food Products – 3.4% | | | |
| | Danone SA | | 410,353 | | | 28,004,953 | |
| | Uni-President Enterprises Corp | | 6,247,000 | | | 15,194,268 | |
| | | 43,199,221 | |
Health Care Equipment & Supplies – 1.3% | | | |
| | Siemens Healthineers AG (144A) | | 254,821 | | | 16,579,061 | |
Health Care Providers & Services – 1.2% | | | |
| | Korian SA | | 439,741 | | | 15,337,236 | |
Household Durables – 1.8% | | | |
| | Sony Corp | | 203,000 | | | 22,609,418 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson International Opportunities Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Information Technology Services – 4.2% | | | |
| | Mastercard Inc | | 33,624 | | | $11,690,392 | |
| | Network International Holdings PLC (144A)* | | 1,131,038 | | | 5,532,413 | |
| | Tata Consultancy Services Ltd | | 273,058 | | | 13,827,840 | |
| | Worldline SA/France (144A)* | | 303,901 | | | 23,183,439 | |
| | | 54,234,084 | |
Insurance – 6.5% | | | |
| | AIA Group Ltd | | 2,531,400 | | | 29,147,832 | |
| | ASR Nederland NV | | 477,564 | | | 21,724,078 | |
| | Ping An Insurance Group Co of China Ltd | | 2,184,000 | | | 14,820,077 | |
| | Tokio Marine Holdings Inc | | 336,000 | | | 18,021,288 | |
| | | 83,713,275 | |
Interactive Media & Services – 4.0% | | | |
| | Alphabet Inc - Class C* | | 4,197 | | | 11,186,306 | |
| | Tencent Holdings Ltd | | 334,400 | | | 19,607,912 | |
| | Yandex NV* | | 111,655 | | | 8,897,787 | |
| | Z Holdings Corp | | 1,800,000 | | | 11,553,069 | |
| | | 51,245,074 | |
Internet & Direct Marketing Retail – 3.0% | | | |
| | Alibaba Group Holding Ltd* | | 686,716 | | | 12,773,336 | |
| | HelloFresh SE* | | 122,129 | | | 11,305,254 | |
| | MercadoLibre Inc* | | 2,335 | | | 3,921,399 | |
| | Naspers Ltd | | 30,414 | | | 5,014,841 | |
| | Ozon Holdings PLC (ADR)* | | 109,397 | | | 5,519,079 | |
| | | 38,533,909 | |
Life Sciences Tools & Services – 0.9% | | | |
| | ICON PLC* | | 44,209 | | | 11,583,642 | |
Machinery – 2.9% | | | |
| | Mitsubishi Heavy Industries Ltd | | 250,000 | | | 6,750,547 | |
| | Outotec OYJ | | 1,165,968 | | | 10,625,116 | |
| | SMC Corp/Japan | | 15,300 | | | 9,573,396 | |
| | Volvo AB | | 475,954 | | | 10,697,446 | |
| | | 37,646,505 | |
Media – 1.2% | | | |
| | Informa PLC* | | 2,115,383 | | | 15,498,192 | |
Metals & Mining – 0.5% | | | |
| | Ivanhoe Mines Ltd* | | 1,082,364 | | | 6,922,890 | |
Multi-Utilities – 2.2% | | | |
| | RWE AG | | 782,265 | | | 27,650,507 | |
Oil, Gas & Consumable Fuels – 1.3% | | | |
| | LUKOIL PJSC (ADR) | | 168,210 | | | 16,014,486 | |
Paper & Forest Products – 1.7% | | | |
| | Suzano SA* | | 430,322 | | | 4,308,831 | |
| | UPM-Kymmene Oyj | | 496,638 | | | 17,545,054 | |
| | | 21,853,885 | |
Personal Products – 1.5% | | | |
| | Estee Lauder Cos Inc | | 34,013 | | | 10,201,519 | |
| | Unilever PLC | | 175,957 | | | 9,489,427 | |
| | | 19,690,946 | |
Pharmaceuticals – 6.7% | | | |
| | Daiichi Sankyo Co Ltd | | 666,000 | | | 17,769,820 | |
| | Merck KGaA | | 43,851 | | | 9,534,543 | |
| | Novo Nordisk A/S | | 424,452 | | | 40,832,943 | |
| | Sanofi | | 188,520 | | | 18,145,424 | |
| | | 86,282,730 | |
Professional Services – 1.4% | | | |
| | RELX PLC | | 608,466 | | | 17,567,579 | |
Real Estate Management & Development – 1.3% | | | |
| | Swire Pacific Ltd | | 2,353,500 | | | 13,950,047 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson International Opportunities Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Real Estate Management & Development– (continued) | | | |
| | Swire Pacific Ltd - Class B | | 2,202,500 | | | $2,161,869 | |
| | | 16,111,916 | |
Road & Rail – 0.3% | | | |
| | Full Truck Alliance Co (ADR)* | | 275,992 | | | 4,230,957 | |
Semiconductor & Semiconductor Equipment – 4.7% | | | |
| | Renesas Electronics Corp* | | 940,000 | | | 11,599,999 | |
| | SK Hynix Inc | | 157,531 | | | 13,595,457 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 1,692,000 | | | 34,893,939 | |
| | | 60,089,395 | |
Software – 0.9% | | | |
| | Microsoft Corp | | 40,288 | | | 11,357,993 | |
Technology Hardware, Storage & Peripherals – 0.6% | | | |
| | FUJIFILM Holdings Corp | | 90,000 | | | 7,761,743 | |
Thrifts & Mortgage Finance – 2.8% | | | |
| | Housing Development Finance Corp Ltd | | 962,522 | | | 35,225,776 | |
Trading Companies & Distributors – 1.1% | | | |
| | Mitsubishi Corp | | 451,000 | | | 14,110,390 | |
Wireless Telecommunication Services – 1.1% | | | |
| | SoftBank Group Corp | | 243,000 | | | 14,044,224 | |
Total Common Stocks (cost $916,436,515) | | 1,146,159,118 | |
Preferred Stocks– 2.3% | | | |
Technology Hardware, Storage & Peripherals – 2.3% | | | |
| | Samsung Electronics Co Ltd((cost $11,719,858) | | 509,828 | | | 29,866,754 | |
Investment Companies– 6.9% | | | |
Money Markets – 6.9% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $88,574,437) | | 88,565,581 | | | 88,574,437 | |
Total Investments (total cost $1,016,730,810) – 98.6% | | 1,264,600,309 | |
Cash, Receivables and Other Assets, net of Liabilities – 1.4% | | 18,249,665 | |
Net Assets – 100% | | $1,282,849,974 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson International Opportunities Fund
Schedule of Investments
September 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
Japan | | $210,002,117 | | 16.6 | % |
United States | | 143,836,858 | | 11.4 | |
France | | 133,104,640 | | 10.5 | |
Netherlands | | 98,104,173 | | 7.8 | |
Germany | | 81,707,242 | | 6.5 | |
India | | 74,742,328 | | 5.9 | |
Taiwan | | 67,547,599 | | 5.3 | |
Italy | | 59,558,075 | | 4.7 | |
China | | 59,270,265 | | 4.7 | |
Denmark | | 57,393,847 | | 4.5 | |
Hong Kong | | 45,259,748 | | 3.6 | |
South Korea | | 43,462,211 | | 3.4 | |
Russia | | 30,431,352 | | 2.4 | |
Finland | | 28,170,170 | | 2.2 | |
Spain | | 25,296,431 | | 2.0 | |
United Kingdom | | 21,030,605 | | 1.7 | |
Portugal | | 19,281,398 | | 1.5 | |
Australia | | 14,502,877 | | 1.2 | |
Brazil | | 13,758,155 | | 1.1 | |
Ireland | | 11,583,642 | | 0.9 | |
Sweden | | 10,697,446 | | 0.8 | |
Canada | | 6,922,890 | | 0.6 | |
South Africa | | 5,014,841 | | 0.4 | |
Argentina | | 3,921,399 | | 0.3 | |
| | | | | | |
| | | | | | |
Total | | $1,264,600,309 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2021 |
Janus Henderson International Opportunities Fund
Schedule of Investments
September 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/21 |
Investment Companies - 6.9% |
Money Markets - 6.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | $ | 19,713 | $ | 861 | $ | - | $ | 88,574,437 |
| |
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Investment Companies - 6.9% |
Money Markets - 6.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 21,113,844 | | 553,006,370 | | (485,546,638) | | 88,574,437 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson International Opportunities Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI All Country World ex-U.S. IndexSM | MSCI All Country World ex-U.S. IndexSM reflects the equity market performance of global developed and emerging markets, excluding the U.S. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
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 September 30, 2021 is $49,380,755, which represents 3.8% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 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. |
| | | | | | | | | | | | | |
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 September 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 | | | | | | |
Banks | $ | 5,229,879 | $ | 51,801,544 | $ | - |
Biotechnology | | 23,675,899 | | - | | - |
Diversified Consumer Services | | 4,219,445 | | - | | - |
Entertainment | | 28,285,603 | | - | | - |
Information Technology Services | | 11,690,392 | | 42,543,692 | | - |
Interactive Media & Services | | 20,084,093 | | 31,160,981 | | - |
Internet & Direct Marketing Retail | | 9,440,478 | | 29,093,431 | | - |
Life Sciences Tools & Services | | 11,583,642 | | - | | - |
Metals & Mining | | 6,922,890 | | - | | - |
Paper & Forest Products | | 4,308,831 | | 17,545,054 | | - |
Personal Products | | 10,201,519 | | 9,489,427 | | - |
Road & Rail | | 4,230,957 | | - | | - |
Software | | 11,357,993 | | - | | - |
All Other | | - | | 813,293,368 | | - |
Preferred Stocks | | - | | 29,866,754 | | - |
Investment Companies | | - | | 88,574,437 | | - |
Total Assets | $ | 151,231,621 | $ | 1,113,368,688 | $ | - |
| | | | | | | |
Janus Henderson International Opportunities Fund
Statement of Assets and Liabilities
September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $928,156,373) | | $ | 1,176,025,872 | |
| Affiliated investments, at value (cost $88,574,437) | | | 88,574,437 | |
| Cash denominated in foreign currency (cost $2,337,416) | | | 2,337,416 | |
| Non-interested Trustees' deferred compensation | | | 31,951 | |
| Receivables: | | | | |
| | Investments sold | | | 40,032,015 | |
| | Fund shares sold | | | 30,980,065 | |
| | Foreign tax reclaims | | | 6,030,800 | |
| | Dividends | | | 2,885,115 | |
| | Due from adviser | | | 1,324,835 | |
| | Dividends from affiliates | | | 2,817 | |
| Other assets | | | 10,072 | |
Total Assets | | | 1,348,235,395 | |
Liabilities: | | | | |
| Due to custodian | | | 25,554 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 33,680,555 | |
| | Investments purchased | | | 25,389,161 | |
| | Foreign withholding tax reclaim fee (Note 1) | | | 3,399,668 | |
| | Professional fees | | | 1,243,276 | |
| | Advisory fees | | | 1,098,096 | |
| | Transfer agent fees and expenses | | | 161,555 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 109,108 | |
| | Custodian fees | | | 44,724 | |
| | Non-interested Trustees' deferred compensation fees | | | 31,951 | |
| | Non-interested Trustees' fees and expenses | | | 12,637 | |
| | Affiliated fund administration fees payable | | | 2,745 | |
| | Accrued expenses and other payables | | | 186,391 | |
Total Liabilities | | | 65,385,421 | |
Net Assets | | $ | 1,282,849,974 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson International Opportunities Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 886,541,923 | |
| Total distributable earnings (loss) (includes $2,164,192 of foreign capital gains tax) | | | 396,308,051 | |
Total Net Assets | | $ | 1,282,849,974 | |
Net Assets - Class A Shares | | $ | 328,758,874 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 11,405,821 | |
Net Asset Value Per Share(1) | | $ | 28.82 | |
Maximum Offering Price Per Share(2) | | $ | 30.58 | |
Net Assets - Class C Shares | | $ | 43,690,446 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,621,001 | |
Net Asset Value Per Share(1) | | $ | 26.95 | |
Net Assets - Class D Shares | | $ | 3,379,389 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 117,793 | |
Net Asset Value Per Share | | $ | 28.69 | |
Net Assets - Class I Shares | | $ | 703,784,839 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 24,506,772 | |
Net Asset Value Per Share | | $ | 28.72 | |
Net Assets - Class N Shares | | $ | 197,221,630 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,865,057 | |
Net Asset Value Per Share | | $ | 28.73 | |
Net Assets - Class R Shares | | $ | 2,904,912 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 102,721 | |
Net Asset Value Per Share | | $ | 28.28 | |
Net Assets - Class S Shares | | $ | 69,748 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,429 | |
Net Asset Value Per Share | | $ | 28.71 | |
Net Assets - Class T Shares | | $ | 3,040,136 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 105,313 | |
Net Asset Value Per Share | | $ | 28.87 | |
| |
(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 | SEPTEMBER 30, 2021 |
Janus Henderson International Opportunities Fund
Statement of Operations
For the year ended September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 31,634,942 | |
| Interest | | 34,673 | |
| Dividends from affiliates | | 19,713 | |
| Other income | | 115,284 | |
| Foreign withholding tax income (net of foreign withholding tax reclaim fee of $3,399,668 (Note 1) | | 8,397,233 | |
Total Investment Income | | 40,201,845 | |
Expenses: | | | |
| Advisory fees | | 15,141,993 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 847,791 | |
| | Class C Shares | | 535,900 | |
| | Class R Shares | | 12,320 | |
| | Class S Shares | | — | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 3,428 | |
| | Class R Shares | | 10,233 | |
| | Class S Shares | | 172 | |
| | Class T Shares | | 15,099 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 328,713 | |
| | Class C Shares | | 51,765 | |
| | Class I Shares | | 527,818 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 20,857 | |
| | Class C Shares | | 2,912 | |
| | Class D Shares | | 1,038 | |
| | Class I Shares | | 33,081 | |
| | Class N Shares | | 10,716 | |
| | Class R Shares | | 148 | |
| | Class S Shares | | 4 | |
| | Class T Shares | | 83 | |
| Professional fees | | 1,238,574 | |
| Custodian fees | | 235,893 | |
| Registration fees | | 119,128 | |
| Shareholder reports expense | | 93,510 | |
| Affiliated fund administration fees | | 40,431 | |
| Non-interested Trustees’ fees and expenses | | 25,540 | |
| Other expenses | | 158,898 | |
Total Expenses | | 19,456,045 | |
Less: Excess Expense Reimbursement and Waivers | | (3,727,937) | |
Net Expenses | | 15,728,108 | |
Net Investment Income/(Loss) | | 24,473,737 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson International Opportunities Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (net of foreign taxes of $1,162,623) | $ | 248,282,427 | |
| Investments in affiliates | | 861 | |
Total Net Realized Gain/(Loss) on Investments | | 248,283,288 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation (net of decrease in deferred foreign taxes of $140,524) | | (13,483,959) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (13,483,959) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 259,273,066 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2021 |
Janus Henderson International Opportunities Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended September 30, 2020(1) As Restated | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 24,473,737 | | $ | 10,433,407 | |
| Net realized gain/(loss) on investments | | 248,283,288 | | | (14,744,525) | |
| Change in unrealized net appreciation/depreciation | | (13,483,959) | | | 85,133,355 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 259,273,066 | | | 80,822,237 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (2,070,127) | | | (12,991,699) | |
| | Class C Shares | | — | | | (2,963,075) | |
| | Class D Shares | | (22,785) | | | (84,444) | |
| | Class I Shares | | (7,683,079) | | | (41,159,651) | |
| | Class N Shares | | (4,419,924) | | | (12,284,474) | |
| | Class R Shares | | (7,534) | | | (257,199) | |
| | Class S Shares | | (518) | | | (3,190) | |
| | Class T Shares | | (21,323) | | | (845,346) | |
Net Decrease from Dividends and Distributions to Shareholders | | (14,225,290) | | | (70,589,078) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (14,395,046) | | | (64,942,007) | |
| | Class C Shares | | (27,820,112) | | | (46,154,526) | |
| | Class D Shares | | 836,898 | | | (100,183) | |
| | Class I Shares | | (133,210,365) | | | (322,375,979) | |
| | Class N Shares | | (238,333,529) | | | 68,908,971 | |
| | Class R Shares | | (1,958,297) | | | (5,070,758) | |
| | Class S Shares | | 1,216 | | | (44,220) | |
| | Class T Shares | | (1,351,819) | | | (25,040,957) | |
Net Increase/(Decrease) from Capital Share Transactions | | (416,231,054) | | | (394,819,659) | |
Net Increase/(Decrease) in Net Assets | | (171,183,278) | | | (384,586,500) | |
Net Assets: | | | | | | |
| Beginning of period | | 1,454,033,252 | | | 1,838,619,752 | |
| End of period | $ | 1,282,849,974 | | $ | 1,454,033,252 | |
| | | | | | | | |
| |
(1) As Restated, see Note 7 in Notes to Financial Statements |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $24.77 | | | $24.08 | | | $29.10 | | | $29.50 | | | $29.08 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.44(3) | | | 0.11 | | | 0.23 | | | 0.28 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 3.79 | | | 1.49 | | | (1.64) | | | (0.39) | | | 0.31 | |
| Total from Investment Operations | | 4.23 | | | 1.60 | | | (1.41) | | | (0.11) | | | 0.42 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.18) | | | (0.22) | | | (0.44) | | | (0.29) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (0.18) | | | (0.91) | | | (3.61) | | | (0.29) | | | — | |
| Net Asset Value, End of Period | | $28.82 | | | $24.77 | | | $24.08 | | | $29.10 | | | $29.50 | |
| Total Return* | | 17.08% | | | 6.61% | | | (3.07)%(4) | | | (0.40)% | | | 1.44% | |
| Net Assets, End of Period (in thousands) | | $328,759 | | | $295,282 | | | $357,079 | | | $485,243 | | | $623,172 | |
| Average Net Assets for the Period (in thousands) | | $337,873 | | | $316,482 | | | $419,053 | | | $577,151 | | | $625,740 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.49%(5) | | | 1.42% | | | 1.45% | | | 1.29% | | | 1.33% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.23% | | | 1.28% | | | 1.32% | | | 1.29% | | | 1.33% | |
| | Ratio of Net Investment Income/(Loss) | | 1.53%(3) | | | 0.46% | | | 0.96% | | | 0.94% | | | 2.18% | |
| Portfolio Turnover Rate | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $23.17 | | | $22.53 | | | $27.13 | | | $27.46 | | | $27.11 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.16(3) | | | (0.05) | | | 0.02 | | | 0.06 | | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | 3.62 | | | 1.38 | | | (1.45) | | | (0.36) | | | 0.29 | |
| Total from Investment Operations | | 3.78 | | | 1.33 | | | (1.43) | | | (0.30) | | | 0.35 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | (0.03) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | — | | | (0.69) | | | (3.17) | | | (0.03) | | | — | |
| Net Asset Value, End of Period | | $26.95 | | | $23.17 | | | $22.53 | | | $27.13 | | | $27.46 | |
| Total Return* | | 16.31% | | | 5.86% | | | (3.64)%(6) | | | (1.09)% | | | 1.29% | |
| Net Assets, End of Period (in thousands) | | $43,690 | | | $61,292 | | | $106,863 | | | $336,880 | | | $432,601 | |
| Average Net Assets for the Period (in thousands) | | $55,342 | | | $82,679 | | | $161,985 | | | $397,796 | | | $430,739 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.19%(5) | | | 2.06% | | | 2.09% | | | 2.00% | | | 2.16% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.95% | | | 1.92% | | | 1.97% | | | 2.00% | | | 2.16% | |
| | Ratio of Net Investment Income/(Loss) | | 0.60%(3) | | | (0.24)% | | | 0.10% | | | 0.22% | | | 1.36% | |
| Portfolio Turnover Rate | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in September 2021. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.15 and 0.52%, respectively, for Class A Shares and $0.14 and 0.52%, respectively, for Class C Shares. (4) Total return without the effect of affiliated payments would have been (3.11)%. (5) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in September 2021. The impact of the additional professional fees to Ratio of Gross Expenses is 0.08% for Class A Shares and 0.08% for Class C Shares. (6) Total return without the effect of affiliated payments would have been (3.68)%. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2021 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | |
Class A Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $26.05 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 3.25 | |
| Total from Investment Operations | | 3.42 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.39) | |
| Total Dividends and Distributions | | (0.39) | |
| Net Asset Value, End of Period | | $29.08 | |
| Total Return* | | 13.36% | |
| Net Assets, End of Period (in thousands) | | $637,250 | |
| Average Net Assets for the Period (in thousands) | | $682,656 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.31% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.31% | |
| | Ratio of Net Investment Income/(Loss) | | 0.63% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| | | | | | | |
Class C Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $24.31 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | 3.04 | |
| Total from Investment Operations | | 3.01 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.21) | |
| Total Dividends and Distributions | | (0.21) | |
| Net Asset Value, End of Period | | $27.11 | |
| Total Return* | | 12.50% | |
| Net Assets, End of Period (in thousands) | | $437,418 | |
| Average Net Assets for the Period (in thousands) | | $457,115 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 2.09% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.09% | |
| | Ratio of Net Investment Income/(Loss) | | (0.13)% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $24.68 | | | $24.00 | | | $29.06 | | | $29.51 | | | $29.08 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.56(3) | | | 0.17 | | | 0.29 | | | 0.37 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 3.70 | | | 1.48 | | | (1.67) | | | (0.40) | | | 0.31 | |
| Total from Investment Operations | | 4.26 | | | 1.65 | | | (1.38) | | | (0.03) | | | 0.43 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.25) | | | (0.28) | | | (0.51) | | | (0.42) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (0.25) | | | (0.97) | | | (3.68) | | | (0.42) | | | — | |
| Net Asset Value, End of Period | | $28.69 | | | $24.68 | | | $24.00 | | | $29.06 | | | $29.51 | |
| Total Return* | | 17.29% | | | 6.84% | | | (2.90)%(4) | | | (0.15)% | | | 1.48% | |
| Net Assets, End of Period (in thousands) | | $3,379 | | | $2,210 | | | $2,257 | | | $3,002 | | | $2,187 | |
| Average Net Assets for the Period (in thousands) | | $3,047 | | | $2,132 | | | $2,483 | | | $3,163 | | | $1,914 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.44%(5) | | | 1.41% | | | 1.59% | | | 1.16% | | | 1.08% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.03% | | | 1.06% | | | 1.13% | | | 1.10% | | | 1.08% | |
| | Ratio of Net Investment Income/(Loss) | | 1.93%(3) | | | 0.73% | | | 1.20% | | | 1.25% | | | 2.43% | |
| Portfolio Turnover Rate | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $24.69 | | | $24.03 | | | $29.06 | | | $29.47 | | | $29.04 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.50(3) | | | 0.17 | | | 0.24 | | | 0.38 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 3.81 | | | 1.49 | | | (1.58) | | | (0.39) | | | 0.31 | |
| Total from Investment Operations | | 4.31 | | | 1.66 | | | (1.34) | | | (0.01) | | | 0.43 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.28) | | | (0.31) | | | (0.52) | | | (0.40) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (0.28) | | | (1.00) | | | (3.69) | | | (0.40) | | | — | |
| Net Asset Value, End of Period | | $28.72 | | | $24.69 | | | $24.03 | | | $29.06 | | | $29.47 | |
| Total Return* | | 17.47% | | | 6.87% | | | (2.75)%(6) | | | (0.07)% | | | 1.48% | |
| Net Assets, End of Period (in thousands) | | $703,785 | | | $720,915 | | | $1,050,061 | | | $3,021,157 | | | $3,721,310 | |
| Average Net Assets for the Period (in thousands) | | $770,690 | | | $860,681 | | | $1,621,134 | | | $3,542,904 | | | $3,644,165 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.20%(5) | | | 1.12% | | | 1.12% | | | 0.99% | | | 1.00% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.95% | | | 0.98% | | | 1.01% | | | 0.99% | | | 1.00% | |
| | Ratio of Net Investment Income/(Loss) | | 1.75%(3) | | | 0.71% | | | 0.99% | | | 1.27% | | | 2.51% | |
| Portfolio Turnover Rate | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in September 2021. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.15 and 0.52%, respectively, for Class D Shares and $0.15 and 0.52%, respectively, for Class I Shares. (4) Total return without the effect of affiliated payments would have been (2.94)%. (5) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in September 2021. The impact of the additional professional fees to Ratio of Gross Expenses is 0.08% for Class D Shares and 0.08% for Class I Shares. (6) Total return without the effect of affiliated payments would have been (2.79)%. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2021 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | |
Class D Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.47 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | 0.58 | |
| Total from Investment Operations | | 0.61 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $29.08 | |
| Total Return* | | 2.14% | |
| Net Assets, End of Period (in thousands) | | $1,723 | |
| Average Net Assets for the Period (in thousands) | | $1,119 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.39% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.06% | |
| | Ratio of Net Investment Income/(Loss) | | 0.59% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| | | | | | | |
Class I Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $26.06 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.25 | |
| | Net realized and unrealized gain/(loss) | | 3.21 | |
| Total from Investment Operations | | 3.46 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.48) | |
| Total Dividends and Distributions | | (0.48) | |
| Net Asset Value, End of Period | | $29.04 | |
| Total Return* | | 13.58% | |
| Net Assets, End of Period (in thousands) | | $3,642,386 | |
| Average Net Assets for the Period (in thousands) | | $2,966,203 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.05% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.05% | |
| | Ratio of Net Investment Income/(Loss) | | 0.94% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| |
* Total return 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 July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $24.67 | | | $23.99 | | | $29.08 | | | $29.47 | | | $29.03 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.44(3) | | | 0.22 | | | 0.48 | | | 0.41 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 3.91 | | | 1.46 | | | (1.85) | | | (0.38) | | | 0.32 | |
| Total from Investment Operations | | 4.35 | | | 1.68 | | | (1.37) | | | 0.03 | | | 0.44 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.29) | | | (0.31) | | | (0.55) | | | (0.42) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (0.29) | | | (1.00) | | | (3.72) | | | (0.42) | | | — | |
| Net Asset Value, End of Period | | $28.73 | | | $24.67 | | | $23.99 | | | $29.08 | | | $29.47 | |
| Total Return* | | 17.67% | | | 6.99% | | | (2.82)%(4) | | | 0.07% | | | 1.52% | |
| Net Assets, End of Period (in thousands) | | $197,222 | | | $366,371 | | | $280,749 | | | $43,305 | | | $10,530 | |
| Average Net Assets for the Period (in thousands) | | $337,046 | | | $315,851 | | | $128,934 | | | $12,868 | | | $10,134 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.10%(5) | | | 1.05% | | | 1.07% | | | 0.96% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.88% | | | 0.90% | | | 0.91% | | | 0.94% | | | 0.93% | |
| | Ratio of Net Investment Income/(Loss) | | 1.54%(3) | | | 0.95% | | | 2.02% | | | 1.41% | | | 2.57% | |
| Portfolio Turnover Rate | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $24.21 | | | $23.51 | | | $28.42 | | | $28.81 | | | $28.41 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.33(3) | | | 0.01 | | | 0.15 | | | 0.16 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | 3.79 | | | 1.47 | | | (1.59) | | | (0.36) | | | 0.31 | |
| Total from Investment Operations | | 4.12 | | | 1.48 | | | (1.44) | | | (0.20) | | | 0.40 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | (0.09) | | | (0.30) | | | (0.19) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (0.05) | | | (0.78) | | | (3.47) | | | (0.19) | | | — | |
| Net Asset Value, End of Period | | $28.28 | | | $24.21 | | | $23.51 | | | $28.42 | | | $28.81 | |
| Total Return* | | 17.01% | | | 6.27% | | | (3.35)%(6) | | | (0.71)% | | | 1.41% | |
| Net Assets, End of Period (in thousands) | | $2,905 | | | $4,147 | | | $9,168 | | | $16,214 | | | $23,122 | |
| Average Net Assets for the Period (in thousands) | | $4,093 | | | $6,096 | | | $11,867 | | | $19,820 | | | $22,887 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.70%(5) | | | 1.79% | | | 1.81% | | | 1.66% | | | 1.60% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.39% | | | 1.57% | | | 1.62% | | | 1.62% | | | 1.56% | |
| | Ratio of Net Investment Income/(Loss) | | 1.15%(3) | | | 0.03% | | | 0.63% | | | 0.54% | | | 1.96% | |
| Portfolio Turnover Rate | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in September 2021. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.15 and 0.52%, respectively, for Class N Shares and $0.15 and 0.52%, respectively, for Class R Shares. (4) Total return without the effect of affiliated payments would have been (2.86)%. (5) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in September 2021. The impact of the additional professional fees to Ratio of Gross Expenses is 0.08% for Class N Shares and 0.08% for Class R Shares. (6) Total return without the effect of affiliated payments would have been (3.39)%. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2021 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | |
Class N Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $26.05 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.42 | |
| | Net realized and unrealized gain/(loss) | | 3.05 | |
| Total from Investment Operations | | 3.47 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.49) | |
| Total Dividends and Distributions | | (0.49) | |
| Net Asset Value, End of Period | | $29.03 | |
| Total Return* | | 13.61% | |
| Net Assets, End of Period (in thousands) | | $10,041 | |
| Average Net Assets for the Period (in thousands) | | $2,895 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 0.98% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.97% | |
| | Ratio of Net Investment Income/(Loss) | | 1.55% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| | | | | | | |
Class R Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $25.55 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 3.16 | |
| Total from Investment Operations | | 3.24 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.38) | |
| Total Dividends and Distributions | | (0.38) | |
| Net Asset Value, End of Period | | $28.41 | |
| Total Return* | | 12.89% | |
| Net Assets, End of Period (in thousands) | | $23,071 | |
| Average Net Assets for the Period (in thousands) | | $21,398 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.71% | |
| | Ratio of Net Investment Income/(Loss) | | 0.29% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| |
* 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. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $24.66 | | | $23.80 | | | $29.00 | | | $29.48 | | | $29.06 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.52(3) | | | 0.09 | | | 0.23 | | | 0.44 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 3.75 | | | 1.46 | | | (1.72) | | | (0.53) | | | 0.31 | |
| Total from Investment Operations | | 4.27 | | | 1.55 | | | (1.49) | | | (0.09) | | | 0.42 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.22) | | | — | | | (0.54) | | | (0.39) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (0.22) | | | (0.69) | | | (3.71) | | | (0.39) | | | — | |
| Net Asset Value, End of Period | | $28.71 | | | $24.66 | | | $23.80 | | | $29.00 | | | $29.48 | |
| Total Return* | | 17.33% | | | 6.49% | | | (3.32)%(4) | | | (0.36)% | | | 1.45% | |
| Net Assets, End of Period (in thousands) | | $70 | | | $59 | | | $110 | | | $2,674 | | | $52 | |
| Average Net Assets for the Period (in thousands) | | $69 | | | $95 | | | $1,736 | | | $591 | | | $51 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 5.70%(5) | | | 4.69% | | | 1.76% | | | 1.75% | | | 1.44% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.99% | | | 1.41% | | | 1.46% | | | 1.43% | | | 1.26% | |
| | Ratio of Net Investment Income/(Loss) | | 1.80%(3) | | | 0.40% | | | 0.97% | | | 1.57% | | | 2.25% | |
| Portfolio Turnover Rate | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $24.69 | | | $24.00 | | | $29.02 | | | $29.50 | | | $29.07 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.62(3) | | | (0.01) | | | 0.57 | | | 0.30 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 3.70 | | | 1.63 | | | (1.95) | | | (0.37) | | | 0.32 | |
| Total from Investment Operations | | 4.32 | | | 1.62 | | | (1.38) | | | (0.07) | | | 0.43 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.24) | | | (0.47) | | | (0.41) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (0.14) | | | (0.93) | | | (3.64) | | | (0.41) | | | — | |
| Net Asset Value, End of Period | | $28.87 | | | $24.69 | | | $24.00 | | | $29.02 | | | $29.50 | |
| Total Return* | | 17.49% | | | 6.73% | | | (2.92)%(6) | | | (0.26)% | | | 1.48% | |
| Net Assets, End of Period (in thousands) | | $3,040 | | | $3,758 | | | $32,333 | | | $8,614 | | | $10,291 | |
| Average Net Assets for the Period (in thousands) | | $6,040 | | | $14,280 | | | $37,969 | | | $9,802 | | | $9,755 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.40%(5) | | | 1.31% | | | 1.48% | | | 1.19% | | | 1.18% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.10% | | | 1.16% | | | 1.33% | | | 1.17% | | | 1.18% | |
| | Ratio of Net Investment Income/(Loss) | | 2.14%(3) | | | (0.03)% | | | 2.38% | | | 1.01% | | | 2.32% | |
| Portfolio Turnover Rate | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in September 2021. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.15 and 0.52%, respectively, for Class S Shares and $0.15 and 0.52%, respectively, for Class T Shares. (4) Total return without the effect of affiliated payments would have been (3.36)%. (5) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in September 2021. The impact of the additional professional fees to Ratio of Gross Expenses is 0.08% for Class S Shares and 0.08% for Class T Shares. (6) Total return without the effect of affiliated payments would have been (2.96)%. |
| | |
See Notes to Financial Statements. |
| |
26 | SEPTEMBER 30, 2021 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | |
Class S Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.47 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | 0.57 | |
| Total from Investment Operations | | 0.59 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $29.06 | |
| Total Return* | | 2.07% | |
| Net Assets, End of Period (in thousands) | | $51 | |
| Average Net Assets for the Period (in thousands) | | $50 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.42% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.42% | |
| | Ratio of Net Investment Income/(Loss) | | 0.38% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
Class T Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.47 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | 0.63 | |
| Total from Investment Operations | | 0.60 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $29.07 | |
| Total Return* | | 2.11% | |
| Net Assets, End of Period (in thousands) | | $9,475 | |
| Average Net Assets for the Period (in thousands) | | $2,712 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.21% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.19% | |
| | Ratio of Net Investment Income/(Loss) | | (0.68)% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| |
* Total return 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 July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 27 |
Janus Henderson International Opportunities Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson International Opportunities 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 capital appreciation primarily through investment in equities of non-U.S. companies. 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 International Opportunities 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) and Class IF Predecessor Fund shares were exchanged for Class I 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. The Fund's first fiscal year end was July 31, 2017. Subsequent to July 31, 2017, the Fund changed its fiscal year end to September 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 Fund currently implements 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 original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund relies 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.
Janus Henderson International Opportunities Fund
Notes to Financial Statements
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 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 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
Janus Henderson International Opportunities Fund
Notes to Financial Statements
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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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.
Janus Henderson International Opportunities Fund
Notes to Financial Statements
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
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.
Foreign Taxes
The Fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. As a result of rulings from European courts, the Fund filed for additional reclaims related to prior years. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. The Statement of Operations reflects $12,466,921 of tax reclaims received as well as $1,174,684 of professional fees and $3,399,668 of certain fees assessed by the Internal Revenue Service due to the recovery of foreign withholding taxes after such amounts were previously passed through to Fund shareholders as foreign tax credits.
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
Janus Henderson International Opportunities Fund
Notes to Financial Statements
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.
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
Janus Henderson International Opportunities Fund
Notes to Financial Statements
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.
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 | 1.00 |
Next $1 Billion | 0.90 |
Next $1 Billion | 0.80 |
Next $1 Billion | 0.70 |
Next $5 Billion | 0.60 |
Over $10 Billion | 0.50 |
The Fund’s actual investment advisory fee rate for the reporting period was 1.00% 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 0.88% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 28, 2021. In addition, for at least a one-year period commencing January 28, 2021, Janus Capital has agreed to reduce the administrative services fee payable by the Fund’s Class R Shares pursuant to the Fund’s Transfer Agency Agreement so that such fees do not exceed 0.21% of Class R Shares’ average daily net assets. 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 Henderson International Opportunities Fund
Notes to Financial Statements
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 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
Janus Henderson International Opportunities Fund
Notes to Financial Statements
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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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
Janus Henderson International Opportunities Fund
Notes to Financial Statements
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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $9,833.
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 September 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 September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $324.
As of September 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 | - | | - | | |
Class R Shares | - | | - | | |
Class S Shares | 89 | | -* | | |
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 (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) | |
$ 78,082,489 | $ 114,347,080 | $ - | $ - | $ - | $(3,427,689) | $207,306,171 | |
Janus Henderson International Opportunities Fund
Notes to Financial Statements
During the year ended September 30, 2021, capital loss carryovers of $58,297,397 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 September 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) |
$ 1,055,129,946 | $248,857,451 | $(39,387,088) | $ 209,470,363 |
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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 14,225,290 | $ - | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 19,912,236 | $ 50,676,842 | $ - | $ - | |
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 |
$ 37,492,502 | $ 11,418,587 | $ (48,911,089) |
Capital has been adjusted by $37,492,502, including $28,676,928 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson International Opportunities Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 1,270,599 | $ 36,749,490 | | 2,829,115 | $ 69,256,217 |
Reinvested dividends and distributions | 61,958 | 1,758,986 | | 441,425 | 11,101,842 |
Shares repurchased | (1,847,497) | (52,903,522) | | (6,176,082) | (145,300,066) |
Net Increase/(Decrease) | (514,940) | $ (14,395,046) | | (2,905,542) | $ (64,942,007) |
Class C Shares: | | | | | |
Shares sold | 60,556 | $ 1,614,870 | | 1,302,038 | $ 31,038,027 |
Reinvested dividends and distributions | - | - | | 106,986 | 2,530,209 |
Shares repurchased | (1,084,698) | (29,434,982) | | (3,507,834) | (79,722,762) |
Net Increase/(Decrease) | (1,024,142) | $ (27,820,112) | | (2,098,810) | $ (46,154,526) |
Class D Shares: | | | | | |
Shares sold | 49,919 | $ 1,457,595 | | 25,530 | $ 585,433 |
Reinvested dividends and distributions | 807 | 22,785 | | 3,373 | 84,364 |
Shares repurchased | (22,515) | (643,482) | | (33,363) | (769,980) |
Net Increase/(Decrease) | 28,211 | $ 836,898 | | (4,460) | $ (100,183) |
Class I Shares: | | | | | |
Shares sold | 3,827,292 | $ 111,716,963 | | 3,858,376 | $ 87,827,183 |
Reinvested dividends and distributions | 250,868 | 7,079,499 | | 1,506,436 | 37,691,039 |
Shares repurchased | (8,765,123) | (252,006,827) | | (19,877,952) | (447,894,201) |
Net Increase/(Decrease) | (4,686,963) | $(133,210,365) | | (14,513,140) | $(322,375,979) |
Class N Shares: | | | | | |
Shares sold | 1,633,062 | $ 46,194,658 | | 5,156,133 | $ 114,236,218 |
Reinvested dividends and distributions | 132,300 | 3,728,216 | | 450,362 | 11,250,037 |
Shares repurchased | (9,752,003) | (288,256,403) | | (2,458,343) | (56,577,284) |
Net Increase/(Decrease) | (7,986,641) | $(238,333,529) | | 3,148,152 | $ 68,908,971 |
Class R Shares: | | | | | |
Shares sold | 21,973 | $ 615,383 | | 45,588 | $ 1,068,030 |
Reinvested dividends and distributions | 168 | 4,692 | | 4,197 | 103,404 |
Shares repurchased | (90,672) | (2,578,372) | | (268,504) | (6,242,192) |
Net Increase/(Decrease) | (68,531) | $ (1,958,297) | | (218,719) | $ (5,070,758) |
Class S Shares: | | | | | |
Shares sold | 59 | $ 1,689 | | 609 | $ 14,850 |
Reinvested dividends and distributions | 18 | 518 | | 127 | 3,190 |
Shares repurchased | (36) | (991) | | (2,959) | (62,260) |
Net Increase/(Decrease) | 41 | $ 1,216 | | (2,223) | $ (44,220) |
Class T Shares: | | | | | |
Shares sold | 443,166 | $ 13,160,079 | | 37,091 | $ 906,381 |
Reinvested dividends and distributions | 749 | 21,234 | | 33,735 | 844,735 |
Shares repurchased | (490,825) | (14,533,132) | | (1,266,009) | (26,792,073) |
Net Increase/(Decrease) | (46,910) | $ (1,351,819) | | (1,195,183) | $ (25,040,957) |
6. Purchases and Sales of Investment Securities
For the year ended September 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 |
$ 915,006,505 | $ 1,402,422,233 | - | - |
Janus Henderson International Opportunities Fund
Notes to Financial Statements
7. Restatement
Subsequent to the issuance of the financial statements for the year ended September 30, 2021, management identified a material error in accounting for certain corporate actions, resulting in an overstatement of reported realized gain on investments and an understatement of the change in unrealized appreciation within the Fund’s September 30, 2020 financial statements. As a result, the accompanying financial statements for the year ended September 30, 2020 for the Fund have been restated from amounts previously reported to correct the error. The error did not impact the Fund’s net assets, total return, net investment income or the Financial Highlights.
The following table presents the previously reported and corrected information on the Statements of Changes in Net Assets:
| | | | |
| | Year ended, September 30, 2020 |
| | As Reported | Adjustment | As Restated |
Net realized gain/(loss) on investments | $2,849,201 | $(17,593,726) | $(14,744,525) |
Change in unrealized net appreciation/(depreciation) | $67,539,629 | $17,593,726 | $85,133,355 |
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 other than the following:
On October 14, 2021 the Fund received additional payment of $4,525,562 from the French tax authority relating to recovery of previously withheld taxes. The receipt of this payment is not a guarantee of future payments and Janus Capital continues to evaluate developments from European courts for potential impacts to filed claims and associated professional and foreign withholding tax reclaims fees, if any.
Janus Henderson International Opportunities Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson International Opportunities 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 Opportunities Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 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 September 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 September 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.
Restatement of Previously Issued Financial Statements
As discussed in Note 7 to the financial statements, the Fund has restated its September 30, 2020 financial statements to correct an error.
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 September 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
November 17, 2021, except for the effects of the restatement discussed in Note 7 to the financial statements, as to which the date is November 28, 2022
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson International Opportunities 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 International Opportunities 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 Opportunities 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 Opportunities 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 Opportunities 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 Opportunities 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 Opportunities 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 Opportunities 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 Opportunities 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 Opportunities 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 Opportunities 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 Opportunities 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.
Janus Henderson International Opportunities 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 September 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 Bloomberg 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 Opportunities 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.
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.
Janus Henderson International Opportunities Fund
Useful Information About Your Fund Report (unaudited)
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 Opportunities Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Capital Gain Distributions | $28,676,928 |
Qualified Dividend Income Percentage | 42% |
Janus Henderson International Opportunities 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 Opportunities 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson International Opportunities 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 Opportunities 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Opportunities 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson International Opportunities 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Opportunities 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 |
Dean Cheeseman
151 Detroit Street
Denver, CO 80206
DOB: 1972 | Executive Vice President and Co-Portfolio Manager
Janus Henderson International Opportunities Fund | 3/19-Present | Portfolio Manager for other Janus Henderson accounts. Formerly, portfolio manager and member of the Asset Allocation Committee at Mercer Partners (2011-2017). |
Paul O'Connor
151 Detroit Street
Denver, CO 80206
DOB: 1964 | Executive Vice President and Co-Portfolio Manager
Janus Henderson International Opportunities Fund | 6/17-Present (predecessor fund since 4/16) | Head of Multi-Asset 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, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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 Opportunities 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Opportunities 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 September 30, 2021 |
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| | Janus Henderson Overseas 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 Overseas Fund
Janus Henderson Overseas Fund (unaudited)
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FUND SNAPSHOT Our focus is on generating excess returns by capitalizing on the dislocation between market expectations and our assessment of a company’s free-cash-flow growth. We think success depends on incorporating independent and uncorrelated sources of insight, while executing fundamental and behavioral analyses to identify the most attractive investment opportunities. | | | | 
Julian McManus co-portfolio manager | 
George Maris co-portfolio manager |
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PERFORMANCE
The Janus Henderson Overseas Fund I Shares returned 33.96% over the 12-month period ended September 30, 2021. The Fund’s primary benchmark, the MSCI All Country World ex-U.S. IndexSM returned 23.92%.
MARKET ENVIRONMENT
The approval and rollout of COVID-19 vaccines at the start of the period, as well as ongoing accommodative policies from central banks around the world, put the global economy firmly on a path to recovery. While fiscal and monetary programs supported the recovery, increasing expectations for growth and inflation pushed global bond yields higher. European sovereign 10-year yields rose from -60 basis points to -10 basis points, and emerging markets saw even more pronounced moves, with Brazilian government bond 10-year yields jumping from 8% to 11%. This backup in rates fueled a widespread rotation out of technology stocks where high valuations had been supported by the notion that both macroeconomic growth and cost of capital would remain low, and into cyclical stocks that generally perform well in a rising rate environment. Despite continued recovery in the global economy, rates pulled back over the summer as markets were dismayed by the rapid spread of the Delta variant of the COVID-19 virus. In addition to the dampening effect of the Delta variant on markets, businesses were challenged by supply chain disruption. Some were self-inflicted (Brexit causing shortages of truck drivers and gasoline in the UK), but others were exogenous, ranging from natural gas shortages across Europe to semiconductor shortages globally. These were further exacerbated by new Chinese government policies aimed at reducing carbon emissions and energy intensity across China’s economy. This had the effect of restricting the supply of many critical upstream materials normally taken for granted, from silicon to magnesium. The resulting shortages and dislocation of logistics chains fueled a pronounced increase in inflation across most geographies. Finally, markets struggled to parameterize the burgeoning liquidity crisis in the Chinese property development sector, centered primarily on Evergrande. Despite these various challenges later in the year, international markets managed to hold on to strong gains for the period.
PERFORMANCE DISCUSSION
We employ a high-conviction investment approach seeking strong risk-adjusted performance over the long term. Over time, we think we can generate excess returns in a risk-efficient manner by identifying companies whose free cash flow growth is underestimated by the market. We were pleased to see our conviction rewarded once again this year, as many company- and industry-specific views we expressed in our portfolio crystallized and drove stocks associated with those views higher.
Areas of relative strength in the Fund included the consumer discretionary sector where a number of our holdings benefited from relaxed social distancing guidance and improved mobility as COVID-19 vaccination rates increased. A notable contributor within this sector was UK-based global sports betting and gaming company Entain (formerly GVC Holdings). The return of major sporting events and growth in online betting supported gains in the stock, which rallied further on news of a $22 billion takeover bid by U.S. competitor DraftKings, a price more than double what MGM Resorts offered in a takeover bid earlier this year. We believe Entain’s proprietary technology provides a competitive advantage by allowing it to provide better customer experiences. Furthermore, we are excited to see improving momentum in online betting and gaming in the U.S., where Entain gained market share.
Improved mobility also benefited natural gas and oil producer Canadian Natural Resources. A recovery in oil demand as economic growth and travel picked up provided a positive backdrop for the company. OPEC’s decision to extend oil production cuts and a subsequent increase in crude oil prices also contributed to share
Janus Henderson Overseas Fund (unaudited)
strength. A major capital investment program yielding operating efficiencies added to our conviction in the company.
Another meaningful contributor was ASML Holding. A pronounced shortage of semiconductors coupled with strong demand benefited the Dutch manufacturer of chip production equipment. The company saw higher order volumes during the period due primarily to a faster-than-expected rebound in the automobile industry as well as growth of the advanced computer market for cloud hyperscalers. Increased vehicle technology led to a significant rise in automotive demand for chips. We think ASML’s market leading extreme ultraviolet (EUV) lithography equipment will help the company realize consistently strong earnings growth.
While pleased with the Fund’s outperformance, select holdings weighed on results. Notable detractors were stocks caught in the downdraft caused by China’s increased regulation of private enterprises, including social media and gaming company Tencent Holdings and e-commerce giant Alibaba Group Holding. Under a common prosperity theme, the government implemented intrusive policy changes across a swath of industries. Although concerns about the impact of tighter regulation and signs of a slowdown in China’s economy led us to adjust our earnings estimates for China-exposed holdings, including Tencent and Alibaba, we retained positions in these companies as both are in alignment with government objectives and possess positive free cash flow growth outlooks.
Italian-based credit card payments processor Nexi also detracted from performance. Its stock pulled back as investors digested news of its planned acquisition of rival Nets, headquartered in Copenhagen. Several weeks earlier, Nexi announced an agreement to acquire Italian-based SIA, which would make Nexi Europe’s largest payments group. We exited the position as we were concerned with aspects of corporate governance surrounding the Nets acquisition.
OUTLOOK
Our outlook for the markets and the global economy remains clouded, causing us to remain vigilant. In China, for example, where the shifting regulatory landscape and decelerating economic growth changed risk/return dynamics for some companies, we revisited our investment theses for all of our holdings with the goal of narrowing our focus to businesses we think align with the country’s goal of common prosperity. We also increased our scrutiny on non-Chinese holdings impacted by recent developments.
Global supply constraints are expected to persist, as clearing backlogs and rebuilding inventories of critical goods and materials are likely to require a significant amount of time. The extent to which this stokes inflation and possibly curbs demand will bear watching. Consequently, all eyes are on global central banks as they attempt to manage inflation without jeopardizing economic growth and employment. We think normalizing interest rates could resolve the disconnect between the valuations and earnings of select companies. The pandemic continues to be a risk we monitor, especially in emerging markets where variants of the virus spread rapidly during the quarter. Although we think the possibility of large-scale economic shutdowns is unlikely, we do not think the battle against COVID-19 is yet won.
Despite these variables, we think market volatility will provide opportunities to invest in companies where our research suggests stock valuations may not reflect underlying growth prospects. We also believe our thorough analysis and disciplined investment approach will continue to serve us well in our pursuit of strong risk-adjusted returns over the long term.
Thank you for your continued investment in Janus Henderson Overseas Fund.
Janus Henderson Overseas Fund (unaudited)
Fund At A Glance
September 30, 2021
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| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Entain PLC | 3.29% | | 2.45% | | Alibaba Group Holding Ltd | 2.97% | | -1.50% |
| Canadian Natural Resources Ltd | 2.69% | | 2.06% | | Tencent Holdings Ltd | 4.48% | | -1.00% |
| ASML Holding NV | 4.00% | | 1.88% | | Takeda Pharmaceutical Co Ltd | 2.69% | | -0.88% |
| BNP Paribas SA | 3.36% | | 1.53% | | Nexi SpA | 0.86% | | -0.65% |
| Teck Resources Ltd | 3.01% | | 1.50% | | Freeport-McMoRan Inc | 0.58% | | -0.51% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-U.S. Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | 2.67% | | 13.30% | 13.64% |
| Industrials | | 2.14% | | 10.68% | 11.79% |
| Materials | | 2.04% | | 8.61% | 8.22% |
| Information Technology | | 1.92% | | 14.68% | 12.70% |
| Consumer Staples | | 1.75% | | 6.76% | 8.68% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-U.S. Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | -0.60% | | 9.77% | 9.39% |
| Other** | | -0.52% | | 2.86% | 0.00% |
| Communication Services | | -0.34% | | 8.70% | 6.97% |
| Real Estate | | 0.32% | | 0.00% | 2.59% |
| Utilities | | 0.47% | | 0.00% | 3.17% |
| | | | | | | |
| 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 Overseas Fund (unaudited)
Fund At A Glance
September 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Ferguson PLC | |
Trading Companies & Distributors | 4.8% |
ASML Holding NV | |
Semiconductor & Semiconductor Equipment | 4.6% |
AstraZeneca PLC | |
Pharmaceuticals | 4.2% |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 4.1% |
BNP Paribas SA | |
Banks | 4.0% |
| | 21.7% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 95.9% | |
Investment Companies | | 4.1% | |
Other | | 0.0% |
| | | 100.0% |
Emerging markets comprised 19.4% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
|
Janus Henderson Overseas Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
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| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 33.54% | 11.64% | 5.14% | 8.11% | | | 1.17% |
Class A Shares at MOP | | 25.86% | 10.33% | 4.51% | 7.88% | | | |
Class C Shares at NAV | | 32.41% | 10.76% | 4.31% | 7.36% | | | 2.04% |
Class C Shares at CDSC | | 31.41% | 10.76% | 4.31% | 7.36% | | | |
Class D Shares | | 33.89% | 11.97% | 5.45% | 8.30% | | | 0.89% |
Class I Shares | | 33.96% | 12.00% | 5.49% | 8.33% | | | 0.84% |
Class N Shares | | 34.06% | 12.12% | 5.58% | 8.34% | | | 0.74% |
Class R Shares | | 33.12% | 11.31% | 4.83% | 7.74% | | | 1.49% |
Class S Shares | | 33.43% | 11.58% | 5.09% | 7.99% | | | 1.23% |
Class T Shares | | 33.78% | 11.87% | 5.36% | 8.26% | | | 0.98% |
MSCI All Country World ex-U.S. Index | | 23.92% | 8.94% | 7.48% | N/A** | | | |
Morningstar Quartile - Class T Shares | | 1st | 1st | 4th | 1st | | | |
Morningstar Ranking - based on total returns for Foreign Large Blend Funds | | 34/778 | 29/673 | 525/533 | 16/128 | | | |
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.
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, Environmental, Social and Governance (ESG) factors, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and
Janus Henderson Overseas Fund (unaudited)
Performance
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 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 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.”
Effective March 1, 2021, George Maris and Julian McManus are Co-Portfolio Managers of the Fund.
*The Fund’s inception date – May 2, 1994
**Since inception index return is not available for indices created subsequent to fund inception.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Overseas 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,051.20 | $6.27 | | $1,000.00 | $1,018.95 | $6.17 | 1.22% |
Class C Shares | $1,000.00 | $1,046.80 | $10.52 | | $1,000.00 | $1,014.79 | $10.35 | 2.05% |
Class D Shares | $1,000.00 | $1,052.50 | $4.84 | | $1,000.00 | $1,020.36 | $4.76 | 0.94% |
Class I Shares | $1,000.00 | $1,052.80 | $4.58 | | $1,000.00 | $1,020.61 | $4.51 | 0.89% |
Class N Shares | $1,000.00 | $1,053.10 | $4.17 | | $1,000.00 | $1,021.01 | $4.10 | 0.81% |
Class R Shares | $1,000.00 | $1,049.40 | $8.01 | | $1,000.00 | $1,017.25 | $7.89 | 1.56% |
Class S Shares | $1,000.00 | $1,050.70 | $6.68 | | $1,000.00 | $1,018.55 | $6.58 | 1.30% |
Class T Shares | $1,000.00 | $1,052.00 | $5.40 | | $1,000.00 | $1,019.80 | $5.32 | 1.05% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 Overseas Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 95.9% | | | |
Aerospace & Defense – 3.0% | | | |
| | Airbus SE* | | 412,259 | | | $54,120,510 | |
Banks – 9.8% | | | |
| | BNP Paribas SA | | 1,132,173 | | | 72,512,323 | |
| | China Construction Bank Corp | | 61,712,000 | | | 43,776,717 | |
| | Erste Group Bank AG | | 1,097,461 | | | 47,921,882 | |
| | Permanent TSB Group Holdings PLC* | | 7,893,218 | | | 13,248,035 | |
| | | 177,458,957 | |
Beverages – 6.6% | | | |
| | Diageo PLC | | 1,153,853 | | | 55,587,922 | |
| | Heineken NV | | 611,448 | | | 63,553,352 | |
| | | 119,141,274 | |
Biotechnology – 0.8% | | | |
| | Ascendis Pharma A/S (ADR)* | | 94,103 | | | 14,999,077 | |
Building Products – 1.1% | | | |
| | Assa Abloy AB | | 687,546 | | | 19,943,060 | |
Diversified Financial Services – 0.1% | | | |
| | Jackson Financial Inc* | | 46,080 | | | 1,198,080 | |
| | Linklogis Inc - Class B* | | 534,993 | | | 545,928 | |
| | | 1,744,008 | |
Electronic Equipment, Instruments & Components – 2.7% | | | |
| | Hexagon AB - Class B | | 3,125,778 | | | 48,180,693 | |
Entertainment – 5.0% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 638,509 | | | 32,825,748 | |
| | Nintendo Co Ltd | | 62,700 | | | 30,505,085 | |
| | Sea Ltd (ADR)* | | 83,528 | | | 26,622,879 | |
| | | 89,953,712 | |
Hotels, Restaurants & Leisure – 6.0% | | | |
| | GVC Holdings PLC* | | 2,426,588 | | | 69,453,098 | |
| | Yum China Holdings Inc | | 661,200 | | | 38,915,211 | |
| | | 108,368,309 | |
Insurance – 11.1% | | | |
| | AIA Group Ltd | | 4,530,600 | | | 52,167,641 | |
| | Beazley PLC* | | 5,147,256 | | | 26,083,936 | |
| | Intact Financial Corp | | 165,135 | | | 21,838,921 | |
| | NN Group NV | | 1,186,076 | | | 61,890,338 | |
| | Prudential PLCž | | 1,843,210 | | | 35,776,315 | |
| | Prudential PLCž | | 147,250 | | | 2,805,282 | |
| | | 200,562,433 | |
Interactive Media & Services – 3.4% | | | |
| | NAVER Corp | | 63,088 | | | 20,574,242 | |
| | Tencent Holdings Ltd | | 690,800 | | | 40,505,819 | |
| | | 61,080,061 | |
Internet & Direct Marketing Retail – 1.7% | | | |
| | Alibaba Group Holding Ltd* | | 1,623,692 | | | 30,201,660 | |
Metals & Mining – 8.2% | | | |
| | Freeport-McMoRan Inc | | 714,502 | | | 23,242,750 | |
| | Hindustan Zinc Ltd | | 8,149,485 | | | 33,818,832 | |
| | Rio Tinto Ltd | | 346,760 | | | 24,635,649 | |
| | Teck Resources Ltd | | 2,656,995 | | | 66,152,126 | |
| | | 147,849,357 | |
Oil, Gas & Consumable Fuels – 5.3% | | | |
| | Canadian Natural Resources Ltd | | 1,716,214 | | | 62,710,460 | |
| | Total SE | | 698,116 | | | 33,448,699 | |
| | | 96,159,159 | |
Pharmaceuticals – 9.1% | | | |
| | AstraZeneca PLC | | 630,305 | | | 75,867,770 | |
| | Novartis AG | | 357,297 | | | 29,317,440 | |
| | Sanofi | | 186,793 | | | 17,979,197 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2021 |
Janus Henderson Overseas Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Pharmaceuticals– (continued) | | | |
| | Takeda Pharmaceutical Co Ltd | | 1,280,376 | | | $42,447,351 | |
| | | 165,611,758 | |
Road & Rail – 2.4% | | | |
| | Central Japan Railway Co | | 274,500 | | | 43,879,579 | |
Semiconductor & Semiconductor Equipment – 8.7% | | | |
| | ASML Holding NV | | 113,818 | | | 83,949,396 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 3,620,000 | | | 74,654,881 | |
| | | 158,604,277 | |
Specialty Retail – 1.3% | | | |
| | Industria de Diseno Textil SA | | 655,943 | | | 23,861,734 | |
Technology Hardware, Storage & Peripherals – 2.3% | | | |
| | Samsung Electronics Co Ltd | | 670,851 | | | 41,788,259 | |
Textiles, Apparel & Luxury Goods – 2.5% | | | |
| | Samsonite International SA (144A)* | | 21,289,200 | | | 45,619,523 | |
Trading Companies & Distributors – 4.8% | | | |
| | Ferguson PLC | | 633,121 | | | 87,752,032 | |
Total Common Stocks (cost $1,337,410,730) | | 1,736,879,432 | |
Investment Companies– 4.1% | | | |
Money Markets – 4.1% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $74,344,676) | | 74,337,507 | | | 74,344,941 | |
Total Investments (total cost $1,411,755,406) – 100.0% | | 1,811,224,373 | |
Cash, Receivables and Other Assets, net of Liabilities – 0% | | 463,499 | |
Net Assets – 100% | | $1,811,687,872 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United Kingdom | | $265,574,323 | | 14.7 | % |
United States | | 219,363,551 | | 12.1 | |
Netherlands | | 209,393,086 | | 11.6 | |
France | | 178,060,729 | | 9.8 | |
China | | 153,945,335 | | 8.5 | |
Canada | | 150,701,507 | | 8.3 | |
Japan | | 116,832,015 | | 6.5 | |
Taiwan | | 101,277,760 | | 5.6 | |
Hong Kong | | 97,787,164 | | 5.4 | |
Sweden | | 68,123,753 | | 3.8 | |
South Korea | | 62,362,501 | | 3.4 | |
Austria | | 47,921,882 | | 2.6 | |
India | | 33,818,832 | | 1.9 | |
Switzerland | | 29,317,440 | | 1.6 | |
Australia | | 24,635,649 | | 1.4 | |
Spain | | 23,861,734 | | 1.3 | |
Denmark | | 14,999,077 | | 0.8 | |
Ireland | | 13,248,035 | | 0.7 | |
| | | | | | |
| | | | | | |
Total | | $1,811,224,373 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Overseas Fund
Schedule of Investments
September 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/21 |
Investment Companies - 4.1% |
Money Markets - 4.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | $ | 28,911 | $ | (246) | $ | (16) | $ | 74,344,941 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 32,929∆ | | - | | - | | - |
Total Affiliated Investments - 4.1% | $ | 61,840 | $ | (246) | $ | (16) | $ | 74,344,941 |
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Investment Companies - 4.1% |
Money Markets - 4.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 19,042,833 | | 402,165,055 | | (346,862,685) | | 74,344,941 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 234,221 | | 282,054,525 | | (282,288,746) | | - |
The following table provides information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended September 30, 2021.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2021 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Equity
Contracts |
Futures contracts | | $ (8,440) |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Please see the "Net Realized Gain/(Loss) on Investments" section of the Fund’s Statement of Operations.
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Overseas Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI All Country World ex-U.S. IndexSM | MSCI All Country World ex-U.S. IndexSM reflects the equity market performance of global developed and emerging markets, excluding the U.S. |
| | |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability 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 September 30, 2021 is $45,619,523, which represents 2.5% of net assets. |
| | |
* | Non-income producing security. |
| | |
ž | Issued by the same entity and traded on separate exchanges. |
| | |
ºº | Rate shown is the 7-day yield as of September 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 September 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 | | | | | | |
Biotechnology | $ | 14,999,077 | $ | - | $ | - |
Diversified Financial Services | | 1,744,008 | | - | | - |
Entertainment | | 59,448,627 | | 30,505,085 | | - |
Insurance | | 21,838,921 | | 178,723,512 | | - |
Metals & Mining | | 89,394,876 | | 58,454,481 | | - |
Oil, Gas & Consumable Fuels | | 62,710,460 | | 33,448,699 | | - |
All Other | | - | | 1,185,611,686 | | - |
Investment Companies | | - | | 74,344,941 | | - |
Total Assets | $ | 250,135,969 | $ | 1,561,088,404 | $ | - |
| | | | | | | |
Janus Henderson Overseas Fund
Statement of Assets and Liabilities
September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $1,337,410,730) | | $ | 1,736,879,432 | |
| Affiliated investments, at value (cost $74,344,676) | | | 74,344,941 | |
| Cash | | | 33,836 | |
| Cash denominated in foreign currency (cost $91,968) | | | 91,968 | |
| Non-interested Trustees' deferred compensation | | | 45,181 | |
| Receivables: | | | | |
| | Fund shares sold | | | 7,317,649 | |
| | Dividends | | | 3,468,120 | |
| | Foreign tax reclaims | | | 1,191,068 | |
| | Dividends from affiliates | | | 2,306 | |
| Other assets | | | 10,759 | |
Total Assets | | | 1,823,385,260 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 7,223,701 | |
| | Investments purchased | | | 2,750,826 | |
| | Advisory fees | | | 1,140,534 | |
| | Transfer agent fees and expenses | | | 265,051 | |
| | Professional fees | | | 48,408 | |
| | Non-interested Trustees' deferred compensation fees | | | 45,181 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 43,175 | |
| | Custodian fees | | | 29,928 | |
| | Non-interested Trustees' fees and expenses | | | 11,313 | |
| | Affiliated fund administration fees payable | | | 3,792 | |
| | Accrued expenses and other payables | | | 135,479 | |
Total Liabilities | | | 11,697,388 | |
Net Assets | | $ | 1,811,687,872 | |
| | |
See Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2021 |
Janus Henderson Overseas Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 2,914,971,575 | |
| Total distributable earnings (loss) (includes $190,250 of foreign capital gains tax) | | | (1,103,283,703) | |
Total Net Assets | | $ | 1,811,687,872 | |
Net Assets - Class A Shares | | $ | 21,129,940 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 481,245 | |
Net Asset Value Per Share(1) | | $ | 43.91 | |
Maximum Offering Price Per Share(2) | | $ | 46.59 | |
Net Assets - Class C Shares | | $ | 1,295,162 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 30,024 | |
Net Asset Value Per Share(1) | | $ | 43.14 | |
Net Assets - Class D Shares | | $ | 726,915,733 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 16,714,751 | |
Net Asset Value Per Share | | $ | 43.49 | |
Net Assets - Class I Shares | | $ | 312,685,275 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 7,158,482 | |
Net Asset Value Per Share | | $ | 43.68 | |
Net Assets - Class N Shares | | $ | 61,262,707 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,410,500 | |
Net Asset Value Per Share | | $ | 43.43 | |
Net Assets - Class R Shares | | $ | 24,155,149 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 560,503 | |
Net Asset Value Per Share | | $ | 43.10 | |
Net Assets - Class S Shares | | $ | 130,075,652 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,991,542 | |
Net Asset Value Per Share | | $ | 43.48 | |
Net Assets - Class T Shares | | $ | 534,168,254 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,270,924 | |
Net Asset Value Per Share | | $ | 43.53 | |
| |
(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 | 13 |
Janus Henderson Overseas Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 38,711,012 | |
| Affiliated securities lending income, net | | 32,929 | |
| Dividends from affiliates | | 28,911 | |
| Unaffiliated securities lending income, net | | 616 | |
| Interest | | 77 | |
| Other income | | 2 | |
| Foreign tax withheld | | (4,408,432) | |
Total Investment Income | | 34,365,115 | |
Expenses: | | | |
| Advisory fees | | 11,598,093 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 48,456 | |
| | Class C Shares | | 17,580 | |
| | Class R Shares | | 120,225 | |
| | Class S Shares | | 317,781 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 793,311 | |
| | Class R Shares | | 61,543 | |
| | Class S Shares | | 317,683 | |
| | Class T Shares | | 1,277,850 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 30,140 | |
| | Class C Shares | | 3,260 | |
| | Class I Shares | | 80,539 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 1,375 | |
| | Class C Shares | | 129 | |
| | Class D Shares | | 122,980 | |
| | Class I Shares | | 3,496 | |
| | Class N Shares | | 1,190 | |
| | Class R Shares | | 452 | |
| | Class S Shares | | 1,699 | |
| | Class T Shares | | 6,246 | |
| Shareholder reports expense | | 190,316 | |
| Custodian fees | | 138,827 | |
| Registration fees | | 137,638 | |
| Professional fees | | 73,351 | |
| Affiliated fund administration fees | | 42,823 | |
| Non-interested Trustees’ fees and expenses | | 23,055 | |
| Other expenses | | 152,795 | |
Total Expenses | | 15,562,833 | |
Less: Excess Expense Reimbursement and Waivers | | (35,425) | |
Net Expenses | | 15,527,408 | |
Net Investment Income/(Loss) | | 18,837,707 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2021 |
Janus Henderson Overseas Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (net of foreign taxes of $8,144) | $ | 186,242,583 | |
| Investments in affiliates | | (246) | |
| Futures contracts | | (8,440) | |
Total Net Realized Gain/(Loss) on Investments | | 186,233,897 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 193,777,079 | |
| Investments in affiliates | | (16) | |
Total Change in Unrealized Net Appreciation/Depreciation | | 193,777,063 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 398,848,667 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Overseas Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 18,837,707 | | $ | 11,036,358 | |
| Net realized gain/(loss) on investments | | 186,233,897 | | | 91,495,497 | |
| Change in unrealized net appreciation/depreciation | | 193,777,063 | | | 684,524 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 398,848,667 | | | 103,216,379 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (107,051) | | | (305,712) | |
| | Class C Shares | | — | | | (15,298) | |
| | Class D Shares | | (5,967,635) | | | (12,903,741) | |
| | Class I Shares | | (517,002) | | | (977,241) | |
| | Class N Shares | | (284,437) | | | (1,256,873) | |
| | Class R Shares | | (79,393) | | | (381,780) | |
| | Class S Shares | | (691,150) | | | (2,043,220) | |
| | Class T Shares | | (3,930,037) | | | (9,342,424) | |
Net Decrease from Dividends and Distributions to Shareholders | | (11,576,705) | | | (27,226,289) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 922,662 | | | (3,236,521) | |
| | Class C Shares | | (2,078,020) | | | (1,225,431) | |
| | Class D Shares | | (31,046,777) | | | (50,587,599) | |
| | Class I Shares | | 254,653,679 | | | (369,031) | |
| | Class N Shares | | 28,902,097 | | | (30,517,956) | |
| | Class R Shares | | (3,865,001) | | | (4,603,344) | |
| | Class S Shares | | (11,238,460) | | | (18,160,515) | |
| | Class T Shares | | (11,754,047) | | | (57,172,478) | |
Net Increase/(Decrease) from Capital Share Transactions | | 224,496,133 | | | (165,872,875) | |
Net Increase/(Decrease) in Net Assets | | 611,768,095 | | | (89,882,785) | |
Net Assets: | | | | | | |
| Beginning of period | | 1,199,919,777 | | | 1,289,802,562 | |
| End of period | $ | 1,811,687,872 | | $ | 1,199,919,777 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2021 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $33.08 | | | $30.94 | | | $32.42 | | | $32.21 | | | $26.77 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.43 | | | 0.21 | | | 0.53 | | | 0.37 | | | 0.38 | |
| | Net realized and unrealized gain/(loss) | | 10.64 | | | 2.51 | | | (1.77) | | | 0.34 | | | 5.27 | |
| Total from Investment Operations | | 11.07 | | | 2.72 | | | (1.24) | | | 0.71 | | | 5.65 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.24) | | | (0.58) | | | (0.24) | | | (0.50) | | | (0.21) | |
| Total Dividends and Distributions | | (0.24) | | | (0.58) | | | (0.24) | | | (0.50) | | | (0.21) | |
| Net Asset Value, End of Period | | $43.91 | | | $33.08 | | | $30.94 | | | $32.42 | | | $32.21 | |
| Total Return* | | 33.54% | | | 8.74% | | | (3.74)% | | | 2.18% | | | 21.32% | |
| Net Assets, End of Period (in thousands) | | $21,130 | | | $15,231 | | | $17,470 | | | $16,739 | | | $18,652 | |
| Average Net Assets for the Period (in thousands) | | $19,864 | | | $15,904 | | | $17,537 | | | $18,900 | | | $19,582 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.22% | | | 1.17% | | | 1.11% | | | 1.01% | | | 0.97% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.22% | | | 1.17% | | | 1.10% | | | 0.99% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | 1.03% | | | 0.66% | | | 1.78% | | | 1.12% | | | 1.34% | |
| Portfolio Turnover Rate | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.58 | | | $30.34 | | | $31.76 | | | $31.52 | | | $26.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.02) | | | (0.06) | | | 0.28 | | | 0.10 | | | 0.18 | |
| | Net realized and unrealized gain/(loss) | | 10.58 | | | 2.43 | | | (1.70) | | | 0.35 | | | 5.17 | |
| Total from Investment Operations | | 10.56 | | | 2.37 | | | (1.42) | | | 0.45 | | | 5.35 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.13) | | | — | | | (0.21) | | | — | |
| Total Dividends and Distributions | | — | | | (0.13) | | | — | | | (0.21) | | | — | |
| Net Asset Value, End of Period | | $43.14 | | | $32.58 | | | $30.34 | | | $31.76 | | | $31.52 | |
| Total Return* | | 32.41% | | | 7.79% | | | (4.47)% | | | 1.42% | | | 20.44% | |
| Net Assets, End of Period (in thousands) | | $1,295 | | | $2,665 | | | $3,693 | | | $10,244 | | | $15,088 | |
| Average Net Assets for the Period (in thousands) | | $1,910 | | | $3,305 | | | $5,809 | | | $13,589 | | | $16,539 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.06% | | | 2.02% | | | 1.90% | | | 1.72% | | | 1.74% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.06% | | | 1.99% | | | 1.87% | | | 1.71% | | | 1.65% | |
| | Ratio of Net Investment Income/(Loss) | | (0.04)% | | | (0.19)% | | | 0.95% | | | 0.31% | | | 0.65% | |
| Portfolio Turnover Rate | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.77 | | | $30.66 | | | $32.12 | | | $31.92 | | | $26.57 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.53 | | | 0.30 | | | 0.63 | | | 0.47 | | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | 10.54 | | | 2.50 | | | (1.78) | | | 0.34 | | | 5.19 | |
| Total from Investment Operations | | 11.07 | | | 2.80 | | | (1.15) | | | 0.81 | | | 5.68 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.35) | | | (0.69) | | | (0.31) | | | (0.61) | | | (0.33) | |
| Total Dividends and Distributions | | (0.35) | | | (0.69) | | | (0.31) | | | (0.61) | | | (0.33) | |
| Net Asset Value, End of Period | | $43.49 | | | $32.77 | | | $30.66 | | | $32.12 | | | $31.92 | |
| Total Return* | | 33.89% | | | 9.06% | | | (3.46)% | | | 2.52% | | | 21.72% | |
| Net Assets, End of Period (in thousands) | | $726,916 | | | $572,590 | | | $587,147 | | | $687,846 | | | $731,578 | |
| Average Net Assets for the Period (in thousands) | | $704,107 | | | $570,593 | | | $605,377 | | | $738,059 | | | $677,837 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.95% | | | 0.89% | | | 0.79% | | | 0.68% | | | 0.62% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.95% | | | 0.89% | | | 0.79% | | | 0.68% | | | 0.62% | |
| | Ratio of Net Investment Income/(Loss) | | 1.28% | | | 0.98% | | | 2.11% | | | 1.42% | | | 1.75% | |
| Portfolio Turnover Rate | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.91 | | | $30.79 | | | $32.25 | | | $32.05 | | | $26.69 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.72 | | | 0.32 | | | 0.64 | | | 0.48 | | | 0.51 | |
| | Net realized and unrealized gain/(loss) | | 10.41 | | | 2.50 | | | (1.77) | | | 0.34 | | | 5.18 | |
| Total from Investment Operations | | 11.13 | | | 2.82 | | | (1.13) | | | 0.82 | | | 5.69 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.36) | | | (0.70) | | | (0.33) | | | (0.62) | | | (0.33) | |
| Total Dividends and Distributions | | (0.36) | | | (0.70) | | | (0.33) | | | (0.62) | | | (0.33) | |
| Net Asset Value, End of Period | | $43.68 | | | $32.91 | | | $30.79 | | | $32.25 | | | $32.05 | |
| Total Return* | | 33.96% | | | 9.10% | | | (3.40)% | | | 2.54% | | | 21.62% | |
| Net Assets, End of Period (in thousands) | | $312,685 | | | $44,806 | | | $42,606 | | | $52,204 | | | $61,797 | |
| Average Net Assets for the Period (in thousands) | | $90,200 | | | $43,005 | | | $45,239 | | | $58,918 | | | $59,304 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.90% | | | 0.84% | | | 0.74% | | | 0.64% | | | 0.57% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.84% | | | 0.74% | | | 0.64% | | | 0.57% | |
| | Ratio of Net Investment Income/(Loss) | | 1.72% | | | 1.04% | | | 2.14% | | | 1.44% | | | 1.79% | |
| Portfolio Turnover Rate | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.72 | | | $30.62 | | | $32.08 | | | $31.89 | | | $26.58 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.64 | | | 0.32 | | | 0.68 | | | 0.52 | | | 0.66 | |
| | Net realized and unrealized gain/(loss) | | 10.46 | | | 2.52 | | | (1.77) | | | 0.33 | | | 5.03 | |
| Total from Investment Operations | | 11.10 | | | 2.84 | | | (1.09) | | | 0.85 | | | 5.69 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.39) | | | (0.74) | | | (0.37) | | | (0.66) | | | (0.38) | |
| Total Dividends and Distributions | | (0.39) | | | (0.74) | | | (0.37) | | | (0.66) | | | (0.38) | |
| Net Asset Value, End of Period | | $43.43 | | | $32.72 | | | $30.62 | | | $32.08 | | | $31.89 | |
| Total Return* | | 34.06% | | | 9.20% | | | (3.27)% | | | 2.65% | | | 21.76% | |
| Net Assets, End of Period (in thousands) | | $61,263 | | | $23,810 | | | $51,945 | | | $69,995 | | | $76,655 | |
| Average Net Assets for the Period (in thousands) | | $42,249 | | | $45,317 | | | $59,886 | | | $74,170 | | | $53,209 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.81% | | | 0.74% | | | 0.63% | | | 0.53% | | | 0.47% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.81% | | | 0.74% | | | 0.63% | | | 0.53% | | | 0.47% | |
| | Ratio of Net Investment Income/(Loss) | | 1.54% | | | 1.02% | | | 2.27% | | | 1.58% | | | 2.29% | |
| Portfolio Turnover Rate | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.48 | | | $30.41 | | | $31.78 | | | $31.60 | | | $26.28 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.27 | | | 0.11 | | | 0.44 | | | 0.26 | | | 0.32 | |
| | Net realized and unrealized gain/(loss) | | 10.48 | | | 2.45 | | | (1.72) | | | 0.34 | | | 5.16 | |
| Total from Investment Operations | | 10.75 | | | 2.56 | | | (1.28) | | | 0.60 | | | 5.48 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.49) | | | (0.09) | | | (0.42) | | | (0.16) | |
| Total Dividends and Distributions | | (0.13) | | | (0.49) | | | (0.09) | | | (0.42) | | | (0.16) | |
| Net Asset Value, End of Period | | $43.10 | | | $32.48 | | | $30.41 | | | $31.78 | | | $31.60 | |
| Total Return* | | 33.12% | | | 8.37% | | | (4.00)% | | | 1.88% | | | 20.99% | |
| Net Assets, End of Period (in thousands) | | $24,155 | | | $21,288 | | | $24,381 | | | $30,258 | | | $35,054 | |
| Average Net Assets for the Period (in thousands) | | $24,617 | | | $22,679 | | | $25,588 | | | $34,353 | | | $34,347 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.56% | | | 1.49% | | | 1.39% | | | 1.27% | | | 1.20% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.56% | | | 1.49% | | | 1.39% | | | 1.27% | | | 1.20% | |
| | Ratio of Net Investment Income/(Loss) | | 0.66% | | | 0.35% | | | 1.50% | | | 0.81% | | | 1.15% | |
| Portfolio Turnover Rate | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.77 | | | $30.67 | | | $32.08 | | | $31.89 | | | $26.53 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.38 | | | 0.19 | | | 0.53 | | | 0.35 | | | 0.40 | |
| | Net realized and unrealized gain/(loss) | | 10.55 | | | 2.48 | | | (1.75) | | | 0.34 | | | 5.18 | |
| Total from Investment Operations | | 10.93 | | | 2.67 | | | (1.22) | | | 0.69 | | | 5.58 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.22) | | | (0.57) | | | (0.19) | | | (0.50) | | | (0.22) | |
| Total Dividends and Distributions | | (0.22) | | | (0.57) | | | (0.19) | | | (0.50) | | | (0.22) | |
| Net Asset Value, End of Period | | $43.48 | | | $32.77 | | | $30.67 | | | $32.08 | | | $31.89 | |
| Total Return* | | 33.43% | | | 8.64% | | | (3.74)% | | | 2.16% | | | 21.26% | |
| Net Assets, End of Period (in thousands) | | $130,076 | | | $107,722 | | | $118,308 | | | $143,500 | | | $159,832 | |
| Average Net Assets for the Period (in thousands) | | $127,073 | | | $109,624 | | | $125,646 | | | $158,138 | | | $151,659 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.31% | | | 1.23% | | | 1.13% | | | 1.02% | | | 0.95% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.31% | | | 1.23% | | | 1.13% | | | 1.02% | | | 0.95% | |
| | Ratio of Net Investment Income/(Loss) | | 0.92% | | | 0.62% | | | 1.77% | | | 1.06% | | | 1.40% | |
| Portfolio Turnover Rate | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.80 | | | $30.70 | | | $32.14 | | | $31.95 | | | $26.59 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.49 | | | 0.27 | | | 0.60 | | | 0.43 | | | 0.47 | |
| | Net realized and unrealized gain/(loss) | | 10.56 | | | 2.49 | | | (1.76) | | | 0.34 | | | 5.20 | |
| Total from Investment Operations | | 11.05 | | | 2.76 | | | (1.16) | | | 0.77 | | | 5.67 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.32) | | | (0.66) | | | (0.28) | | | (0.58) | | | (0.31) | |
| Total Dividends and Distributions | | (0.32) | | | (0.66) | | | (0.28) | | | (0.58) | | | (0.31) | |
| Net Asset Value, End of Period | | $43.53 | | | $32.80 | | | $30.70 | | | $32.14 | | | $31.95 | |
| Total Return* | | 33.78% | | | 8.93% | | | (3.51)% | | | 2.40% | | | 21.62% | |
| Net Assets, End of Period (in thousands) | | $534,168 | | | $411,807 | | | $444,252 | | | $532,840 | | | $605,692 | |
| Average Net Assets for the Period (in thousands) | | $511,140 | | | $422,347 | | | $462,499 | | | $589,204 | | | $580,342 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.05% | | | 0.98% | | | 0.88% | | | 0.77% | | | 0.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.05% | | | 0.97% | | | 0.87% | | | 0.77% | | | 0.69% | |
| | Ratio of Net Investment Income/(Loss) | | 1.19% | | | 0.88% | | | 2.03% | | | 1.32% | | | 1.65% | |
| Portfolio Turnover Rate | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Overseas Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Overseas 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 original 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 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
Janus Henderson Overseas 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 Overseas 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.
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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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.
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
Janus Henderson Overseas Fund
Notes to Financial Statements
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 September 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.
Janus Henderson Overseas Fund
Notes to Financial Statements
· 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 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 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.
There were no futures held at September 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
Janus Henderson Overseas Fund
Notes to Financial Statements
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.
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
Janus Henderson Overseas Fund
Notes to Financial Statements
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 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.
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
Janus Henderson Overseas 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.
There were no securities on loan as of September 30, 2021.
4. 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 0.64%, and the Fund’s benchmark index used in the calculation is the MSCI All Country World ex-U.S IndexSM.
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 ±7.00%. 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 September 30, 2021, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.76%.
Janus Henderson Overseas Fund
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 performance adjustments to management fees (if applicable), 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 0.87% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 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 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 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
Janus Henderson Overseas Fund
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 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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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
Janus Henderson Overseas Fund
Notes to Financial Statements
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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $1,864.
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 September 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 September 30, 2021.
As of September 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 | 51 | | 2 | | |
Class R Shares | - | | - | | |
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 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 Overseas 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 September 30, 2021, the Fund engaged in cross trades amounting to $897,974 in sales, resulting in a net realized loss of $137,542. The net realized loss 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 (reduced by foreign tax liability).
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) | |
$ 18,728,229 | $ - | $(1,514,551,673) | $ - | $ - | $ (49,652) | $392,589,393 | |
During the year ended September 30, 2021, capital loss carryovers of $186,499,393 were utilized by the Fund.
Accumulated capital losses noted below represent net capital loss carryovers, as of September 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 September 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(108,376,090) | $(1,406,175,583) | $(1,514,551,673) | | |
Janus Henderson Overseas 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 September 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) |
$ 1,418,825,230 | $ 453,863,432 | $(61,464,289) | $ 392,399,143 |
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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 11,576,705 | $ - | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 27,226,289 | $ - | $ - | $ - | |
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 | $ (128,619) | $ 128,618 |
Janus Henderson Overseas Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 102,005 | $ 4,230,884 | | 62,259 | $ 1,978,697 |
Reinvested dividends and distributions | 2,396 | 94,728 | | 7,438 | 254,749 |
Shares repurchased | (83,593) | (3,402,950) | | (173,833) | (5,469,967) |
Net Increase/(Decrease) | 20,808 | $ 922,662 | | (104,136) | $ (3,236,521) |
Class C Shares: | | | | | |
Shares sold | 8,149 | $ 348,407 | | 11,392 | $ 374,080 |
Reinvested dividends and distributions | - | - | | 387 | 13,132 |
Shares repurchased | (59,908) | (2,426,427) | | (51,732) | (1,612,643) |
Net Increase/(Decrease) | (51,759) | $ (2,078,020) | | (39,953) | $ (1,225,431) |
Class D Shares: | | | | | |
Shares sold | 498,097 | $ 20,658,885 | | 344,224 | $ 10,640,898 |
Reinvested dividends and distributions | 143,831 | 5,620,916 | | 360,246 | 12,194,317 |
Shares repurchased | (1,401,589) | (57,326,578) | | (2,378,377) | (73,422,814) |
Net Increase/(Decrease) | (759,661) | $ (31,046,777) | | (1,673,907) | $(50,587,599) |
Class I Shares: | | | | | |
Shares sold | 6,251,378 | $273,610,269 | | 373,879 | $ 11,530,491 |
Reinvested dividends and distributions | 13,025 | 511,118 | | 28,414 | 965,797 |
Shares repurchased | (467,402) | (19,467,708) | | (424,396) | (12,865,319) |
Net Increase/(Decrease) | 5,797,001 | $254,653,679 | | (22,103) | $ (369,031) |
Class N Shares: | | | | | |
Shares sold | 797,738 | $ 33,711,854 | | 114,040 | $ 3,580,246 |
Reinvested dividends and distributions | 7,295 | 284,437 | | 37,230 | 1,256,873 |
Shares repurchased | (122,302) | (5,094,194) | | (1,119,971) | (35,355,075) |
Net Increase/(Decrease) | 682,731 | $ 28,902,097 | | (968,701) | $(30,517,956) |
Class R Shares: | | | | | |
Shares sold | 83,917 | $ 3,412,821 | | 101,162 | $ 2,918,514 |
Reinvested dividends and distributions | 1,977 | 76,958 | | 10,748 | 362,419 |
Shares repurchased | (180,713) | (7,354,780) | | (258,313) | (7,884,277) |
Net Increase/(Decrease) | (94,819) | $ (3,865,001) | | (146,403) | $ (4,603,344) |
Class S Shares: | | | | | |
Shares sold | 397,104 | $ 16,471,575 | | 400,850 | $ 12,285,752 |
Reinvested dividends and distributions | 17,602 | 689,820 | | 60,083 | 2,039,811 |
Shares repurchased | (710,004) | (28,399,855) | | (1,032,097) | (32,486,078) |
Net Increase/(Decrease) | (295,298) | $ (11,238,460) | | (571,164) | $(18,160,515) |
Class T Shares: | | | | | |
Shares sold | 1,432,727 | $ 58,299,796 | | 786,746 | $ 24,413,937 |
Reinvested dividends and distributions | 97,849 | 3,830,788 | | 269,721 | 9,146,250 |
Shares repurchased | (1,812,827) | (73,884,631) | | (2,973,451) | (90,732,665) |
Net Increase/(Decrease) | (282,251) | $ (11,754,047) | | (1,916,984) | $(57,172,478) |
7. Purchases and Sales of Investment Securities
For the year ended September 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 |
$572,885,929 | $ 390,997,749 | $ - | $ - |
Janus Henderson Overseas Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 Overseas Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Overseas Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Overseas Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended September 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 September 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 September 30, 2021 and the financial highlights for each of the five years in the period ended September 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 September 30, 2021 by correspondence with the custodian, transfer agent and broker; 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
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Overseas 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 Overseas 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 Overseas 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 Overseas 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 Overseas 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 Overseas 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 Overseas 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 Overseas 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 Overseas 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 Overseas 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 Overseas 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 Overseas 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.
Janus Henderson Overseas 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 September 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 Bloomberg 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 Overseas 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.
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.
Janus Henderson Overseas Fund
Useful Information About Your Fund Report (unaudited)
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 Overseas Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Foreign Taxes Paid | $3,705,421 |
Foreign Source Income | $27,466,095 |
Qualified Dividend Income Percentage | 100% |
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Janus Henderson Overseas 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 Overseas 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Overseas 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 Overseas 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Overseas 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Overseas 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Overseas 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 |
George P. Maris
151 Detroit Street
Denver, CO 80206
DOB: 1968 | Executive Vice President and Co-Portfolio Manager Janus Henderson Overseas Fund | 1/16-Present
| Co-Head of Equities - Americas of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Julian McManus 151 Detroit Street Denver, CO 80206 DOB: 1970 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Overseas Fund | 1/18-Present | Portfolio Manager for other Janus Henderson accounts and Analyst for Janus Capital. |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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 Overseas 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Overseas 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 |
| | | | 125-02-93050 11-21 |
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| | | ANNUAL REPORT September 30, 2021 |
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| | Janus Henderson Research Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Research Fund
Janus Henderson Research Fund (unaudited)
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FUND SNAPSHOT We seek to create a diversified, high-conviction portfolio reflecting the best ideas of the Janus Henderson research team. | | | | | Team-Based Approach Led by Matthew Peron, Director of Research |
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PERFORMANCE OVERVIEW
The Janus Henderson Research Fund I Shares returned 22.93% for the 12-month period ended September 30, 2021, while its primary benchmark, the Russell 1000® Growth Index, returned 27.32%, and its secondary benchmark, the S&P 500® Index, returned 30.00%.
INVESTMENT ENVIRONMENT
The approval and rollout of COVID-19 vaccines at the start of the period, as well as ongoing accommodative policies from central banks around the world, put the global economy firmly on a path to recovery. While fiscal and monetary programs supported the recovery, increasing expectations for growth and inflation pushed global bond yields higher, with the widely watched 10-year U.S. Treasury yield rising sharply in March. This fueled a rotation out of technology stocks, where high valuations were supported by the notion that growth and cost of capital will remain low, and into stocks that generally perform well in a rising rate environment. Despite continued growth in the global economy, the yield on the 10-year U.S. Treasury note pulled back in August. At the Federal Open Market Committee meeting in September, policy makers held benchmark interest rates near zero but adopted a slightly more hawkish outlook for rates and indicated that they may raise rates as early as 2022. Although persistent global inflation, uncertainty around fiscal policy, supply chain bottlenecks and increased regulatory scrutiny in China fueled market volatility in the final months of the reporting period, markets finished the period with strong gains.
PERFORMANCE DISCUSSION
The Fund underperformed both its primary and secondary benchmarks for the year. Our goal is to provide consistent outperformance long term by focusing on what we consider our strengths: picking stocks and avoiding macroeconomic risks. Stocks are selected by our seven sector teams, which employ a bottom-up, fundamental approach to identify what we consider the best U.S. opportunities.
Weak stock selection within the health care and financials sectors weighed on the Fund’s relative results. On an individual holdings basis, top relative detractors included two strong-performing stocks that do not meet our investment criteria and, consequently, are not held in the Fund. However, detractors also included stocks we do own, including Vertex Pharmaceuticals. The company’s share price dropped in response to its decision to discontinue the clinical program for VX-864, a treatment for the rare genetic disorder alpha-1 antitrypsin (AATD), which can lead to liver and lung disease. Vertex plans to use knowledge gleaned from VX-864 to design more potent analogs that will enter clinical development over the coming year. Meanwhile Trikafta, Vertex’s breakthrough therapy for cystic fibrosis, continues to generate significant revenue.
RingCentral also detracted from relative results. Despite topping analysts’ quarterly earnings estimates and demonstrating accelerating growth, rising vaccination rates and a subsequent return to the office by workers led to concerns that demand for RingCentral’s products could slow. Heightened competition and pricing issues also weighed on the stock. We continue to be upbeat about long-term growth prospects for RingCentral, which provides cloud-based communications solutions that enable businesses and their employees to communicate via voice, text, HD video and web conferencing.
The weak performance of online used-car retailer Vroom also weighed on the Fund’s relative results. The company has delivered two consecutive quarters of strong earnings growth and reported third quarter revenue guidance 25% ahead of consensus. However, its stock declined on lower earnings projections due to substantial investments it has made to catch up with demand for used cars. We view Vroom as an early-stage growth company and believe it is
Janus Henderson Research Fund (unaudited)
poised to be a leader in what is estimated to be a $500 billion market.
Despite the disappointing performance of these stocks, a number of our holdings delivered solid results, including technology holdings Atlassian and Lam Research. Atlassian announced quarterly earnings that handily beat consensus estimates, including a 30% year-over-year jump in total sales, 50% growth in subscription sales and 23,000 new customers. The developer of enterprise software products plays a valuable role in enabling developers and IT teams to collaborate with each other more effectively. Atlassian is also seeing signs of solid growth in the much larger knowledge worker space. We are excited about the long-term benefits we believe the company will enjoy as it transitions to a cloud model. Lam Research supplies specialty equipment used to produce memory chips, one of the fastest-growing areas of the semiconductor market. The company reported strong sales driven by robust chip demand and rising device complexity. We believe the company is well positioned to benefit from long term secular demand trends around increasing semiconductor demand, higher chip complexity, and rising manufacturing intensity.
OUTLOOK
We were pleased to see evidence of continued economic growth during the period and are optimistic that a global recovery is still underway. Nonetheless, the recent rise in COVID variant infection rates, continued fallout from supply chain disruptions and concerns related to policy makers’ response to inflation have tempered our near-term growth expectations for the U.S. and global economy. With that said, these concerns are balanced with our optimism about the strong corporate earnings growth we’ve seen in recent quarters, as history has shown that stocks typically follow earnings higher.
Against this backdrop, we have maintained our strategy of investing in businesses that are participating in and driving secular growth trends such as e-commerce, cloud computing, digital payments and health care innovation. At the same time, we have made modest adjustments to the Fund. For example, within health care, we’ve shifted our focus to developers of life sciences technologies and tools, as we believe these are the businesses supporting the latest wave of innovation in health care. Meanwhile, in technology, we have trimmed our exposure to standard semiconductor manufacturers and reallocated some of those assets to specialty chip manufacturers more directly leveraged to secular themes such as artificial intelligence and high-performance applications, including 5G and autonomous driving. In anticipation that the economy will gather momentum and continue to progress toward the mid-business cycle, we believe these and other refinements will allow the Fund to stay aligned with our longer-term investment goals and objectives.
Thank you for your investment in Janus Henderson Research Fund.
Janus Henderson Research Fund (unaudited)
Fund At A Glance
September 30, 2021
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Atlassian Corp PLC - Class A | 1.17% | | 0.63% | | RingCentral Inc | 0.94% | | -0.49% |
| NVIDIA Corp | 3.54% | | 0.51% | | Vroom Inc | 0.17% | | -0.37% |
| Lam Research Corp | 1.67% | | 0.46% | | Global Blood Therapeutics Inc | 0.30% | | -0.36% |
| Blackstone Group Inc | 0.51% | | 0.32% | | Vertex Pharmaceuticals Inc | 0.86% | | -0.35% |
| Deere & Co | 0.15% | | 0.20% | | Mastercard Inc | 3.00% | | -0.34% |
| | | | | | | |
| 3 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Communications | | 0.19% | | 14.25% | 14.01% |
| Energy | | 0.08% | | 0.18% | 0.16% |
| Other** | | -0.05% | | 0.26% | 0.00% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Healthcare | | -1.64% | | 12.52% | 12.50% |
| Financials | | -1.08% | | 8.92% | 9.14% |
| Technology | | -0.57% | | 37.85% | 37.87% |
| Industrials | | -0.31% | | 7.37% | 7.68% |
| Consumer | | -0.25% | | 18.65% | 18.64% |
| | | | | | | |
| 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. |
* | The sectors listed above reflect those covered by the six analyst teams who comprise the Janus Henderson Research Team. |
** | Not a GICS classified sector. |
Janus Henderson Research Fund (unaudited)
Fund At A Glance
September 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 9.3% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 7.3% |
Alphabet Inc - Class C | |
Interactive Media & Services | 6.7% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 4.7% |
NVIDIA Corp | |
Semiconductor & Semiconductor Equipment | 4.3% |
| | 32.3% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 100.1% | |
Preferred Stocks | | 0.0% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.0% | |
Other | | (0.1)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
|
Janus Henderson Research Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended September 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 | | 22.64% | 19.20% | 17.57% | 12.06% | | | 0.86% | 0.86% |
Class A Shares at MOP | | 15.58% | 17.80% | 16.88% | 11.82% | | | | |
Class C Shares at NAV | | 21.79% | 18.38% | 16.74% | 11.28% | | | 1.63% | 1.63% |
Class C Shares at CDSC | | 20.79% | 18.38% | 16.74% | 11.28% | | | | |
Class D Shares | | 22.88% | 19.43% | 17.82% | 12.29% | | | 0.66% | 0.66% |
Class I Shares | | 22.93% | 19.51% | 17.90% | 12.33% | | | 0.60% | 0.60% |
Class N Shares | | 23.04% | 19.60% | 17.97% | 12.34% | | | 0.53% | 0.53% |
Class R Shares | | 22.09% | 18.80% | 17.25% | 11.76% | | | 1.34% | 1.30% |
Class S Shares | | 22.41% | 19.00% | 17.40% | 11.90% | | | 1.03% | 1.03% |
Class T Shares | | 22.74% | 19.32% | 17.71% | 12.25% | | | 0.78% | 0.78% |
Russell 1000 Growth Index | | 27.32% | 22.84% | 19.68% | 11.01% | | | | |
S&P 500 Index | | 30.00% | 16.90% | 16.63% | 10.49% | | | | |
Morningstar Quartile - Class T Shares | | 4th | 3rd | 3rd | 1st | | | | |
Morningstar Ranking - based on total returns for Large Growth Funds | | 1,012/1,252 | 766/1,144 | 616/1,009 | 47/361 | | | | |
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 January 28, 2021.
Janus Henderson Research Fund (unaudited)
Performance
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, Environmental, Social and Governance (ESG) factors, 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, 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 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.
Class R Shares commenced operations on January 27, 2017. Performance shown for periods prior to January 27, 2017, reflects the historical performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class R 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.”
*The Fund’s inception date – May 3, 1993
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Research 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
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,105.10 | $4.49 | | $1,000.00 | $1,020.81 | $4.31 | 0.85% |
Class C Shares | $1,000.00 | $1,100.90 | $8.48 | | $1,000.00 | $1,017.00 | $8.14 | 1.61% |
Class D Shares | $1,000.00 | $1,106.10 | $3.48 | | $1,000.00 | $1,021.76 | $3.35 | 0.66% |
Class I Shares | $1,000.00 | $1,106.30 | $3.22 | | $1,000.00 | $1,022.01 | $3.09 | 0.61% |
Class N Shares | $1,000.00 | $1,106.80 | $2.85 | | $1,000.00 | $1,022.36 | $2.74 | 0.54% |
Class R Shares | $1,000.00 | $1,102.50 | $6.90 | | $1,000.00 | $1,018.50 | $6.63 | 1.31% |
Class S Shares | $1,000.00 | $1,103.90 | $5.54 | | $1,000.00 | $1,019.80 | $5.32 | 1.05% |
Class T Shares | $1,000.00 | $1,105.50 | $4.12 | | $1,000.00 | $1,021.16 | $3.95 | 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 183/365 (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 Research Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 100.1% | | | |
Aerospace & Defense – 2.1% | | | |
| | Howmet Aerospace Inc | | 4,189,073 | | | $130,699,078 | |
| | L3Harris Technologies Inc | | 702,377 | | | 154,691,510 | |
| | Teledyne Technologies Inc* | | 319,137 | | | 137,094,872 | |
| | | 422,485,460 | |
Air Freight & Logistics – 1.5% | | | |
| | United Parcel Service Inc | | 1,681,685 | | | 306,234,839 | |
Auto Components – 0.7% | | | |
| | Aptiv PLC* | | 1,006,701 | | | 149,968,248 | |
Beverages – 1.1% | | | |
| | Constellation Brands Inc | | 1,101,020 | | | 231,973,904 | |
Biotechnology – 2.8% | | | |
| | AbbVie Inc | | 2,254,604 | | | 243,204,134 | |
| | Global Blood Therapeutics Inc* | | 1,411,209 | | | 35,957,605 | |
| | Neurocrine Biosciences Inc* | | 961,038 | | | 92,173,155 | |
| | Sarepta Therapeutics Inc* | | 1,262,587 | | | 116,764,046 | |
| | Vertex Pharmaceuticals Inc* | | 459,281 | | | 83,308,981 | |
| | | 571,407,921 | |
Capital Markets – 1.3% | | | |
| | Apollo Global Management Inc# | | 1,724,620 | | | 106,219,346 | |
| | Blackstone Group Inc | | 1,299,732 | | | 151,210,821 | |
| | | 257,430,167 | |
Chemicals – 1.0% | | | |
| | Sherwin-Williams Co | | 704,253 | | | 197,000,692 | |
Commercial Services & Supplies – 0.6% | | | |
| | Copart Inc* | | 868,546 | | | 120,484,701 | |
Containers & Packaging – 0.4% | | | |
| | Ball Corp | | 984,881 | | | 88,609,744 | |
Diversified Consumer Services – 0.4% | | | |
| | Terminix Global Holdings Inc* | | 1,817,860 | | | 75,750,226 | |
Entertainment – 2.8% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 3,845,428 | | | 197,693,453 | |
| | Netflix Inc* | | 612,882 | | | 374,066,400 | |
| | | 571,759,853 | |
Health Care Equipment & Supplies – 3.6% | | | |
| | Abbott Laboratories | | 1,223,564 | | | 144,539,615 | |
| | Align Technology Inc* | | 189,738 | | | 126,257,357 | |
| | Boston Scientific Corp* | | 1,120,526 | | | 48,619,623 | |
| | Danaher Corp | | 251,281 | | | 76,499,988 | |
| | Dentsply Sirona Inc | | 1,384,415 | | | 80,365,291 | |
| | DexCom Inc* | | 220,083 | | | 120,354,589 | |
| | Edwards Lifesciences Corp* | | 1,227,726 | | | 138,990,860 | |
| | | 735,627,323 | |
Health Care Providers & Services – 0.4% | | | |
| | Humana Inc | | 232,923 | | | 90,641,985 | |
Hotels, Restaurants & Leisure – 1.7% | | | |
| | Aramark | | 3,623,163 | | | 119,057,136 | |
| | Caesars Entertainment Inc* | | 2,030,440 | | | 227,977,803 | |
| | | 347,034,939 | |
Household Durables – 0.6% | | | |
| | Roku Inc* | | 368,339 | | | 115,419,026 | |
Household Products – 1.6% | | | |
| | Procter & Gamble Co | | 2,291,304 | | | 320,324,299 | |
Industrial Conglomerates – 0.8% | | | |
| | Honeywell International Inc | | 718,410 | | | 152,504,075 | |
Information Technology Services – 8.6% | | | |
| | Fidelity National Information Services Inc | | 1,220,234 | | | 148,478,073 | |
| | Mastercard Inc | | 1,787,052 | | | 621,322,239 | |
| | Okta Inc* | | 544,185 | | | 129,156,868 | |
| | Snowflake Inc - Class A* | | 564,884 | | | 170,837,868 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2021 |
Janus Henderson Research Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Information Technology Services– (continued) | | | |
| | Visa Inc | | 2,697,624 | | | $600,895,746 | |
| | Wix.com Ltd* | | 386,086 | | | 75,661,273 | |
| | | 1,746,352,067 | |
Insurance – 0.7% | | | |
| | Aon PLC - Class A | | 462,625 | | | 132,204,346 | |
Interactive Media & Services – 11.0% | | | |
| | Alphabet Inc - Class C* | | 508,760 | | | 1,356,003,116 | |
| | Facebook Inc* | | 2,320,802 | | | 787,656,991 | |
| | Snap Inc* | | 1,224,817 | | | 90,477,232 | |
| | | 2,234,137,339 | |
Internet & Direct Marketing Retail – 10.4% | | | |
| | Amazon.com Inc* | | 453,153 | | | 1,488,625,731 | |
| | Booking Holdings Inc* | | 116,387 | | | 276,287,608 | |
| | DoorDash Inc - Class A* | | 700,519 | | | 144,292,904 | |
| | Farfetch Ltd - Class A* | | 1,982,290 | | | 74,296,229 | |
| | Wayfair Inc* | | 487,408 | | | 124,537,618 | |
| | | 2,108,040,090 | |
Life Sciences Tools & Services – 0.9% | | | |
| | Illumina Inc* | | 241,282 | | | 97,866,392 | |
| | Thermo Fisher Scientific Inc | | 157,499 | | | 89,983,904 | |
| | | 187,850,296 | |
Machinery – 0.7% | | | |
| | Ingersoll Rand Inc* | | 2,706,056 | | | 136,412,283 | |
Oil, Gas & Consumable Fuels – 0.4% | | | |
| | Cheniere Energy Inc* | | 805,884 | | | 78,710,690 | |
Pharmaceuticals – 1.4% | | | |
| | AstraZeneca PLC (ADR) | | 2,076,901 | | | 124,738,674 | |
| | Horizon Therapeutics PLC* | | 736,527 | | | 80,679,168 | |
| | Merck & Co Inc | | 1,022,714 | | | 76,816,049 | |
| | | 282,233,891 | |
Professional Services – 1.2% | | | |
| | CoStar Group Inc* | | 2,710,762 | | | 233,288,178 | |
Real Estate Management & Development – 0.4% | | | |
| | Redfin Corp* | | 1,649,254 | | | 82,627,625 | |
Road & Rail – 1.9% | | | |
| | JB Hunt Transport Services Inc | | 790,100 | | | 132,120,522 | |
| | Uber Technologies Inc* | | 5,739,295 | | | 257,120,416 | |
| | | 389,240,938 | |
Semiconductor & Semiconductor Equipment – 10.3% | | | |
| | Advanced Micro Devices Inc* | | 1,398,304 | | | 143,885,482 | |
| | ASML Holding NV | | 384,647 | | | 286,604,326 | |
| | Lam Research Corp | | 427,072 | | | 243,068,029 | |
| | Marvell Technology Inc | | 1,950,807 | | | 117,653,170 | |
| | NVIDIA Corp | | 4,162,176 | | | 862,236,380 | |
| | Texas Instruments Inc | | 1,682,039 | | | 323,304,716 | |
| | Xilinx Inc | | 680,028 | | | 102,677,428 | |
| | | 2,079,429,531 | |
Software – 20.4% | | | |
| | Adobe Inc* | | 1,018,454 | | | 586,344,337 | |
| | Atlassian Corp PLC - Class A* | | 728,435 | | | 285,124,028 | |
| | Autodesk Inc* | | 867,396 | | | 247,355,317 | |
| | Avalara Inc* | | 886,433 | | | 154,921,895 | |
| | Cadence Design Systems Inc* | | 686,053 | | | 103,895,866 | |
| | Microsoft Corp | | 6,704,013 | | | 1,889,995,345 | |
| | RingCentral Inc* | | 670,901 | | | 145,920,968 | |
| | SS&C Technologies Holdings Inc | | 486,430 | | | 33,758,242 | |
| | Tyler Technologies Inc* | | 363,131 | | | 166,550,033 | |
| | Workday Inc - Class A* | | 957,601 | | | 239,294,914 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Research Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Software– (continued) | | | |
| | Zendesk Inc* | | 2,430,473 | | | $282,882,752 | |
| | | 4,136,043,697 | |
Specialty Retail – 1.4% | | | |
| | Burlington Stores Inc* | | 545,637 | | | 154,726,284 | |
| | Olaplex Holdings Inc* | | 2,589,238 | | | 63,436,331 | |
| | Vroom Inc* | | 2,871,474 | | | 63,373,431 | |
| | | 281,536,046 | |
Technology Hardware, Storage & Peripherals – 4.7% | | | |
| | Apple Inc | | 6,769,193 | | | 957,840,810 | |
Textiles, Apparel & Luxury Goods – 1.3% | | | |
| | NIKE Inc - Class B | | 1,841,000 | | | 267,368,430 | |
Trading Companies & Distributors – 0.7% | | | |
| | Ferguson PLC | | 1,060,282 | | | 146,957,532 | |
Wireless Telecommunication Services – 0.3% | | | |
| | T-Mobile US Inc* | | 520,103 | | | 66,448,359 | |
Total Common Stocks (cost $10,977,139,645) | | 20,301,379,550 | |
Preferred Stocks– 0% | | | |
Health Care Equipment & Supplies – 0% | | | |
| | MedicaMetrix Inc PP*,¢,§((cost $3,000,000) | | 2,727,273 | | | 3,000,000 | |
Investments Purchased with Cash Collateral from Securities Lending– 0% | | | |
Investment Companies – 0% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 1,570,800 | | | 1,570,800 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 0.0400%, 10/1/21 | | $392,700 | | | 392,700 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $1,963,500) | | 1,963,500 | |
Total Investments (total cost $10,982,103,145) – 100.1% | | 20,306,343,050 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | | (27,509,024) | |
Net Assets – 100% | | $20,278,834,026 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $19,459,918,520 | | 95.8 | % |
Netherlands | | 286,604,326 | | 1.4 | |
Australia | | 285,124,028 | | 1.4 | |
United Kingdom | | 199,034,903 | | 1.0 | |
Israel | | 75,661,273 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $20,306,343,050 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Research Fund
Schedule of Investments
September 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/21 |
Preferred Stocks - 0.0% |
Health Care Equipment & Supplies - 0.0% | |
| | MedicaMetrix Inc PP*,¢,§ | $ | - | $ | - | $ | - | $ | 3,000,000 |
Investment Companies - N/A |
Money Markets - N/A | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 29,034 | | (2,810) | | (436) | | - |
Investments Purchased with Cash Collateral from Securities Lending - 0.0% |
Investment Companies - 0.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 131,695∆ | | - | | - | | 1,570,800 |
Total Affiliated Investments - 0.0% | $ | 160,729 | $ | (2,810) | $ | (436) | $ | 4,570,800 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2021, this column reflects amounts for the entire year ended September 30, 2021 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Preferred Stocks - 0.0% |
Health Care Equipment & Supplies - 0.0% | |
| | MedicaMetrix Inc PP*,¢,§ | | - | | 3,000,000 | | - | | 3,000,000 |
Investment Companies - N/A |
Money Markets - N/A | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 19,207,409 | | 1,937,708,272 | | (1,956,912,435) | | - |
Investments Purchased with Cash Collateral from Securities Lending - 0.0% |
Investment Companies - 0.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 41,911,317 | | 654,450,792 | | (694,791,309) | | 1,570,800 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Research Fund
Notes to Schedule of Investments and Other Information
| | |
Russell 1000® Growth Index | Russell 1000® Growth Index reflects the performance of U.S. large-cap equities with higher price-to-book ratios and higher forecasted growth values. |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2021. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2021 is $3,000,000, 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. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2021) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
MedicaMetrix Inc PP | 1/26/21 | $ | 3,000,000 | $ | 3,000,000 | | 0.0 | % |
| | | | | | | | | |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2021. The issuer incurs all registration costs. | |
| | | | | | | | | | | | | |
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 September 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 | | | | | | |
Trading Companies & Distributors | $ | - | $ | 146,957,532 | $ | - |
All Other | | 20,154,422,018 | | - | | - |
Preferred Stocks | | - | | - | | 3,000,000 |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 1,963,500 | | - |
Total Assets | $ | 20,154,422,018 | $ | 148,921,032 | $ | 3,000,000 |
| | | | | | | |
Janus Henderson Research Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $10,977,139,645)(1) | | $ | 20,301,772,250 | |
| Affiliated investments, at value (cost $4,963,500) | | | 4,570,800 | |
| Non-interested Trustees' deferred compensation | | | 505,750 | |
| Receivables: | | | | |
| | Investments sold | | | 51,024,433 | |
| | Fund shares sold | | | 6,085,309 | |
| | Dividends | | | 2,220,698 | |
| | Foreign tax reclaims | | | 24,545 | |
| | Dividends from affiliates | | | 548 | |
| Other assets | | | 47,502 | |
Total Assets | | | 20,366,251,835 | |
Liabilities: | | | | |
| Due to custodian | | | 2,832,429 | |
| Collateral for securities loaned (Note 2) | | | 1,963,500 | |
| Payables: | | | — | |
| | Investments purchased | | | 60,140,457 | |
| | Fund shares repurchased | | | 9,207,143 | |
| | Advisory fees | | | 9,164,140 | |
| | Transfer agent fees and expenses | | | 2,620,925 | |
| | Non-interested Trustees' deferred compensation fees | | | 505,750 | |
| | Non-interested Trustees' fees and expenses | | | 145,490 | |
| | Professional fees | | | 70,228 | |
| | Affiliated fund administration fees payable | | | 43,618 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 33,660 | |
| | Custodian fees | | | 19,451 | |
| | Accrued expenses and other payables | | | 671,018 | |
Total Liabilities | | | 87,417,809 | |
Net Assets | | $ | 20,278,834,026 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Research Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 8,660,415,122 | |
| Total distributable earnings (loss) | | | 11,618,418,904 | |
Total Net Assets | | $ | 20,278,834,026 | |
Net Assets - Class A Shares | | $ | 53,588,928 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 758,096 | |
Net Asset Value Per Share(2) | | $ | 70.69 | |
Maximum Offering Price Per Share(3) | | $ | 75.00 | |
Net Assets - Class C Shares | | $ | 15,909,673 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 247,496 | |
Net Asset Value Per Share(2) | | $ | 64.28 | |
Net Assets - Class D Shares | | $ | 14,715,777,187 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 206,056,258 | |
Net Asset Value Per Share | | $ | 71.42 | |
Net Assets - Class I Shares | | $ | 448,507,570 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,291,798 | |
Net Asset Value Per Share | | $ | 71.28 | |
Net Assets - Class N Shares | | $ | 432,553,451 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,064,877 | |
Net Asset Value Per Share | | $ | 71.32 | |
Net Assets - Class R Shares | | $ | 4,226,092 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 60,334 | |
Net Asset Value Per Share | | $ | 70.04 | |
Net Assets - Class S Shares | | $ | 30,909,007 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 446,258 | |
Net Asset Value Per Share | | $ | 69.26 | |
Net Assets - Class T Shares | | $ | 4,577,362,118 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 64,118,623 | |
Net Asset Value Per Share | | $ | 71.39 | |
| |
(1) Includes $1,896,972 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 | SEPTEMBER 30, 2021 |
Janus Henderson Research Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 125,653,617 | |
| Affiliated securities lending income, net | | 131,695 | |
| Dividends from affiliates | | 29,034 | |
| Unaffiliated securities lending income, net | | 5,652 | |
| Other income | | 476 | |
| Foreign tax withheld | | (110,522) | |
Total Investment Income | | 125,709,952 | |
Expenses: | | | |
| Advisory fees | | 101,815,705 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 112,636 | |
| | Class C Shares | | 156,101 | |
| | Class R Shares | | 20,998 | |
| | Class S Shares | | 74,464 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 15,903,899 | |
| | Class R Shares | | 10,886 | |
| | Class S Shares | | 74,465 | |
| | Class T Shares | | 10,961,438 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 26,021 | |
| | Class C Shares | | 12,947 | |
| | Class I Shares | | 311,446 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 2,521 | |
| | Class C Shares | | 823 | |
| | Class D Shares | | 1,064,744 | |
| | Class I Shares | | 16,634 | |
| | Class N Shares | | 10,899 | |
| | Class R Shares | | 52 | |
| | Class S Shares | | 305 | |
| | Class T Shares | | 30,397 | |
| Shareholder reports expense | | 1,103,899 | |
| Affiliated fund administration fees | | 544,183 | |
| Non-interested Trustees’ fees and expenses | | 303,075 | |
| Registration fees | | 153,893 | |
| Professional fees | | 152,229 | |
| Custodian fees | | 87,431 | |
| Other expenses | | 914,713 | |
Total Expenses | | 133,866,804 | |
Less: Excess Expense Reimbursement and Waivers | | (606,897) | |
Net Expenses | | 133,259,907 | |
Net Investment Income/(Loss) | | (7,549,955) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Research Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 2,429,559,141 | |
| Investments in affiliates | | (2,810) | |
Total Net Realized Gain/(Loss) on Investments | | 2,429,556,331 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 1,480,355,838 | |
| Investments in affiliates | | (436) | |
Total Change in Unrealized Net Appreciation/Depreciation | | 1,480,355,402 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 3,902,361,778 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2021 |
Janus Henderson Research Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (7,549,955) | | $ | 45,637,890 | |
| Net realized gain/(loss) on investments | | 2,429,556,331 | | | 775,468,181 | |
| Change in unrealized net appreciation/depreciation | | 1,480,355,402 | | | 3,545,403,452 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 3,902,361,778 | | | 4,366,509,523 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (1,133,031) | | | (3,012,575) | |
| | Class C Shares | | (562,873) | | | (1,968,593) | |
| | Class D Shares | | (398,705,851) | | | (1,040,593,648) | |
| | Class I Shares | | (12,258,273) | | | (34,060,391) | |
| | Class N Shares | | (12,695,033) | | | (32,462,173) | |
| | Class R Shares | | (132,542) | | | (435,120) | |
| | Class S Shares | | (840,310) | | | (2,352,571) | |
| | Class T Shares | | (121,681,672) | | | (333,344,171) | |
Net Decrease from Dividends and Distributions to Shareholders | | (548,009,585) | | | (1,448,229,242) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 9,926,159 | | | 669,279 | |
| | Class C Shares | | (5,488,086) | | | (3,657,116) | |
| | Class D Shares | | (355,951,384) | | | 293,624,593 | |
| | Class I Shares | | (8,686,429) | | | (20,876,765) | |
| | Class N Shares | | (36,562,362) | | | 18,622,443 | |
| | Class R Shares | | (772,746) | | | (807,473) | |
| | Class S Shares | | (650,692) | | | (11,797,452) | |
| | Class T Shares | | (117,902,220) | | | (30,898,009) | |
Net Increase/(Decrease) from Capital Share Transactions | | (516,087,760) | | | 244,879,500 | |
Net Increase/(Decrease) in Net Assets | | 2,838,264,433 | | | 3,163,159,781 | |
Net Assets: | | | | | | |
| Beginning of period | | 17,440,569,593 | | | 14,277,409,812 | |
| End of period | $ | 20,278,834,026 | | $ | 17,440,569,593 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.31 | | | $49.56 | | | $53.33 | | | $45.29 | | | $42.31 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.15) | | | 0.06 | | | 0.14 | | | 0.08 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | 13.37 | | | 14.75 | | | 0.50 | | | 10.25 | | | 6.50 | |
| Total from Investment Operations | | 13.22 | | | 14.81 | | | 0.64 | | | 10.33 | | | 6.63 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.13) | | | (0.06) | | | (0.03) | | | (0.01) | |
| | Distributions (from capital gains) | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (1.84) | | | (5.06) | | | (4.41) | | | (2.29) | | | (3.65) | |
| Net Asset Value, End of Period | | $70.69 | | | $59.31 | | | $49.56 | | | $53.33 | | | $45.29 | |
| Total Return* | | 22.66% | | | 32.14% | | | 2.98% | | | 23.56% | | | 16.70% | |
| Net Assets, End of Period (in thousands) | | $53,589 | | | $36,300 | | | $29,853 | | | $28,474 | | | $25,233 | |
| Average Net Assets for the Period (in thousands) | | $45,054 | | | $31,223 | | | $28,823 | | | $26,135 | | | $25,873 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.86% | | | 0.86% | | | 0.89% | | | 0.93% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.86% | | | 0.86% | | | 0.89% | | | 0.91% | | | 0.92% | |
| | Ratio of Net Investment Income/(Loss) | | (0.22)% | | | 0.12% | | | 0.30% | | | 0.17% | | | 0.29% | |
| Portfolio Turnover Rate | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $54.45 | | | $46.06 | | | $50.18 | | | $42.99 | | | $40.60 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.53) | | | (0.27) | | | (0.18) | | | (0.23) | | | (0.16) | |
| | Net realized and unrealized gain/(loss) | | 12.20 | | | 13.59 | | | 0.41 | | | 9.68 | | | 6.19 | |
| Total from Investment Operations | | 11.67 | | | 13.32 | | | 0.23 | | | 9.45 | | | 6.03 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Net Asset Value, End of Period | | $64.28 | | | $54.45 | | | $46.06 | | | $50.18 | | | $42.99 | |
| Total Return* | | 21.81% | | | 31.20% | | | 2.27% | | | 22.73% | | | 15.89% | |
| Net Assets, End of Period (in thousands) | | $15,910 | | | $18,502 | | | $19,109 | | | $27,515 | | | $25,527 | |
| Average Net Assets for the Period (in thousands) | | $17,155 | | | $18,763 | | | $21,832 | | | $26,463 | | | $21,993 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.54% | | | 1.55% | | | 1.58% | | | 1.61% | | | 1.60% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.54% | | | 1.55% | | | 1.57% | | | 1.58% | | | 1.60% | |
| | Ratio of Net Investment Income/(Loss) | | (0.88)% | | | (0.57)% | | | (0.39)% | | | (0.50)% | | | (0.39)% | |
| Portfolio Turnover Rate | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.86 | | | $49.98 | | | $53.74 | | | $45.60 | | | $42.69 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.01) | | | 0.17 | | | 0.24 | | | 0.19 | | | 0.22 | |
| | Net realized and unrealized gain/(loss) | | 13.48 | | | 14.87 | | | 0.50 | | | 10.33 | | | 6.53 | |
| Total from Investment Operations | | 13.47 | | | 15.04 | | | 0.74 | | | 10.52 | | | 6.75 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.07) | | | (0.23) | | | (0.15) | | | (0.12) | | | (0.20) | |
| | Distributions (from capital gains) | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (1.91) | | | (5.16) | | | (4.50) | | | (2.38) | | | (3.84) | |
| Net Asset Value, End of Period | | $71.42 | | | $59.86 | | | $49.98 | | | $53.74 | | | $45.60 | |
| Total Return* | | 22.89% | | | 32.40% | | | 3.20% | | | 23.85% | | | 16.90% | |
| Net Assets, End of Period (in thousands) | | $14,715,777 | | | $12,635,778 | | | $10,221,640 | | | $10,550,222 | | | $9,078,354 | |
| Average Net Assets for the Period (in thousands) | | $14,113,628 | | | $11,047,912 | | | $9,901,606 | | | $9,778,967 | | | $5,277,885 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.66% | | | 0.66% | | | 0.69% | | | 0.72% | | | 0.73% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.66% | | | 0.66% | | | 0.68% | | | 0.69% | | | 0.73% | |
| | Ratio of Net Investment Income/(Loss) | | (0.02)% | | | 0.32% | | | 0.50% | | | 0.39% | | | 0.50% | |
| Portfolio Turnover Rate | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.74 | | | $49.89 | | | $53.67 | | | $45.53 | | | $42.65 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.02 | | | 0.20 | | | 0.27 | | | 0.22 | | | 0.24 | |
| | Net realized and unrealized gain/(loss) | | 13.46 | | | 14.84 | | | 0.48 | | | 10.32 | | | 6.53 | |
| Total from Investment Operations | | 13.48 | | | 15.04 | | | 0.75 | | | 10.54 | | | 6.77 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.10) | | | (0.26) | | | (0.18) | | | (0.14) | | | (0.25) | |
| | Distributions (from capital gains) | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (1.94) | | | (5.19) | | | (4.53) | | | (2.40) | | | (3.89) | |
| Net Asset Value, End of Period | | $71.28 | | | $59.74 | | | $49.89 | | | $53.67 | | | $45.53 | |
| Total Return* | | 22.95% | | | 32.47% | | | 3.23% | | | 23.94% | | | 16.98% | |
| Net Assets, End of Period (in thousands) | | $448,508 | | | $383,533 | | | $340,425 | | | $387,130 | | | $372,836 | |
| Average Net Assets for the Period (in thousands) | | $428,367 | | | $349,367 | | | $339,641 | | | $382,642 | | | $285,259 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.61% | | | 0.60% | | | 0.63% | | | 0.65% | | | 0.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.61% | | | 0.60% | | | 0.62% | | | 0.63% | | | 0.65% | |
| | Ratio of Net Investment Income/(Loss) | | 0.03% | | | 0.38% | | | 0.56% | | | 0.45% | | | 0.55% | |
| Portfolio Turnover Rate | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.75 | | | $49.90 | | | $53.69 | | | $45.54 | | | $42.67 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.07 | | | 0.23 | | | 0.31 | | | 0.26 | | | 0.27 | |
| | Net realized and unrealized gain/(loss) | | 13.47 | | | 14.85 | | | 0.47 | | | 10.31 | | | 6.54 | |
| Total from Investment Operations | | 13.54 | | | 15.08 | | | 0.78 | | | 10.57 | | | 6.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.30) | | | (0.22) | | | (0.16) | | | (0.30) | |
| | Distributions (from capital gains) | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (1.97) | | | (5.23) | | | (4.57) | | | (2.42) | | | (3.94) | |
| Net Asset Value, End of Period | | $71.32 | | | $59.75 | | | $49.90 | | | $53.69 | | | $45.54 | |
| Total Return* | | 23.05% | | | 32.57% | | | 3.31% | | | 24.02% | | | 17.10% | |
| Net Assets, End of Period (in thousands) | | $432,553 | | | $394,953 | | | $308,922 | | | $311,140 | | | $266,604 | |
| Average Net Assets for the Period (in thousands) | | $426,650 | | | $350,927 | | | $296,644 | | | $278,339 | | | $231,105 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.54% | | | 0.53% | | | 0.55% | | | 0.58% | | | 0.57% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.54% | | | 0.53% | | | 0.54% | | | 0.56% | | | 0.56% | |
| | Ratio of Net Investment Income/(Loss) | | 0.11% | | | 0.45% | | | 0.64% | | | 0.53% | | | 0.63% | |
| Portfolio Turnover Rate | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(2) | |
| Net Asset Value, Beginning of Period | | $59.04 | | | $49.46 | | | $53.37 | | | $45.47 | | | $41.78 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.42) | | | (0.18) | | | (0.05) | | | (0.12) | | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | 13.26 | | | 14.69 | | | 0.49 | | | 10.28 | | | 5.23 | |
| Total from Investment Operations | | 12.84 | | | 14.51 | | | 0.44 | | | 10.16 | | | 5.20 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | (0.04) | |
| | Distributions (from capital gains) | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (1.47) | |
| Total Dividends and Distributions | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (1.51) | |
| Net Asset Value, End of Period | | $70.04 | | | $59.04 | | | $49.46 | | | $53.37 | | | $45.47 | |
| Total Return* | | 22.10% | | | 31.48% | | | 2.55% | | | 23.06% | | | 12.67% | |
| Net Assets, End of Period (in thousands) | | $4,226 | | | $4,269 | | | $4,476 | | | $5,021 | | | $5,200 | |
| Average Net Assets for the Period (in thousands) | | $4,354 | | | $4,322 | | | $4,550 | | | $4,931 | | | $3,162 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.34% | | | 1.34% | | | 1.30% | | | 1.35% | | | 1.35% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.30% | | | 1.34% | | | 1.30% | | | 1.33% | | | 1.35% | |
| | Ratio of Net Investment Income/(Loss) | | (0.64)% | | | (0.36)% | | | (0.11)% | | | (0.25)% | | | (0.09)% | |
| Portfolio Turnover Rate | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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) Period from January 27, 2017 (inception date) through September 30, 2017. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2021 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $58.25 | | | $48.72 | | | $52.52 | | | $44.68 | | | $41.91 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.26) | | | (0.03) | | | 0.07 | | | 0.01 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 13.11 | | | 14.49 | | | 0.48 | | | 10.10 | | | 6.41 | |
| Total from Investment Operations | | 12.85 | | | 14.46 | | | 0.55 | | | 10.11 | | | 6.48 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | (0.01) | | | (0.07) | |
| | Distributions (from capital gains) | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (1.84) | | | (4.93) | | | (4.35) | | | (2.27) | | | (3.71) | |
| Net Asset Value, End of Period | | $69.26 | | | $58.25 | | | $48.72 | | | $52.52 | | | $44.68 | |
| Total Return* | | 22.43% | | | 31.89% | | | 2.82% | | | 23.38% | | | 16.53% | |
| Net Assets, End of Period (in thousands) | | $30,909 | | | $26,600 | | | $33,835 | | | $27,788 | | | $27,354 | |
| Average Net Assets for the Period (in thousands) | | $29,786 | | | $25,562 | | | $28,972 | | | $27,937 | | | $13,782 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.05% | | | 1.03% | | | 1.06% | | | 1.08% | | | 1.08% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.04% | | | 1.03% | | | 1.05% | | | 1.06% | | | 1.07% | |
| | Ratio of Net Investment Income/(Loss) | | (0.39)% | | | (0.06)% | | | 0.14% | | | 0.03% | | | 0.17% | |
| Portfolio Turnover Rate | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.86 | | | $49.98 | | | $53.74 | | | $45.61 | | | $42.67 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.08) | | | 0.11 | | | 0.20 | | | 0.14 | | | 0.18 | |
| | Net realized and unrealized gain/(loss) | | 13.48 | | | 14.89 | | | 0.49 | | | 10.33 | | | 6.54 | |
| Total from Investment Operations | | 13.40 | | | 15.00 | | | 0.69 | | | 10.47 | | | 6.72 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | (0.19) | | | (0.10) | | | (0.08) | | | (0.14) | |
| | Distributions (from capital gains) | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (1.87) | | | (5.12) | | | (4.45) | | | (2.34) | | | (3.78) | |
| Net Asset Value, End of Period | | $71.39 | | | $59.86 | | | $49.98 | | | $53.74 | | | $45.61 | |
| Total Return* | | 22.76% | | | 32.27% | | | 3.07% | | | 23.74% | | | 16.81% | |
| Net Assets, End of Period (in thousands) | | $4,577,362 | | | $3,940,635 | | | $3,319,149 | | | $3,481,882 | | | $3,082,833 | |
| Average Net Assets for the Period (in thousands) | | $4,384,575 | | | $3,505,134 | | | $3,219,617 | | | $3,264,878 | | | $2,119,275 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.78% | | | 0.80% | | | 0.83% | | | 0.83% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.77% | | | 0.76% | | | 0.77% | | | 0.79% | | | 0.81% | |
| | Ratio of Net Investment Income/(Loss) | | (0.13)% | | | 0.22% | | | 0.41% | | | 0.29% | | | 0.42% | |
| Portfolio Turnover Rate | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Research Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Research 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.
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 original 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
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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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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 September 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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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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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.
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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.
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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 | $ | 1,896,972 | $ | — | $ | (1,896,972) | $ | — |
| | | | | | | | | |
(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 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.
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
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.
Janus Henderson Research Fund
Notes to Financial Statements
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 September 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $1,896,972. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2021 is $1,963,500, resulting in the net amount due to the counterparty of $66,528.
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 0.64%, and the Fund’s benchmark index used in the calculation is the Russell 1000® Growth 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
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Notes to Financial Statements
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 September 30, 2021, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.52%.
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 (if applicable), 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 0.68% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 28, 2021. The previous expense limit (until February 1, 2021) was 0.75%. 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 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
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Notes to Financial Statements
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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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
Janus Henderson Research Fund
Notes to Financial Statements
Liabilities. Deferred compensation expenses for the year ended September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $5,611.
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 September 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 September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $925.
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) | |
$ 136,128,222 | $ 2,187,915,839 | $ - | $ - | $ - | $ (490,213) | $9,294,865,056 | |
Janus Henderson Research 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 September 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) |
$ 11,011,477,994 | $ 9,563,238,527 | $(268,373,471) | $ 9,294,865,056 |
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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 18,658,006 | $ 529,351,579 | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 86,301,325 | $ 1,361,927,917 | $ - | $ - | |
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 |
$ 60,370,137 | $ 7,422,590 | $ (67,792,727) |
Capital has been adjusted by $60,370,137, including $56,896,749 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Research Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 266,614 | $ 17,903,311 | | 162,402 | $ 8,605,440 |
Reinvested dividends and distributions | 15,644 | 988,359 | | 55,190 | 2,682,235 |
Shares repurchased | (136,203) | (8,965,511) | | (207,890) | (10,618,396) |
Net Increase/(Decrease) | 146,055 | $ 9,926,159 | | 9,702 | $ 669,279 |
Class C Shares: | | | | | |
Shares sold | 22,144 | $ 1,342,818 | | 43,723 | $ 2,023,913 |
Reinvested dividends and distributions | 9,336 | 539,413 | | 39,065 | 1,752,472 |
Shares repurchased | (123,771) | (7,370,317) | | (157,859) | (7,433,501) |
Net Increase/(Decrease) | (92,291) | $ (5,488,086) | | (75,071) | $ (3,657,116) |
Class D Shares: | | | | | |
Shares sold | 3,326,107 | $ 220,997,171 | | 4,291,343 | $ 217,958,611 |
Reinvested dividends and distributions | 6,022,078 | 383,787,030 | | 20,465,310 | 1,002,186,256 |
Shares repurchased | (14,398,341) | (960,735,585) | | (18,175,802) | (926,520,274) |
Net Increase/(Decrease) | (5,050,156) | $(355,951,384) | | 6,580,851 | $ 293,624,593 |
Class I Shares: | | | | | |
Shares sold | 1,377,299 | $ 92,389,122 | | 1,529,874 | $ 77,400,208 |
Reinvested dividends and distributions | 176,530 | 11,225,532 | | 634,778 | 31,015,251 |
Shares repurchased | (1,682,084) | (112,301,083) | | (2,567,986) | (129,292,224) |
Net Increase/(Decrease) | (128,255) | $ (8,686,429) | | (403,334) | $ (20,876,765) |
Class N Shares: | | | | | |
Shares sold | 761,708 | $ 51,177,439 | | 1,308,402 | $ 65,554,063 |
Reinvested dividends and distributions | 199,163 | 12,664,782 | | 663,018 | 32,381,800 |
Shares repurchased | (1,505,622) | (100,404,583) | | (1,552,140) | (79,313,420) |
Net Increase/(Decrease) | (544,751) | $ (36,562,362) | | 419,280 | $ 18,622,443 |
Class R Shares: | | | | | |
Shares sold | 9,957 | $ 654,373 | | 10,598 | $ 539,726 |
Reinvested dividends and distributions | 2,094 | 131,597 | | 8,858 | 430,257 |
Shares repurchased | (24,025) | (1,558,716) | | (37,655) | (1,777,456) |
Net Increase/(Decrease) | (11,974) | $ (772,746) | | (18,199) | $ (807,473) |
Class S Shares: | | | | | |
Shares sold | 78,526 | $ 5,126,028 | | 80,994 | $ 4,098,070 |
Reinvested dividends and distributions | 13,532 | 838,966 | | 49,090 | 2,346,507 |
Shares repurchased | (102,443) | (6,615,686) | | (367,981) | (18,242,029) |
Net Increase/(Decrease) | (10,385) | $ (650,692) | | (237,897) | $ (11,797,452) |
Class T Shares: | | | | | |
Shares sold | 4,517,826 | $ 303,568,991 | | 4,891,013 | $ 253,719,290 |
Reinvested dividends and distributions | 1,861,188 | 118,687,931 | | 6,636,752 | 325,267,223 |
Shares repurchased | (8,091,628) | (540,159,142) | | (12,099,775) | (609,884,522) |
Net Increase/(Decrease) | (1,712,614) | $(117,902,220) | | (572,010) | $ (30,898,009) |
6. Purchases and Sales of Investment Securities
For the year ended September 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 |
$6,003,278,282 | $6,993,937,379 | - | - |
Janus Henderson Research Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 Research Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Research Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Research Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 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 September 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 September 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 September 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
November 17, 2020
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Research 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 Research 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 Research 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 Research 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 Research 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 Research 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 Research 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 Research 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 Research 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 Research 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 Research 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 Research 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.
Janus Henderson Research 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 September 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 Bloomberg 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 Research 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.
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.
Janus Henderson Research Fund
Useful Information About Your Fund Report (unaudited)
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 Research Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Capital Gain Distributions | $586,248,328 |
Dividends Received Deduction Percentage | 88% |
Qualified Dividend Income Percentage | 88% |
Janus Henderson Research 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 Research 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Research 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 Research 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Research 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Research 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Research 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, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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 Research 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Research Fund
Notes
NotesPage1
Janus Henderson Research 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 |
| | | | 125-02-93053 11-21 |
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| | | ANNUAL REPORT September 30, 2021 |
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| | Janus Henderson Triton 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 Triton Fund
Janus Henderson Triton Fund (unaudited)(closed to certain new investors)
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FUND SNAPSHOT We believe a fundamentally driven investment process focused on identifying smaller-cap companies with differentiated business models and sustainable competitive advantages will drive outperformance relative to our benchmark and peers over time. Identifying small-cap companies with the potential to grow into the mid-cap space allows us the flexibility to hold our positions and capture a longer-growth period in a company’s life cycle. | | | | 
Jonathan Coleman co-portfolio manager | 
Scott Stutzman co-portfolio manager |
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PERFORMANCE OVERVIEW
The Janus Henderson Triton Fund Class I Shares returned 33.90% for the 12-month period ended September 30, 2021. The Fund’s primary benchmark, the Russell 2500™ Growth Index, returned 31.98%. The Fund’s secondary benchmark, the Russell 2000® Growth Index, returned 33.27%.
INVESTMENT ENVIRONMENT
Stocks rose strongly in the fourth quarter of 2020 as resilient economic and earnings growth and optimism over new COVID-19 vaccines lifted investor sentiment. Congress also passed the $1.9 trillion American Rescue Plan, which included cash payments to most households. Stocks rose through the first half of 2021, as an accelerating vaccine rollout helped support healthy economic and earnings growth. However, stocks suffered periods of volatility, especially in the third quarter as the spread of the new Delta variant led to renewed pandemic concerns. Supply constraints and higher input costs also fueled inflation, which drove interest rates higher late in the third quarter. The Federal Reserve signaled it would begin tapering its monetary support before year-end, which added to upward pressure on interest rates. Through much of the period, investors shifted between growth stocks and more cyclically driven value opportunities as they awaited more clarity on the economic outlook. Rising interest rates in the third quarter fueled a rotation away from growth stocks, however. As a result, small and mid-cap growth underperformed small- and mid-cap value for the 12-month period, as measured by the Russell indices.
PERFORMANCE DISCUSSION
We were pleased to see a number of our disciplined growth investments rewarded by investors over the past 12 months, supporting our relative performance. Longtime holding Rexnord was a top positive contributor, as the company’s restructuring plans were well received by investors. Rexnord’s power and control (PMC) division supplies technology-enabled mechanical components that improve factory workflows. The PMC business is expected to merge with larger rival Regal Beloit in a deal we believe could result in synergies and an expanded market opportunity. This spin-off will leave Rexnord’s water management business, Zurn, as a pure play provider of water flow control systems. Zurn’s business has delivered strong growth trends, driven by the increased investments in water conservation and sustainability, and we continued to see growth potential for the business.
LPL Financial was another top contributor. This investment advisory company provides a full-service, technology-enabled platform that helps independent financial advisors serve their clients. The stock rose as the company reported robust revenue and earnings performance, aided by strong asset growth. It was also exploring new lending solutions that may benefit from higher long-term interest rates.
Clarivate Analytics was a prominent detractor. Clarivate owns and operates subscription-based academic, research and information services used by universities, scientists and biopharmaceuticals companies seeking brand or patent protection. Its businesses include the Web of Science, an online portal that provides proprietary access to over 7,000 academic journals, proprietary databases and scientific journals. Subscription-based recurring revenues have accounted for roughly 85% of Clarivate’s business, and it has benefited from a 90% customer-retention rate. The stock performed well in 2020, supported by the company’s subscription-based business model. The stock declined more recently, however, as the company reported some potential near-term slowing in subscriber growth. We remained positive on its long-term fundamentals, however.
LendingTree, another detractor, operates an online loan marketplace where consumers can shop for competitive
Janus Henderson Triton Fund (unaudited)(closed to certain new investors)
rates on mortgages, credit cards and other consumer loans. While the company reported solid earnings and guidance, investors were concerned about some moderating business trends in 2021 as government support payments reduced demand for credit cards and loans. As a result, LendingTree’s business volumes did not rebound as strongly from the pandemic as people had expected, and the stock declined. We saw this business slowdown as a short-term issue, especially as support payments are ending. We held onto our stock due to our long-term view on the company’s potential.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
While we have been encouraged by positive economic trends, we remain aware of risks facing the market. The pandemic is far from over, and it has contributed to supply chain and labor market dislocations that have fueled inflation and challenged businesses. From our conversations with companies, we believe these challenges could persist well into next year, acting as a headwind for the recovery. The end to government support payments and the potential for higher interest rates could also temper the pace of economic growth. Despite these crosscurrents, valuations in some areas of the small-cap market continue to test new highs, and we remain concerned about elevated expectations that may be out of sync with the current economic environment. For our part, we remain committed to a disciplined approach that looks for opportunity while managing risk. We continue to focus on reasonably valued companies with established supplier relationships as well as strong competitive positions that may help them pass along higher input costs without sacrificing their profit margins. We believe these kinds of disciplined, well-managed companies may be better able to navigate near-term market uncertainty while they capitalize on long-term trends in the economy.
Janus Henderson Triton Fund (unaudited)(closed to certain new investors)
Fund At A Glance
September 30, 2021
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Quantumscape Corp | 0.82% | | 1.73% | | LendingTree Inc | 0.66% | | -0.80% |
| LPL Financial Holdings Inc | 1.82% | | 0.98% | | Vaxcyte Inc | 0.43% | | -0.75% |
| Rexnord Corp | 1.23% | | 0.81% | | Clarivate Analytics PLC | 0.80% | | -0.69% |
| ON Semiconductor Corp | 1.30% | | 0.68% | | Global Blood Therapeutics Inc | 0.48% | | -0.53% |
| GW Pharmaceuticals PLC (ADR) | 0.38% | | 0.56% | | Terminix Global Holdings Inc | 1.68% | | -0.50% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2500 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | 2.40% | | 5.56% | 4.22% |
| Materials | | 1.12% | | 6.23% | 3.09% |
| Consumer Staples | | 0.60% | | 2.99% | 2.85% |
| Communication Services | | 0.58% | | 1.39% | 2.43% |
| Industrials | | 0.24% | | 14.09% | 12.96% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2500 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | -1.99% | | 11.45% | 13.46% |
| Information Technology | | -0.83% | | 28.50% | 29.16% |
| Other** | | -0.62% | | 1.48% | 0.00% |
| Energy | | -0.01% | | 0.00% | 0.54% |
| Utilities | | 0.12% | | 0.67% | 0.84% |
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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 Triton Fund (unaudited)(closed to certain new investors)
Fund At A Glance
September 30, 2021
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5 Largest Equity Holdings - (% of Net Assets) |
Catalent Inc | |
Pharmaceuticals | 2.8% |
Crown Holdings Inc | |
Containers & Packaging | 2.7% |
LPL Financial Holdings Inc | |
Capital Markets | 2.1% |
Sensient Technologies Corp | |
Chemicals | 2.0% |
j2 Global Inc | |
Software | 1.8% |
| | 11.4% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 98.0% | |
Private Investment in Public Equity (PIPES) | | 1.9% | |
Investment Companies | | 1.6% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.5% | |
Other | | (2.0)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
|
Janus Henderson Triton 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 September 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV(1) | | 33.41% | 15.36% | 16.01% | 13.05% | | | 1.35% |
Class A Shares at MOP(1) | | 25.74% | 14.01% | 15.32% | 12.65% | | | |
Class C Shares at NAV(1) | | 32.72% | 14.70% | 15.27% | 12.30% | | | 1.74% |
Class C Shares at CDSC(1) | | 31.72% | 14.70% | 15.27% | 12.30% | | | |
Class D Shares(1) | | 33.85% | 15.74% | 16.36% | 13.34% | | | 0.80% |
Class I Shares(1) | | 33.90% | 15.78% | 16.41% | 13.40% | | | 0.76% |
Class N Shares(1) | | 34.04% | 15.90% | 16.51% | 13.42% | | | 0.66% |
Class R Shares(1) | | 33.06% | 15.04% | 15.66% | 12.69% | | | 1.41% |
Class S Shares(1) | | 33.37% | 15.32% | 15.95% | 12.95% | | | 1.16% |
Class T Shares(1) | | 33.67% | 15.61% | 16.25% | 13.26% | | | 0.91% |
Russell 2500 Growth Index | | 31.98% | 18.21% | 17.20% | 11.51% | | | |
Russell 2000 Growth Index | | 33.27% | 15.34% | 15.74% | 10.24% | | | |
Morningstar Quartile - Class T Shares | | 3rd | 3rd | 3rd | 1st | | | |
Morningstar Ranking - based on total returns for Small Growth Funds | | 403/616 | 425/576 | 304/524 | 36/446 | | | |
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, Environmental, Social and Governance (ESG) factors, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and
Janus Henderson Triton Fund (unaudited)(closed to certain new investors)
Performance
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 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 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 – February 25, 2005
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
(1) Closed to certain new investors.
Janus Henderson Triton 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,027.90 | $5.59 | | $1,000.00 | $1,019.55 | $5.57 | 1.10% |
Class C Shares | $1,000.00 | $1,025.30 | $8.33 | | $1,000.00 | $1,016.85 | $8.29 | 1.64% |
Class D Shares | $1,000.00 | $1,029.50 | $3.97 | | $1,000.00 | $1,021.16 | $3.95 | 0.78% |
Class I Shares | $1,000.00 | $1,029.70 | $3.77 | | $1,000.00 | $1,021.36 | $3.75 | 0.74% |
Class N Shares | $1,000.00 | $1,030.30 | $3.36 | | $1,000.00 | $1,021.76 | $3.35 | 0.66% |
Class R Shares | $1,000.00 | $1,026.50 | $7.11 | | $1,000.00 | $1,018.05 | $7.08 | 1.40% |
Class S Shares | $1,000.00 | $1,027.60 | $5.90 | | $1,000.00 | $1,019.25 | $5.87 | 1.16% |
Class T Shares | $1,000.00 | $1,029.00 | $4.58 | | $1,000.00 | $1,020.56 | $4.56 | 0.90% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 Triton Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 98.0% | | | |
Aerospace & Defense – 2.0% | | | |
| | Axon Enterprise Inc* | | 688,690 | | | $120,534,524 | |
| | Teledyne Technologies Inc* | | 259,420 | | | 111,441,644 | |
| | | 231,976,168 | |
Auto Components – 1.6% | | | |
| | Fox Factory Holding Corp* | | 558,471 | | | 80,721,398 | |
| | Quantumscape Corp*,# | | 1,293,635 | | | 31,745,803 | |
| | Visteon Corp* | | 730,514 | | | 68,953,216 | |
| | | 181,420,417 | |
Automobiles – 0.7% | | | |
| | Thor Industries Inc | | 689,140 | | | 84,598,826 | |
Banks – 0.4% | | | |
| | MSD Acquisition Corp*,£ | | 4,073,279 | | | 40,773,523 | |
Biotechnology – 9.4% | | | |
| | Abcam PLC* | | 2,325,256 | | | 46,234,495 | |
| | Acceleron Pharma Inc* | | 573,648 | | | 98,724,821 | |
| | Arrowhead Pharmaceuticals Inc* | | 815,750 | | | 50,927,272 | |
| | Ascendis Pharma A/S (ADR)* | | 308,481 | | | 49,168,787 | |
| | Bridgebio Pharma Inc* | | 816,075 | | | 38,249,435 | |
| | Centessa Pharmacuticals PLC (ADR)* | | 1,578,408 | | | 26,359,414 | |
| | Eagle Pharmaceuticals Inc/DE*,£ | | 965,786 | | | 53,871,543 | |
| | Emergent BioSolutions Inc* | | 1,427,882 | | | 71,494,052 | |
| | Fate Therapeutics Inc* | | 893,656 | | | 52,966,991 | |
| | Global Blood Therapeutics Inc* | | 1,645,452 | | | 41,926,117 | |
| | Ligand Pharmaceuticals Inc*,£ | | 1,045,081 | | | 145,600,685 | |
| | Mirati Therapeutics Inc* | | 381,887 | | | 67,559,629 | |
| | Natera Inc* | | 496,856 | | | 55,369,633 | |
| | Neurocrine Biosciences Inc* | | 1,206,374 | | | 115,703,330 | |
| | PTC Therapeutics Inc* | | 1,020,340 | | | 37,966,851 | |
| | Sarepta Therapeutics Inc* | | 1,085,880 | | | 100,422,182 | |
| | Vaxcyte Inc*,# | | 2,004,508 | | | 50,854,368 | |
| | | 1,103,399,605 | |
Capital Markets – 2.9% | | | |
| | Cboe Global Markets Inc | | 742,604 | | | 91,978,931 | |
| | LPL Financial Holdings Inc | | 1,552,623 | | | 243,389,181 | |
| | | 335,368,112 | |
Chemicals – 2.0% | | | |
| | Sensient Technologies Corp£ | | 2,536,727 | | | 231,045,095 | |
Commercial Services & Supplies – 1.8% | | | |
| | Brady Corp | | 2,243,969 | | | 113,769,228 | |
| | Cimpress PLC* | | 462,343 | | | 40,145,243 | |
| | Driven Brands Holdings Inc* | | 1,943,156 | | | 56,137,777 | |
| | | 210,052,248 | |
Construction Materials – 0.9% | | | |
| | Summit Materials Inc* | | 3,447,850 | | | 110,227,764 | |
Containers & Packaging – 3.6% | | | |
| | Crown Holdings Inc | | 3,157,960 | | | 318,259,209 | |
| | Sealed Air Corp | | 1,886,558 | | | 103,364,513 | |
| | | 421,623,722 | |
Diversified Consumer Services – 2.6% | | | |
| | Frontdoor Inc* | | 1,930,898 | | | 80,904,626 | |
| | Mister Car Wash Inc* | | 2,706,885 | | | 49,400,651 | |
| | Terminix Global Holdings Inc* | | 4,266,728 | | | 177,794,556 | |
| | | 308,099,833 | |
Diversified Financial Services – 0.9% | | | |
| | Clarivate Analytics PLC* | | 3,179,947 | | | 69,640,839 | |
| | GS Acquisition Holdings Corp II - Class A* | | 693,319 | | | 7,085,720 | |
| | Kensington Capital Acquisition Corp*,£ | | 2,663,123 | | | 22,809,648 | |
| | | 99,536,207 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2021 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Diversified Telecommunication Services – 1.7% | | | |
| | AST SpaceMobile Inc* | | 1,670,199 | | | $18,071,553 | |
| | Vonage Holdings Corp* | | 11,223,526 | | | 180,923,239 | |
| | | 198,994,792 | |
Electrical Equipment – 1.0% | | | |
| | EnerSys | | 1,110,529 | | | 82,667,779 | |
| | Stem Inc* | | 1,232,031 | | | 29,433,221 | |
| | | 112,101,000 | |
Electronic Equipment, Instruments & Components – 2.9% | | | |
| | Itron Inc* | | 612,929 | | | 46,355,820 | |
| | National Instruments Corp | | 1,745,295 | | | 68,467,923 | |
| | OSI Systems Inc*,£ | | 1,280,610 | | | 121,401,828 | |
| | Rogers Corp* | | 565,890 | | | 105,527,167 | |
| | | 341,752,738 | |
Equity Real Estate Investment Trusts (REITs) – 0.8% | | | |
| | Lamar Advertising Co | | 810,445 | | | 91,944,985 | |
Food & Staples Retailing – 0.9% | | | |
| | Casey's General Stores Inc | | 410,592 | | | 77,376,062 | |
| | Grocery Outlet Holding Corp* | | 1,492,617 | | | 32,195,749 | |
| | | 109,571,811 | |
Food Products – 2.6% | | | |
| | Hostess Brands Inc*,£ | | 6,587,747 | | | 114,429,165 | |
| | Premium Brands Holdings Corp# | | 861,685 | | | 88,141,721 | |
| | Simply Good Foods Co* | | 2,866,267 | | | 98,857,549 | |
| | | 301,428,435 | |
Health Care Equipment & Supplies – 6.9% | | | |
| | Cardiovascular Systems Inc* | | 1,454,735 | | | 47,758,950 | |
| | Glaukos Corp* | | 1,106,195 | | | 53,285,413 | |
| | Globus Medical Inc* | | 2,257,928 | | | 173,002,443 | |
| | ICU Medical Inc* | | 458,201 | | | 106,934,949 | |
| | Integra LifeSciences Holdings Corp* | | 2,881,399 | | | 197,318,204 | |
| | Ortho Clinical Diagnostics Holdings PLC* | | 7,083,673 | | | 130,906,277 | |
| | STERIS PLC | | 507,506 | | | 103,673,326 | |
| | | 812,879,562 | |
Health Care Providers & Services – 2.5% | | | |
| | Agiliti Inc*,#,£ | | 5,258,127 | | | 100,114,738 | |
| | Chemed Corp | | 249,678 | | | 116,130,231 | |
| | HealthEquity Inc* | | 1,102,796 | | | 71,417,069 | |
| | | 287,662,038 | |
Hotels, Restaurants & Leisure – 1.3% | | | |
| | Churchill Downs Inc | | 285,557 | | | 68,556,525 | |
| | Wendy's Co | | 3,834,602 | | | 83,134,171 | |
| | | 151,690,696 | |
Household Durables – 1.5% | | | |
| | Helen of Troy Ltd* | | 469,880 | | | 105,572,638 | |
| | Purple Innovation Inc* | | 3,091,937 | | | 64,992,516 | |
| | | 170,565,154 | |
Independent Power and Renewable Electricity Producers – 0.5% | | | |
| | NRG Energy Inc | | 1,474,565 | | | 60,206,489 | |
Industrial Conglomerates – 1.0% | | | |
| | Carlisle Cos Inc | | 595,508 | | | 118,381,035 | |
Information Technology Services – 6.1% | | | |
| | Broadridge Financial Solutions Inc | | 924,428 | | | 154,046,682 | |
| | Euronet Worldwide Inc* | | 1,229,724 | | | 156,519,271 | |
| | LiveRamp Holdings Inc* | | 2,400,301 | | | 113,366,216 | |
| | MAXIMUS Inc | | 1,090,902 | | | 90,763,046 | |
| | Switch Inc | | 4,308,534 | | | 109,393,678 | |
| | WEX Inc* | | 539,247 | | | 94,982,967 | |
| | | 719,071,860 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Insurance – 0.7% | | | |
| | Selective Insurance Group Inc | | 1,114,778 | | | $84,199,182 | |
Internet & Direct Marketing Retail – 1.3% | | | |
| | Etsy Inc* | | 484,787 | | | 100,816,305 | |
| | Wayfair Inc*,# | | 200,921 | | | 51,337,325 | |
| | | 152,153,630 | |
Life Sciences Tools & Services – 3.3% | | | |
| | Bio-Techne Corp | | 204,321 | | | 99,007,827 | |
| | Bruker Corp | | 1,444,617 | | | 112,824,588 | |
| | NeoGenomics Inc* | | 1,601,732 | �� | | 77,267,552 | |
| | PerkinElmer Inc | | 531,998 | | | 92,189,933 | |
| | | 381,289,900 | |
Machinery – 4.7% | | | |
| | Donaldson Co Inc | | 1,569,136 | | | 90,084,098 | |
| | Gates Industrial Corp PLC* | | 5,649,021 | | | 91,909,572 | |
| | ITT Inc | | 1,080,964 | | | 92,789,950 | |
| | Nordson Corp | | 332,811 | | | 79,258,940 | |
| | Rexnord Corp* | | 2,980,086 | | | 191,589,729 | |
| | Xos Inc*,# | | 2,033,906 | | | 9,416,985 | |
| | | 555,049,274 | |
Media – 0.5% | | | |
| | Cable One Inc | | 34,800 | | | 63,096,924 | |
Pharmaceuticals – 3.3% | | | |
| | Catalent Inc* | | 2,429,138 | | | 323,245,394 | |
| | Horizon Therapeutics PLC* | | 616,381 | | | 67,518,375 | |
| | | 390,763,769 | |
Professional Services – 1.6% | | | |
| | Alight Inc - Class A*,# | | 6,479,680 | | | 74,386,726 | |
| | TriNet Group Inc* | | 1,245,601 | | | 117,808,943 | |
| | | 192,195,669 | |
Road & Rail – 1.2% | | | |
| | Saia Inc* | | 611,839 | | | 145,636,037 | |
Semiconductor & Semiconductor Equipment – 3.7% | | | |
| | Brooks Automation Inc | | 1,287,446 | | | 131,770,098 | |
| | Cree Inc* | | 404,748 | | | 32,675,306 | |
| | Entegris Inc | | 947,531 | | | 119,294,153 | |
| | ON Semiconductor Corp* | | 3,332,008 | | | 152,506,006 | |
| | | 436,245,563 | |
Software – 14.5% | | | |
| | ACI Worldwide Inc* | | 2,307,889 | | | 70,921,429 | |
| | Altair Engineering Inc* | | 1,144,243 | | | 78,884,112 | |
| | Avalara Inc* | | 677,254 | | | 118,363,682 | |
| | Blackbaud Inc* | | 2,140,743 | | | 150,601,270 | |
| | Ceridian HCM Holding Inc* | | 441,498 | | | 49,721,505 | |
| | Clearwater Analytics Holdings Inc - Class A* | | 582,586 | | | 14,920,027 | |
| | Dynatrace Inc* | | 1,987,814 | | | 141,075,160 | |
| | Envestnet Inc* | | 1,501,397 | | | 120,472,095 | |
| | j2 Global Inc* | | 1,536,453 | | | 209,910,209 | |
| | LivePerson Inc* | | 2,064,673 | | | 121,712,473 | |
| | Nice Ltd (ADR)* | | 289,506 | | | 82,231,284 | |
| | Pagerduty Inc* | | 2,817,109 | | | 116,684,655 | |
| | SS&C Technologies Holdings Inc | | 2,886,207 | | | 200,302,766 | |
| | Yext Inc* | | 6,055,619 | | | 72,849,097 | |
| | Zendesk Inc* | | 1,309,933 | | | 152,463,102 | |
| | | 1,701,112,866 | |
Specialty Retail – 2.5% | | | |
| | Leslie's Inc* | | 3,321,838 | | | 68,230,553 | |
| | National Vision Holdings Inc* | | 2,424,065 | | | 137,614,170 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Specialty Retail– (continued) | | | |
| | Williams-Sonoma Inc | | 453,488 | | | $80,417,027 | |
| | | 286,261,750 | |
Technology Hardware, Storage & Peripherals – 0.6% | | | |
| | NCR Corp* | | 1,813,114 | | | 70,276,299 | |
Thrifts & Mortgage Finance – 1.6% | | | |
| | LendingTree Inc* | | 429,087 | | | 59,999,235 | |
| | Walker & Dunlop Inc | | 1,084,818 | | | 123,126,843 | |
| | | 183,126,078 | |
Total Common Stocks (cost $6,799,834,487) | | 11,475,779,056 | |
Private Investment in Public Equity (PIPES)– 1.9% | | | |
Capital Markets – 0.6% | | | |
| | Foresight Acquisition Corp*,§ | | 6,617,848 | | | 65,251,981 | |
Diversified Financial Services – 1.3% | | | |
| | GS Acquisition Holdings Corp*,§ | | 9,458,407 | | | 96,664,920 | |
| | SomaLogic Holdings Inc*,§ | | 2,827,494 | | | 35,032,651 | |
| | Wallbox BV*,§ | | 1,355,820 | | | 11,226,190 | |
| | Xos Inc*,§ | | 3,032,434 | | | 14,040,169 | |
| | | 156,963,930 | |
Total Private Investment in Public Equity (PIPES) (cost $232,920,030) | | 222,215,911 | |
Investment Companies– 1.6% | | | |
Money Markets – 1.6% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $188,324,812) | | 188,306,418 | | | 188,325,249 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.5% | | | |
Investment Companies – 0.3% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 39,470,021 | | | 39,470,021 | |
Time Deposits – 0.2% | | | |
| | Royal Bank of Canada, 0.0400%, 10/1/21 | | $21,617,505 | | | 21,617,505 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $61,087,526) | | 61,087,526 | |
Total Investments (total cost $7,282,166,855) – 102.0% | | 11,947,407,742 | |
Liabilities, net of Cash, Receivables and Other Assets – (2.0)% | | (229,078,147) | |
Net Assets – 100% | | $11,718,329,595 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $11,681,631,455 | | 97.8 | % |
Canada | | 88,141,721 | | 0.7 | |
Israel | | 82,231,284 | | 0.7 | |
Denmark | | 49,168,787 | | 0.4 | |
United Kingdom | | 46,234,495 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $11,947,407,742 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2021
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/21 |
Common Stocks - 6.3% |
Banks - 0.4% | |
| | MSD Acquisition Corp* | $ | - | $ | - | $ | 40,733 | $ | 40,773,523 |
Biotechnology - 1.7% | |
| | Eagle Pharmaceuticals Inc/DE* | | - | | (4,034,777) | | 16,811,127 | | 53,871,543 |
| | Ligand Pharmaceuticals Inc* | | - | | 9,944,654 | | 49,233,226 | | 145,600,685 |
Total Biotechnology | $ | - | $ | 5,909,877 | $ | 66,044,353 | $ | 199,472,228 |
Capital Markets - N/A | |
| | New Providence Acquisition Corp - Class A | | - | | - | | - | | - |
Chemicals - 2.0% | |
| | Sensient Technologies Corp | | 4,271,073 | | 2,598,682 | | 88,722,719 | | 231,045,095 |
Diversified Financial Services - 0.2% | |
| | Foley Trasimene Acquisition Corp - Class A | | - | | - | | - | | - |
| | Kensington Capital Acquisition Corp* | | - | | - | | (3,821,582) | | 22,809,648 |
| | Nextgen Acquisition Corp - Class A | | - | | - | | - | | - |
Total Diversified Financial Services | $ | - | $ | - | $ | (3,821,582) | $ | 22,809,648 |
Electronic Equipment, Instruments & Components - 1.0% | |
| | OSI Systems Inc* | | - | | - | | 22,013,686 | | 121,401,828 |
Food Products - 1.0% | |
| | Hostess Brands Inc* | | - | | - | | 26,544,194 | | 114,429,165 |
Health Care Providers & Services - N/A | |
| | Agiliti Inc*,#,š | | - | | - | | 23,141,300 | | N/A |
Total Common Stocks | $ | 4,271,073 | $ | 8,508,559 | $ | 222,685,403 | $ | 729,931,487 |
Private Investment in Public Equity (PIPES) - 0.1% |
Diversified Financial Services - 0.1% | |
| | Wallbox BV*,§, (2) | | - | | - | | (2,332,010) | | 11,226,190 |
| | Nextgen Acquisition Corp* | | - | | - | | - | | - |
Total Private Investment in Public Equity (PIPES) | $ | - | $ | - | $ | (2,332,010) | $ | 11,226,190 |
Preferred Stocks - N/A |
Diversified Financial Services - N/A | |
| | Kensington Capital Acquisition Corp PP | | - | | - | | (42,833,515) | | - |
Investment Companies - 1.6% |
Money Markets - 1.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 163,138 | | (2,923) | | (2,278) | | 188,325,249 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 2,731,358∆ | | - | | - | | 39,470,021 |
Total Affiliated Investments - 8.3% | $ | 7,165,569 | $ | 8,505,636 | $ | 177,517,600 | $ | 968,952,947 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2021 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2021
(1) For securities that were affiliated for a portion of the year ended September 30, 2021, this column reflects amounts for the entire year ended September 30, 2021 and not just the period in which the security was affiliated.
(2) Formerly named Kensington Capital Acquisition Corp II
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Common Stocks - 6.3% |
Banks - 0.4% | |
| | MSD Acquisition Corp* | | - | | 40,732,790 | | - | | 40,773,523 |
Biotechnology - 1.7% | |
| | Eagle Pharmaceuticals Inc/DE* | | 44,931,478 | | - | | (3,836,285) | | 53,871,543 |
| | Ligand Pharmaceuticals Inc* | | 103,200,200 | | 23,598,148 | | (40,375,543) | | 145,600,685 |
Capital Markets - N/A | |
| | New Providence Acquisition Corp - Class A | | - | | 25,446,529 | | (25,446,529)Ð | | - |
Chemicals - 2.0% | |
| | Sensient Technologies Corp | | 161,161,636 | | - | | (21,437,942) | | 231,045,095 |
Diversified Financial Services - 0.2% | |
| | Foley Trasimene Acquisition Corp - Class A | | - | | 65,257,137 | | (65,257,137)Ð | | - |
| | Kensington Capital Acquisition Corp* | | - | | 26,631,230 | | - | | 22,809,648 |
| | Nextgen Acquisition Corp - Class A | | - | | 27,216,757 | | (27,216,757)Ð | | - |
Electronic Equipment, Instruments & Components - 1.0% | |
| | OSI Systems Inc* | | 99,388,142 | | - | | - | | 121,401,828 |
Food Products - 1.0% | |
| | Hostess Brands Inc* | | 51,956,462 | | 35,928,509 | | - | | 114,429,165 |
Health Care Providers & Services - N/A | |
| | Agiliti Inc*,#,š | | - | | 76,973,438 | | - | | 100,114,738 |
Private Investment in Public Equity (PIPES) - 0.1% |
Diversified Financial Services - 0.1% | |
| | Wallbox BV*,§, (2) | | - | | 13,558,200 | | - | | 11,226,190 |
| | Nextgen Acquisition Corp* | | - | | 30,324,340 | | (30,324,340)Ð | | - |
Preferred Stocks - N/A |
Diversified Financial Services - N/A | |
| | Kensington Capital Acquisition Corp PP | | 106,290,575 | | - | | (63,457,060)Ð | | - |
Investment Companies - 1.6% |
Money Markets - 1.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 241,834,526 | | 2,549,795,833 | | (2,603,299,909) | | 188,325,249 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 147,525,570 | | 799,576,945 | | (907,632,494) | | 39,470,021 |
(2) Formerly named Kensington Capital Acquisition Corp II | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Triton Fund
Schedule of Investments
September 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) | |
Barclays Capital, Inc.: | | | | | | | | |
British Pound | 10/28/21 | 990,000 | $ | (1,332,513) | $ | 1,246 | | |
British Pound | 10/28/21 | 4,820,000 | | (6,602,253) | | (108,597) | | |
British Pound | 10/28/21 | (34,946,000) | | 48,579,179 | | 1,498,823 | | |
Canadian Dollar | 10/28/21 | (15,188,000) | | 12,115,432 | | 122,706 | | |
| | | | | | | | | |
| | | | | | | 1,514,178 | | |
Citibank, National Association: | | | | | | | | |
British Pound | 10/28/21 | (2,245,000) | | 3,114,870 | | 90,335 | | |
Canadian Dollar | 10/28/21 | 1,127,000 | | (890,622) | | (722) | | |
Canadian Dollar | 10/28/21 | (13,355,000) | | 10,660,100 | | 114,745 | | |
| | | | | | | | | |
| | | | | | | 204,358 | | |
Credit Suisse International: | | | | | | | | |
Canadian Dollar | 10/28/21 | (26,447,000) | | 21,107,904 | | 224,862 | | |
HSBC Securities (USA), Inc.: | | | | | | | | |
British Pound | 10/28/21 | 3,181,000 | | (4,372,953) | | (87,409) | | |
British Pound | 10/28/21 | (2,796,000) | | 3,878,477 | | 111,617 | | |
Canadian Dollar | 10/28/21 | (17,959,000) | | 14,329,713 | | 148,954 | | |
Canadian Dollar | 10/28/21 | (1,189,000) | | 934,692 | | (4,164) | | |
| | | | | | | | | |
| | | | | | | 168,998 | | |
JPMorgan Chase Bank, National Association: | | | | | | | | |
British Pound | 10/28/21 | (1,325,000) | | 1,826,714 | | 41,632 | | |
Canadian Dollar | 10/28/21 | (12,550,000) | | 10,000,816 | | 91,103 | | |
| | | | | | | | | |
| | | | | | | 132,735 | | |
State Street: | | | | | | | | |
Canadian Dollar | 10/28/21 | (658,000) | | 525,155 | | 5,586 | | |
Total | | | | | $ | 2,250,717 | | |
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 September 30, 2021.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2021 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $2,451,609 |
| | | | |
Liability Derivatives: | | | |
Forward foreign currency exchange contracts | | | $ 200,892 |
| | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2021 |
Janus Henderson Triton Fund
Schedule of Investments
September 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 September 30, 2021.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2021 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $(8,787,059) |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ 1,580,377 |
| | | | | |
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 September 30, 2021 |
| |
| Market Value(a) |
Forward foreign currency exchange contracts, purchased | $ 39,159,038 |
Forward foreign currency exchange contracts, sold | 171,857,126 |
| | |
(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 | 15 |
Janus Henderson Triton Fund
Notes to Schedule of Investments and Other Information
| | |
Russell 2000® Growth Index | Russell 2000® Growth Index reflects the performance of U.S. small-cap equities with higher price-to-book ratios and higher forecasted growth values. |
Russell 2500TM Growth Index | Russell 2500TM Growth Index reflects the performance of U.S. small to mid-cap equities with higher price-to-book ratios and higher forecasted growth values. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at September 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. |
| | |
Ð | All or a portion is the result of a corporate action. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2021) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Foresight Acquisition Corp | 5/25/21 | $ | 66,178,480 | $ | 65,251,981 | | 0.6 | % |
GS Acquisition Holdings Corp | 6/16/21 | | 94,584,070 | | 96,664,920 | | 0.8 | |
SomaLogic Holdings Inc | 3/29/21 | | 28,274,940 | | 35,032,651 | | 0.3 | |
Wallbox BV | 6/9/21 | | 13,558,200 | | 11,226,190 | | 0.1 | |
Xos Inc | 2/23/21 | | 30,324,340 | | 14,040,169 | | 0.1 | |
Total | | $ | 232,920,030 | $ | 222,215,911 | | 1.9 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2021. The issuer incurs all registration costs. | |
Janus Henderson Triton 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 September 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 | | | | | | |
Biotechnology | $ | 1,057,165,110 | $ | 46,234,495 | $ | - |
All Other | | 10,372,379,451 | | - | | - |
Private Investment in Public Equity (PIPES) | | - | | 222,215,911 | | - |
Investment Companies | | - | | 188,325,249 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 61,087,526 | | - |
Total Investments in Securities | $ | 11,429,544,561 | $ | 517,863,181 | $ | - |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 2,451,609 | | - |
Total Assets | $ | 11,429,544,561 | $ | 520,314,790 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 200,892 | $ | - |
| | | | | | | |
(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 Triton Fund
Statement of Assets and Liabilities
September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $6,476,814,527)(1) | | $ | 10,978,454,795 | |
| Affiliated investments, at value (cost $805,352,328) | | | 968,952,947 | |
| Forward foreign currency exchange contracts | | | 2,451,609 | |
| Non-interested Trustees' deferred compensation | | | 292,803 | |
| Receivables: | | | | |
| | Fund shares sold | | | 35,949,211 | |
| | Investments sold | | | 22,962,589 | |
| | Dividends | | | 1,197,838 | |
| | Foreign tax reclaims | | | 201,263 | |
| | Dividends from affiliates | | | 11,184 | |
| Other assets | | | 199,373 | |
Total Assets | | | 12,010,673,612 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 61,087,526 | |
| Forward foreign currency exchange contracts | | | 200,892 | |
| Payables: | | | — | |
| | Investments purchased | | | 163,648,224 | |
| | Fund shares repurchased | | | 58,333,268 | |
| | Advisory fees | | | 6,420,848 | |
| | Transfer agent fees and expenses | | | 1,401,636 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 364,759 | |
| | Non-interested Trustees' deferred compensation fees | | | 292,803 | |
| | Non-interested Trustees' fees and expenses | | | 98,040 | |
| | Professional fees | | | 68,886 | |
| | Affiliated fund administration fees payable | | | 25,081 | |
| | Custodian fees | | | 16,102 | |
| | Accrued expenses and other payables | | | 385,952 | |
Total Liabilities | | | 292,344,017 | |
Net Assets | | $ | 11,718,329,595 | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2021 |
Janus Henderson Triton Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 5,216,129,203 | |
| Total distributable earnings (loss) | | | 6,502,200,392 | |
Total Net Assets | | $ | 11,718,329,595 | |
Net Assets - Class A Shares | | $ | 467,268,670 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,173,947 | |
Net Asset Value Per Share(2) | | $ | 38.38 | |
Maximum Offering Price Per Share(3) | | $ | 40.72 | |
Net Assets - Class C Shares | | $ | 49,738,443 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,442,227 | |
Net Asset Value Per Share(2) | | $ | 34.49 | |
Net Assets - Class D Shares | | $ | 1,289,903,557 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 32,390,502 | |
Net Asset Value Per Share | | $ | 39.82 | |
Net Assets - Class I Shares | | $ | 2,082,426,915 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 51,838,082 | |
Net Asset Value Per Share | | $ | 40.17 | |
Net Assets - Class N Shares | | $ | 4,412,467,427 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 109,010,860 | |
Net Asset Value Per Share | | $ | 40.48 | |
Net Assets - Class R Shares | | $ | 293,566,593 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 7,989,124 | |
Net Asset Value Per Share | | $ | 36.75 | |
Net Assets - Class S Shares | | $ | 452,832,323 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 11,938,972 | |
Net Asset Value Per Share | | $ | 37.93 | |
Net Assets - Class T Shares | | $ | 2,670,125,667 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 67,875,908 | |
Net Asset Value Per Share | | $ | 39.34 | |
| |
(1) Includes $58,693,846 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 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Triton Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 43,872,522 | |
| Dividends from affiliates | | 4,434,211 | |
| Affiliated securities lending income, net | | 2,731,358 | |
| Unaffiliated securities lending income, net | | 13,734 | |
| Other income | | 120 | |
| Foreign tax withheld | | (281,788) | |
Total Investment Income | | 50,770,157 | |
Expenses: | | | |
| Advisory fees | | 79,323,487 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 1,217,994 | |
| | Class C Shares | | 691,689 | |
| | Class R Shares | | 1,555,455 | |
| | Class S Shares | | 1,246,996 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,462,911 | |
| | Class R Shares | | 792,061 | |
| | Class S Shares | | 1,246,508 | |
| | Class T Shares | | 7,022,887 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 1,885,692 | |
| | Class C Shares | | 49,908 | |
| | Class I Shares | | 1,931,603 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 29,402 | |
| | Class C Shares | | 3,769 | |
| | Class D Shares | | 113,323 | |
| | Class I Shares | | 139,970 | |
| | Class N Shares | | 129,560 | |
| | Class R Shares | | 6,748 | |
| | Class S Shares | | 5,864 | |
| | Class T Shares | | 21,165 | |
| Shareholder reports expense | | 381,697 | |
| Affiliated fund administration fees | | 346,752 | |
| Non-interested Trustees’ fees and expenses | | 199,856 | |
| Registration fees | | 191,117 | |
| Custodian fees | | 123,351 | |
| Professional fees | | 112,228 | |
| Other expenses | | 614,009 | |
Total Expenses | | 100,846,002 | |
Less: Excess Expense Reimbursement and Waivers | | (1,044,349) | |
Net Expenses | | 99,801,653 | |
Net Investment Income/(Loss) | | (49,031,496) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2021 |
Janus Henderson Triton Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 2,262,206,000 | |
| Investments in affiliates | | 8,505,636 | |
| Forward foreign currency exchange contracts | | (8,787,059) | |
Total Net Realized Gain/(Loss) on Investments | | 2,261,924,577 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 1,050,148,061 | |
| Investments in affiliates | | 177,517,600 | |
| Forward foreign currency exchange contracts | | 1,580,377 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 1,229,246,038 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 3,442,139,119 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Triton Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (49,031,496) | | $ | (29,592,778) | |
| Net realized gain/(loss) on investments | | 2,261,924,577 | | | 472,238,133 | |
| Change in unrealized net appreciation/depreciation | | 1,229,246,038 | | | (6,209,134) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 3,442,139,119 | | | 436,436,221 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (20,918,705) | | | (20,924,999) | |
| | Class C Shares | | (5,224,115) | | | (6,930,815) | |
| | Class D Shares | | (52,614,084) | | | (50,405,777) | |
| | Class I Shares | | (94,827,813) | | | (93,876,832) | |
| | Class N Shares | | (187,894,503) | | | (167,979,697) | |
| | Class R Shares | | (14,319,168) | | | (14,531,933) | |
| | Class S Shares | | (22,371,704) | | | (22,731,798) | |
| | Class T Shares | | (118,585,208) | | | (122,983,539) | |
Net Decrease from Dividends and Distributions to Shareholders | | (516,755,300) | | | (500,365,390) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (61,612,927) | | | (72,428,722) | |
| | Class C Shares | | (72,525,699) | | | (48,159,166) | |
| | Class D Shares | | (64,762,842) | | | (126,362,159) | |
| | Class I Shares | | (416,233,465) | | | (260,643,288) | |
| | Class N Shares | | (499,325,933) | | | (47,997,780) | |
| | Class R Shares | | (62,146,403) | | | (39,551,768) | |
| | Class S Shares | | (118,034,473) | | | (66,068,478) | |
| | Class T Shares | | (372,317,004) | | | (460,055,963) | |
Net Increase/(Decrease) from Capital Share Transactions | | (1,666,958,746) | | | (1,121,267,324) | |
Net Increase/(Decrease) in Net Assets | | 1,258,425,073 | | | (1,185,196,493) | |
Net Assets: | | | | | | |
| Beginning of period | | 10,459,904,522 | | | 11,645,101,015 | |
| End of period | $ | 11,718,329,595 | | $ | 10,459,904,522 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2021 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $30.01 | | | $29.95 | | | $33.12 | | | $28.03 | | | $23.79 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.26) | | | (0.16) | | | (0.08) | | | (0.07) | | | (0.08) | |
| | Net realized and unrealized gain/(loss) | | 10.22 | | | 1.55 | | | (1.19) | | | 6.62 | | | 4.97 | |
| Total from Investment Operations | | 9.96 | | | 1.39 | | | (1.27) | | | 6.55 | | | 4.89 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Net Asset Value, End of Period | | $38.38 | | | $30.01 | | | $29.95 | | | $33.12 | | | $28.03 | |
| Total Return* | | 33.41% | | | 4.64% | | | (2.69)% | | | 24.26% | | | 21.06% | |
| Net Assets, End of Period (in thousands) | | $467,269 | | | $416,036 | | | $491,045 | | | $586,644 | | | $498,657 | |
| Average Net Assets for the Period (in thousands) | | $494,458 | | | $430,974 | | | $501,143 | | | $544,457 | | | $532,950 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.29% | | | 1.35% | | | 1.33% | | | 1.30% | | | 1.26% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.10% | | | 1.12% | | | 1.12% | | | 1.12% | | | 1.14% | |
| | Ratio of Net Investment Income/(Loss) | | (0.69)% | | | (0.57)% | | | (0.28)% | | | (0.25)% | | | (0.30)% | |
| Portfolio Turnover Rate | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $27.23 | | | $27.45 | | | $30.72 | | | $26.25 | | | $22.45 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.42) | | | (0.30) | | | (0.23) | | | (0.25) | | | (0.22) | |
| | Net realized and unrealized gain/(loss) | | 9.27 | | | 1.41 | | | (1.14) | | | 6.18 | | | 4.67 | |
| Total from Investment Operations | | 8.85 | | | 1.11 | | | (1.37) | | | 5.93 | | | 4.45 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Net Asset Value, End of Period | | $34.49 | | | $27.23 | | | $27.45 | | | $30.72 | | | $26.25 | |
| Total Return* | | 32.72% | | | 4.02% | | | (3.26)% | | | 23.51% | | | 20.34% | |
| Net Assets, End of Period (in thousands) | | $49,738 | | | $97,105 | | | $150,431 | | | $206,617 | | | $215,499 | |
| Average Net Assets for the Period (in thousands) | | $75,187 | | | $124,872 | | | $168,909 | | | $219,336 | | | $216,651 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.65% | | | 1.70% | | | 1.68% | | | 1.74% | | | 1.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.65% | | | 1.70% | | | 1.68% | | | 1.74% | | | 1.75% | |
| | Ratio of Net Investment Income/(Loss) | | (1.25)% | | | (1.14)% | | | (0.84)% | | | (0.88)% | | | (0.91)% | |
| Portfolio Turnover Rate | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | 23 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $30.99 | | | $30.79 | | | $33.89 | | | $28.56 | | | $24.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.14) | | | (0.07) | | | 0.01 | | | 0.02 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 10.56 | | | 1.60 | | | (1.21) | | | 6.77 | | | 5.05 | |
| Total from Investment Operations | | 10.42 | | | 1.53 | | | (1.20) | | | 6.79 | | | 5.06 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | (0.03) | |
| | Distributions (from capital gains) | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.68) | |
| Net Asset Value, End of Period | | $39.82 | | | $30.99 | | | $30.79 | | | $33.89 | | | $28.56 | |
| Total Return* | | 33.85% | | | 4.98% | | | (2.41)% | | | 24.67% | | | 21.47% | |
| Net Assets, End of Period (in thousands) | | $1,289,904 | | | $1,057,332 | | | $1,191,950 | | | $1,302,196 | | | $1,074,740 | |
| Average Net Assets for the Period (in thousands) | | $1,297,945 | | | $1,088,543 | | | $1,183,056 | | | $1,190,715 | | | $979,341 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.78% | | | 0.80% | | | 0.80% | | | 0.80% | | | 0.81% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.78% | | | 0.80% | | | 0.80% | | | 0.80% | | | 0.81% | |
| | Ratio of Net Investment Income/(Loss) | | (0.37)% | | | (0.25)% | | | 0.04% | | | 0.07% | | | 0.03% | |
| Portfolio Turnover Rate | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $31.24 | | | $31.02 | | | $34.11 | | | $28.72 | | | $24.31 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.13) | | | (0.06) | | | 0.02 | | | 0.04 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | 10.65 | | | 1.61 | | | (1.21) | | | 6.81 | | | 5.08 | |
| Total from Investment Operations | | 10.52 | | | 1.55 | | | (1.19) | | | 6.85 | | | 5.10 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | (0.04) | |
| | Distributions (from capital gains) | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.69) | |
| Net Asset Value, End of Period | | $40.17 | | | $31.24 | | | $31.02 | | | $34.11 | | | $28.72 | |
| Total Return* | | 33.90% | | | 5.00% | | | (2.36)% | | | 24.74% | | | 21.52% | |
| Net Assets, End of Period (in thousands) | | $2,082,427 | | | $1,953,114 | | | $2,235,807 | | | $2,451,517 | | | $1,928,184 | |
| Average Net Assets for the Period (in thousands) | | $2,243,961 | | | $2,022,112 | | | $2,206,658 | | | $2,158,823 | | | $1,641,647 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.75% | | | 0.76% | | | 0.76% | | | 0.75% | | | 0.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.75% | | | 0.76% | | | 0.76% | | | 0.75% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | (0.34)% | | | (0.21)% | | | 0.08% | | | 0.12% | | | 0.07% | |
| Portfolio Turnover Rate | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | SEPTEMBER 30, 2021 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $31.44 | | | $31.18 | | | $34.24 | | | $28.80 | | | $24.37 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.10) | | | (0.03) | | | 0.05 | | | 0.07 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | 10.73 | | | 1.62 | | | (1.21) | | | 6.83 | | | 5.10 | |
| Total from Investment Operations | | 10.63 | | | 1.59 | | | (1.16) | | | 6.90 | | | 5.14 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | (0.06) | |
| | Distributions (from capital gains) | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.71) | |
| Net Asset Value, End of Period | | $40.48 | | | $31.44 | | | $31.18 | | | $34.24 | | | $28.80 | |
| Total Return* | | 34.04% | | | 5.11% | | | (2.26)% | | | 24.85% | | | 21.63% | |
| Net Assets, End of Period (in thousands) | | $4,412,467 | | | $3,824,419 | | | $3,848,034 | | | $3,218,359 | | | $1,614,834 | |
| Average Net Assets for the Period (in thousands) | | $4,658,162 | | | $3,817,816 | | | $3,452,214 | | | $2,381,425 | | | $1,158,522 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.67% | |
| | Ratio of Net Investment Income/(Loss) | | (0.25)% | | | (0.12)% | | | 0.17% | | | 0.23% | | | 0.17% | |
| Portfolio Turnover Rate | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $28.86 | | | $28.94 | | | $32.17 | | | $27.34 | | | $23.28 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.35) | | | (0.24) | | | (0.16) | | | (0.16) | | | (0.14) | |
| | Net realized and unrealized gain/(loss) | | 9.83 | | | 1.49 | | | (1.17) | | | 6.45 | | | 4.85 | |
| Total from Investment Operations | | 9.48 | | | 1.25 | | | (1.33) | | | 6.29 | | | 4.71 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Net Asset Value, End of Period | | $36.75 | | | $28.86 | | | $28.94 | | | $32.17 | | | $27.34 | |
| Total Return* | | 33.06% | | | 4.30% | | | (2.97)% | | | 23.91% | | | 20.74% | |
| Net Assets, End of Period (in thousands) | | $293,567 | | | $281,907 | | | $325,507 | | | $386,643 | | | $314,746 | |
| Average Net Assets for the Period (in thousands) | | $316,824 | | | $295,035 | | | $341,001 | | | $352,329 | | | $276,566 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.40% | | | 1.41% | | | 1.41% | | | 1.41% | | | 1.42% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.40% | | | 1.41% | | | 1.41% | | | 1.41% | | | 1.42% | |
| | Ratio of Net Investment Income/(Loss) | | (0.99)% | | | (0.86)% | | | (0.57)% | | | (0.54)% | | | (0.58)% | |
| Portfolio Turnover Rate | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $29.68 | | | $29.65 | | | $32.83 | | | $27.81 | | | $23.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.28) | | | (0.17) | | | (0.09) | | | (0.09) | | | (0.08) | |
| | Net realized and unrealized gain/(loss) | | 10.12 | | | 1.53 | | | (1.19) | | | 6.57 | | | 4.93 | |
| Total from Investment Operations | | 9.84 | | | 1.36 | | | (1.28) | | | 6.48 | | | 4.85 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Net Asset Value, End of Period | | $37.93 | | | $29.68 | | | $29.65 | | | $32.83 | | | $27.81 | |
| Total Return* | | 33.37% | | | 4.58% | | | (2.75)% | | | 24.20% | | | 21.05% | |
| Net Assets, End of Period (in thousands) | | $452,832 | | | $450,947 | | | $520,950 | | | $619,660 | | | $498,839 | |
| Average Net Assets for the Period (in thousands) | | $498,603 | | | $471,543 | | | $541,037 | | | $553,006 | | | $435,784 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.17% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.17% | |
| | Ratio of Net Investment Income/(Loss) | | (0.75)% | | | (0.61)% | | | (0.32)% | | | (0.29)% | | | (0.33)% | |
| Portfolio Turnover Rate | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $30.67 | | | $30.51 | | | $33.64 | | | $28.39 | | | $24.05 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.19) | | | (0.10) | | | (0.02) | | | (0.01) | | | (0.02) | |
| | Net realized and unrealized gain/(loss) | | 10.45 | | | 1.59 | | | (1.21) | | | 6.72 | | | 5.03 | |
| Total from Investment Operations | | 10.26 | | | 1.49 | | | (1.23) | | | 6.71 | | | 5.01 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | (0.02) | |
| | Distributions (from capital gains) | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.67) | |
| Net Asset Value, End of Period | | $39.34 | | | $30.67 | | | $30.51 | | | $33.64 | | | $28.39 | |
| Total Return* | | 33.67% | | | 4.89% | | | (2.52)% | | | 24.53% | | | 21.34% | |
| Net Assets, End of Period (in thousands) | | $2,670,126 | | | $2,379,045 | | | $2,881,377 | | | $3,317,058 | | | $2,784,374 | |
| Average Net Assets for the Period (in thousands) | | $2,809,155 | | | $2,557,135 | | | $2,940,071 | | | $3,031,535 | | | $2,611,122 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.92% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.90% | | | 0.90% | | | 0.91% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | (0.49)% | | | (0.35)% | | | (0.07)% | | | (0.04)% | | | (0.07)% | |
| Portfolio Turnover Rate | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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. |
| |
26 | SEPTEMBER 30, 2021 |
Janus Henderson Triton Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Triton 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.
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 original 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
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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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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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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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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. 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 September 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
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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
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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 are 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 realized 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 period, 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 period, 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.
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 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
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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.
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 September 30, 2021” table located in 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 |
| | | | | | | | | |
Barclays Capital, Inc. | $ | 1,622,775 | $ | (108,597) | $ | — | $ | 1,514,178 |
Citibank, National Association | | 205,080 | | (722) | | — | | 204,358 |
Credit Suisse International | | 224,862 | | — | | — | | 224,862 |
HSBC Securities (USA), Inc. | | 260,571 | | (91,573) | | — | | 168,998 |
JPMorgan Chase Bank, National Association | | 58,826,581 | | — | | (58,693,846) | | 132,735 |
State Street | | 5,586 | | — | | — | | 5,586 |
| | | | | | | | | |
Total | $ | 61,145,455 | $ | (200,892) | $ | (58,693,846) | $ | 2,250,717 |
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. | $ | 108,597 | $ | (108,597) | $ | — | $ | — |
Citibank, National Association | | 722 | | (722) | | — | | — |
HSBC Securities (USA), Inc. | | 91,573 | | (91,573) | | — | | — |
| | | | | | | | | |
Total | $ | 200,892 | $ | (200,892) | $ | — | $ | — |
(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.
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.
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Private Investment in Public Equity
Private investments in public equity (“PIPEs”) are equity securities privately purchased from public companies (including special purpose acquisition companies) at a specified price. PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. Until the public registration process is completed, PIPEs are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect. To the extent that they increase the supply of a company’s stock in the market, PIPEs can potentially dilute the value of existing shares.
Special Purpose Acquisition Companies (SPAC)
The Fund may invest in stock, warrants, and other securities of special purpose acquisition companies (“SPACs”) or similar entities that pool funds to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC typically invests its assets (less a portion retained to cover expenses) in U.S. Government securities, money market fund securities, and cash. If an acquisition that meets the requirements for the SPAC is not completed within a pre-established period of time (typically two years), the invested funds are returned to the SPAC’s shareholders. Because SPACs and similar entities are in essence blank check companies without an operating history or ongoing business other than seeking acquisitions, the value of a SPAC’s securities is particularly dependent on the ability of the SPAC’s management to timely identify and complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. To the extent the SPAC is invested in cash or similar securities while awaiting an acquisition opportunity, a Fund’s ability to meet its investment objective may be negatively impacted. In addition, some SPACs may be traded in the over-the-counter market and may be considered illiquid and/or be subject to restrictions on resale.
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
Janus Henderson Triton Fund
Notes to Financial Statements
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 September 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $58,693,846. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2021 is $61,087,526, resulting in the net amount due to the counterparty of $2,393,680.
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 0.64% 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 0.92% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 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 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 Triton 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 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 certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund,
Janus Henderson Triton Fund
Notes to Financial Statements
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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $3,959.
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 Triton Fund
Notes to Financial Statements
no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended September 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 September 30, 2021, redeeming shareholders of Class C Shares paid CDSCs of $154.
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 September 30, 2021, the Fund engaged in cross trades amounting to $1,726,208 in sales, resulting in a net realized gain of $813,052. 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) | |
$ 230,707,045 | $ 1,619,838,552 | $ - | $ - | $ - | $ (267,847) | $4,651,922,642 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 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) |
$ 7,295,485,100 | $ 5,002,006,264 | $ (350,083,622) | $ 4,651,922,642 |
Information on the tax components of derivatives as of September 30, 2021 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 2,250,717 | $ - | $ - | $ - |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Janus Henderson Triton 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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 25,700,932 | $ 491,054,368 | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ - | $ 500,365,390 | $ - | $ - | |
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 |
$ 239,275,499 | $ 56,519,569 | $ (295,795,068) |
Capital has been adjusted by $239,275,499, including $210,785,724 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Triton Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 3,853,025 | $ 144,902,447 | | 4,506,327 | $ 125,322,064 |
Reinvested dividends and distributions | 346,342 | 12,748,838 | | 430,742 | 12,926,569 |
Shares repurchased | (5,889,451) | (219,264,212) | | (7,470,110) | (210,677,355) |
Net Increase/(Decrease) | (1,690,084) | $ (61,612,927) | | (2,533,041) | $ (72,428,722) |
Class C Shares: | | | | | |
Shares sold | 41,662 | $ 1,410,929 | | 102,592 | $ 2,647,518 |
Reinvested dividends and distributions | 155,451 | 5,162,542 | | 226,449 | 6,195,654 |
Shares repurchased | (2,320,663) | (79,099,170) | | (2,243,541) | (57,002,338) |
Net Increase/(Decrease) | (2,123,550) | $ (72,525,699) | | (1,914,500) | $ (48,159,166) |
Class D Shares: | | | | | |
Shares sold | 1,527,088 | $ 59,085,722 | | 2,067,795 | $ 57,270,105 |
Reinvested dividends and distributions | 1,342,054 | 51,118,827 | | 1,590,596 | 49,165,318 |
Shares repurchased | (4,593,066) | (174,967,391) | | (8,251,798) | (232,797,582) |
Net Increase/(Decrease) | (1,723,924) | $ (64,762,842) | | (4,593,407) | $ (126,362,159) |
Class I Shares: | | | | | |
Shares sold | 7,377,365 | $ 287,287,212 | | 11,955,390 | $ 347,169,066 |
Reinvested dividends and distributions | 2,237,820 | 85,954,671 | | 2,751,472 | 85,708,347 |
Shares repurchased | (20,291,149) | (789,475,348) | | (24,268,230) | (693,520,701) |
Net Increase/(Decrease) | (10,675,964) | $ (416,233,465) | | (9,561,368) | $ (260,643,288) |
Class N Shares: | | | | | |
Shares sold | 23,123,566 | $ 908,840,328 | | 33,787,379 | $ 989,363,245 |
Reinvested dividends and distributions | 4,627,982 | 179,010,359 | | 5,126,611 | 160,616,724 |
Shares repurchased | (40,368,606) | (1,587,176,620) | | (40,693,782) | (1,197,977,749) |
Net Increase/(Decrease) | (12,617,058) | $ (499,325,933) | | (1,779,792) | $ (47,997,780) |
Class R Shares: | | | | | |
Shares sold | 1,089,601 | $ 38,896,368 | | 2,140,294 | $ 57,793,017 |
Reinvested dividends and distributions | 398,972 | 14,091,687 | | 470,285 | 13,605,333 |
Shares repurchased | (3,265,891) | (115,134,458) | | (4,093,386) | (110,950,118) |
Net Increase/(Decrease) | (1,777,318) | $ (62,146,403) | | (1,482,807) | $ (39,551,768) |
Class S Shares: | | | | | |
Shares sold | 2,184,486 | $ 80,368,356 | | 3,689,451 | $ 102,875,251 |
Reinvested dividends and distributions | 605,674 | 22,034,418 | | 752,664 | 22,346,588 |
Shares repurchased | (6,042,323) | (220,437,247) | | (6,820,343) | (191,290,317) |
Net Increase/(Decrease) | (3,252,163) | $ (118,034,473) | | (2,378,228) | $ (66,068,478) |
Class T Shares: | | | | | |
Shares sold | 6,341,829 | $ 243,373,921 | | 8,705,308 | $ 248,549,522 |
Reinvested dividends and distributions | 3,101,260 | 116,793,438 | | 3,961,752 | 121,269,217 |
Shares repurchased | (19,145,899) | (732,484,363) | | (29,516,870) | (829,874,702) |
Net Increase/(Decrease) | (9,702,810) | $ (372,317,004) | | (16,849,810) | $ (460,055,963) |
7. Purchases and Sales of Investment Securities
For the year ended September 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 |
$2,885,785,321 | $4,934,239,561 | $ - | $ - |
Janus Henderson Triton Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 Triton Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Triton Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Triton Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended September 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 September 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 September 30, 2021 and the financial highlights for each of the five years in the period ended September 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 September 30, 2021 by correspondence with the custodian, transfer agent, investee 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
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Triton 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 Triton 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 Triton 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 Triton 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 Triton 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 Triton 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 Triton 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 Triton 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 Triton 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 Triton 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 Triton 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 Triton 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.
Janus Henderson Triton 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 September 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 Bloomberg 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 Triton 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.
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.
Janus Henderson Triton Fund
Useful Information About Your Fund Report (unaudited)
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 Triton Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Capital Gain Distributions | $701,840,092 |
Dividends Received Deduction Percentage | 18% |
Qualified Dividend Income Percentage | 19% |
Janus Henderson Triton 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 Triton 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Triton 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 Triton 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Triton 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Triton 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Triton 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 |
Jonathan D. Coleman
151 Detroit Street
Denver, CO 80206
DOB: 1971 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Triton Fund | 5/13-Present | Portfolio Manager for other Janus Henderson accounts. |
Scott Stutzman
151 Detroit Street
Denver, CO 80206
DOB: 1971 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Triton Fund | 7/16-Present | Portfolio Manager for other Janus Henderson accounts and Analyst for Janus Capital. |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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 Triton 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Triton Fund
Notes
NotesPage1
Janus Henderson Triton 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 |
| | | | 125-02-93054 11-21 |
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| | | ANNUAL REPORT September 30, 2021 |
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| | Janus Henderson Venture 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 Venture Fund
Janus Henderson Venture Fund (unaudited)(closed to certain new investors)
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FUND SNAPSHOT We believe that a research-driven investment process focused on identifying quality small-cap companies with differentiated business models and sustainable competitive advantages will drive outperformance against our benchmark and peers over time. We take a moderate approach, seeking to identify companies with large, addressable markets that are poised for growth over a multiyear period. | | | | 
Jonathan Coleman co-portfolio manager | 
Scott Stutzman co-portfolio manager |
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PERFORMANCE OVERVIEW
The Janus Henderson Venture Fund Class I Shares returned 37.13% for the 12-month period ended September 30, 2021. The Fund’s primary benchmark, the Russell 2000® Growth Index, returned 33.27%, and its secondary benchmark, the Russell 2000® Index, returned 47.68%.
INVESTMENT ENVIRONMENT
Stocks rose strongly in the fourth quarter of 2020 as resilient economic and earnings growth and optimism over new COVID-19 vaccines lifted investor sentiment. Congress also passed the $1.9 trillion American Rescue Plan, which included cash payments to most households. Stocks rose through the first half of 2021, as an accelerating vaccine rollout helped support healthy economic and earnings growth. However, stocks suffered periods of volatility, especially in the third quarter as the spread of the new Delta variant led to renewed pandemic concerns. Supply constraints and higher input costs also fueled inflation, which drove interest rates higher late in the third quarter. The Federal Reserve signaled it would begin tapering its monetary support before year-end, which added to upward pressure on interest rates. Through much of the period, investors shifted between growth stocks and more cyclically driven value opportunities as they awaited more clarity on the economic outlook. Rising interest rates in the third quarter fueled a rotation away from growth stocks, however. As a result, small-cap growth underperformed small-cap value for the 12-month period, as measured by the Russell indices.
PERFORMANCE DISCUSSION
We were pleased to see a number of our disciplined growth investments rewarded by investors over the past 12 months, supporting our relative performance. Longtime holding Rexnord was a top positive contributor, as the company’s restructuring plans were well received by investors. Rexnord’s power and control (PMC) division supplies technology-enabled mechanical components that improve factory workflows. The PMC business is expected to merge with larger rival Regal Beloit in a deal we believe could result in synergies and an expanded market opportunity. This spin-off will leave Rexnord’s water management business, Zurn, as a pure play provider of water flow control systems. Zurn’s business has delivered strong growth trends, driven by the increased investments in water conservation and sustainability, and we continued to see growth potential for the business.
Long-term holding ON Semiconductor was another notable performer, supported by strong demand and pricing trends for the global chip market. ON Semiconductor underwent a management change last year, and the new team has widened profit margins by streamlining production and focusing on high-growth product areas, such as power regulation chips for electric cars and sensors used in autonomous vehicles. These moves helped the company report strong earnings growth and an upbeat outlook that aided the stock performance.
Clarivate Analytics was a prominent detractor. Clarivate owns and operates subscription-based academic, research and information services used by universities, scientists and biopharmaceuticals companies seeking brand or patent protection. Its businesses include the Web of Science, an online portal that provides proprietary access to over 7,000 academic journals, proprietary databases and scientific journals. Subscription-based recurring revenues have accounted for roughly 85% of Clarivate’s business, and it has benefited from a 90% customer-retention rate. The stock performed well in 2020, supported by the company’s subscription-based business model. The stock declined more recently, however, as the company reported some potential near-term slowing in subscriber growth. We remained positive on its long-term fundamentals, however.
Janus Henderson Venture Fund (unaudited)(closed to certain new investors)
LendingTree, another detractor, operates an online loan marketplace where consumers can shop for competitive rates on mortgages, credit cards and other consumer loans. While the company reported solid earnings and guidance, investors were concerned about some moderating business trends in 2021 as government support payments reduced demand for credit cards and loans. As a result, LendingTree’s business volumes did not rebound as strongly from the pandemic as people had expected, and the stock declined. We saw this business slowdown as a short-term issue, especially as support payments are ending. We held onto our stock due to our long-term view on the company’s potential.
DERIVATIVES USE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We have been encouraged by positive economic trends but remain aware of risks facing the market. The pandemic is far from over, and it has contributed to supply chain and labor market dislocations that have fueled inflation and challenged businesses. From our conversations with companies, we believe these challenges could persist well into next year, acting as a headwind for the recovery. The end to government support payments and the potential for higher interest rates could also temper the pace of economic growth. Despite these crosscurrents, valuations in some areas of the small-cap market continue to test new highs, and we remain concerned about elevated expectations that may be out of sync with the current economic environment. For our part, we remain committed to a disciplined approach that looks for opportunity while managing risk. We continue to focus on reasonably valued companies with established supplier relationships as well as strong competitive positions that may help them pass along higher input costs without sacrificing their profit margins. We believe these kinds of disciplined, well-managed companies may be better able to navigate near-term market uncertainty while they capitalize on long-term trends in the economy.
Janus Henderson Venture Fund (unaudited)(closed to certain new investors)
Fund At A Glance
September 30, 2021
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Quantumscape Corp | 0.83% | | 1.58% | | Clarivate Analytics PLC | 1.28% | | -1.20% |
| LPL Financial Holdings Inc | 1.72% | | 0.99% | | Vaxcyte Inc | 0.39% | | -0.67% |
| Rexnord Corp | 1.45% | | 0.88% | | LendingTree Inc | 0.51% | | -0.64% |
| ON Semiconductor Corp | 1.40% | | 0.83% | | Eargo Inc | 0.30% | | -0.51% |
| Ziff Davis Inc | 1.79% | | 0.72% | | Terminix Global Holdings Inc | 1.47% | | -0.47% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | 3.52% | | 29.35% | 32.47% |
| Financials | | 1.94% | | 4.33% | 4.30% |
| Materials | | 1.18% | | 4.62% | 2.70% |
| Utilities | | 0.23% | | 0.00% | 1.23% |
| Communication Services | | 0.15% | | 1.13% | 2.40% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Other** | | -0.92% | | 3.23% | 0.00% |
| Information Technology | | -0.92% | | 30.52% | 20.90% |
| Consumer Discretionary | | -0.61% | | 7.85% | 14.58% |
| Real Estate | | -0.52% | | 2.77% | 3.38% |
| Consumer Staples | | -0.36% | | 2.06% | 3.23% |
| | | | | | | |
| 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 Venture Fund (unaudited)(closed to certain new investors)
Fund At A Glance
September 30, 2021
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Catalent Inc | |
Pharmaceuticals | 3.2% |
Nice Ltd (ADR) | |
Software | 2.9% |
j2 Global Inc | |
Software | 2.1% |
LPL Financial Holdings Inc | |
Capital Markets | 2.1% |
Paylocity Holding Corp | |
Software | 2.1% |
| | 12.4% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 98.1% | |
Investment Companies | | 1.6% | |
Private Investment in Public Equity (PIPES) | | 1.1% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.7% | |
Preferred Stocks | | 0.2% | |
Warrants | | 0.0% | |
Other | | (1.7)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2021 
| As of September 30, 2020 
|
Janus Henderson Venture Fund (unaudited)(closed to certain new investors)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2021 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV(1) | | 36.78% | 15.97% | 16.42% | 12.45% | | | 1.02% |
Class A Shares at MOP(1) | | 28.92% | 14.60% | 15.73% | 12.27% | | | |
Class C Shares at NAV(1) | | 35.74% | 15.13% | 15.62% | 11.70% | | | 1.78% |
Class C Shares at CDSC(1) | | 34.74% | 15.13% | 15.62% | 11.70% | | | |
Class D Shares(1) | | 37.07% | 16.22% | 16.70% | 12.67% | | | 0.80% |
Class I Shares(1) | | 37.13% | 16.27% | 16.77% | 12.68% | | | 0.75% |
Class N Shares(1) | | 37.25% | 16.38% | 16.84% | 12.70% | | | 0.67% |
Class S Shares(1) | | 36.55% | 15.79% | 16.29% | 12.32% | | | 1.17% |
Class T Shares(1) | | 36.91% | 16.10% | 16.58% | 12.63% | | | 0.91% |
Russell 2000 Growth Index | | 33.27% | 15.34% | 15.74% | 8.94% | | | |
Russell 2000 Index | | 47.68% | 13.45% | 14.63% | 10.12% | | | |
Morningstar Quartile - Class T Shares | | 3rd | 3rd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Small Growth Funds | | 289/616 | 391/576 | 266/524 | 8/50 | | | |
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, Environmental, Social and Governance (ESG) factors, 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 Venture Fund (unaudited)(closed to certain new investors)
Performance
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 May 6, 2011. Performance shown for each class for periods prior to May 6, 2011, 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 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 May 6, 2011. Performance shown for periods prior to May 6, 2011, 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 the Fund's 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 – April 30, 1985
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
(1) Closed to certain new investors.
Janus Henderson Venture 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | | Beginning
Account
Value
(4/1/21) | Ending
Account
Value
(9/30/21) | Expenses
Paid During
Period
(4/1/21 - 9/30/21)† | Net Annualized
Expense Ratio
(4/1/21 - 9/30/21) |
Class A Shares | $1,000.00 | $1,053.10 | $5.15 | | $1,000.00 | $1,020.05 | $5.06 | 1.00% |
Class C Shares | $1,000.00 | $1,048.90 | $9.14 | | $1,000.00 | $1,016.14 | $9.00 | 1.78% |
Class D Shares | $1,000.00 | $1,054.20 | $4.02 | | $1,000.00 | $1,021.16 | $3.95 | 0.78% |
Class I Shares | $1,000.00 | $1,054.40 | $3.86 | | $1,000.00 | $1,021.31 | $3.80 | 0.75% |
Class N Shares | $1,000.00 | $1,054.90 | $3.40 | | $1,000.00 | $1,021.76 | $3.35 | 0.66% |
Class S Shares | $1,000.00 | $1,052.10 | $5.97 | | $1,000.00 | $1,019.25 | $5.87 | 1.16% |
Class T Shares | $1,000.00 | $1,053.60 | $4.63 | | $1,000.00 | $1,020.56 | $4.56 | 0.90% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 Venture Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 98.1% | | | |
Auto Components – 0.9% | | | |
| | Quantumscape Corp*,# | | 486,572 | | | $11,940,477 | |
| | Visteon Corp* | | 279,774 | | | 26,407,868 | |
| | | 38,348,345 | |
Automobiles – 0.7% | | | |
| | Thor Industries Inc | | 232,944 | | | 28,596,205 | |
Banks – 0.6% | | | |
| | Bancorp Inc/The* | | 927,645 | | | 23,608,565 | |
Biotechnology – 8.6% | | | |
| | Acceleron Pharma Inc* | | 163,599 | | | 28,155,388 | |
| | Ascendis Pharma A/S (ADR)* | | 130,750 | | | 20,840,243 | |
| | Bridgebio Pharma Inc* | | 518,935 | | | 24,322,483 | |
| | Centessa Pharmacuticals PLC (ADR)* | | 77,278 | | | 1,290,543 | |
| | Deciphera Pharmaceuticals Inc* | | 381,957 | | | 12,978,899 | |
| | Eagle Pharmaceuticals Inc/DE* | | 424,384 | | | 23,672,140 | |
| | ESSA Pharma Inc* | | 734,925 | | | 5,879,400 | |
| | Global Blood Therapeutics Inc* | | 369,115 | | | 9,405,050 | |
| | Halozyme Therapeutics Inc* | | 606,718 | | | 24,681,288 | |
| | Icosavax Inc*,# | | 564,495 | | | 16,703,407 | |
| | Insmed Inc* | | 688,643 | | | 18,965,228 | |
| | Ligand Pharmaceuticals Inc* | | 291,855 | | | 40,661,239 | |
| | Mirati Therapeutics Inc* | | 176,530 | | | 31,229,922 | |
| | Myovant Sciences Ltd* | | 911,369 | | | 20,451,120 | |
| | Neurocrine Biosciences Inc* | | 289,676 | | | 27,782,825 | |
| | Praxis Precision Medicines Inc* | | 438,841 | | | 8,114,170 | |
| | PTC Therapeutics Inc* | | 478,084 | | | 17,789,506 | |
| | Rocket Pharmaceuticals Inc* | | 259,407 | | | 7,753,675 | |
| | Travere Therapeutics Inc* | | 624,927 | | | 15,154,480 | |
| | Vaxcyte Inc* | | 603,547 | | | 15,311,987 | |
| | | 371,142,993 | |
Building Products – 1.8% | | | |
| | CSW Industrials Inc | | 367,148 | | | 46,884,800 | |
| | Janus International Group Inc* | | 2,505,646 | | | 30,669,107 | |
| | | 77,553,907 | |
Capital Markets – 3.1% | | | |
| | Assetmark Financial Holdings Inc* | | 749,909 | | | 18,650,237 | |
| | Focus Financial Partners Inc* | | 454,868 | | | 23,821,437 | |
| | LPL Financial Holdings Inc | | 564,090 | | | 88,426,748 | |
| | | 130,898,422 | |
Chemicals – 3.4% | | | |
| | Sensient Technologies Corp | | 820,421 | | | 74,723,945 | |
| | Valvoline Inc | | 2,235,502 | | | 69,702,952 | |
| | | 144,426,897 | |
Commercial Services & Supplies – 1.7% | | | |
| | Brady Corp | | 740,441 | | | 37,540,359 | |
| | Cimpress PLC* | | 151,982 | | | 13,196,597 | |
| | Montrose Environmental Group Inc* | | 334,984 | | | 20,681,912 | |
| | | 71,418,868 | |
Construction & Engineering – 0.2% | | | |
| | Construction Partners Inc* | | 285,982 | | | 9,543,219 | |
Containers & Packaging – 0.9% | | | |
| | Sealed Air Corp | | 733,823 | | | 40,206,162 | |
Diversified Consumer Services – 2.8% | | | |
| | Frontdoor Inc* | | 673,729 | | | 28,229,245 | |
| | Stride Inc* | | 1,041,878 | | | 37,445,095 | |
| | Terminix Global Holdings Inc* | | 1,264,233 | | | 52,680,589 | |
| | | 118,354,929 | |
Diversified Financial Services – 1.4% | | | |
| | Clarivate Analytics PLC* | | 1,882,322 | | | 41,222,852 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2021 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Diversified Financial Services– (continued) | | | |
| | Everarc Holdings Ltd (144A)* | | 1,392,863 | | | $17,271,501 | |
| | | 58,494,353 | |
Diversified Telecommunication Services – 1.0% | | | |
| | Vonage Holdings Corp* | | 2,698,874 | | | 43,505,849 | |
Electrical Equipment – 0.7% | | | |
| | EnerSys | | 406,591 | | | 30,266,634 | |
Electronic Equipment, Instruments & Components – 3.4% | | | |
| | Napco Security Technologies Inc* | | 631,712 | | | 27,214,153 | |
| | National Instruments Corp | | 409,361 | | | 16,059,232 | |
| | Novanta Inc* | | 178,864 | | | 27,634,488 | |
| | OSI Systems Inc* | | 364,796 | | | 34,582,661 | |
| | Rogers Corp* | | 165,517 | | | 30,865,610 | |
| | Xometry Inc - Class A*,# | | 140,932 | | | 8,127,548 | |
| | | 144,483,692 | |
Entertainment – 0.4% | | | |
| | Manchester United PLC | | 956,656 | | | 18,530,427 | |
Equity Real Estate Investment Trusts (REITs) – 0.8% | | | |
| | Easterly Government Properties Inc | | 1,640,848 | | | 33,899,920 | |
Food & Staples Retailing – 0.5% | | | |
| | Casey's General Stores Inc | | 118,854 | | | 22,398,036 | |
Food Products – 0.8% | | | |
| | AppHarvest Inc*,# | | 876,385 | | | 5,714,030 | |
| | Hain Celestial Group Inc* | | 681,364 | | | 29,148,752 | |
| | | 34,862,782 | |
Health Care Equipment & Supplies – 9.0% | | | |
| | Alphatec Holdings Inc* | | 939,272 | | | 11,449,726 | |
| | Axogen Inc* | | 1,235,956 | | | 19,528,105 | |
| | CryoPort Inc* | | 554,262 | | | 36,863,966 | |
| | Eargo Inc* | | 675,820 | | | 4,548,269 | |
| | Glaukos Corp* | | 305,985 | | | 14,739,297 | |
| | Globus Medical Inc* | | 564,399 | | | 43,244,251 | |
| | Heska Corp* | | 132,201 | | | 34,179,247 | |
| | ICU Medical Inc* | | 164,835 | | | 38,469,192 | |
| | Insulet Corp* | | 134,439 | | | 38,211,597 | |
| | Integra LifeSciences Holdings Corp* | | 833,300 | | | 57,064,384 | |
| | Sight Sciences Inc*,§ | | 647,370 | | | 13,225,769 | |
| | Sight Sciences Inc* | | 470,101 | | | 10,671,293 | |
| | STERIS PLC | | 162,215 | | | 33,137,280 | |
| | Surmodics Inc* | | 285,751 | | | 15,887,756 | |
| | Treace Medical Concepts Inc* | | 607,482 | | | 16,341,266 | |
| | | 387,561,398 | |
Health Care Providers & Services – 1.8% | | | |
| | HealthEquity Inc* | | 273,743 | | | 17,727,597 | |
| | ModivCare Inc* | | 339,471 | | | 61,654,723 | |
| | | 79,382,320 | |
Health Care Technology – 0.5% | | | |
| | Phreesia Inc* | | 381,609 | | | 23,545,275 | |
Hotels, Restaurants & Leisure – 1.3% | | | |
| | Dutch Bros Inc - Class A* | | 633,838 | | | 27,457,862 | |
| | Monarch Casino & Resort Inc* | | 427,025 | | | 28,606,405 | |
| | | 56,064,267 | |
Household Durables – 1.0% | | | |
| | Lovesac Co*,£ | | 679,767 | | | 44,925,801 | |
Information Technology Services – 5.8% | | | |
| | Broadridge Financial Solutions Inc | | 377,766 | | | 62,950,926 | |
| | Euronet Worldwide Inc* | | 414,333 | | | 52,736,304 | |
| | Payfare Inc* | | 2,038,351 | | | 17,302,806 | |
| | Repay Holdings Corp* | | 744,872 | | | 17,154,402 | |
| | Shift4 Payments Inc - Class A* | | 135,309 | | | 10,489,154 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Information Technology Services– (continued) | | | |
| | WEX Inc* | | 175,079 | | | $30,838,415 | |
| | WNS Holdings Ltd (ADR)* | | 700,151 | | | 57,272,352 | |
| | | 248,744,359 | |
Insurance – 1.2% | | | |
| | RLI Corp | | 334,333 | | | 33,523,570 | |
| | Trean Insurance Group Inc* | | 1,788,962 | | | 18,515,757 | |
| | | 52,039,327 | |
Internet & Direct Marketing Retail – 0.8% | | | |
| | CarParts.com Inc* | | 1,043,151 | | | 16,283,587 | |
| | Global-E Online Ltd*,# | | 245,825 | | | 17,650,235 | |
| | | 33,933,822 | |
Life Sciences Tools & Services – 3.5% | | | |
| | Bio-Techne Corp | | 85,835 | | | 41,593,066 | |
| | Codexis Inc* | | 789,729 | | | 18,369,097 | |
| | ICON PLC* | | 161,894 | | | 42,419,466 | |
| | NeoGenomics Inc* | | 969,659 | | | 46,776,350 | |
| | | 149,157,979 | |
Machinery – 7.4% | | | |
| | Alamo Group Inc | | 159,759 | | | 22,291,173 | |
| | ATS Automation Tooling Systems Inc* | | 1,024,065 | | | 32,491,260 | |
| | Gates Industrial Corp PLC* | | 1,655,485 | | | 26,934,741 | |
| | Hydrofarm Holdings Group Inc* | | 282,199 | | | 10,681,232 | |
| | Hyster-Yale Materials Handling Inc | | 128,604 | | | 6,463,637 | |
| | ITT Inc | | 445,124 | | | 38,209,444 | |
| | Kornit Digital Ltd* | | 253,999 | | | 36,763,815 | |
| | Nordson Corp | | 148,432 | | | 35,349,081 | |
| | Rexnord Corp* | | 1,229,360 | | | 79,035,554 | |
| | SPX Corp* | | 581,456 | | | 31,078,823 | |
| | | 319,298,760 | |
Media – 0.4% | | | |
| | Advantage Solutions Inc* | | 1,770,769 | | | 15,317,152 | |
Metals & Mining – 0.9% | | | |
| | Constellium SE* | | 2,019,540 | | | 37,926,961 | |
Personal Products – 0.5% | | | |
| | BellRing Brands Inc* | | 700,625 | | | 21,544,219 | |
Pharmaceuticals – 4.0% | | | |
| | Catalent Inc* | | 1,029,603 | | | 137,009,271 | |
| | Phathom Pharmaceuticals Inc* | | 401,751 | | | 12,896,207 | |
| | United Medicines Biopharma*,§ | | 671,911 | | | 10,659,868 | |
| | Zogenix Inc* | | 645,830 | | | 9,810,158 | |
| | | 170,375,504 | |
Real Estate Management & Development – 1.6% | | | |
| | FirstService Corp | | 176,750 | | | 31,899,840 | |
| | Redfin Corp* | | 751,545 | | | 37,652,405 | |
| | | 69,552,245 | |
Road & Rail – 0.6% | | | |
| | AMERCO | | 39,881 | | | 25,764,322 | |
Semiconductor & Semiconductor Equipment – 1.7% | | | |
| | ON Semiconductor Corp* | | 1,580,959 | | | 72,360,493 | |
Software – 20.2% | | | |
| | Altair Engineering Inc* | | 531,356 | | | 36,631,683 | |
| | Blackbaud Inc* | | 669,004 | | | 47,064,431 | |
| | ChannelAdvisor Corp*,£ | | 1,783,534 | | | 44,998,563 | |
| | Clear Secure Inc - Class A* | | 547,251 | | | 22,464,654 | |
| | Descartes Systems Group Inc* | | 889,736 | | | 72,435,077 | |
| | EngageSmart Inc*,# | | 487,195 | | | 16,593,862 | |
| | Envestnet Inc* | | 488,965 | | | 39,234,552 | |
| | Everbridge Inc* | | 166,196 | | | 25,102,244 | |
| | ForgeRock Inc - Class A* | | 231,981 | | | 9,031,020 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2021 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2021
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Software– (continued) | | | |
| | Intelligent Systems Corp*,£ | | 477,352 | | | $19,385,265 | |
| | j2 Global Inc* | | 659,980 | | | 90,166,468 | |
| | LivePerson Inc* | | 853,492 | | | 50,313,353 | |
| | Nice Ltd (ADR)* | | 441,895 | | | 125,515,856 | |
| | Paylocity Holding Corp* | | 314,301 | | | 88,130,000 | |
| | SailPoint Technologies Holding Inc* | | 1,009,748 | | | 43,297,994 | |
| | SS&C Technologies Holdings Inc | | 1,008,981 | | | 70,023,281 | |
| | Trade Desk Inc* | | 398,888 | | | 28,041,826 | |
| | Tyler Technologies Inc* | | 87,361 | | | 40,068,123 | |
| | | 868,498,252 | |
Specialty Retail – 0.9% | | | |
| | Williams-Sonoma Inc | | 207,539 | | | 36,802,891 | |
Thrifts & Mortgage Finance – 0.3% | | | |
| | LendingTree Inc* | | 95,104 | | | 13,298,392 | |
Trading Companies & Distributors – 1.0% | | | |
| | Core & Main Inc - Class A* | | 1,695,615 | | | 44,442,069 | |
Total Common Stocks (cost $2,239,234,922) | | 4,211,076,013 | |
Private Investment in Public Equity (PIPES)– 1.1% | | | |
Diversified Financial Services – 1.1% | | | |
| | Everarc Holdings Ltd*,§ | | 1,164,806 | | | 14,443,594 | |
| | Owlet Inc*,§ | | 937,261 | | | 5,239,289 | |
| | Thayer Ventures Acquisition Corp*,§ | | 2,679,033 | | | 27,085,024 | |
Total Private Investment in Public Equity (PIPES) (cost $47,811,000) | | 46,767,907 | |
Preferred Stocks– 0.2% | | | |
Professional Services – 0.2% | | | |
| | Apartment List Inc PP*,¢,§((cost $8,881,908) | | 2,431,401 | | | 8,881,908 | |
Warrants– 0% | | | |
Diversified Financial Services – 0% | | | |
| | Everarc Holdings Ltd, expires 12/1/22*((cost $13,929) | | 1,392,883 | | | 243,755 | |
Investment Companies– 1.6% | | | |
Money Markets – 1.6% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº,£((cost $69,521,491) | | 69,516,396 | | | 69,523,348 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.7% | | | |
Investment Companies – 0.6% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº,£ | | 23,642,180 | | | 23,642,180 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.0400%, 10/1/21 | | $5,910,545 | | | 5,910,545 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $29,552,725) | | 29,552,725 | |
Total Investments (total cost $2,395,015,975) – 101.7% | | 4,366,045,656 | |
Liabilities, net of Cash, Receivables and Other Assets – (1.7)% | | (74,874,643) | |
Net Assets – 100% | | $4,291,171,013 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2021
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $3,817,159,068 | | 87.4 | % |
Israel | | 179,929,906 | | 4.1 | |
Canada | | 160,008,383 | | 3.7 | |
India | | 57,272,352 | | 1.3 | |
Ireland | | 42,419,466 | | 1.0 | |
Netherlands | | 37,926,961 | | 0.9 | |
Virgin Islands (British) | | 31,958,850 | | 0.7 | |
Denmark | | 20,840,243 | | 0.5 | |
United Kingdom | | 18,530,427 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $4,366,045,656 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/21 |
Common Stocks - 1.5% |
Diversified Financial Services - N/A | |
| | Novus Capital Corp | $ | - | $ | 1,691,974 | $ | - | $ | - |
Household Durables - N/A | |
| | Lovesac Co*,š | | - | | 3,143,203 | | 25,450,204 | | N/A |
Industrial Conglomerates - N/A | |
| | Juniper Industrial Holdings Inc - Class A | | - | | - | | - | | - |
Software - 1.5% | |
| | ChannelAdvisor Corp* | | - | | 14,053 | | 19,332,381 | | 44,998,563 |
| | Intelligent Systems Corp* | | - | | (40,847) | | 653,405 | | 19,385,265 |
| | Intelligent Systems Corp PP | | - | | - | | 282,361 | | - |
Total Software | $ | - | $ | (26,794) | $ | 20,268,147 | $ | 64,383,828 |
Total Common Stocks | $ | - | $ | 4,808,383 | $ | 45,718,351 | $ | 64,383,828 |
Preferred Stocks - N/A |
Diversified Financial Services - N/A | |
| | Kensington Capital Acquisition Corp | | - | | - | | (13,744,249) | | - |
Investment Companies - 1.6% |
Money Markets - 1.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 98,915 | | (1,920) | | 115 | | 69,523,348 |
Investments Purchased with Cash Collateral from Securities Lending - 0.6% |
Investment Companies - 0.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 1,957,507∆ | | - | | - | | 23,642,180 |
Total Affiliated Investments - 3.7% | $ | 2,056,422 | $ | 4,806,463 | $ | 31,974,217 | $ | 157,549,356 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2021, this column reflects amounts for the entire year ended September 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. |
| |
12 | SEPTEMBER 30, 2021 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2021
| | | | | | | | | | | |
| | Value at 9/30/20 | Purchases | Sales Proceeds | Value at 9/30/21 |
Common Stocks - 1.5% |
Diversified Financial Services - N/A | |
| | Novus Capital Corp | | - | | 13,119,984 | | (14,811,958)Ð | | - |
Household Durables - N/A | |
| | Lovesac Co*,š | | 20,884,888 | | - | | (4,552,494) | | 44,925,801 |
Industrial Conglomerates - N/A | |
| | Juniper Industrial Holdings Inc - Class A | | - | | 30,961,368 | | (30,961,368)Ð | | - |
Software - 1.5% | |
| | ChannelAdvisor Corp* | | 26,049,154 | | - | | (397,025) | | 44,998,563 |
| | Intelligent Systems Corp* | | 12,168,737 | | 6,744,276Ð | | (140,306) | | 19,385,265 |
| | Intelligent Systems Corp PP | | 3,521,759 | | - | | (3,804,120) Ð | | - |
Preferred Stocks - N/A |
Diversified Financial Services - N/A | |
| | Kensington Capital Acquisition Corp | | 34,106,099 | | - | | (20,361,850)Ð | | - |
Investment Companies - 1.6% |
Money Markets - 1.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.0559%ºº | | 58,462,874 | | 681,396,804 | | (670,334,525) | | 69,523,348 |
Investments Purchased with Cash Collateral from Securities Lending - 0.6% |
Investment Companies - 0.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.0011%ºº | | 72,588,179 | | 524,434,495 | | (573,380,494) | | 23,642,180 |
| | | | | | | |
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) | |
Barclays Capital, Inc.: | | | | | | | | |
British Pound | 10/28/21 | (11,510,400) | $ | 15,979,264 | $ | 472,088 | | |
Canadian Dollar | 10/28/21 | (24,950,400) | | 19,902,875 | | 201,577 | | |
| | | | | | | | | |
| | | | | | | 673,665 | | |
Citibank, National Association: | | | | | | | | |
British Pound | 10/28/21 | (214,000) | | 296,919 | | 8,611 | | |
Canadian Dollar | 10/28/21 | 2,349,000 | | (1,856,319) | | (1,505) | | |
Canadian Dollar | 10/28/21 | (20,078,100) | | 16,022,741 | | 168,701 | | |
| | | | | | | | | |
| | | | | | | 175,807 | | |
Credit Suisse International: | | | | | | | | |
Canadian Dollar | 10/28/21 | (43,446,700) | | 34,675,719 | | 369,399 | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2021
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | | |
HSBC Securities (USA), Inc.: | | | | | | | |
British Pound | 10/28/21 | (2,018,000) | $ | 2,762,561 | $ | 43,848 | | |
Canadian Dollar | 10/28/21 | (29,502,700) | | 23,540,578 | | 244,699 | | |
Canadian Dollar | 10/28/21 | (7,995,000) | | 6,285,001 | | (27,999) | | |
| | | | | | | | |
| | | | | | | 260,548 | |
JPMorgan Chase Bank, National Association: | | | | | | | |
British Pound | 10/28/21 | 457,000 | | (630,044) | | (14,359) | | |
Canadian Dollar | 10/28/21 | (28,316,800) | | 22,561,661 | | 202,191 | | |
| | | | | | | | |
| | | | | | | 187,832 | |
State Street: | | | | | | | |
Canadian Dollar | 10/28/21 | (1,079,800) | | 861,797 | | 9,167 | | |
Total | | | | | $ | 1,676,418 | |
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 September 30, 2021.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2021 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $1,720,281 |
| | | | |
Liability Derivatives: | | | |
Forward foreign currency exchange contracts | | | $ 43,863 |
| | | | |
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended September 30, 2021.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2021 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $(4,902,646) |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ 1,453,937 |
| | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2021 |
Janus Henderson Venture Fund
Schedule of Investments
September 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 September 30, 2021 |
| |
| Market Value(a) |
Forward foreign currency exchange contracts, purchased | $ 24,430,494 |
Forward foreign currency exchange contracts, sold | 128,534,778 |
| | |
(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 | 15 |
Janus Henderson Venture Fund
Notes to Schedule of Investments and Other Information
| | |
Russell 2000® Growth Index | Russell 2000® Growth Index reflects the performance of U.S. small-cap equities with higher price-to-book ratios and higher forecasted growth values. |
Russell 2000® Index | Russell 2000® Index reflects the performance of U.S. small-cap equities. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
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 September 30, 2021 is $17,271,501, which represents 0.4% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2021. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2021. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2021 is $8,881,908, 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. |
| | |
š | Company was no longer an affiliate as of September 30, 2021. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | |
Ð | All or a portion is the result of a corporate action. |
Janus Henderson Venture Fund
Notes to Schedule of Investments and Other Information
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2021) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Apartment List Inc PP | 11/2/20 | $ | 8,881,908 | $ | 8,881,908 | | 0.2 | % |
Everarc Holdings Ltd | 6/16/21 | | 11,648,060 | | 14,443,594 | | 0.4 | |
Owlet Inc | 2/17/21 | | 9,372,610 | | 5,239,289 | | 0.1 | |
Sight Sciences Inc | 11/23/20 | | 7,081,548 | | 13,225,769 | | 0.3 | |
Thayer Ventures Acquisition Corp | 7/1/21 | | 26,790,330 | | 27,085,024 | | 0.6 | |
United Medicines Biopharma | 1/29/21 | | 7,391,027 | | 10,659,868 | | 0.3 | |
Total | | $ | 71,165,483 | $ | 79,535,452 | | 1.9 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2021. The issuer incurs all registration costs. | |
| | | | | | | | | | | | | | |
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 September 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 | | | | | | |
Diversified Financial Services | $ | 41,222,852 | $ | 17,271,501 | $ | - |
Health Care Equipment & Supplies | | 374,335,629 | | 13,225,769 | | - |
Pharmaceuticals | | 159,715,636 | | 10,659,868 | | - |
All Other | | 3,594,644,758 | | - | | - |
Private Investment in Public Equity (PIPES) | | - | | 46,767,907 | | - |
Preferred Stocks | | - | | - | | 8,881,908 |
Warrants | | 243,755 | | - | | - |
Investment Companies | | - | | 69,523,348 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 29,552,725 | | - |
Total Investments in Securities | $ | 4,170,162,630 | $ | 187,001,118 | $ | 8,881,908 |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 1,720,281 | | - |
Total Assets | $ | 4,170,162,630 | $ | 188,721,399 | $ | 8,881,908 |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 43,863 | $ | - |
| | | | | | | |
(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 Venture Fund
Statement of Assets and Liabilities
September 30, 2021
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $2,257,367,779)(1) | | $ | 4,208,496,300 | |
| Affiliated investments, at value (cost $137,648,196) | | | 157,549,356 | |
| Cash | | | 20 | |
| Forward foreign currency exchange contracts | | | 1,720,281 | |
| Non-interested Trustees' deferred compensation | | | 107,106 | |
| Receivables: | | | | |
| | Fund shares sold | | | 4,051,985 | |
| | Investments sold | | | 975,987 | |
| | Dividends | | | 367,116 | |
| | Foreign tax reclaims | | | 71,362 | |
| | Dividends from affiliates | | | 4,026 | |
| Other assets | | | 102,477 | |
Total Assets | | | 4,373,446,016 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 29,552,725 | |
| Forward foreign currency exchange contracts | | | 43,863 | |
| Payables: | | | — | |
| | Investments purchased | | | 41,842,523 | |
| | Fund shares repurchased | | | 7,594,640 | |
| | Advisory fees | | | 2,320,220 | |
| | Transfer agent fees and expenses | | | 518,501 | |
| | Non-interested Trustees' deferred compensation fees | | | 107,106 | |
| | Professional fees | | | 53,610 | |
| | Non-interested Trustees' fees and expenses | | | 32,584 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 19,833 | |
| | Affiliated fund administration fees payable | | | 9,064 | |
| | Custodian fees | | | 7,427 | |
| | Accrued expenses and other payables | | | 172,907 | |
Total Liabilities | | | 82,275,003 | |
Net Assets | | $ | 4,291,171,013 | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2021 |
Janus Henderson Venture Fund
Statement of Assets and Liabilities
September 30, 2021
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,902,581,866 | |
| Total distributable earnings (loss) | | | 2,388,589,147 | |
Total Net Assets | | $ | 4,291,171,013 | |
Net Assets - Class A Shares | | $ | 24,644,103 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 232,030 | |
Net Asset Value Per Share(2) | | $ | 106.21 | |
Maximum Offering Price Per Share(3) | | $ | 112.69 | |
Net Assets - Class C Shares | | $ | 3,747,187 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 39,353 | |
Net Asset Value Per Share(2) | | $ | 95.22 | |
Net Assets - Class D Shares | | $ | 2,228,323,575 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 20,181,407 | |
Net Asset Value Per Share | | $ | 110.41 | |
Net Assets - Class I Shares | | $ | 363,006,742 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,267,303 | |
Net Asset Value Per Share | | $ | 111.10 | |
Net Assets - Class N Shares | | $ | 565,040,202 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,035,947 | |
Net Asset Value Per Share | | $ | 112.20 | |
Net Assets - Class S Shares | | $ | 54,537,326 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 521,815 | |
Net Asset Value Per Share | | $ | 104.51 | |
Net Assets - Class T Shares | | $ | 1,051,871,878 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,705,030 | |
Net Asset Value Per Share | | $ | 108.38 | |
| |
(1) Includes $29,222,315 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 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Venture Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 11,979,084 | |
| Affiliated securities lending income, net | | 1,957,507 | |
| Dividends from affiliates | | 98,915 | |
| Unaffiliated securities lending income, net | | 8,210 | |
| Other income | | 177 | |
| Foreign tax withheld | | (21,025) | |
Total Investment Income | | 14,022,868 | |
Expenses: | | | |
| Advisory fees | | 26,910,485 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 58,963 | |
| | Class C Shares | | 47,520 | |
| | Class S Shares | | 149,790 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,434,632 | |
| | Class S Shares | | 149,794 | |
| | Class T Shares | | 2,565,961 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 16,239 | |
| | Class C Shares | | 3,739 | |
| | Class I Shares | | 308,420 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 1,489 | |
| | Class C Shares | | 270 | |
| | Class D Shares | | 141,089 | |
| | Class I Shares | | 14,261 | |
| | Class N Shares | | 15,700 | |
| | Class S Shares | | 517 | |
| | Class T Shares | | 7,353 | |
| Shareholder reports expense | | 194,863 | |
| Registration fees | | 133,201 | |
| Affiliated fund administration fees | | 117,622 | |
| Professional fees | | 86,005 | |
| Custodian fees | | 70,436 | |
| Non-interested Trustees’ fees and expenses | | 66,834 | |
| Other expenses | | 250,258 | |
Total Expenses | | 33,745,441 | |
Less: Excess Expense Reimbursement and Waivers | | (109,795) | |
Net Expenses | | 33,635,646 | |
Net Investment Income/(Loss) | | (19,612,778) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2021 |
Janus Henderson Venture Fund
Statement of Operations
For the year ended September 30, 2021
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 499,346,372 | |
| Investments in affiliates | | 4,806,463 | |
| Forward foreign currency exchange contracts | | (4,902,646) | |
Total Net Realized Gain/(Loss) on Investments | | 499,250,189 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 716,975,968 | |
| Investments in affiliates | | 31,974,217 | |
| Forward foreign currency exchange contracts | | 1,453,937 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 750,404,122 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 1,230,041,533 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Venture Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2021 | | Year ended
September 30, 2020 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (19,612,778) | | $ | (9,863,725) | |
| Net realized gain/(loss) on investments | | 499,250,189 | | | 175,923,395 | |
| Change in unrealized net appreciation/depreciation | | 750,404,122 | | | 180,602,283 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 1,230,041,533 | | | 346,661,953 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (1,268,484) | | | (1,061,903) | |
| | Class C Shares | | (367,739) | | | (360,453) | |
| | Class D Shares | | (112,793,742) | | | (66,162,677) | |
| | Class I Shares | | (18,385,450) | | | (12,211,886) | |
| | Class N Shares | | (29,110,615) | | | (16,697,885) | |
| | Class S Shares | | (3,515,025) | | | (2,918,301) | |
| | Class T Shares | | (54,714,762) | | | (36,088,921) | |
Net Decrease from Dividends and Distributions to Shareholders | | (220,155,817) | | | (135,502,026) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 855,548 | | | (9,905,831) | |
| | Class C Shares | | (3,257,033) | | | (3,134,171) | |
| | Class D Shares | | (22,405,392) | | | (51,579,563) | |
| | Class I Shares | | (10,338,530) | | | (44,639,576) | |
| | Class N Shares | | (27,207,120) | | | 11,604,265 | |
| | Class S Shares | | (24,627,306) | | | (12,973,712) | |
| | Class T Shares | | (8,874,501) | | | (123,991,375) | |
Net Increase/(Decrease) from Capital Share Transactions | | (95,854,334) | | | (234,619,963) | |
Net Increase/(Decrease) in Net Assets | | 914,031,382 | | | (23,460,036) | |
Net Assets: | | | | | | |
| Beginning of period | | 3,377,139,631 | | | 3,400,599,667 | |
| End of period | $ | 4,291,171,013 | | $ | 3,377,139,631 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2021 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $82.08 | | | $76.74 | | | $88.38 | | | $76.48 | | | $66.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.67) | | | (0.37) | | | (0.24) | | | (0.25) | | | (0.15) | |
| | Net realized and unrealized gain/(loss) | | 30.42 | | | 8.89 | | | (4.67) | | | 16.26 | | | 11.78 | |
| Total from Investment Operations | | 29.75 | | | 8.52 | | | (4.91) | | | 16.01 | | | 11.63 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $106.21 | | | $82.08 | | | $76.74 | | | $88.38 | | | $76.48 | |
| Total Return* | | 36.78% | | | 11.26% | | | (4.08)% | | | 21.83% | | | 17.93% | |
| Net Assets, End of Period (in thousands) | | $24,644 | | | $18,447 | | | $27,201 | | | $31,373 | | | $21,962 | |
| Average Net Assets for the Period (in thousands) | | $23,550 | | | $22,978 | | | $27,960 | | | $24,358 | | | $29,815 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.00% | | | 1.02% | | | 1.02% | | | 1.01% | | | 1.03% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.00% | | | 1.02% | | | 1.02% | | | 1.01% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | (0.66)% | | | (0.49)% | | | (0.32)% | | | (0.31)% | | | (0.22)% | |
| Portfolio Turnover Rate | | 21% | | | 25% | | | 19% | | | 28% | | | 25% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $74.59 | | | $70.48 | | | $82.39 | | | $72.06 | | | $62.70 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (1.29) | | | (0.82) | | | (0.72) | | | (0.78) | | | (0.62) | |
| | Net realized and unrealized gain/(loss) | | 27.54 | | | 8.11 | | | (4.46) | | | 15.22 | | | 11.13 | |
| Total from Investment Operations | | 26.25 | | | 7.29 | | | (5.18) | | | 14.44 | | | 10.51 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $95.22 | | | $74.59 | | | $70.48 | | | $82.39 | | | $72.06 | |
| Total Return* | | 35.74% | | | 10.49% | | | (4.76)% | | | 20.95% | | | 17.07% | |
| Net Assets, End of Period (in thousands) | | $3,747 | | | $5,562 | | | $8,561 | | | $12,223 | | | $13,269 | |
| Average Net Assets for the Period (in thousands) | | $4,965 | | | $6,913 | | | $9,783 | | | $12,894 | | | $13,997 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.76% | | | 1.71% | | | 1.73% | | | 1.74% | | | 1.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.76% | | | 1.71% | | | 1.73% | | | 1.74% | | | 1.76% | |
| | Ratio of Net Investment Income/(Loss) | | (1.42)% | | | (1.18)% | | | (1.03)% | | | (1.03)% | | | (0.95)% | |
| Portfolio Turnover Rate | | 21% | | | 25% | | | 19% | | | 28% | | | 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. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $84.98 | | | $79.17 | | | $90.73 | | | $78.25 | | | $67.35 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.47) | | | (0.22) | | | (0.08) | | | (0.08) | | | (0.01) | |
| | Net realized and unrealized gain/(loss) | | 31.52 | | | 9.21 | | | (4.75) | | | 16.67 | | | 12.06 | |
| Total from Investment Operations | | 31.05 | | | 8.99 | | | (4.83) | | | 16.59 | | | 12.05 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $110.41 | | | $84.98 | | | $79.17 | | | $90.73 | | | $78.25 | |
| Total Return* | | 37.07% | | | 11.52% | | | (3.87)% | | | 22.09% | | | 18.20% | |
| Net Assets, End of Period (in thousands) | | $2,228,324 | | | $1,731,098 | | | $1,668,639 | | | $1,843,494 | | | $1,597,029 | |
| Average Net Assets for the Period (in thousands) | | $2,160,434 | | | $1,645,324 | | | $1,668,200 | | | $1,712,398 | | | $1,473,945 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.78% | | | 0.80% | | | 0.80% | | | 0.80% | | | 0.81% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.78% | | | 0.80% | | | 0.80% | | | 0.80% | | | 0.81% | |
| | Ratio of Net Investment Income/(Loss) | | (0.45)% | | | (0.28)% | | | (0.10)% | | | (0.09)% | | | (0.01)% | |
| Portfolio Turnover Rate | | 21% | | | 25% | | | 19% | | | 28% | | | 25% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $85.45 | | | $79.57 | | | $91.10 | | | $78.51 | | | $67.54 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.44) | | | (0.19) | | | (0.04) | | | (0.03) | | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | 31.71 | | | 9.25 | | | (4.76) | | | 16.73 | | | 12.09 | |
| Total from Investment Operations | | 31.27 | | | 9.06 | | | (4.80) | | | 16.70 | | | 12.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $111.10 | | | $85.45 | | | $79.57 | | | $91.10 | | | $78.51 | |
| Total Return* | | 37.13% | | | 11.55% | | | (3.82)% | | | 22.16% | | | 18.25% | |
| Net Assets, End of Period (in thousands) | | $363,007 | | | $287,582 | | | $315,109 | | | $362,757 | | | $291,520 | |
| Average Net Assets for the Period (in thousands) | | $357,200 | | | $292,611 | | | $318,833 | | | $317,820 | | | $250,794 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.75% | | | 0.75% | | | 0.75% | | | 0.75% | | | 0.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.75% | | | 0.75% | | | 0.75% | | | 0.75% | | | 0.76% | |
| | Ratio of Net Investment Income/(Loss) | | (0.42)% | | | (0.23)% | | | (0.05)% | | | (0.04)% | | | 0.04% | |
| Portfolio Turnover Rate | | 21% | | | 25% | | | 19% | | | 28% | | | 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. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2021 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $86.18 | | | $80.15 | | | $91.63 | | | $78.88 | | | $67.79 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.35) | | | (0.12) | | | 0.02 | | | 0.03 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 31.99 | | | 9.33 | | | (4.77) | | | 16.83 | | | 12.16 | |
| Total from Investment Operations | | 31.64 | | | 9.21 | | | (4.75) | | | 16.86 | | | 12.24 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $112.20 | | | $86.18 | | | $80.15 | | | $91.63 | | | $78.88 | |
| Total Return* | | 37.25% | | | 11.65% | | | (3.74)% | | | 22.26% | | | 18.36% | |
| Net Assets, End of Period (in thousands) | | $565,040 | | | $454,982 | | | $411,523 | | | $346,638 | | | $192,210 | |
| Average Net Assets for the Period (in thousands) | | $572,312 | | | $430,317 | | | $365,491 | | | $248,072 | | | $131,281 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.66% | | | 0.66% | | | 0.67% | | | 0.67% | | | 0.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.66% | | | 0.66% | | | 0.67% | | | 0.67% | | | 0.67% | |
| | Ratio of Net Investment Income/(Loss) | | (0.33)% | | | (0.15)% | | | 0.03% | | | 0.04% | | | 0.11% | |
| Portfolio Turnover Rate | | 21% | | | 25% | | | 19% | | | 28% | | | 25% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $80.97 | | | $75.85 | | | $87.56 | | | $75.92 | | | $65.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.83) | | | (0.49) | | | (0.35) | | | (0.37) | | | (0.26) | |
| | Net realized and unrealized gain/(loss) | | 29.99 | | | 8.79 | | | (4.63) | | | 16.12 | | | 11.72 | |
| Total from Investment Operations | | 29.16 | | | 8.30 | | | (4.98) | | | 15.75 | | | 11.46 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $104.51 | | | $80.97 | | | $75.85 | | | $87.56 | | | $75.92 | |
| Total Return* | | 36.55% | | | 11.10% | | | (4.21)% | | | 21.64% | | | 17.77% | |
| Net Assets, End of Period (in thousands) | | $54,537 | | | $64,120 | | | $73,302 | | | $82,776 | | | $56,058 | |
| Average Net Assets for the Period (in thousands) | | $59,918 | | | $66,822 | | | $74,076 | | | $69,664 | | | $45,884 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.16% | | | 1.17% | | | 1.17% | | | 1.17% | | | 1.17% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.16% | | | 1.17% | | | 1.17% | | | 1.17% | | | 1.17% | |
| | Ratio of Net Investment Income/(Loss) | | (0.83)% | | | (0.65)% | | | (0.47)% | | | (0.46)% | | | (0.37)% | |
| Portfolio Turnover Rate | | 21% | | | 25% | | | 19% | | | 28% | | | 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. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $83.59 | | | $78.01 | | | $89.60 | | | $77.41 | | | $66.70 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.58) | | | (0.30) | | | (0.16) | | | (0.16) | | | (0.07) | |
| | Net realized and unrealized gain/(loss) | | 30.99 | | | 9.06 | | | (4.70) | | | 16.46 | | | 11.93 | |
| Total from Investment Operations | | 30.41 | | | 8.76 | | | (4.86) | | | 16.30 | | | 11.86 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $108.38 | | | $83.59 | | | $78.01 | | | $89.60 | | | $77.41 | |
| Total Return* | | 36.91% | | | 11.39% | | | (3.96)% | | | 21.95% | | | 18.09% | |
| Net Assets, End of Period (in thousands) | | $1,051,872 | | | $815,350 | | | $896,264 | | | $1,009,462 | | | $949,255 | |
| Average Net Assets for the Period (in thousands) | | $1,026,384 | | | $839,860 | | | $899,106 | | | $978,055 | | | $925,990 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.92% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | (0.57)% | | | (0.38)% | | | (0.20)% | | | (0.20)% | | | (0.11)% | |
| Portfolio Turnover Rate | | 21% | | | 25% | | | 19% | | | 28% | | | 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. |
| | |
See Notes to Financial Statements. |
| |
26 | SEPTEMBER 30, 2021 |
Janus Henderson Venture Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Venture 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 original 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 Venture 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 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.
Janus Henderson Venture Fund
Notes to Financial Statements
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 September 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 September 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an 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
Janus Henderson Venture Fund
Notes to Financial Statements
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. 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 September 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.
Janus Henderson Venture Fund
Notes to Financial Statements
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 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
Janus Henderson Venture Fund
Notes to Financial Statements
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 are 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 realized 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.
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 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
Janus Henderson Venture Fund
Notes to Financial Statements
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.
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 September 30, 2021” table located in the Fund’s Schedule of Investments.
Janus Henderson Venture 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 |
| | | | | | | | | |
Barclays Capital, Inc. | $ | 673,665 | $ | — | $ | — | $ | 673,665 |
Citibank, National Association | | 177,312 | | (1,505) | | — | | 175,807 |
Credit Suisse International | | 369,399 | | — | | — | | 369,399 |
HSBC Securities (USA), Inc. | | 288,547 | | (27,999) | | — | | 260,548 |
JPMorgan Chase Bank, National Association | | 29,424,506 | | (14,359) | | (29,222,315) | | 189,832 |
State Street | | 9,167 | | — | | — | | 9,167 |
| | | | | | | | | |
Total | $ | 30,942,596 | $ | (43,863) | $ | (29,222,315) | $ | 1,678,418 |
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 | $ | 1,505 | $ | (1,505) | $ | — | $ | — |
HSBC Securities (USA), Inc. | | 27,999 | | (27,999) | | — | | — |
JPMorgan Chase Bank, National Association | | 14,359 | | (14,359) | | — | | — |
| | | | | | | | | |
Total | $ | 43,863 | $ | (43,863) | $ | — | $ | — |
(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 Venture 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.
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Private Investment in Public Equity
Private investments in public equity (“PIPEs”) are equity securities privately purchased from public companies (including special purpose acquisition companies) at a specified price. PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. Until the public registration process is completed, PIPEs are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect. To the extent that they increase the supply of a company’s stock in the market, PIPEs can potentially dilute the value of existing shares.
Special Purpose Acquisition Companies (SPAC)
The Fund may invest in stock, warrants, and other securities of special purpose acquisition companies (“SPACs”) or similar entities that pool funds to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC typically invests its assets (less a portion retained to cover expenses) in U.S. Government securities, money market fund securities, and cash. If an acquisition that meets the requirements for the SPAC is not completed within a pre-established period of time (typically two years), the invested funds are returned to the SPAC’s shareholders. Because SPACs and similar entities are in essence blank check companies without an operating history or ongoing business other than seeking acquisitions, the value of a SPAC’s securities is particularly dependent on the ability of the SPAC’s management to timely identify and complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. To the extent the SPAC is invested in cash or similar securities while awaiting an acquisition opportunity, a Fund’s ability to meet its investment objective may be negatively impacted. In addition, some SPACs may be traded in the over-the-counter market and may be considered illiquid and/or be subject to restrictions on resale.
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.
Janus Henderson Venture Fund
Notes to Financial Statements
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 September 30, 2021, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $29,222,315. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2021 is $29,552,725, resulting in the net amount due to the counterparty of $330,410.
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 0.64% 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 0.92% of the Fund’s average daily net assets. Janus Capital has agreed to continue the waivers for at least a one-year period commencing January 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 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
Janus Henderson Venture Fund
Notes to Financial Statements
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 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,
Janus Henderson Venture Fund
Notes to Financial Statements
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 $339,713 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 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 September 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 September 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 $520,763 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 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 September 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 September 30, 2021, Janus Henderson Distributors retained upfront sales charges of $243.
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 Venture Fund
Notes to Financial Statements
no CDSCs paid by redeeming shareholders of Class A Shares to Janus Henderson Distributors during the year ended September 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 September 30, 2021.
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) | |
$ 101,234,609 | $ 328,563,931 | $ - | $ - | $ - | $ (96,001) | $1,958,886,608 | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 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) |
$ 2,407,159,048 | $2,066,136,113 | $(107,249,505) | $ 1,958,886,608 |
Information on the tax components of derivatives as of September 30, 2021 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 1,676,418 | $ - | $ - | $ - |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Janus Henderson Venture 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 September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 6,471,185 | $ 213,684,632 | $ - | $ - | |
| | | | | |
For the year ended September 30, 2020 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ - | $ 135,502,026 | $ - | $ - | |
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 |
$ 22,802,652 | $ 18,129,835 | $ (40,932,487) |
Capital has been adjusted by $22,802,652, including $17,451,014 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Venture Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2021 | | Year ended September 30, 2020 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 92,399 | $ 9,558,652 | | 78,920 | $ 5,723,212 |
Reinvested dividends and distributions | 12,869 | 1,266,434 | | 13,410 | 1,061,137 |
Shares repurchased | (97,981) | (9,969,538) | | (222,031) | (16,690,180) |
Net Increase/(Decrease) | 7,287 | $ 855,548 | | (129,701) | $ (9,905,831) |
Class C Shares: | | | | | |
Shares sold | 893 | $ 77,721 | | 1,670 | $ 116,587 |
Reinvested dividends and distributions | 4,135 | 367,054 | | 4,972 | 359,451 |
Shares repurchased | (40,250) | (3,701,808) | | (53,535) | (3,610,209) |
Net Increase/(Decrease) | (35,222) | $ (3,257,033) | | (46,893) | $ (3,134,171) |
Class D Shares: | | | | | |
Shares sold | 335,968 | $ 35,366,781 | | 366,582 | $ 27,826,166 |
Reinvested dividends and distributions | 1,035,846 | 105,790,991 | | 762,734 | 62,376,406 |
Shares repurchased | (1,560,909) | (163,563,164) | | (1,834,730) | (141,782,135) |
Net Increase/(Decrease) | (189,095) | $ (22,405,392) | | (705,414) | $ (51,579,563) |
Class I Shares: | | | | | |
Shares sold | 498,000 | $ 52,612,432 | | 463,204 | $ 36,064,494 |
Reinvested dividends and distributions | 178,842 | 18,374,262 | | 148,349 | 12,195,770 |
Shares repurchased | (774,849) | (81,325,224) | | (1,206,616) | (92,899,840) |
Net Increase/(Decrease) | (98,007) | $ (10,338,530) | | (595,063) | $ (44,639,576) |
Class N Shares: | | | | | |
Shares sold | 1,225,072 | $131,248,370 | | 1,790,225 | $ 138,394,354 |
Reinvested dividends and distributions | 279,594 | 28,991,082 | | 200,567 | 16,616,974 |
Shares repurchased | (1,747,964) | (187,446,572) | | (1,846,006) | (143,407,063) |
Net Increase/(Decrease) | (243,298) | $ (27,207,120) | | 144,786 | $ 11,604,265 |
Class S Shares: | | | | | |
Shares sold | 203,860 | $ 20,320,517 | | 267,048 | $ 19,683,924 |
Reinvested dividends and distributions | 36,249 | 3,515,025 | | 37,342 | 2,918,301 |
Shares repurchased | (510,183) | (48,462,848) | | (478,926) | (35,575,937) |
Net Increase/(Decrease) | (270,074) | $ (24,627,306) | | (174,536) | $ (12,973,712) |
Class T Shares: | | | | | |
Shares sold | 821,377 | $ 82,135,483 | | 831,570 | $ 62,905,993 |
Reinvested dividends and distributions | 530,319 | 53,217,526 | | 435,460 | 35,058,850 |
Shares repurchased | (1,400,723) | (144,227,510) | | (3,002,097) | (221,956,218) |
Net Increase/(Decrease) | (49,027) | $ (8,874,501) | | (1,735,067) | $(123,991,375) |
7. Purchases and Sales of Investment Securities
For the year ended September 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 |
$857,013,046 | $1,174,353,892 | $ - | $ - |
Janus Henderson Venture Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 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 Venture Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Venture Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Venture Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2021, the related statement of operations for the year ended September 30, 2021, the statements of changes in net assets for each of the two years in the period ended September 30, 2021, including the related notes, and the financial highlights for each of the five years in the period ended September 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 September 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 September 30, 2021 and the financial highlights for each of the five years in the period ended September 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 September 30, 2021 by correspondence with the custodian, transfer agent, investee 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
November 17, 2021
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Venture 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 Venture 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 Venture 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 Venture 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 Venture 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 Venture 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 Venture 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 Venture 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 Venture 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 Venture 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 Venture 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 Venture 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.
Janus Henderson Venture 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 September 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 Bloomberg 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 Venture 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.
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.
Janus Henderson Venture Fund
Useful Information About Your Fund Report (unaudited)
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 Venture Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2021:
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Capital Gain Distributions | $231,135,646 |
Dividends Received Deduction Percentage | 10% |
Qualified Dividend Income Percentage | 10% |
Janus Henderson Venture 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 Venture 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 1 fund) (since 2008), and Director of the F.B. Heron Foundation (a private grantmaking foundation) (since 2006). |
Janus Henderson Venture 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 Venture 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 | Member of the Investment Committee for the Orange County Community Foundation (since 2020), 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 Venture 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 | Member of the Investment Committee for Cooper Union (since 2021), 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). Formerly, West Bend Mutual Insurance Company (property/casualty insurance) (2013-2021), Trustee of Northwestern Mutual Life Insurance Company (2010-2013), and Director of Frank Russell Company (global asset management firm) (2008-2013). |
Janus Henderson Venture 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 | Formerly, Director of Family Service of Lake County (2019-2021), 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 Venture 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 |
Jonathan D. Coleman
151 Detroit Street
Denver, CO 80206
DOB: 1971 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Venture Fund | 5/13-Present | Portfolio Manager for other Janus Henderson accounts. |
Scott Stutzman
151 Detroit Street
Denver, CO 80206
DOB: 1971 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Venture Fund | 7/16-Present | Portfolio Manager for other Janus Henderson accounts and Analyst for Janus Capital. |
Bruce L. Koepfgen
151 Detroit Street
Denver, CO 80206
DOB: 1952 | President and Chief Executive Officer | 7/14-Present | Executive Vice President, 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 Managment LLC (2011-2019), and Chief Financial Officer at Janus Capital Group Inc. (2011-2013). |
* 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 Venture 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 Sevices LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Counsel, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Legal 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 Venture Fund
Notes
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Janus Henderson Venture 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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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 September 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 $816,987 in fiscal 2021 and $868,284 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 $8,921 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 $222,093 in fiscal 2021 and $215,626 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) No services described in paragraphs (b) through (d) of this Item were approved by the Registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(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 $222,093 in fiscal 2021 and $215,626 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) Assessment of the Registrant’s Control Environment
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Investment Company Act of 1940, as amended (the “1940 Act”), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms. The disclosure controls and procedures include, without limitation, controls and procedures that are designed to provide reasonable assurance that such information is accumulated and communicated to the Registrant’s management, including its principal executive officer (“PEO”) and principal financial officer (“PFO”), as appropriate, to allow timely decisions regarding required disclosure.
In accordance with Rule 30a-3 under the 1940 Act, within 90 days prior to the filing date of this report on Form N-CSR, management, with the participation of the PEO and PFO, evaluated the effectiveness of the disclosure controls and procedures of the Registrant. Based on their evaluation, the PEO and PFO have determined that the Janus Henderson Emerging Markets Fund’s and the Janus Henderson International Opportunities Fund’s, two funds of the Registrant (the “Funds”), disclosure controls and procedures were not effective due to a material weakness in the design and operating effectiveness of controls specific to processing of corporate actions as non-taxable stock dividends dating back to March 2018. Specifically, the Funds’ sub-administrator incorrectly processed such stock dividends by recording a new tax lot with a zero-cost basis instead of reallocating the cost basis across all existing lots held by the Funds. There was no control to review Fund tax lot holdings by the sub-administrator to ensure transactions had been processed correctly.
A material weakness (as defined in Rule 12b-2 under the Exchange Act) is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Registrant’s annual or interim financial statements will not be prevented or detected on a timely basis. The material weakness described above resulted in misclassifications between net realized gain/(loss) on investments and change in unrealized net appreciation/depreciation during fiscal periods where partial sales occurred. This resulted in a restatement of the financial statements for Janus Henderson Emerging Markets Fund and Janus Henderson International Opportunities Fund to correct a misclassification error within the statements of changes in net assets for the year ended September 30, 2020. Tax returns for the applicable excise and fiscal periods were materially accurate for 2018, 2019, 2020, and 2021.
Effective as of September 30, 2022, the sub-administrator corrected all open tax lots in the accounting records.
(b) Changes in Internal Control
Subsequent to the identification of the issue described above, management has developed a plan with the sub-administrator to remediate the material weakness described herein. The sub-administrator has strengthened the Funds’ internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) by enhancing stock dividend processing and review procedures, to ensure the cost basis of corporate actions processed as non-taxable stock dividends are properly allocated. The sub-administrator has also added a periodic review of Fund tax lot holdings to identify lots requiring further review to ensure transactions have been processed correctly until a systematic solution can be implemented.
Management will continue to evaluate and monitor the operating effectiveness of the controls for a sufficient period of time before concluding on remediation.
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/ Michelle Rosenberg
Michelle Rosenberg, President and Chief Executive Officer of Janus Investment Fund
(Principal Executive Officer)
Date: December 9, 2022
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/ Michelle Rosenberg
Michelle Rosenberg, President and Chief Executive Officer of Janus Investment Fund
(Principal Executive Officer)
Date: December 9, 2022
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: December 9, 2022
