Global stocks declined as supply chain bottlenecks, rising inflation, and more restrictive central bank policies added to economic uncertainty. Rising interest rates also fueled fears of a potential recession in the U.S. and other markets, with implications for global growth. Against this backdrop, we saw a sharp sell-off in risk-related assets, particularly in countries, industries, and companies that would be sensitive to a slowing global demand. The outlook for slower global growth pressured equity performance in South Korea and China in particular. Chinese stocks also faced headwinds due to regulatory uncertainty, the country’s renewed COVID lockdowns, and concerns over the health of China’s property sector. Conversely, higher raw materials prices and a shift away from Russian producers provided a tailwind for economic fundamentals and investment performance in commodities-exporting countries, such as Indonesia.
During the period, Fund management transitioned to Daniel Graña and Matthew Culley.
The past year has been especially challenging for Chinese equities, against a backdrop of regulatory uncertainty, renewed COVID lockdowns, and concerns over the health of China’s property sector. While the Fund doesn't own any property developers in China, several of our holdings were negatively impacted because of their indirect exposure to the property market. These included Linklogis, a Chinese blockchain technology company that counts leading property developers as clients. While Linklogis may see reduced business volumes in the near term, we have continued to see significant long-term potential for the business given its leading blockchain technology, strong customer relationships, and expanding addressable market. As a result, we held onto the position. Economic uncertainty and worries over COVID factory lockdowns also pressured Wingtech Technology, a leading domestic semiconductor distributor for the Chinese market. Despite near-term cyclical headwinds, we believe Wingtech is well positioned over the medium term to benefit from growth in the overall semiconductor market. Additionally, we believe it has the potential to pursue a larger share of this market as Chinese companies seek to localize their sourcing of semiconductors.
Relative performance was lifted by several investments in India, as declining COVID rates led to improved economic fundamentals for the country. Top contributors included Varun Beverages, a prominent bottler of Pepsi products in India. Per capita consumption of soft drinks in India is a fraction of what it is in other countries, so we have seen ample opportunity for growth as Varun has sought to tap more of this potential market. The company experienced a rebound in on-the-go beverage consumption in India as COVID fears eased. It was also able to maintain profit margins and deliver strong financial performance despite higher commodities prices. Relative performance also benefited from our investment in Indonesia’s PT Bank Central Asia. This well-capitalized bank reported strong earnings performance, supported by an improved macroeconomic backdrop in Indonesia. This bank has seen increased loan growth and widening profit margins, aided by reduced funding costs and a favorable shift in the composition of its business.
We expect global equity markets to remain volatile in the near term given the risks around inflation, higher interest rates, slowing consumer demand, and heightened geopolitical instability. In our view, these dynamics have increased the probability of recession in many developed markets, which may ultimately dampen economic
prospects for the emerging markets. We believe our disciplined investment approach may help us navigate this challenging period, guided by our multi-lens approach that considers company fundamentals and governance as well as the macro and policy landscape. In keeping with this approach, we remain on the lookout for signs of a more accommodative stance in China, one of the few emerging market countries with the ability to conduct independent macroeconomic policy. While other central banks are tightening monetary and fiscal conditions, China appears to be going in the opposite direction with measures to stimulate growth. The country also appears to be moving beyond the worst effects of COVID, which could lead to improved logistics, supply chain conditions, and consumer mobility. Outside of China, we continue to find opportunities in Vietnam and Indonesia. Both countries have been benefiting from the diversification of supply chains and the trend toward near-shoring, as corporations seek to secure supply chains closer to home. Above all, we remain committed to seeking good companies with good governance that operate in favorable countries. We believe this strategy may lead to favorable investment outcomes over the longer term.
Thank you for investing in the Janus Henderson Asia Equity Fund.
Emerging markets comprised 82.9% of total net assets.
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
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), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class N Shares commenced operations on January 26, 2018. Performance shown for periods prior to January 26, 2018, reflects the historical performance of the Fund's Class I Shares, calculated using the fees and expenses of Class N Shares, without the effect of any fee and expense limitations or waivers.
If Class N Shares of the Fund had been available during periods prior to January 26, 2018, the performance shown may have been different. The performance shown for periods following the Fund's commencement of Class N Shares reflects the fees and expenses of Class N Shares, net of any applicable fee and expense limitations or waivers. Please refer to the Fund's prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
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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.
Effective March 1, 2022, Matthey Culley and Daniel J. Graña are Co-Portfolio Managers of the Fund.
‡ As stated in the prospectus. Net expense ratios reflect the expense waivers, if any, contractually agreed to for at least a one-year period commencing on January 28, 2022. See Financial Highlights for actual expense ratios during the reporting period.
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Janus Henderson Asia 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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) 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 the Adviser 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 the Adviser 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").
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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, 2022 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. Other Investments and Strategies
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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 the Adviser 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.
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.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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.
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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser 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 the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $637,992. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $676,320, resulting in the net amount due to the counterparty of $38,328.
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 Offsetting Assets and Liabilities table located in the Schedule of Investments 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.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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 the Adviser 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 0.92%, and the Fund’s benchmark index used in the calculation is the MSCI All Country Asia ex-Japan 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 ±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 the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’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, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.79%.
The Adviser 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 the
Adviser. In this capacity, such employees of HGIL are subject to the oversight and supervision of the Adviser and may provide portfolio management, research, and related services to the Fund on behalf of the Adviser.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.99% of the Fund’s average daily net assets. The Adviser has agreed to continue the waiver for at least a one-year period commencing on January 28, 2022. The previous expense limit (for the one-year period commencing January 28, 2021) was 1.11%. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares as detailed below.
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $94.
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 the Distributor during the year ended September 30, 2022.
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, 2022.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
As of September 30, 2022, shares of the Fund were owned by affiliates of the Adviser, and/or other funds advised by the Adviser, as indicated in the table below:
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
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.
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2022, 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.
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, 2022 are noted below. The primary difference between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in passive foreign investment companies.
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.
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:
5. Capital Share Transactions
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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:
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022 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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser 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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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:
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
U.S. Equity Funds
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).
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Multi-Asset U.S. Equity Funds
that the Adviser 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
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser 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 the Adviser.
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 the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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, 2022 |
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| | Janus Henderson Balanced 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 Balanced Fund
Janus Henderson Balanced Fund (unaudited)
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FUND SNAPSHOT Balanced Fund’s dynamic asset allocation strategy has the flexibility to defensively position ahead of market volatility while seeking long-term capital growth, consistent with preservation of capital and balanced by current income. Unlike many competitor products, where asset allocations are constrained by static targets, the Fund’s asset allocations may vary between 35% to 65% equities depending on market conditions. | | | 
Jeremiah Buckley co-portfolio manager | 
Michael Keough co-portfolio manager | 
Greg Wilensky co-portfolio manager |
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PERFORMANCE
The Janus Henderson Balanced Fund’s Class I Shares returned -14.93% for the 12-month period ended September 30, 2022. That compares with -15.47% for the Fund’s primary benchmark, the S&P 500® Index, and -14.60% for the Bloomberg U.S. Aggregate Bond Index. The Balanced Index, an internally calculated benchmark composed of a 55% weighting in the S&P 500® Index and a 45% weighting in the Bloomberg U.S. Aggregate Bond Index, returned -14.79%.
INVESTMENT ENVIRONMENT
The period began amid optimism that increased vaccination rates and the imminent arrival of oral antiviral drugs could help lessen the health risks posed by the COVID virus, but investor mood soured rapidly as the Federal Reserve (Fed) realized that it was behind the curve in fighting inflation. Investors hoped the Fed would slow the pace of its interest rate hikes on early signs that inflation could be easing, but that did not materialize. Inflation remained elevated, and the Fed continued to tighten monetary policy aggressively and conveyed that rates would need to remain higher for longer to bring inflation back to its 2% target. While the U.S. economy contracted in the first and second quarters of 2022, the economic outlook remained uncertain given consumer and labor force data as well as corporate earnings were relatively resilient even amid fears of a weaker economic environment.
Equities finished the period with significant losses; however, the energy sector experienced a strong gain based on generally higher commodities prices, due in part to the Russia-Ukraine war. Additionally, more defensive sectors such as utilities and consumer staples fared better than higher-growth segments of the economy, as valuation multiples contracted and the economic growth outlook deteriorated.
Fixed income investors also faced a volatile year, with both interest rate and credit sectors generating substantially negative total returns. Treasury yields rose dramatically, with the benchmark 10-year Treasury yield jumping to 3.8%, from 1.5% one year ago. The yield curve segment between the 2-year and 10-year ultimately inverted beyond 0.5% - a level not seen since 2000 - on elevated concerns of a possible recession. Despite relatively strong fundamentals, corporate bonds suffered further as spreads widened from near historic lows toward long-term averages. While spread widening alongside rising Treasury yields has been historically unusual, corporate and securitized markets were caught in the broader sell-off in risk assets amid mounting concerns over an economic slowdown.
PERFORMANCE DISCUSSION
We entered the period with a bullish outlook for equities relative to fixed income; however, as central bank intentions became clearer, the anticipated Fed tightening led us to move toward a neutral stance of 60% equity, 40% fixed income. As interest rates continued to move higher, the risk/reward trade-off between equities and fixed income shifted substantially from where it began. In the latter half of the period, we adopted a more cautious stance in our asset allocation. We reduced the equity exposure of the Fund from approximately 64% at the end of September 2021 to approximately 52% at the end of September 2022, with 47% in fixed income and the remainder in cash.
The equity portion of the Fund underperformed the S&P 500 Index, due in part to a material underweight in the strong-performing energy sector. Due to the low returns on capital and extreme volatility in the sector, we are traditionally underweight. We continue to analyze whether that positioning remains appropriate given the greater shareholder cash return focus of the industry and the continued resilient demand for commodities. Individual
Janus Henderson Balanced Fund (unaudited)
holdings that detracted from relative performance included Comcast Corp., which fell on a growth slowdown in its high-speed Internet business and concerns around increased competition from fiber and wireless offerings. Additionally, a slowing economic environment could eat into Comcast’s sizable advertising revenue. Semicap equipment manufacturer Lam Research suffered as fears of a broad economic slowdown hurt overall expectations for semiconductor capital equipment expenditures. As a result of these lowered assumptions, particularly in the memory segment of the market, estimates for Lam’s business declined.
Our holdings in the healthcare sector contributed to relative performance, as the more defensive sector generally held up better than the market during a volatile period. Large-cap pharmaceutical company Eli Lilly reported strong results and had success with its product portfolio and pipeline, including treatments for diabetes and a new therapy for obesity that demonstrated efficacy in clinical trials. UnitedHealth Group also reported solid growth and moderately raised guidance during the period. The company has seen continued strength in its Medicare Advantage healthcare plan and Optum, its information and technology-enabled health services business focused on lowering costs within the healthcare system.
The fixed income allocation outperformed the Bloomberg U.S. Aggregate Bond Index. Entering the period, we were moderately underweight duration relative to the index, as we expected the combination of an improving job market and rising inflation to prompt the Fed to pivot and begin removing their highly accommodative monetary policy, with a resultant increase in interest rates. Rates did rise sharply, and while we ended the period with a smaller duration underweight, portfolio duration was, on average, lower than the index. This was the main driver of relative returns. In addition, rates rallied and pulled back several times intra-period, and we remained dynamic in our duration positioning, seeking to increase or reduce duration depending on our present conviction regarding expectations for the future trajectory of interest rates.
While we maintained relatively low spread risk positioning over the period, it did detract overall, given we were overweight versus the Bloomberg U.S. Aggregate Bond Index in a period when spreads widened. Within spread risk positioning, we continued to improve the overall credit quality of the portfolio, preferring higher-rated issuers in anticipation of a more challenging economic environment. Our underweight to corporate investment-grade bonds contributed, as did tactical trades into, and subsequently out of, Treasury Inflation-Protected Securities (TIPS). Security selection within corporate investment grade detracted, as did our moderate out-of-index allocation to high-yield corporate bonds. Spreads widened on concerns of an economic slowdown or recession, and we remain cautious within corporate credit as we believe there is still scope for further spread widening in the sector. We were constructive on securitized sectors during the period. We believe spreads on securitized assets, particularly agency mortgage-backed securities (MBS), commercial mortgage-backed securities (CMBS), and asset-backed securities (ABS), widened to levels that better reflect the risk of recession. Within securitized, security selection in MBS contributed, as did our exposure to ABS. Exposure to CMBS and collateralized mortgage obligations (CMOs) somewhat offset relative outperformance.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
The U.S. equity market has readjusted aggressively, as investors try to assess what effects inflation, and the Fed’s response, will have on economic growth and corporate earnings. For now, it remains uncertain how much demand destruction we will see from higher rates and what level they will need to reach for inflation to return to sustainable levels. Consumers, who drive the bulk of the U.S. economy, are in a stronger position than in previous rate-hiking cycles. This has complicated the Fed’s task of reining in inflation, as continued consumer demand has kept upward pressure on prices despite tightening monetary policy and fears of a recession.
While we have seen marginal shifts in some data, we continue to look for signals that would make the economic outlook more favorable. An increase in labor force participation, which has lagged since the onset of the pandemic, would help contain wage inflation. At the same time, improved labor productivity as newly hired employees season and pandemic-related disruptions abate would help ease businesses’ need to hire additional workers. Improved raw material and electronic component supplies, as well as easing in other lingering supply chain bottlenecks, would help drive down prices and improve the growth outlook. For now, we remain cautious, as external uncertainties, from the Russia/Ukraine war, dramatically higher interest rates, increasing restrictions on cross-
Janus Henderson Balanced Fund (unaudited)
border trade, and global currency fluctuations, keep the outlook unpredictable.
Given current market uncertainty, in the equity allocation, we remain focused on companies with the ability to generate sustainable cash flow in various economic scenarios, with flexible management teams and business models able to adapt to either a potential quick recovery or a more severe downturn. We have increasingly turned our focus to companies with better short-term earnings visibility and higher earnings yields and have taken advantage of market volatility to add to positions where we think earnings will prove more resilient than feared by the market. While the inflation-driven increase of yields has been painful for returns across fixed income, bonds generally now offer the most attractive yield seen since the Global Financial Crisis. Additionally, this should improve fixed income’s ability to provide diversification benefits. After roughly a decade of low rates, we are finally getting the “income” that investors expect from their fixed income allocation. As such, we expect to maintain a cautious stance regarding our asset allocation between equities and bonds in the Fund until there is more certainty around the economic outlook.
Within the fixed income allocation, we believe that in the short term, continued deterioration in the macro environment is likely to place pressure on credit spreads, and we remain cautiously positioned within spread sectors. Corporate high-yield and investment-grade spreads continue to trade near their long-term averages, and, in our opinion, are pricing in either a low probability of recession, or an extremely shallow recession. As the impacts from tighter monetary policy work their way through the economy and markets, we think corporate spreads will need to move wider from current levels. That said, we believe that spreads in securitized sectors have widened to levels that we think better reflect the economic outlook, and therefore look attractive on a relative valuation basis.
As always, we will dynamically adjust each of the equity and fixed income allocations, as well as the Fund’s overall mix between equities and fixed income, as we analyze the risks and opportunities in each market.
Thank you for investing in Janus Henderson Balanced Fund.
Janus Henderson Balanced Fund (unaudited)
Fund At A Glance
September 30, 2022
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| 5 Top Contributors - Equity Sleeve Holdings | 5 Top Detractors - Equity Sleeve Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| UnitedHealth Group Inc | 3.61% | | 0.85% | | Adobe Inc | 2.10% | | -0.58% |
| Eli Lilly & Co | 2.18% | | 0.72% | | Comcast Corp | 1.84% | | -0.47% |
| Progressive Corp/The | 1.92% | | 0.66% | | Lam Research Corp | 2.14% | | -0.40% |
| Dollar General Corp | 1.57% | | 0.39% | | Align Technology Inc | 0.48% | | -0.36% |
| AbbVie Inc | 1.64% | | 0.30% | | NIKE Inc - Class B | 1.30% | | -0.30% |
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| 5 Top Contributors - Equity Sleeve Sectors* | | | | | |
| | | Relative | | Equity Sleeve | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | 0.79% | | 10.88% | 11.11% |
| Communication Services | | 0.47% | | 9.35% | 9.46% |
| Health Care | | 0.47% | | 15.24% | 13.77% |
| Industrials | | 0.38% | | 8.99% | 7.89% |
| Consumer Staples | | 0.28% | | 7.35% | 6.30% |
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| 5 Top Detractors - Equity Sleeve Sectors* | | | | | |
| | | Relative | | Equity Sleeve | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | -1.55% | | 0.31% | 3.79% |
| Information Technology | | -0.68% | | 31.50% | 27.75% |
| Utilities | | -0.51% | | 0.00% | 2.75% |
| Real Estate | | -0.05% | | 0.46% | 2.75% |
| Materials | | -0.04% | | 0.53% | 2.59% |
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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 Balanced Fund (unaudited)
Fund At A Glance
September 30, 2022
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5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 4.3% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 3.0% |
Alphabet Inc - Class C | |
Interactive Media & Services | 2.4% |
UnitedHealth Group Inc | |
Health Care Providers & Services | 2.2% |
Mastercard Inc | |
Information Technology Services | 1.7% |
| | 13.6% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 52.2% | |
United States Treasury Notes/Bonds | | 16.9% | |
Mortgage-Backed Securities | | 11.3% | |
Corporate Bonds | | 9.8% | |
Asset-Backed/Commercial Mortgage-Backed Securities | | 8.4% | |
Investment Companies | | 5.4% | |
Inflation-Indexed Bonds | | 0.6% | |
Other | | (4.6)% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson Balanced 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, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -15.13% | 6.35% | 7.64% | 9.06% | | | 0.89% |
Class A Shares at MOP | | -20.01% | 5.10% | 7.00% | 8.84% | | | |
Class C Shares at NAV | | -15.73% | 5.61% | 6.88% | 8.37% | | | 1.63% |
Class C Shares at CDSC | | -16.54% | 5.61% | 6.88% | 8.37% | | | |
Class D Shares | | -14.97% | 6.57% | 7.86% | 9.17% | | | 0.70% |
Class I Shares | | -14.93% | 6.63% | 7.93% | 9.20% | | | 0.65% |
Class N Shares | | -14.87% | 6.71% | 8.01% | 9.21% | | | 0.57% |
Class R Shares | | -15.50% | 5.92% | 7.21% | 8.67% | | | 1.32% |
Class S Shares | | -15.27% | 6.18% | 7.48% | 8.90% | | | 1.07% |
Class T Shares | | -15.07% | 6.45% | 7.75% | 9.12% | | | 0.82% |
S&P 500 Index | | -15.47% | 9.24% | 11.70% | 9.56% | | | |
Bloomberg U.S. Aggregate Bond Index | | -14.60% | -0.27% | 0.89% | 4.51% | | | |
Balanced Index | | -14.79% | 5.23% | 6.97% | 7.57% | | | |
Morningstar Quartile - Class T Shares | | 2nd | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Allocation - 50% to 70% Equity Funds | | 282/761 | 39/691 | 41/612 | 15/189 | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
Janus Henderson Balanced Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective 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.
© 2022 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – September 1, 1992
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Balanced 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $842.90 | $4.16 | | $1,000.00 | $1,020.56 | $4.56 | 0.90% |
Class C Shares | $1,000.00 | $840.00 | $7.47 | | $1,000.00 | $1,016.95 | $8.19 | 1.62% |
Class D Shares | $1,000.00 | $843.80 | $3.28 | | $1,000.00 | $1,021.51 | $3.60 | 0.71% |
Class I Shares | $1,000.00 | $843.80 | $3.05 | | $1,000.00 | $1,021.76 | $3.35 | 0.66% |
Class N Shares | $1,000.00 | $844.20 | $2.68 | | $1,000.00 | $1,022.16 | $2.94 | 0.58% |
Class R Shares | $1,000.00 | $841.20 | $6.14 | | $1,000.00 | $1,018.40 | $6.73 | 1.33% |
Class S Shares | $1,000.00 | $842.20 | $4.94 | | $1,000.00 | $1,019.70 | $5.42 | 1.07% |
Class T Shares | $1,000.00 | $843.30 | $3.79 | | $1,000.00 | $1,020.96 | $4.15 | 0.82% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 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 Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– 8.4% | | | |
| | 208 Park Avenue Mortgage Trust 2017-280P, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8800%, 3.5850%, 9/15/34 (144A)‡ | | $11,417,538 | | | $11,151,666 | |
| | ACC Auto Trust 2022-A A, 4.5800%, 7/15/26 (144A) | | 8,889,519 | | | 8,794,025 | |
| | ACM Auto Trust 2022-1A A, 3.2300%, 4/20/29 (144A) | | 6,158,691 | | | 6,141,107 | |
| | Affirm Asset Securitization Trust 2021-B A, 1.0300%, 8/17/26 (144A) | | 12,148,000 | | | 11,488,446 | |
| | Aimco 2020-11A AR, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1300%, 3.8703%, 10/17/34 (144A)‡ | | 5,821,000 | | | 5,551,686 | |
| | Angel Oak Mortgage Trust I LLC 2019-5, 2.5930%, 10/25/49 (144A)‡ | | 1,684,263 | | | 1,640,122 | |
| | Angel Oak Mortgage Trust I LLC 2019-6, | | | | | | |
| | ICE LIBOR USD 12 Month + 0.9500%, 2.6200%, 11/25/59 (144A)‡ | | 1,488,456 | | | 1,425,626 | |
| | Angel Oak Mortgage Trust I LLC 2020-3, | | | | | | |
| | ICE LIBOR USD 12 Month + 1.0000%, 2.4100%, 4/25/65 (144A)‡ | | 3,379,266 | | | 3,184,321 | |
| | Aqua Finance Trust 2021-A A, 1.5400%, 7/17/46 (144A) | | 5,935,145 | | | 5,373,755 | |
| | ARES CLO Ltd 2021-60A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1200%, 3.8603%, 7/18/34 (144A)‡ | | 5,454,000 | | | 5,196,991 | |
| | Arivo Acceptance Auto Loan Receivables 2022-1A A, 3.9300%, 5/15/28 (144A) | | 7,801,960 | | | 7,567,445 | |
| | Babson CLO Ltd 2020-4A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.2200%, 3.9299%, 1/20/32 (144A)‡ | | 7,293,853 | | | 7,091,157 | |
| | Barclays Commercial Mortgage Securities LLC 2015-SRCH, | | | | | | |
| | 4.1970%, 8/10/35 (144A) | | 8,386,000 | | | 7,842,893 | |
| | Barclays Commercial Mortgage Securities LLC 2017-DELC, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9750%, 3.7927%, 8/15/36 (144A)‡ | | 7,553,000 | | | 7,380,603 | |
| | BPR Trust 2022-OANA A, | | | | | | |
| | CME Term SOFR 1 Month + 1.8980%, 4.7434%, 4/15/37 (144A)‡ | | 33,039,000 | | | 32,812,120 | |
| | BX Commercial Mortgage Trust 2019-OC11, 3.6050%, 12/9/41 (144A) | | 4,134,000 | | | 3,419,854 | |
| | BX Commercial Mortgage Trust 2019-OC11, 3.8560%, 12/9/41 (144A) | | 8,218,000 | | | 6,791,441 | |
| | BX Commercial Mortgage Trust 2019-XL, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9200%, 3.7380%, 10/15/36 (144A)‡ | | 20,339,089 | | | 20,076,272 | |
| | BX Commercial Mortgage Trust 2019-XL, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0800%, 3.8980%, 10/15/36 (144A)‡ | | 6,531,400 | | | 6,417,996 | |
| | BX Commercial Mortgage Trust 2020-VKNG A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9300%, 3.7477%, 10/15/37 (144A)‡ | | 3,923,366 | | | 3,816,936 | |
| | BX Commercial Mortgage Trust 2021-LBA AJV, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8000%, 3.6180%, 2/15/36 (144A)‡ | | 18,764,000 | | | 17,886,738 | |
| | BX Commercial Mortgage Trust 2021-LBA AV, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8000%, 3.6180%, 2/15/36 (144A)‡ | | 18,857,000 | | | 17,967,185 | |
| | BX Commercial Mortgage Trust 2021-VINO A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.6523%, 3.4703%, 5/15/38 (144A)‡ | | 18,990,000 | | | 18,268,822 | |
| | BX Commercial Mortgage Trust 2021-VOLT B, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9500%, 3.7677%, 9/15/36 (144A)‡ | | 15,945,000 | | | 15,268,319 | |
| | BX Commercial Mortgage Trust 2021-VOLT D, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.6500%, 4.4677%, 9/15/36 (144A)‡ | | 16,692,000 | | | 15,890,749 | |
| | BXP Trust 2017-GM, 3.3790%, 6/13/39 (144A) | | 4,190,000 | | | 3,793,357 | |
| | Carvana Auto Receivables Trust 2021-P4 A2, 0.8200%, 4/10/25 | | 7,956,331 | | | 7,861,747 | |
| | CBAM CLO Management 2019-11RA A1, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1800%, 2.2427%, 1/20/35 (144A)‡ | | 16,984,000 | | | 16,286,348 | |
| | CBAM CLO Management 2019-11RA B, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.7500%, 2.8127%, 1/20/35 (144A)‡ | | 6,819,244 | | | 6,377,487 | |
| | CF Hippolyta Issuer LLC 2021-1A A1, 1.5300%, 3/15/61 (144A) | | 16,239,377 | | | 14,216,605 | |
| | CF Hippolyta Issuer LLC 2021-1A B1, 1.9800%, 3/15/61 (144A) | | 6,132,325 | | | 5,233,604 | |
| | CF Hippolyta Issuer LLC 2022-1A A1, 5.9700%, 8/15/62 (144A) | | 21,826,000 | | | 21,110,286 | |
| | CF Hippolyta Issuer LLC 2022-1A A2, 6.1100%, 8/15/62 (144A) | | 51,013,000 | | | 49,067,451 | |
| | Chase Auto Credit Linked Notes 2021-1 B, 0.8750%, 9/25/28 (144A) | | 3,799,868 | | | 3,703,359 | |
| | Chase Auto Credit Linked Notes 2021-2 B, 0.8890%, 12/26/28 (144A) | | 8,526,867 | | | 8,271,215 | |
| | Chase Mortgage Finance Corp 2021-CL1 M1, | | | | | | |
| | US 30 Day Average SOFR + 1.2000%, 3.4807%, 2/25/50 (144A)‡ | | 16,104,639 | | | 15,290,765 | |
| | CIFC Funding Ltd 2018-3A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1000%, 3.8403%, 7/18/31 (144A)‡ | | 10,918,000 | | | 10,620,102 | |
| | CIFC Funding Ltd 2021-7A B, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.6000%, 2.7840%, 1/23/35 (144A)‡ | | 5,524,216 | | | 5,139,764 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | CIM Trust 2021-NR1 A1, 2.5690%, 7/25/55 (144A)Ç | | $9,535,722 | | | $8,958,986 | |
| | Cold Storage Trust 2020-ICE5 A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9000%, 3.7177%, 11/15/37 (144A)‡ | | 24,568,865 | | | 23,926,719 | |
| | Cold Storage Trust 2020-ICE5 B, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3000%, 4.1177%, 11/15/37 (144A)‡ | | 10,924,957 | | | 10,639,855 | |
| | Cold Storage Trust 2020-ICE5 C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.6500%, 4.4677%, 11/15/37 (144A)‡ | | 10,966,242 | | | 10,593,980 | |
| | COLT Funding LLC 2020-2, | | | | | | |
| | ICE LIBOR USD 12 Month + 1.5000%, 1.8530%, 3/25/65 (144A)‡ | | 401,225 | | | 394,787 | |
| | COLT Funding LLC 2020-3, | | | | | | |
| | ICE LIBOR USD 12 Month + 1.2000%, 1.5060%, 4/27/65 (144A)‡ | | 1,239,268 | | | 1,182,248 | |
| | Conn Funding II LP 2021-A A, 1.0500%, 5/15/26 (144A) | | 2,718,670 | | | 2,676,608 | |
| | Connecticut Avenue Securities Trust 2014-C04, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.9000%, 7.9840%, 11/25/24‡ | | 727,827 | | | 745,916 | |
| | Connecticut Avenue Securities Trust 2015-C01 1M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.3000%, 7.3840%, 2/25/25‡ | | 4,669,764 | | | 4,773,460 | |
| | Connecticut Avenue Securities Trust 2018-R07, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.4000%, 5.4840%, 4/25/31 (144A)‡ | | 1,803,767 | | | 1,799,340 | |
| | Connecticut Avenue Securities Trust 2019-R02, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.3000%, 5.3840%, 8/25/31 (144A)‡ | | 719,762 | | | 718,125 | |
| | Connecticut Avenue Securities Trust 2019-R03, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1500%, 5.2340%, 9/25/31 (144A)‡ | | 1,140,562 | | | 1,137,924 | |
| | Connecticut Avenue Securities Trust 2019-R07, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1000%, 5.1840%, 10/25/39 (144A)‡ | | 1,359,369 | | | 1,350,429 | |
| | Connecticut Avenue Securities Trust 2021-R02 2M2, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 4.2807%, 11/25/41 (144A)‡ | | 32,659,000 | | | 29,351,564 | |
| | Connecticut Avenue Securities Trust 2021-R03 1M2, | | | | | | |
| | US 30 Day Average SOFR + 1.6500%, 3.9307%, 12/25/41 (144A)‡ | | 10,646,000 | | | 9,688,942 | |
| | Connecticut Avenue Securities Trust 2022-R02 2M2, | | | | | | |
| | US 30 Day Average SOFR + 3.0000%, 5.2807%, 1/25/42 (144A)‡ | | 12,368,000 | | | 11,275,485 | |
| | Connecticut Avenue Securities Trust 2022-R03 1M1, | | | | | | |
| | US 30 Day Average SOFR + 2.1000%, 4.3807%, 3/25/42 (144A)‡ | | 24,249,979 | | | 23,978,123 | |
| | Connecticut Avenue Securities Trust 2022-R04 1M1, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 4.2807%, 3/25/42 (144A)‡ | | 10,396,138 | | | 10,296,719 | |
| | Connecticut Avenue Securities Trust 2022-R05 2M1, | | | | | | |
| | US 30 Day Average SOFR + 1.9000%, 4.1807%, 4/25/42 (144A)‡ | | 11,601,041 | | | 11,402,097 | |
| | Connecticut Avenue Securities Trust 2022-R05 2M2, | | | | | | |
| | US 30 Day Average SOFR + 3.0000%, 5.2807%, 4/25/42 (144A)‡ | | 9,001,000 | | | 8,294,502 | |
| | Connecticut Avenue Securities Trust 2022-R06 1M1, | | | | | | |
| | US 30 Day Average SOFR + 2.7500%, 5.0307%, 5/25/42 (144A)‡ | | 7,631,993 | | | 7,627,217 | |
| | Connecticut Avenue Securities Trust 2022-R08 1M1, | | | | | | |
| | US 30 Day Average SOFR + 2.5500%, 4.8547%, 7/25/42 (144A)‡ | | 6,065,529 | | | 6,057,889 | |
| | Connecticut Avenue Securities Trust 2022-R09 2M1, | | | | | | |
| | US 30 Day Average SOFR + 2.5000%, 0%, 9/25/42 (144A)‡ | | 22,776,000 | | | 22,765,712 | |
| | Consumer Loan Underlying Bond Credit Trust 2018-P2 C, | | | | | | |
| | 5.2100%, 10/15/25 (144A) | | 602,142 | | | 602,130 | |
| | Consumer Loan Underlying Bond Credit Trust 2018-P3 C, | | | | | | |
| | 5.5400%, 1/15/26 (144A) | | 1,228,493 | | | 1,228,600 | |
| | Consumer Loan Underlying Bond Credit Trust 2019-P2 C, | | | | | | |
| | 4.4100%, 10/15/26 (144A) | | 3,186,943 | | | 3,170,926 | |
| | Consumer Loan Underlying Bond Credit Trust 2020-P1 C, | | | | | | |
| | 4.6100%, 3/15/28 (144A) | | 1,603,790 | | | 1,594,009 | |
| | CP EF Asset Securitization I LLC 2002-1A A, 5.9600%, 4/15/30 (144A) | | 9,803,086 | | | 9,686,960 | |
| | Credit Suisse Commercial Mortgage Trust 2019-ICE4, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9800%, 3.7980%, 5/15/36 (144A)‡ | | 26,562,000 | | | 26,198,063 | |
| | Credit Suisse Commercial Mortgage Trust 2019-ICE4 C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.4300%, 4.2480%, 5/15/36 (144A)‡ | | 5,508,000 | | | 5,366,414 | |
| | Credit Suisse Commercial Mortgage Trust 2021-WEHO A, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.9693%, 6.7873%, 4/15/23 (144A)‡ | | 12,723,721 | | | 12,270,514 | |
| | Diamond Infrastructure Funding LLC 2021-1A A, 1.7600%, 4/15/49 (144A) | | 17,354,000 | | | 14,245,435 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Domino's Pizza Master Issuer LLC, 4.1160%, 7/25/48 (144A) | | $11,629,888 | | | $11,002,644 | |
| | Dryden Senior Loan Fund 2020-83A A, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.2200%, 3.9603%, 1/18/32 (144A)‡ | | 7,111,119 | | | 6,912,840 | |
| | Elmwood CLO VIII Ltd 2019-2A AR, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1500%, 3.8599%, 4/20/34 (144A)‡ | | 8,217,000 | | | 7,929,553 | |
| | Exeter Automobile Receivables Trust 2019-1, 5.2000%, 1/15/26 (144A) | | 8,200,000 | | | 8,148,740 | |
| | Exeter Automobile Receivables Trust 2021-1A D, 1.0800%, 11/16/26 | | 11,355,000 | | | 10,688,148 | |
| | Extended Stay America Trust 2021-ESH A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0800%, 3.8980%, 7/15/38 (144A)‡ | | 9,043,343 | | | 8,772,970 | |
| | Extended Stay America Trust 2021-ESH B, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3800%, 4.1980%, 7/15/38 (144A)‡ | | 5,818,192 | | | 5,579,757 | |
| | Fannie Mae Connecticut Avenue Securities, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.0000%, 8.0840%, 7/25/25‡ | | 3,449,477 | | | 3,500,536 | |
| | Fannie Mae Connecticut Avenue Securities, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.7000%, 8.7840%, 4/25/28‡ | | 3,553,416 | | | 3,730,411 | |
| | Fannie Mae REMICS, 3.0000%, 5/25/48 | | 8,267,337 | | | 7,454,708 | |
| | Fannie Mae REMICS, 3.0000%, 11/25/49 | | 10,826,018 | | | 9,810,380 | |
| | Flagstar Mortgage Trust 2021-13IN A2, 3.0000%, 12/30/51 (144A)‡ | | 33,919,188 | | | 28,101,362 | |
| | Foursight Capital Auto Receivables Trust 2021-1 B, 0.8700%, 1/15/26 (144A) | | 7,165,000 | | | 6,972,415 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2019-DNA4 M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.9500%, 5.0340%, 10/25/49 (144A)‡ | | 443,604 | | | 438,938 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-DNA6 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 4.2807%, 12/25/50 (144A)‡ | | 15,791,833 | | | 15,676,385 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA2 M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.1000%, 6.1840%, 3/25/50 (144A)‡ | | 4,929,815 | | | 4,892,317 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA4 M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.1500%, 6.2340%, 9/25/50 (144A)‡ | | 390,768 | | | 391,600 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA5 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.6000%, 4.8807%, 11/25/50 (144A)‡ | | 17,623,031 | | | 17,558,278 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-DNA2 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.3000%, 4.5807%, 8/25/33 (144A)‡ | | 6,224,000 | | | 6,103,102 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-DNA7 M1, | | | | | | |
| | US 30 Day Average SOFR + 0.8500%, 3.1307%, 11/25/41 (144A)‡ | | 13,786,000 | | | 13,424,054 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-HQA1 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.2500%, 4.5307%, 8/25/33 (144A)‡ | | 23,429,000 | | | 21,485,271 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-HQA4 M1, | | | | | | |
| | US 30 Day Average SOFR + 0.9500%, 3.2307%, 12/25/41 (144A)‡ | | 23,356,179 | | | 22,298,483 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-DNA2 M1A, | | | | | | |
| | US 30 Day Average SOFR + 1.3000%, 3.5807%, 2/25/42 (144A)‡ | | 5,301,302 | | | 5,211,693 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-DNA3 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 4.2807%, 4/25/42 (144A)‡ | | 4,893,816 | | | 4,847,478 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-DNA5 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.9500%, 5.2307%, 6/25/42 (144A)‡ | | 15,350,015 | | | 15,384,637 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-DNA6 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.1500%, 4.4350%, 9/25/42 (144A)‡ | | 4,059,839 | | | 4,034,973 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-HQA1 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.1000%, 4.3807%, 3/25/42 (144A)‡ | | 10,657,025 | | | 10,668,586 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-HQA2 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.6500%, 4.9307%, 7/25/42 (144A)‡ | | 7,603,930 | | | 7,565,656 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-HQA3 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.3000%, 4.5807%, 8/25/42 (144A)‡ | | 6,752,703 | | | 6,702,095 | |
| | FREED ABS Trust 2019-2 C, 4.8600%, 11/18/26 (144A) | | 2,621,295 | | | 2,620,489 | |
| | GCAT 2022-INV1 A1, 3.0000%, 12/25/51 (144A)‡ | | 43,573,107 | | | 36,331,313 | |
| | Great Wolf Trust, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0340%, 3.8520%, 12/15/36 (144A)‡ | | 19,125,000 | | | 18,625,789 | |
| | Great Wolf Trust, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3340%, 4.1520%, 12/15/36 (144A)‡ | | 4,405,000 | | | 4,243,745 | |
| | Great Wolf Trust, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.6330%, 4.4510%, 12/15/36 (144A)‡ | | 4,900,000 | | | 4,742,271 | |
| | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Highbridge Loan Management Ltd 2021-16A B, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.7000%, 4.4830%, 1/23/35 (144A)‡ | | $5,360,143 | | | $4,979,015 | |
| | LAD Auto Receivables Trust 2021-1A A, 1.3000%, 8/17/26 (144A) | | 7,779,955 | | | 7,541,832 | |
| | LAD Auto Receivables Trust 2022-1A A, 5.2100%, 6/15/27 (144A) | | 23,645,455 | | | 23,206,093 | |
| | LCM LP 24A AR, ICE LIBOR USD 3 Month + 0.9800%, 3.6899%, 3/20/30 (144A)‡ | | 7,293,853 | | | 7,163,067 | |
| | Lendbuzz Securitization Trust 2021-1A A, 4.2200%, 5/17/27 (144A)‡ | | 19,519,678 | | | 19,132,589 | |
| | Life Financial Services Trust 2021-BMR A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.7000%, 3.5180%, 3/15/38 (144A)‡ | | 26,199,103 | | | 25,207,484 | |
| | Life Financial Services Trust 2021-BMR C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.1000%, 3.9180%, 3/15/38 (144A)‡ | | 15,119,064 | | | 14,346,790 | |
| | Life Financial Services Trust 2022-BMR2 A1, | | | | | | |
| | CME Term SOFR 1 Month + 1.2952%, 4.1406%, 5/15/39 (144A)‡ | | 36,759,000 | | | 35,935,234 | |
| | Life Financial Services Trust 2022-BMR2 B, | | | | | | |
| | CME Term SOFR 1 Month + 1.7939%, 4.6393%, 5/15/39 (144A)‡ | | 6,155,000 | | | 5,972,144 | |
| | MED Trust 2021-MDLN C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.8000%, 4.6180%, 11/15/38 (144A)‡ | | 4,649,000 | | | 4,428,678 | |
| | MED Trust 2021-MDLN D, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 4.8180%, 11/15/38 (144A)‡ | | 4,904,000 | | | 4,645,590 | |
| | MED Trust 2021-MDLN E, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.1500%, 5.9680%, 11/15/38 (144A)‡ | | 21,424,000 | | | 20,142,068 | |
| | MED Trust 2021-MDLN F, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.0000%, 6.8180%, 11/15/38 (144A)‡ | | 14,528,000 | | | 13,597,941 | |
| | Mello Mortgage Capital Acceptance Trust 2021-INV2 A11, | | | | | | |
| | US 30 Day Average SOFR + 0.9500%, 3.2307%, 8/25/51 (144A)‡ | | 11,339,705 | | | 10,600,424 | |
| | Mello Mortgage Capital Acceptance Trust 2021-INV3 A11, | | | | | | |
| | US 30 Day Average SOFR + 0.9500%, 3.2307%, 10/25/51 (144A)‡ | | 14,233,625 | | | 13,305,451 | |
| | Mello Mortgage Capital Acceptance Trust 2021-INV4 A3, | | | | | | |
| | 2.5000%, 12/25/51 (144A)‡ | | 8,553,861 | | | 6,824,349 | |
| | Mello Mortgage Capital Acceptance Trust 2022-INV1 A2, | | | | | | |
| | 3.0000%, 3/25/52 (144A)‡ | | 29,374,711 | | | 24,394,616 | |
| | Mercury Financial Credit Card Master Trust 2021-1A A, | | | | | | |
| | 1.5400%, 3/20/26 (144A) | | 14,022,000 | | | 13,334,855 | |
| | MHC Commercial Mortgage Trust 2021-MHC A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8010%, 3.6190%, 4/15/38 (144A)‡ | | 27,729,249 | | | 26,829,138 | |
| | MHC Commercial Mortgage Trust 2021-MHC C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3510%, 4.1690%, 4/15/38 (144A)‡ | | 15,653,295 | | | 14,897,062 | |
| | New Residential Mortgage Loan Trust 2018-2, | | | | | | |
| | ICE LIBOR USD 6 Month + 0.6800%, 4.5000%, 2/25/58 (144A)‡ | | 1,515,024 | | | 1,475,576 | |
| | NRZ Excess Spread Collateralized Notes 2020-PLS1 A, | | | | | | |
| | 3.8440%, 12/25/25 (144A) | | 4,337,489 | | | 4,001,533 | |
| | NRZ Excess Spread Collateralized Notes 2021-FHT1 A, 3.1040%, 7/25/26 (144A) | | 10,757,259 | | | 9,328,238 | |
| | Oak Street Investment Grade Net Lease Fund 2020-1A A1, | | | | | | |
| | 1.8500%, 11/20/50 (144A) | | 13,145,826 | | | 11,606,309 | |
| | Oasis Securitization 2022-1A A, 4.7500%, 5/15/34 (144A) | | 7,473,344 | | | 7,340,738 | |
| | Oceanview Mortgage Trust 2021-5 AF, | | | | | | |
| | US 30 Day Average SOFR + 0.8500%, 3.0332%, 11/25/51 (144A)‡ | | 16,081,865 | | | 14,883,545 | |
| | Oceanview Mortgage Trust 2022-1 A1, 3.0000%, 12/25/51 (144A)‡ | | 17,700,121 | | | 14,651,316 | |
| | Oceanview Mortgage Trust 2022-2 A1, 3.0000%, 12/25/51 (144A)‡ | | 32,790,204 | | | 27,224,186 | |
| | Onslow Bay Financial LLC 2021-INV3 A3, 2.5000%, 10/25/51 (144A)‡ | | 9,970,853 | | | 7,995,811 | |
| | Onslow Bay Financial LLC 2022-INV1 A1, 3.0000%, 12/25/51 (144A)‡ | | 33,057,874 | | | 27,247,655 | |
| | Onslow Bay Financial LLC 2022-INV1 A18, 3.0000%, 12/25/51 (144A)‡ | | 14,017,717 | | | 11,515,255 | |
| | Pagaya AI Debt Selection Trust 2022-1 A, 2.0300%, 10/15/29 (144A) | | 10,541,654 | | | 10,138,253 | |
| | Preston Ridge Partners Mortgage Trust 2020-4 A1, 2.9510%, 10/25/25 (144A)Ç | | 9,713,580 | | | 9,423,023 | |
| | Preston Ridge Partners Mortgage Trust 2021-10 A1, 2.4870%, 10/25/26 (144A)Ç | | 25,367,927 | | | 22,978,134 | |
| | Preston Ridge Partners Mortgage Trust 2021-9 A1, 2.3630%, 10/25/26 (144A)Ç | | 19,100,690 | | | 17,761,122 | |
| | Preston Ridge Partners Mortgage Trust 2022-2 A1, 5.0000%, 3/25/27 (144A)Ç | | 25,773,243 | | | 24,974,638 | |
| | Regatta XXIII Funding Ltd 2021-4A B, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.7000%, 4.4099%, 1/20/35 (144A)‡ | | 5,891,224 | | | 5,373,150 | |
| | Santander Bank Auto Credit-Linked Notes 2021-1A B, 1.8330%, 12/15/31 (144A) | | 4,273,638 | | | 4,142,090 | |
| | Santander Bank Auto Credit-Linked Notes 2022-A B, 5.2810%, 5/15/32 (144A) | | 16,232,228 | | | 16,028,519 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Santander Bank Auto Credit-Linked Notes 2022-B A2, 5.5870%, 8/16/32 (144A) | | $5,984,000 | | | $5,990,590 | |
| | Santander Drive Auto Receivables Trust 2020-3 D, 1.6400%, 11/16/26 | | 27,434,000 | | | 26,480,413 | |
| | Sequoia Mortgage Trust 2013-5, 2.5000%, 5/25/43 (144A)‡ | | 2,359,341 | | | 2,042,232 | |
| | Sequoia Mortgage Trust 2020-2, 3.5000%, 3/25/50 (144A)‡ | | 967,035 | | | 847,693 | |
| | Sound Point CLO Ltd 2019-1A AR, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.0800%, 3.7899%, 1/20/32 (144A)‡ | | 26,345,000 | | | 25,369,102 | |
| | Spruce Hill Mortgage Loan Trust 2020-SH1 A1, | | | | | | |
| | ICE LIBOR USD 12 Month + 0.9500%, 2.5210%, 1/28/50 (144A)‡ | | 162,395 | | | 160,575 | |
| | Spruce Hill Mortgage Loan Trust 2020-SH1 A2, | | | | | | |
| | ICE LIBOR USD 12 Month + 1.0500%, 2.6240%, 1/28/50 (144A)‡ | | 856,807 | | | 846,407 | |
| | SREIT Trust 2021-MFP A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.7308%, 3.5485%, 11/15/38 (144A)‡ | | 2,350,000 | | | 2,264,968 | |
| | Tesla Auto Lease Trust 2021-B A3, 0.6000%, 9/22/25 (144A) | | 8,570,000 | | | 8,041,508 | |
| | Tesla Auto Lease Trust 2021-B B, 0.9100%, 9/22/25 (144A) | | 4,395,000 | | | 4,083,524 | |
| | Theorem Funding Trust 2021-1A A, 1.2100%, 12/15/27 (144A) | | 3,965,627 | | | 3,877,171 | |
| | THL Credit Wind River CLO Ltd 2019-1A AR, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1600%, 3.8699%, 7/20/34 (144A)‡ | | 7,594,000 | | | 7,262,423 | |
| | TPI Re-Remic Trust 2022-FRR1 AK33, 0%, 7/25/46 (144A)◊ | | 8,395,000 | | | 7,997,202 | |
| | TPI Re-Remic Trust 2022-FRR1 AK34, 0%, 7/25/46 (144A)◊ | | 6,915,000 | | | 6,587,332 | |
| | TPI Re-Remic Trust 2022-FRR1 AK35, 0%, 8/25/46 (144A)◊ | | 9,375,000 | | | 8,878,193 | |
| | Tricolor Auto Securitization Trust 2022-1A A, 3.3000%, 2/18/25 (144A) | | 2,747,268 | | | 2,723,094 | |
| | United Wholesale Mortgage LLC 2021-INV1 A9, | | | | | | |
| | US 30 Day Average SOFR + 0.9000%, 3.0832%, 8/25/51 (144A)‡ | | 13,521,161 | | | 12,604,945 | |
| | United Wholesale Mortgage LLC 2021-INV4 A3, 2.5000%, 12/25/51 (144A)‡ | | 6,592,254 | | | 5,246,892 | |
| | Upstart Securitization Trust 2021-4 A, 0.8400%, 9/20/31 (144A) | | 7,249,302 | | | 7,000,464 | |
| | Upstart Securitization Trust 2021-5 A, 1.3100%, 11/20/31 (144A) | | 4,871,021 | | | 4,711,543 | |
| | Upstart Securitization Trust 2022-1 A, 3.1200%, 3/20/32 (144A) | | 20,212,771 | | | 19,473,359 | |
| | Upstart Securitization Trust 2022-2 A, 4.3700%, 5/20/32 (144A) | | 29,454,222 | | | 28,790,849 | |
| | Vantage Data Centers LLC 2020-1A A2, 1.6450%, 9/15/45 (144A) | | 17,832,000 | | | 15,659,105 | |
| | Vantage Data Centers LLC 2020-2A A2, 1.9920%, 9/15/45 (144A) | | 11,511,000 | | | 9,577,233 | |
| | VASA Trust 2021-VASA A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9000%, 3.7180%, 7/15/39 (144A)‡ | | 8,418,000 | | | 8,104,907 | |
| | VCAT Asset Securitization LLC 2021-NPL1 A1, 2.2891%, 12/26/50 (144A) | | 3,315,818 | | | 3,177,605 | |
| | VMC Finance LLC 2021-HT1 A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.6500%, 4.6434%, 1/18/37 (144A)‡ | | 10,311,722 | | | 9,990,969 | |
| | Wells Fargo Commercial Mortgage Trust 2021-SAVE A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.1500%, 3.9680%, 2/15/40 (144A)‡ | | 8,375,727 | | | 8,024,288 | |
| | Westgate Resorts 2022-1A A, 1.7880%, 8/20/36 (144A) | | 5,703,251 | | | 5,369,095 | |
| | Westlake Automobile Receivable Trust 2020-1A D, 2.8000%, 6/16/25 (144A) | | 12,457,000 | | | 12,240,064 | |
| | Woodward Capital Management 2021-3 A21, | | | | | | |
| | US 30 Day Average SOFR + 0.8000%, 2.9832%, 7/25/51 (144A)‡ | | 10,133,531 | | | 9,430,207 | |
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $1,973,471,193) | | 1,858,697,123 | |
Corporate Bonds– 9.8% | | | |
Banking – 4.3% | | | |
| | American Express Co, SOFR + 2.2550%, 4.9890%, 5/26/33‡ | | 27,645,000 | | | 25,675,627 | |
| | Bank of America Corp, ICE LIBOR USD 3 Month + 1.5120%, 3.7050%, 4/24/28‡ | | 12,653,000 | | | 11,513,452 | |
| | Bank of America Corp, SOFR + 1.5800%, 4.3760%, 4/27/28‡ | | 31,762,000 | | | 29,762,122 | |
| | Bank of America Corp, ICE LIBOR USD 3 Month + 1.0700%, 3.9700%, 3/5/29‡ | | 11,944,000 | | | 10,805,704 | |
| | Bank of America Corp, SOFR + 1.0600%, 2.0870%, 6/14/29‡ | | 25,438,000 | | | 20,671,798 | |
| | Bank of America Corp, SOFR + 2.1500%, 2.5920%, 4/29/31‡ | | 51,219,000 | | | 40,619,793 | |
| | Bank of America Corp, SOFR + 1.8300%, 4.5710%, 4/27/33‡ | | 32,892,000 | | | 29,460,923 | |
| | Bank of America Corp, ICE LIBOR USD 3 Month + 3.7050%, 6.2500%‡,µ | | 21,700,000 | | | 20,967,625 | |
| | Bank of America Corp, ICE LIBOR USD 3 Month + 3.1350%, 5.2000%‡,µ | | 7,250,000 | | | 6,960,000 | |
| | Bank of Montreal, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 1.4000%, 3.0880%, 1/10/37‡ | | 53,212,000 | | | 39,680,264 | |
| | BNP Paribas SA, SOFR + 1.2280%, 2.5910%, 1/20/28 (144A)‡ | | 12,805,000 | | | 10,935,169 | |
| | BNP Paribas SA, SOFR + 1.5610%, 3.1320%, 1/20/33 (144A)‡ | | 10,937,000 | | | 8,296,650 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 1.5630%, 3.8870%, 1/10/28‡ | | 36,115,000 | | | 33,240,700 | |
| | Citigroup Inc, SOFR + 3.9140%, 4.4120%, 3/31/31‡ | | 24,901,000 | | | 22,339,410 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 3.4660%, 5.3500%‡,µ | | 8,824,000 | | | 8,360,740 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Banking– (continued) | | | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 3.9050%, 5.9500%‡,µ | | $8,361,000 | | | $7,567,099 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 3.4230%, 6.3000%‡,µ | | 2,012,000 | | | 1,873,752 | |
| | Commonwealth Bank of Australia, 3.7840%, 3/14/32 (144A) | | 22,906,000 | | | 18,254,734 | |
| | First Republic Bank/CA, 4.6250%, 2/13/47 | | 5,767,000 | | | 4,621,151 | |
| | Goldman Sachs Group Inc, 3.5000%, 4/1/25 | | 39,166,000 | | | 37,411,476 | |
| | Goldman Sachs Group Inc, SOFR + 1.4100%, 3.1020%, 2/24/33‡ | | 15,819,000 | | | 12,564,314 | |
| | JPMorgan Chase & Co, SOFR + 1.8500%, 2.0830%, 4/22/26‡ | | 9,471,000 | | | 8,628,920 | |
| | JPMorgan Chase & Co, SOFR + 1.3200%, 4.0800%, 4/26/26‡ | | 20,833,000 | | | 20,058,271 | |
| | JPMorgan Chase & Co, ICE LIBOR USD 3 Month + 1.2450%, 3.9600%, 1/29/27‡ | | 24,028,000 | | | 22,672,415 | |
| | JPMorgan Chase & Co, SOFR + 1.7500%, 4.5650%, 6/14/30‡ | | 17,992,000 | | | 16,580,148 | |
| | JPMorgan Chase & Co, SOFR + 2.5150%, 2.9560%, 5/13/31‡ | | 22,144,000 | | | 17,540,176 | |
| | JPMorgan Chase & Co, SOFR + 1.2600%, 2.9630%, 1/25/33‡ | | 36,264,000 | | | 28,506,574 | |
| | JPMorgan Chase & Co, SOFR + 1.8000%, 4.5860%, 4/26/33‡ | | 8,818,000 | | | 7,934,549 | |
| | JPMorgan Chase & Co, SOFR + 2.5800%, 5.7170%, 9/14/33‡ | | 39,262,000 | | | 37,127,896 | |
| | JPMorgan Chase & Co, SOFR + 3.3800%, 5.0000%‡,µ | | 7,243,000 | | | 6,531,375 | |
| | JPMorgan Chase & Co, SOFR + 3.1250%, 4.6000%‡,µ | | 7,646,000 | | | 6,660,431 | |
| | Mitsubishi UFJ Financial Group Inc, | | | | | | |
| | US Treasury Yield Curve Rate 1 Year + 1.7000%, 4.7880%, 7/18/25‡ | | 15,834,000 | | | 15,626,054 | |
| | Mitsubishi UFJ Financial Group Inc, | | | | | | |
| | US Treasury Yield Curve Rate 1 Year + 1.9500%, 5.0170%, 7/20/28‡ | | 37,892,000 | | | 36,365,581 | |
| | Mitsubishi UFJ Financial Group Inc, | | | | | | |
| | US Treasury Yield Curve Rate 1 Year + 1.9000%, 5.3540%, 9/13/28‡ | | 18,900,000 | | | 18,428,509 | |
| | Mitsubishi UFJ Financial Group Inc, | | | | | | |
| | US Treasury Yield Curve Rate 1 Year + 2.1250%, 5.1330%, 7/20/33‡ | | 13,562,000 | | | 12,671,270 | |
| | Mitsubishi UFJ Financial Group Inc, | | | | | | |
| | US Treasury Yield Curve Rate 1 Year + 2.1250%, 5.4720%, 9/13/33‡ | | 13,694,000 | | | 13,173,536 | |
| | Morgan Stanley, SOFR + 1.9900%, 2.1880%, 4/28/26‡ | | 24,836,000 | | | 22,781,484 | |
| | Morgan Stanley, 4.3500%, 9/8/26 | | 14,618,000 | | | 13,922,546 | |
| | Morgan Stanley, SOFR + 0.8790%, 1.5930%, 5/4/27‡ | | 11,537,000 | | | 9,968,957 | |
| | Morgan Stanley, SOFR + 1.0340%, 1.7940%, 2/13/32‡ | | 20,010,000 | | | 14,623,730 | |
| | Morgan Stanley, SOFR + 1.1780%, 2.2390%, 7/21/32‡ | | 31,595,000 | | | 23,734,713 | |
| | Morgan Stanley, SOFR + 1.2900%, 2.9430%, 1/21/33‡ | | 39,331,000 | | | 31,093,642 | |
| | Morgan Stanley, SOFR + 1.3600%, 2.4840%, 9/16/36‡ | | 38,024,000 | | | 27,249,087 | |
| | National Australia Bank Ltd, 2.9900%, 5/21/31 (144A) | | 28,726,000 | | | 22,101,770 | |
| | Nordea Bank Abp, 5.3750%, 9/22/27 (144A) | | 30,029,000 | | | 29,267,248 | |
| | SVB Financial Group, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.0740%, 4.2500%‡,µ | | 41,202,000 | | | 30,329,716 | |
| | SVB Financial Group, | | | | | | |
| | US Treasury Yield Curve Rate 10 Year + 3.0640%, 4.1000%‡,µ | | 23,100,000 | | | 15,752,303 | |
| | US Bancorp, SOFR + 2.1100%, 4.9670%, 7/22/33‡ | | 5,612,000 | | | 5,240,590 | |
| | US Bancorp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 0.9500%, 2.4910%, 11/3/36‡ | | 20,457,000 | | | 15,375,223 | |
| | Westpac Banking Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 1.7500%, 2.6680%, 11/15/35‡ | | 19,870,000 | | | 14,616,810 | |
| | | 946,146,027 | |
Basic Industry – 0.2% | | | |
| | Axalta Coating Systems Ltd, 3.3750%, 2/15/29 (144A) | | 27,737,000 | | | 21,744,421 | |
| | Element Solutions Inc, 3.8750%, 9/1/28 (144A) | | 20,844,000 | | | 16,783,589 | |
| | Reliance Steel & Aluminum Co, 4.5000%, 4/15/23 | | 7,932,000 | | | 7,914,585 | |
| | | 46,442,595 | |
Brokerage – 0.1% | | | |
| | Charles Schwab Corp, | | | | | | |
| | US Treasury Yield Curve Rate 10 Year + 3.0790%, 4.0000%‡,µ | | 10,811,000 | | | 7,941,578 | |
| | Charles Schwab Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 4.9710%, 5.3750%‡,µ | | 8,634,000 | | | 8,396,565 | |
| | | 16,338,143 | |
Capital Goods – 0% | | | |
| | General Dynamics Corp, 3.5000%, 4/1/27 | | 7,372,000 | | | 6,966,903 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Capital Goods– (continued) | | | |
| | Standard Industries Inc/NJ, 4.3750%, 7/15/30 (144A) | | $5,859,000 | | | $4,482,135 | |
| | | 11,449,038 | |
Communications – 0.1% | | | |
| | AT&T Inc, 3.8000%, 12/1/57 | | 13,125,000 | | | 8,866,523 | |
| | AT&T Inc, 3.6500%, 9/15/59 | | 2,171,000 | | | 1,406,592 | |
| | Charter Communications Operating LLC / Charter Communications Operating Capital, | | | | | | |
| | 6.4840%, 10/23/45 | | 3,584,000 | | | 3,156,024 | |
| | Comcast Corp, 3.7500%, 4/1/40 | | 6,795,000 | | | 5,341,638 | |
| | Fox Corp, 4.0300%, 1/25/24 | | 8,690,000 | | | 8,582,535 | |
| | | 27,353,312 | |
Consumer Cyclical – 0.3% | | | |
| | Amazon.com Inc, 3.0000%, 4/13/25 | | 22,878,000 | | | 22,089,057 | |
| | Amazon.com Inc, 3.9500%, 4/13/52 | | 10,704,000 | | | 8,779,594 | |
| | Amazon.com Inc, 4.1000%, 4/13/62 | | 17,572,000 | | | 14,010,318 | |
| | Dollar General Corp, 4.1250%, 4/3/50 | | 11,279,000 | | | 8,781,580 | |
| | GLP Capital LP / GLP Financing II Inc, 5.2500%, 6/1/25 | | 4,305,000 | | | 4,161,120 | |
| | GLP Capital LP / GLP Financing II Inc, 5.3750%, 4/15/26 | | 9,419,000 | | | 9,009,368 | |
| | GLP Capital LP / GLP Financing II Inc, 5.3000%, 1/15/29 | | 1,226,000 | | | 1,117,446 | |
| | | 67,948,483 | |
Consumer Non-Cyclical – 1.0% | | | |
| | Aramark Services Inc, 6.3750%, 5/1/25 (144A) | | 25,501,000 | | | 24,990,980 | |
| | CSL Finance Ltd, 3.8500%, 4/27/27 (144A) | | 6,306,000 | | | 5,968,098 | |
| | CSL Finance Ltd, 4.0500%, 4/27/29 (144A) | | 12,756,000 | | | 11,749,155 | |
| | CSL Finance Ltd, 4.2500%, 4/27/32 (144A) | | 7,400,000 | | | 6,755,626 | |
| | CVS Health Corp, 5.0500%, 3/25/48 | | 9,216,000 | | | 8,116,184 | |
| | Diageo Capital PLC, 1.3750%, 9/29/25 | | 11,362,000 | | | 10,301,813 | |
| | Diageo Capital PLC, 2.0000%, 4/29/30 | | 10,703,000 | | | 8,576,373 | |
| | Diageo Capital PLC, 2.1250%, 4/29/32 | | 8,585,000 | | | 6,643,952 | |
| | GSK Consumer Healthcare Capital US LLC, 3.3750%, 3/24/27 (144A) | | 10,875,000 | | | 9,862,560 | |
| | GSK Consumer Healthcare Capital US LLC, 3.3750%, 3/24/29 (144A) | | 5,546,000 | | | 4,833,601 | |
| | Hasbro Inc, 3.9000%, 11/19/29 | | 25,055,000 | | | 21,913,522 | |
| | Hasbro Inc, 6.3500%, 3/15/40 | | 7,010,000 | | | 6,693,851 | |
| | Hasbro Inc, 5.1000%, 5/15/44 | | 3,976,000 | | | 3,225,596 | |
| | HCA Inc, 5.8750%, 2/15/26 | | 4,146,000 | | | 4,090,056 | |
| | HCA Inc, 5.3750%, 9/1/26 | | 3,180,000 | | | 3,080,793 | |
| | HCA Inc, 5.6250%, 9/1/28 | | 9,208,000 | | | 8,774,467 | |
| | HCA Inc, 5.8750%, 2/1/29 | | 6,941,000 | | | 6,749,326 | |
| | HCA Inc, 5.5000%, 6/15/47 | | 3,767,000 | | | 3,182,342 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 5.5000%, 1/15/30 (144A) | | 19,216,000 | | | 17,750,780 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 3.6250%, 1/15/32 (144A) | | 9,318,000 | | | 7,279,687 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 3.0000%, 5/15/32 (144A) | | 13,810,000 | | | 10,198,685 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 4.3750%, 2/2/52 (144A) | | 21,043,000 | | | 14,104,281 | |
| | Mondelez International Inc, 2.7500%, 4/13/30 | | 1,182,000 | | | 984,507 | |
| | Royalty Pharma PLC, 3.5500%, 9/2/50 | | 14,211,000 | | | 8,856,116 | |
| | | 214,682,351 | |
Electric – 0.4% | | | |
| | Algonquin Power & Utilities Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.2490%, 4.7500%, 1/18/82‡ | | 22,545,000 | | | 18,414,080 | |
| | Duke Energy Corp, 4.3000%, 3/15/28 | | 15,581,000 | | | 14,666,681 | |
| | Duquesne Light Holdings Inc, 2.7750%, 1/7/32 (144A) | | 16,995,000 | | | 13,002,621 | |
| | NRG Energy Inc, 6.6250%, 1/15/27 | | 5,517,000 | | | 5,402,612 | |
| | NRG Energy Inc, 3.3750%, 2/15/29 (144A) | | 17,426,000 | | | 14,108,787 | |
| | NRG Energy Inc, 3.6250%, 2/15/31 (144A) | | 19,673,000 | | | 15,344,940 | |
| | | 80,939,721 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Energy – 0.2% | | | |
| | Energy Transfer Operating LP, 4.9500%, 6/15/28 | | $626,000 | | | $583,049 | |
| | EQT Corp, 5.6780%, 10/1/25 | | 17,974,000 | | | 17,863,370 | |
| | EQT Corp, 5.7000%, 4/1/28 | | 7,749,000 | | | 7,596,732 | |
| | Hess Midstream Operations LP, 5.1250%, 6/15/28 (144A) | | 17,367,000 | | | 15,207,150 | |
| | Southwestern Energy Co, 4.7500%, 2/1/32 | | 12,491,000 | | | 10,468,707 | |
| | | 51,719,008 | |
Finance Companies – 0.6% | | | |
| | AerCap Ireland Capital DAC / AerCap Global Aviation Trust, | | | | | | |
| | 4.6250%, 10/15/27 | | 18,600,000 | | | 16,702,126 | |
| | AerCap Ireland Capital DAC / AerCap Global Aviation Trust, | | | | | | |
| | 3.0000%, 10/29/28 | | 12,919,000 | | | 10,360,594 | |
| | Air Lease Corp, 1.8750%, 8/15/26 | | 17,148,000 | | | 14,532,580 | |
| | Air Lease Corp, 3.0000%, 2/1/30 | | 8,657,000 | | | 6,855,607 | |
| | Ares Capital Corp, 2.8750%, 6/15/27 | | 17,055,000 | | | 14,247,621 | |
| | OWL Rock Core Income Corp, 4.7000%, 2/8/27 | | 2,729,000 | | | 2,390,269 | |
| | OWL Rock Core Income Corp, 7.7500%, 9/16/27 (144A) | | 16,398,000 | | | 16,148,988 | |
| | Quicken Loans LLC, 3.6250%, 3/1/29 (144A) | | 11,261,000 | | | 8,667,029 | |
| | Quicken Loans LLC, 3.8750%, 3/1/31 (144A) | | 12,708,000 | | | 9,211,444 | |
| | Rocket Mortgage LLC / Rocket Mortgage Co-Issuer Inc, | | | | | | |
| | 2.8750%, 10/15/26 (144A) | | 19,212,000 | | | 15,753,840 | |
| | Rocket Mortgage LLC / Rocket Mortgage Co-Issuer Inc, | | | | | | |
| | 4.0000%, 10/15/33 (144A) | | 14,597,000 | | | 10,035,639 | |
| | | 124,905,737 | |
Insurance – 1.1% | | | |
| | Athene Global Funding, 1.7160%, 1/7/25 (144A) | | 10,522,000 | | | 9,618,055 | |
| | Athene Global Funding, 1.7300%, 10/2/26 (144A) | | 33,310,000 | | | 28,258,948 | |
| | Athene Global Funding, 2.7170%, 1/7/29 (144A) | | 21,681,000 | | | 17,543,562 | |
| | Athene Global Funding, 2.6460%, 10/4/31 (144A) | | 32,528,000 | | | 24,469,689 | |
| | Brown & Brown Inc, 4.2000%, 3/17/32 | | 6,426,000 | | | 5,493,733 | |
| | Brown & Brown Inc, 4.9500%, 3/17/52 | | 18,886,000 | | | 15,308,859 | |
| | Centene Corp, 4.2500%, 12/15/27 | | 53,971,000 | | | 49,367,274 | |
| | Centene Corp, 2.4500%, 7/15/28 | | 16,998,000 | | | 13,840,112 | |
| | Centene Corp, 3.0000%, 10/15/30 | | 18,048,000 | | | 14,292,933 | |
| | Molina Healthcare Inc, 4.3750%, 6/15/28 (144A) | | 48,521,000 | | | 43,790,202 | |
| | Prudential Financial Inc, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.0350%, 3.7000%, 10/1/50‡ | | 27,945,000 | | | 22,070,961 | |
| | | 244,054,328 | |
Real Estate Investment Trusts (REITs) – 0.2% | | | |
| | Agree LP, 2.0000%, 6/15/28 | | 11,528,000 | | | 9,290,393 | |
| | Agree LP, 2.9000%, 10/1/30 | | 7,437,000 | | | 5,941,676 | |
| | Agree LP, 2.6000%, 6/15/33 | | 8,647,000 | | | 6,300,540 | |
| | Invitation Homes Inc, 2.0000%, 8/15/31 | | 19,425,000 | | | 13,935,096 | |
| | Sun Communities Inc, 2.7000%, 7/15/31 | | 21,657,000 | | | 16,368,069 | |
| | | 51,835,774 | |
Technology – 1.2% | | | |
| | Analog Devices Inc, 2.9500%, 4/1/25 | | 10,074,000 | | | 9,682,270 | |
| | Broadcom Inc, 4.3000%, 11/15/32 | | 14,848,000 | | | 12,466,897 | |
| | CoStar Group Inc, 2.8000%, 7/15/30 (144A) | | 12,054,000 | | | 9,514,728 | |
| | Equinix Inc, 2.1500%, 7/15/30 | | 9,552,000 | | | 7,323,155 | |
| | Global Payments Inc, 2.1500%, 1/15/27 | | 11,282,000 | | | 9,653,933 | |
| | Global Payments Inc, 5.3000%, 8/15/29 | | 20,156,000 | | | 18,955,609 | |
| | Global Payments Inc, 2.9000%, 11/15/31 | | 16,923,000 | | | 12,938,818 | |
| | Global Payments Inc, 5.4000%, 8/15/32 | | 9,144,000 | | | 8,485,366 | |
| | Marvell Technology Inc, 1.6500%, 4/15/26 | | 13,225,000 | | | 11,551,975 | |
| | Marvell Technology Inc, 4.8750%, 6/22/28 | | 14,717,000 | | | 13,793,497 | |
| | Microchip Technology Inc, 2.6700%, 9/1/23 | | 23,076,000 | | | 22,488,485 | |
| | MSCI Inc, 4.0000%, 11/15/29 (144A) | | 1,532,000 | | | 1,323,188 | |
| | MSCI Inc, 3.6250%, 9/1/30 (144A) | | 25,762,000 | | | 21,196,896 | |
| | MSCI Inc, 3.8750%, 2/15/31 (144A) | | 21,571,000 | | | 18,162,005 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Technology– (continued) | | | |
| | PayPal Holdings Inc, 1.6500%, 6/1/25 | | $8,019,000 | | | $7,381,677 | |
| | Total System Services Inc, 4.8000%, 4/1/26 | | 11,686,000 | | | 11,282,482 | |
| | Trimble Inc, 4.7500%, 12/1/24 | | 18,923,000 | | | 18,716,435 | |
| | Trimble Inc, 4.9000%, 6/15/28 | | 11,312,000 | | | 10,758,020 | |
| | TSMC Arizona Corp, 3.8750%, 4/22/27 | | 15,891,000 | | | 15,145,025 | |
| | Workday Inc, 3.5000%, 4/1/27 | | 8,410,000 | | | 7,779,187 | |
| | Workday Inc, 3.8000%, 4/1/32 | | 13,725,000 | | | 11,913,051 | |
| | | 260,512,699 | |
Transportation – 0.1% | | | |
| | GXO Logistics Inc, 1.6500%, 7/15/26 | | 14,940,000 | | | 12,207,334 | |
| | GXO Logistics Inc, 2.6500%, 7/15/31 | | 2,271,000 | | | 1,607,898 | |
| | | 13,815,232 | |
Total Corporate Bonds (cost $2,538,977,548) | | 2,158,142,448 | |
Inflation-Indexed Bonds– 0.6% | | | |
| | United States Treasury Inflation Indexed Bonds, 0.6250%, 7/15/32ÇÇ((cost $131,974,582) | | 142,668,907 | | | 129,440,359 | |
Mortgage-Backed Securities– 11.3% | | | |
Fannie Mae: | | | |
| | 2.0000%, TBA, 15 Year Maturity | | 47,739,539 | | | 42,008,551 | |
| | 2.5000%, TBA, 15 Year Maturity | | 28,461,400 | | | 25,750,338 | |
| | 3.0000%, TBA, 15 Year Maturity | | 4,361,241 | | | 4,048,466 | |
| | 3.0000%, TBA, 30 Year Maturity | | 207,365,688 | | | 180,149,149 | |
| | 3.5000%, TBA, 30 Year Maturity | | 261,109,922 | | | 234,662,620 | |
| | 4.0000%, TBA, 30 Year Maturity | | 123,844,525 | | | 114,778,239 | |
| | 4.5000%, TBA, 30 Year Maturity | | 107,474,904 | | | 102,267,208 | |
| | 5.0000%, TBA, 30 Year Maturity | | 162,956,484 | | | 158,743,896 | |
| | | 862,408,467 | |
Fannie Mae Pool: | | | |
| | 7.5000%, 7/1/28 | | 35,598 | | | 37,058 | |
| | 3.0000%, 10/1/34 | | 1,419,523 | | | 1,331,082 | |
| | 2.5000%, 11/1/34 | | 971,410 | | | 883,439 | |
| | 3.0000%, 11/1/34 | | 553,224 | | | 518,756 | |
| | 3.0000%, 12/1/34 | | 587,227 | | | 550,641 | |
| | 6.0000%, 2/1/37 | | 222,908 | | | 232,542 | |
| | 4.5000%, 11/1/42 | | 1,218,855 | | | 1,193,501 | |
| | 3.0000%, 1/1/43 | | 691,666 | | | 617,701 | |
| | 3.0000%, 2/1/43 | | 166,781 | | | 148,946 | |
| | 3.0000%, 5/1/43 | | 1,619,756 | | | 1,444,286 | |
| | 5.0000%, 7/1/44 | | 132,851 | | | 133,057 | |
| | 4.5000%, 10/1/44 | | 3,060,974 | | | 2,988,646 | |
| | 4.5000%, 3/1/45 | | 4,580,520 | | | 4,472,287 | |
| | 4.5000%, 6/1/45 | | 2,350,359 | | | 2,300,991 | |
| | 3.5000%, 12/1/45 | | 1,363,378 | | | 1,247,702 | |
| | 3.0000%, 1/1/46 | | 255,389 | | | 226,094 | |
| | 4.5000%, 2/1/46 | | 5,325,656 | | | 5,214,874 | |
| | 3.5000%, 7/1/46 | | 3,076,930 | | | 2,813,672 | |
| | 3.0000%, 9/1/46 | | 15,714,718 | | | 14,012,320 | |
| | 3.0000%, 2/1/47 | | 44,824,065 | | | 39,968,207 | |
| | 3.0000%, 3/1/47 | | 5,391,013 | | | 4,771,420 | |
| | 3.5000%, 3/1/47 | | 1,191,525 | | | 1,090,430 | |
| | 3.5000%, 7/1/47 | | 1,057,169 | | | 967,474 | |
| | 3.5000%, 8/1/47 | | 976,176 | | | 892,428 | |
| | 3.5000%, 8/1/47 | | 958,814 | | | 878,786 | |
| | 3.5000%, 12/1/47 | | 475,902 | | | 436,181 | |
| | 3.5000%, 12/1/47 | | 279,474 | | | 256,148 | |
| | 3.5000%, 1/1/48 | | 2,864,892 | | | 2,603,134 | |
| | 4.0000%, 1/1/48 | | 9,871,886 | | | 9,270,832 | |
| | 4.0000%, 1/1/48 | | 3,579,993 | | | 3,356,172 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Fannie Mae Pool– (continued) | | | |
| | 3.0000%, 2/1/48 | | $3,474,907 | | | $3,076,315 | |
| | 3.5000%, 3/1/48 | | 425,281 | | | 389,359 | |
| | 4.0000%, 3/1/48 | | 2,764,306 | | | 2,596,018 | |
| | 4.5000%, 3/1/48 | | 119,148 | | | 115,151 | |
| | 5.0000%, 5/1/48 | | 2,919,957 | | | 2,882,708 | |
| | 3.5000%, 7/1/48 | | 27,326,026 | | | 24,988,052 | |
| | 4.5000%, 8/1/48 | | 67,665 | | | 65,395 | |
| | 4.0000%, 10/1/48 | | 2,147,059 | | | 2,022,126 | |
| | 4.0000%, 2/1/49 | | 1,463,548 | | | 1,378,387 | |
| | 4.0000%, 6/1/49 | | 870,386 | | | 817,676 | |
| | 3.0000%, 8/1/49 | | 3,500,679 | | | 3,071,697 | |
| | 3.0000%, 8/1/49 | | 1,868,772 | | | 1,639,768 | |
| | 3.0000%, 9/1/49 | | 710,653 | | | 622,967 | |
| | 4.0000%, 11/1/49 | | 13,956,329 | | | 13,144,238 | |
| | 4.0000%, 11/1/49 | | 1,216,603 | | | 1,142,926 | |
| | 3.5000%, 12/1/49 | | 35,667,872 | | | 32,607,857 | |
| | 2.5000%, 1/1/50 | | 1,866,233 | | | 1,583,198 | |
| | 4.5000%, 1/1/50 | | 11,213,780 | | | 10,837,578 | |
| | 2.5000%, 3/1/50 | | 2,774,755 | | | 2,337,834 | |
| | 4.0000%, 3/1/50 | | 20,387,587 | | | 19,201,274 | |
| | 4.0000%, 3/1/50 | | 11,140,321 | | | 10,492,088 | |
| | 4.0000%, 3/1/50 | | 4,154,671 | | | 3,912,919 | |
| | 4.5000%, 7/1/50 | | 18,037,191 | | | 17,246,640 | |
| | 2.5000%, 8/1/50 | | 57,739,496 | | | 49,164,208 | |
| | 2.5000%, 8/1/50 | | 2,425,628 | | | 2,069,024 | |
| | 4.0000%, 9/1/50 | | 21,620,469 | | | 20,311,142 | |
| | 2.5000%, 10/1/50 | | 2,784,850 | | | 2,357,778 | |
| | 4.0000%, 10/1/50 | | 22,291,820 | | | 20,941,837 | |
| | 4.5000%, 10/1/50 | | 13,862,215 | | | 13,397,162 | |
| | 4.0000%, 3/1/51 | | 57,385,067 | | | 53,909,851 | |
| | 4.0000%, 3/1/51 | | 1,107,253 | | | 1,040,198 | |
| | 4.0000%, 3/1/51 | | 535,428 | | | 504,272 | |
| | 2.5000%, 1/1/52 | | 14,556,904 | | | 12,318,905 | |
| | 2.5000%, 2/1/52 | | 71,812,347 | | | 60,710,613 | |
| | 2.5000%, 3/1/52 | | 29,474,105 | | | 24,894,904 | |
| | 2.5000%, 3/1/52 | | 28,646,727 | | | 24,218,124 | |
| | 2.5000%, 3/1/52 | | 10,567,626 | | | 8,950,108 | |
| | 2.5000%, 3/1/52 | | 2,522,633 | | | 2,129,631 | |
| | 2.5000%, 3/1/52 | | 2,370,264 | | | 2,002,011 | |
| | 2.5000%, 3/1/52 | | 2,007,500 | | | 1,697,153 | |
| | 2.5000%, 3/1/52 | | 823,793 | | | 697,336 | |
| | 3.0000%, 3/1/52 | | 14,093,684 | | | 12,297,188 | |
| | 3.5000%, 3/1/52 | | 19,655,503 | | | 17,808,710 | |
| | 3.0000%, 4/1/52 | | 12,017,276 | | | 10,485,795 | |
| | 3.0000%, 4/1/52 | | 10,574,172 | | | 9,224,714 | |
| | 3.5000%, 4/1/52 | | 10,360,460 | | | 9,366,398 | |
| | 3.5000%, 4/1/52 | | 7,516,471 | | | 6,833,382 | |
| | 3.5000%, 4/1/52 | | 5,784,624 | | | 5,226,688 | |
| | 3.5000%, 4/1/52 | | 3,515,282 | | | 3,177,999 | |
| | 3.5000%, 4/1/52 | | 2,115,158 | | | 1,911,278 | |
| | 3.5000%, 4/1/52 | | 1,676,451 | | | 1,514,755 | |
| | 4.0000%, 4/1/52 | | 8,462,526 | | | 7,904,374 | |
| | 4.5000%, 4/1/52 | | 1,605,785 | | | 1,529,219 | |
| | 4.5000%, 4/1/52 | | 1,235,675 | | | 1,176,756 | |
| | 4.5000%, 4/1/52 | | 708,782 | | | 674,986 | |
| | 4.5000%, 4/1/52 | | 643,125 | | | 612,460 | |
| | 4.5000%, 4/1/52 | | 562,627 | | | 535,800 | |
| | 4.5000%, 4/1/52 | | 362,266 | | | 344,986 | |
| | 3.5000%, 5/1/52 | | 9,090,674 | | | 8,233,708 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Fannie Mae Pool– (continued) | | | |
| | 3.5000%, 5/1/52 | | $5,894,317 | | | $5,328,314 | |
| | 4.5000%, 5/1/52 | | 1,960,121 | | | 1,866,659 | |
| | 3.5000%, 6/1/52 | | 31,458,726 | | | 28,585,133 | |
| | 3.5000%, 6/1/52 | | 18,135,509 | | | 16,500,298 | |
| | 3.5000%, 6/1/52 | | 11,897,064 | | | 10,704,990 | |
| | 4.0000%, 6/1/52 | | 6,299,875 | | | 5,849,614 | |
| | 4.0000%, 6/1/52 | | 1,687,745 | | | 1,567,119 | |
| | 3.5000%, 7/1/52 | | 40,258,366 | | | 36,457,008 | |
| | 3.5000%, 7/1/52 | | 4,531,414 | | | 4,117,492 | |
| | 3.5000%, 7/1/52 | | 1,687,977 | | | 1,535,517 | |
| | 4.0000%, 7/1/52 | | 2,692,327 | | | 2,499,903 | |
| | 4.5000%, 7/1/52 | | 9,592,287 | | | 9,134,573 | |
| | 4.5000%, 7/1/52 | | 7,997,915 | | | 7,627,597 | |
| | 3.5000%, 8/1/52 | | 7,995,966 | | | 7,239,713 | |
| | 3.5000%, 8/1/52 | | 2,982,406 | | | 2,709,515 | |
| | 4.5000%, 8/1/52 | | 31,930,931 | | | 30,452,470 | |
| | 5.5000%, 9/1/52 | | 40,360,609 | | | 40,261,568 | |
| | 3.5000%, 8/1/56 | | 10,924,501 | | | 10,009,435 | |
| | 3.0000%, 2/1/57 | | 11,184,822 | | | 9,823,389 | |
| | 3.0000%, 6/1/57 | | 209,028 | | | 183,618 | |
| | | 893,658,356 | |
Freddie Mac Gold Pool: | | | |
| | 3.5000%, 1/1/47 | | 821,993 | | | 760,651 | |
Freddie Mac Pool: | | | |
| | 3.0000%, 5/1/31 | | 12,207,222 | | | 11,512,935 | |
| | 3.0000%, 9/1/32 | | 2,712,788 | | | 2,547,029 | |
| | 3.0000%, 10/1/32 | | 1,340,256 | | | 1,258,362 | |
| | 3.0000%, 12/1/32 | | 961,131 | | | 893,522 | |
| | 3.0000%, 1/1/33 | | 1,845,722 | | | 1,732,943 | |
| | 2.5000%, 12/1/33 | | 12,555,748 | | | 11,680,206 | |
| | 3.0000%, 10/1/34 | | 3,123,171 | | | 2,928,738 | |
| | 3.0000%, 10/1/34 | | 1,473,297 | | | 1,381,577 | |
| | 2.5000%, 11/1/34 | | 4,043,338 | | | 3,677,079 | |
| | 2.5000%, 11/1/34 | | 965,930 | | | 878,433 | |
| | 6.0000%, 4/1/40 | | 3,477,153 | | | 3,628,175 | |
| | 3.5000%, 7/1/42 | | 611,208 | | | 565,040 | |
| | 3.5000%, 8/1/42 | | 692,585 | | | 640,270 | |
| | 3.5000%, 8/1/42 | | 614,372 | | | 567,965 | |
| | 3.5000%, 2/1/43 | | 1,518,828 | | | 1,402,347 | |
| | 3.0000%, 3/1/43 | | 7,179,243 | | | 6,401,756 | |
| | 3.0000%, 6/1/43 | | 228,090 | | | 201,529 | |
| | 3.5000%, 2/1/44 | | 1,837,255 | | | 1,696,353 | |
| | 4.5000%, 5/1/44 | | 962,096 | | | 941,867 | |
| | 3.5000%, 12/1/44 | | 10,969,850 | | | 10,128,554 | |
| | 3.0000%, 1/1/45 | | 2,825,017 | | | 2,502,842 | |
| | 4.0000%, 4/1/45 | | 23,490 | | | 22,380 | |
| | 3.0000%, 1/1/46 | | 517,675 | | | 461,613 | |
| | 3.5000%, 7/1/46 | | 2,261,866 | | | 2,056,473 | |
| | 3.0000%, 10/1/46 | | 6,071,981 | | | 5,373,967 | |
| | 4.0000%, 3/1/47 | | 1,083,058 | | | 1,027,350 | |
| | 3.0000%, 4/1/47 | | 1,229,365 | | | 1,088,042 | |
| | 3.5000%, 4/1/47 | | 475,763 | | | 435,076 | |
| | 3.5000%, 9/1/47 | | 3,903,489 | | | 3,568,766 | |
| | 3.5000%, 12/1/47 | | 6,537,217 | | | 5,976,652 | |
| | 3.5000%, 2/1/48 | | 2,241,912 | | | 2,032,825 | |
| | 4.0000%, 3/1/48 | | 2,705,197 | | | 2,540,572 | |
| | 4.5000%, 3/1/48 | | 104,819 | | | 101,300 | |
| | 4.0000%, 4/1/48 | | 2,335,964 | | | 2,189,993 | |
| | 4.0000%, 4/1/48 | | 2,305,374 | | | 2,171,281 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Freddie Mac Pool– (continued) | | | |
| | 4.0000%, 5/1/48 | | $4,154,918 | | | $3,913,247 | |
| | 4.5000%, 7/1/48 | | 614,594 | | | 593,966 | |
| | 5.0000%, 9/1/48 | | 111,962 | | | 110,530 | |
| | 4.0000%, 12/1/48 | | 7,132,930 | | | 6,718,042 | |
| | 4.5000%, 12/1/48 | | 2,179,217 | | | 2,110,869 | |
| | 3.0000%, 8/1/49 | | 2,733,711 | | | 2,398,783 | |
| | 3.0000%, 8/1/49 | | 1,160,774 | | | 1,018,558 | |
| | 3.0000%, 12/1/49 | | 1,384,492 | | | 1,214,867 | |
| | 3.0000%, 12/1/49 | | 1,151,967 | | | 1,010,830 | |
| | 2.5000%, 1/1/50 | | 858,443 | | | 728,281 | |
| | 3.0000%, 3/1/50 | | 1,785,068 | | | 1,565,834 | |
| | 3.5000%, 3/1/50 | | 605,533 | | | 547,212 | |
| | 4.5000%, 3/1/50 | | 8,533,347 | | | 8,149,475 | |
| | 4.0000%, 6/1/50 | | 11,359,201 | | | 10,698,491 | |
| | 2.5000%, 8/1/50 | | 1,236,881 | | | 1,055,455 | |
| | 2.5000%, 8/1/50 | | 462,753 | | | 394,715 | |
| | 2.5000%, 9/1/50 | | 2,319,639 | | | 1,977,781 | |
| | 4.5000%, 9/1/50 | | 20,909,798 | | | 20,207,973 | |
| | 4.0000%, 10/1/50 | | 2,018,676 | | | 1,896,457 | |
| | 2.5000%, 6/1/51 | | 17,743,122 | | | 15,070,713 | |
| | 2.5000%, 11/1/51 | | 15,928,978 | | | 13,513,505 | |
| | 2.5000%, 1/1/52 | | 4,627,577 | | | 3,922,597 | |
| | 2.5000%, 1/1/52 | | 2,787,933 | | | 2,360,676 | |
| | 2.5000%, 2/1/52 | | 6,548,853 | | | 5,536,246 | |
| | 3.0000%, 2/1/52 | | 3,782,164 | | | 3,300,814 | |
| | 3.0000%, 2/1/52 | | 2,845,741 | | | 2,483,976 | |
| | 2.5000%, 3/1/52 | | 1,014,742 | | | 857,086 | |
| | 3.0000%, 3/1/52 | | 3,992,174 | | | 3,484,140 | |
| | 4.5000%, 3/1/52 | | 304,917 | | | 290,381 | |
| | 3.5000%, 4/1/52 | | 4,324,317 | | | 3,909,552 | |
| | 3.5000%, 4/1/52 | | 4,021,960 | | | 3,636,196 | |
| | 3.5000%, 4/1/52 | | 1,410,556 | | | 1,274,640 | |
| | 3.5000%, 4/1/52 | | 1,216,364 | | | 1,099,084 | |
| | 3.5000%, 6/1/52 | | 17,991,086 | | | 16,298,471 | |
| | 3.5000%, 7/1/52 | | 65,663,157 | | | 59,465,123 | |
| | 4.0000%, 7/1/52 | | 6,056,186 | | | 5,623,405 | |
| | 4.0000%, 8/1/52 | | 6,914,330 | | | 6,423,924 | |
| | 4.5000%, 8/1/52 | | 70,131,272 | | | 67,053,935 | |
| | 4.5000%, 8/1/52 | | 29,536,612 | | | 28,169,538 | |
| | 4.5000%, 8/1/52 | | 15,021,003 | | | 14,325,651 | |
| | 5.0000%, 8/1/52 | | 15,663,160 | | | 15,513,573 | |
| | 5.5000%, 9/1/52 | | 10,022,086 | | | 10,051,895 | |
| | | 446,190,299 | |
Ginnie Mae: | | | |
| | 2.5000%, TBA, 30 Year Maturity | | 148,691,910 | | | 127,441,160 | |
| | 3.5000%, TBA, 30 Year Maturity | | 60,543,177 | | | 54,928,221 | |
| | | 182,369,381 | |
Ginnie Mae I Pool: | | | |
| | 6.0000%, 1/15/34 | | 59,175 | | | 61,997 | |
| | 4.0000%, 1/15/45 | | 10,167,670 | | | 9,695,933 | |
| | 4.5000%, 8/15/46 | | 12,253,952 | | | 11,869,427 | |
| | 4.0000%, 7/15/47 | | 2,034,424 | | | 1,929,102 | |
| | 4.0000%, 8/15/47 | | 244,081 | | | 231,445 | |
| | 4.0000%, 11/15/47 | | 319,264 | | | 302,736 | |
| | 4.0000%, 12/15/47 | | 863,521 | | | 818,817 | |
| | | 24,909,457 | |
Ginnie Mae II Pool: | | | |
| | 4.0000%, 8/20/47 | | 1,201,680 | | | 1,137,166 | |
| | 4.0000%, 8/20/47 | | 242,191 | | | 229,413 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Ginnie Mae II Pool– (continued) | | | |
| | 4.0000%, 8/20/47 | | $187,342 | | | $177,285 | |
| | 4.5000%, 2/20/48 | | 1,290,960 | | | 1,252,227 | |
| | 4.5000%, 5/20/48 | | 2,213,039 | | | 2,145,193 | |
| | 4.5000%, 5/20/48 | | 413,751 | | | 401,067 | |
| | 4.0000%, 6/20/48 | | 9,908,881 | | | 9,342,437 | |
| | 5.0000%, 8/20/48 | | 3,881,085 | | | 3,853,766 | |
| | 3.0000%, 7/20/51 | | 25,237,431 | | | 22,410,575 | |
| | 3.0000%, 8/20/51 | | 56,774,083 | | | 50,447,585 | |
| | | 91,396,714 | |
Total Mortgage-Backed Securities (cost $2,674,314,787) | | 2,501,693,325 | |
United States Treasury Notes/Bonds– 16.9% | | | |
| | 0.1250%, 8/31/23 | | 74,246,000 | | | 71,493,678 | |
| | 0.3750%, 10/31/23 | | 85,664,600 | | | 82,110,857 | |
| | 0.8750%, 1/31/24 | | 41,703,000 | | | 39,841,026 | |
| | 1.5000%, 2/29/24 | | 53,678,000 | | | 51,618,945 | |
| | 1.5000%, 2/15/25 | | 19,258,000 | | | 18,052,118 | |
| | 1.7500%, 3/15/25 | | 5,709,000 | | | 5,375,826 | |
| | 3.0000%, 7/15/25 | | 56,424,100 | | | 54,537,419 | |
| | 0.3750%, 1/31/26 | | 170,339,600 | | | 150,045,234 | |
| | 0.7500%, 4/30/26 | | 164,071,000 | | | 145,286,152 | |
| | 0.8750%, 6/30/26 | | 235,686,000 | | | 208,655,762 | |
| | 3.2500%, 6/30/27 | | 308,250,100 | | | 297,076,034 | |
| | 2.7500%, 7/31/27 | | 318,601,400 | | | 300,008,020 | |
| | 3.1250%, 8/31/27 | | 565,031,400 | | | 541,988,713 | |
| | 1.1250%, 8/31/28 | | 119,582,000 | | | 101,238,308 | |
| | 2.8750%, 4/30/29 | | 78,858,000 | | | 73,615,175 | |
| | 2.7500%, 5/31/29 | | 43,080,100 | | | 39,894,529 | |
| | 2.7500%, 8/15/32 | | 677,495,200 | | | 619,484,673 | |
| | 2.3750%, 2/15/42 | | 70,057,000 | | | 53,681,176 | |
| | 3.3750%, 8/15/42 | | 677,528,000 | | | 613,692,159 | |
| | 2.8750%, 5/15/52 | | 328,345,000 | | | 275,348,065 | |
Total United States Treasury Notes/Bonds (cost $4,013,879,812) | | 3,743,043,869 | |
Common Stocks– 52.2% | | | |
Aerospace & Defense – 1.1% | | | |
| | General Dynamics Corp | | 741,733 | | | 157,373,491 | |
| | L3Harris Technologies Inc | | 433,177 | | | 90,027,176 | |
| | | 247,400,667 | |
Air Freight & Logistics – 1.1% | | | |
| | United Parcel Service Inc | | 1,530,719 | | | 247,272,347 | |
Banks – 1.9% | | | |
| | Bank of America Corp | | 7,642,906 | | | 230,815,761 | |
| | JPMorgan Chase & Co | | 1,780,274 | | | 186,038,633 | |
| | | 416,854,394 | |
Beverages – 1.2% | | | |
| | Constellation Brands Inc | | 400,169 | | | 91,910,816 | |
| | Monster Beverage Corp* | | 2,027,266 | | | 176,291,051 | |
| | | 268,201,867 | |
Biotechnology – 1.1% | | | |
| | AbbVie Inc | | 1,839,991 | | | 246,945,192 | |
Capital Markets – 2.5% | | | |
| | Charles Schwab Corp | | 1,272,536 | | | 91,457,162 | |
| | CME Group Inc | | 841,760 | | | 149,100,949 | |
| | Goldman Sachs Group Inc | | 348,386 | | | 102,094,517 | |
| | Morgan Stanley | | 2,566,444 | | | 202,774,740 | |
| | | 545,427,368 | |
Chemicals – 0.5% | | | |
| | Corteva Inc | | 1,982,225 | | | 113,284,159 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Communications Equipment – 0.3% | | | |
| | Motorola Solutions Inc | | 258,216 | | | $57,832,638 | |
Consumer Finance – 0.9% | | | |
| | American Express Co | | 1,435,159 | | | 193,617,301 | |
Electrical Equipment – 0.3% | | | |
| | Rockwell Automation Inc | | 272,936 | | | 58,711,263 | |
Electronic Equipment, Instruments & Components – 0.5% | | | |
| | Corning Inc | | 2,181,453 | | | 63,305,766 | |
| | TE Connectivity Ltd | | 459,968 | | | 50,762,068 | |
| | | 114,067,834 | |
Entertainment – 0.8% | | | |
| | Walt Disney Co* | | 1,941,902 | | | 183,179,616 | |
Food & Staples Retailing – 1.4% | | | |
| | Costco Wholesale Corp | | 370,854 | | | 175,143,219 | |
| | Sysco Corp | | 1,781,175 | | | 125,946,884 | |
| | | 301,090,103 | |
Food Products – 0.5% | | | |
| | Hershey Co | | 517,618 | | | 114,119,240 | |
Health Care Equipment & Supplies – 1.9% | | | |
| | Abbott Laboratories | | 1,794,464 | | | 173,632,337 | |
| | Edwards Lifesciences Corp* | | 714,764 | | | 59,060,949 | |
| | Intuitive Surgical Inc* | | 259,638 | | | 48,666,547 | |
| | Medtronic PLC | | 690,866 | | | 55,787,429 | |
| | Stryker Corp | | 388,706 | | | 78,728,513 | |
| | | 415,875,775 | |
Health Care Providers & Services – 2.2% | | | |
| | UnitedHealth Group Inc | | 956,715 | | | 483,179,344 | |
Hotels, Restaurants & Leisure – 2.6% | | | |
| | Hilton Worldwide Holdings Inc | | 1,524,949 | | | 183,939,348 | |
| | McDonald's Corp | | 1,021,240 | | | 235,640,918 | |
| | Starbucks Corp | | 1,905,783 | | | 160,581,276 | |
| | | 580,161,542 | |
Household Products – 0.8% | | | |
| | Procter & Gamble Co | | 1,394,165 | | | 176,013,331 | |
Industrial Conglomerates – 0.8% | | | |
| | Honeywell International Inc | | 1,075,502 | | | 179,576,569 | |
Information Technology Services – 2.8% | | | |
| | Accenture PLC | | 527,582 | | | 135,746,849 | |
| | Cognizant Technology Solutions Corp | | 1,034,205 | | | 59,404,735 | |
| | Fidelity National Information Services Inc | | 750,643 | | | 56,726,091 | |
| | Mastercard Inc | | 1,315,605 | | | 374,079,126 | |
| | | 625,956,801 | |
Insurance – 1.3% | | | |
| | Progressive Corp/The | | 2,409,658 | | | 280,026,356 | |
Interactive Media & Services – 2.4% | | | |
| | Alphabet Inc - Class C* | | 5,587,355 | | | 537,224,183 | |
Internet & Direct Marketing Retail – 1.7% | | | |
| | Amazon.com Inc* | | 2,668,923 | | | 301,588,299 | |
| | Booking Holdings Inc* | | 43,393 | | | 71,303,812 | |
| | | 372,892,111 | |
Leisure Products – 0.3% | | | |
| | Hasbro Inc | | 1,078,762 | | | 72,730,134 | |
Life Sciences Tools & Services – 0.8% | | | |
| | Thermo Fisher Scientific Inc | | 366,284 | | | 185,775,582 | |
Machinery – 1.7% | | | |
| | Deere & Co | | 699,798 | | | 233,655,554 | |
| | Parker-Hannifin Corp | | 263,739 | | | 63,906,597 | |
| | Trane Technologies PLC | | 555,246 | | | 80,405,173 | |
| | | 377,967,324 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Media – 0.8% | | | |
| | Comcast Corp | | 5,830,534 | | | $171,009,562 | |
Multiline Retail – 0.9% | | | |
| | Dollar General Corp | | 836,255 | | | 200,584,124 | |
Oil, Gas & Consumable Fuels – 0.8% | | | |
| | ConocoPhillips | | 1,722,802 | | | 176,311,557 | |
Personal Products – 0.3% | | | |
| | Estee Lauder Cos Inc | | 329,012 | | | 71,033,691 | |
Pharmaceuticals – 2.6% | | | |
| | Eli Lilly & Co | | 872,309 | | | 282,061,115 | |
| | Merck & Co Inc | | 2,341,453 | | | 201,645,932 | |
| | Zoetis Inc | | 665,726 | | | 98,720,509 | |
| | | 582,427,556 | |
Real Estate Management & Development – 0.2% | | | |
| | CBRE Group Inc* | | 713,128 | | | 48,143,271 | |
Semiconductor & Semiconductor Equipment – 2.8% | | | |
| | Advanced Micro Devices Inc* | | 1,219,019 | | | 77,237,044 | |
| | Lam Research Corp | | 554,947 | | | 203,110,602 | |
| | NVIDIA Corp | | 1,434,889 | | | 174,181,176 | |
| | Texas Instruments Inc | | 995,903 | | | 154,145,866 | |
| | | 608,674,688 | |
Software – 5.0% | | | |
| | Adobe Inc* | | 316,231 | | | 87,026,771 | |
| | Cadence Design Systems Inc* | | 328,594 | | | 53,702,117 | |
| | Microsoft Corp | | 4,103,263 | | | 955,649,953 | |
| | | 1,096,378,841 | |
Specialty Retail – 1.6% | | | |
| | Home Depot Inc | | 763,865 | | | 210,780,908 | |
| | TJX Cos Inc | | 2,330,493 | | | 144,770,225 | |
| | | 355,551,133 | |
Technology Hardware, Storage & Peripherals – 3.0% | | | |
| | Apple Inc | | 4,827,195 | | | 667,118,349 | |
Textiles, Apparel & Luxury Goods – 0.8% | | | |
| | NIKE Inc - Class B | | 2,208,259 | | | 183,550,488 | |
Total Common Stocks (cost $7,052,774,684) | | 11,556,166,301 | |
Investment Companies– 5.4% | | | |
Money Markets – 5.4% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $1,202,708,804) | | 1,202,617,319 | | | 1,202,737,581 | |
Total Investments (total cost $19,588,101,410) – 104.6% | | 23,149,921,006 | |
Liabilities, net of Cash, Receivables and Other Assets – (4.6)% | | (1,008,720,355) | |
Net Assets – 100% | | $22,141,200,651 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $22,799,886,569 | | 98.5 | % |
Japan | | 96,264,950 | | 0.4 | |
Australia | | 79,446,193 | | 0.3 | |
Canada | | 58,094,344 | | 0.3 | |
Finland | | 29,267,248 | | 0.1 | |
Ireland | | 27,062,720 | | 0.1 | |
United Kingdom | | 25,522,138 | | 0.1 | |
France | | 19,231,819 | | 0.1 | |
Taiwan | | 15,145,025 | | 0.1 | |
| | | | | | |
| | | | | | |
Total | | $23,149,921,006 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - 5.4% |
Money Markets - 5.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 12,056,623 | $ | (52,475) | $ | 8,231 | $ | 1,202,737,581 |
| |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - 5.4% |
Money Markets - 5.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 1,228,554,350 | | 6,865,537,434 | | (6,891,309,959) | | 1,202,737,581 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
Schedule of Futures
| | | | | | | | | | | | | | | |
Description | | Number of Contracts | | Expiration Date | | Notional Amount | | Value and Unrealized Appreciation/(Depreciation) | | |
Futures Long: | | | | | | | | | | |
10 Year US Treasury Note | | 1,750 | | 12/30/22 | $ | 196,109,375 | $ | (9,912,110) | |
2 Year US Treasury Note | | 70 | | 1/5/23 | | 14,377,344 | | (129,593) | |
Ultra 10-Year Treasury Note | | 298 | | 12/30/22 | | 35,308,344 | | (1,353,523) | |
Ultra Long Term US Treasury Bond | | 1,733 | | 12/30/22 | | 237,421,000 | | (21,210,753) | |
Total - Futures Long | | | | | | | | (32,605,979) | |
Futures Short: | | | | | | | | | | |
5 Year US Treasury Note | | 2,910 | | 1/5/23 | | (312,847,736) | | 2,167,171 | |
Total | | | | | | | $ | (30,438,808) | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2022
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, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2022 |
| | | | | |
| | | | | Interest Rate
Contracts |
Asset Derivatives: | | | |
*Futures contracts | | | $ 2,167,171 |
| | | | |
Liability Derivatives: | | | |
*Futures contracts | | | $32,605,979 |
| | | | |
*The fair value presented includes net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps. In the Statement of Assets and Liabilities, only current day's variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in total distributable earnings (loss). |
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, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Interest Rate
Contracts |
Futures contracts | | $(60,094,855) |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Interest Rate
Contracts |
Futures contracts | | $(30,438,808) |
| | | | | |
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 Value of Derivative Instruments During the Year Ended September 30, 2022 |
| |
| |
Futures contracts: | |
Average notional amount of contracts - long | $ 768,497,024 |
Average notional amount of contracts - short | (239,529,206) |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
26 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Notes to Schedule of Investments and Other Information
| | |
Balanced Index | Balanced Index is an internally-calculated, hypothetical combination of total returns from the S&P 500® Index (55%) and the Bloomberg U.S. Aggregate Bond Index (45%). |
Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Aggregate Bond Index is a broad-based measure of the investment grade, US dollar-denominated, fixed-rate taxable bond market. |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
ICE | Intercontinental Exchange |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
SOFR | Secured Overnight Financing Rate |
TBA | (To Be Announced) Securities are purchased/sold on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement when specific mortgage pools are assigned. |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the year ended September 30, 2022 is $2,320,368,284, which represents 10.5% of net assets. |
| | |
* | Non-income producing security. |
| | |
‡ | Variable or floating rate security. Rate shown is the current rate as of September 30, 2022. Certain variable rate securities are not based on a published reference rate and spread; they are determined by the issuer or agent and current market conditions. Reference rate is as of reset date and may vary by security, which may not indicate a reference rate and/or spread in their description. |
| | |
ÇÇ | Security is a U.S. Treasury Inflation-Protected Security (TIPS). |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
µ | Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. The date indicated, if any, represents the next call date. |
| | |
Ç | Step bond. The coupon rate will increase or decrease periodically based upon a predetermined schedule. The rate shown reflects the current rate. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
Janus Henderson Balanced 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, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Asset-Backed/Commercial Mortgage-Backed Securities | $ | - | $ | 1,858,697,123 | $ | - |
Corporate Bonds | | - | | 2,158,142,448 | | - |
Inflation-Indexed Bonds | | - | | 129,440,359 | | - |
Mortgage-Backed Securities | | - | | 2,501,693,325 | | - |
United States Treasury Notes/Bonds | | - | | 3,743,043,869 | | - |
Common Stocks | | 11,556,166,301 | | - | | - |
Investment Companies | | - | | 1,202,737,581 | | - |
Total Investments in Securities | $ | 11,556,166,301 | $ | 11,593,754,705 | $ | - |
Other Financial Instruments(a): | | | | | | |
Futures Contracts | | 2,167,171 | | - | | - |
Total Assets | $ | 11,558,333,472 | $ | 11,593,754,705 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Futures Contracts | $ | 32,605,979 | $ | - | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures contracts, and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson Balanced Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $18,385,392,606) | | $ | 21,947,183,425 | |
| Affiliated investments, at value (cost $1,202,708,804) | | | 1,202,737,581 | |
| Deposits with brokers for futures | | | 21,600,000 | |
| Variation margin receivable on futures contracts | | | 291,896 | |
| Trustees' deferred compensation | | | 664,825 | |
| Receivables: | | | | |
| | Investments sold | | | 393,332,698 | |
| | TBA investments sold | | | 169,105,453 | |
| | Interest | | | 51,756,455 | |
| | Fund shares sold | | | 35,021,545 | |
| | Dividends | | | 7,182,720 | |
| | Dividends from affiliates | | | 3,343,533 | |
| Other assets | | | 28,112 | |
Total Assets | | | 23,832,248,243 | |
Liabilities: | | | | |
| Due to custodian | | | 753 | |
| Variation margin payable on futures contracts | | | 4,653,799 | |
| Payables: | | | — | |
| | TBA investments purchased | | | 1,260,266,947 | |
| | Investments purchased | | | 343,141,277 | |
| | Fund shares repurchased | | | 58,605,677 | |
| | Advisory fees | | | 11,334,945 | |
| | Dividends | | | 5,375,292 | |
| | Transfer agent fees and expenses | | | 3,198,823 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 2,694,783 | |
| | Trustees' deferred compensation fees | | | 664,825 | |
| | Trustees' fees and expenses | | | 114,473 | |
| | Professional fees | | | 90,012 | |
| | Affiliated fund administration fees payable | | | 51,522 | |
| | Custodian fees | | | 43,479 | |
| | Accrued expenses and other payables | | | 810,985 | |
Total Liabilities | | | 1,691,047,592 | |
Net Assets | | $ | 22,141,200,651 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 29 |
Janus Henderson Balanced Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 18,446,322,384 | |
| Total distributable earnings (loss) | | | 3,694,878,267 | |
Total Net Assets | | $ | 22,141,200,651 | |
Net Assets - Class A Shares | | $ | 1,748,525,190 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 48,676,845 | |
Net Asset Value Per Share(1) | | $ | 35.92 | |
Maximum Offering Price Per Share(2) | | $ | 38.11 | |
Net Assets - Class C Shares | | $ | 2,180,940,544 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 61,498,144 | |
Net Asset Value Per Share(1) | | $ | 35.46 | |
Net Assets - Class D Shares | | $ | 1,946,256,015 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 54,006,594 | |
Net Asset Value Per Share | | $ | 36.04 | |
Net Assets - Class I Shares | | $ | 9,457,091,036 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 262,321,950 | |
Net Asset Value Per Share | | $ | 36.05 | |
Net Assets - Class N Shares | | $ | 1,777,708,012 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 49,366,952 | |
Net Asset Value Per Share | | $ | 36.01 | |
Net Assets - Class R Shares | | $ | 368,360,083 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,327,767 | |
Net Asset Value Per Share | | $ | 35.67 | |
Net Assets - Class S Shares | | $ | 373,119,476 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,389,750 | |
Net Asset Value Per Share | | $ | 35.91 | |
Net Assets - Class T Shares | | $ | 4,289,200,295 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 119,203,374 | |
Net Asset Value Per Share | | $ | 35.98 | |
| |
(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. |
| |
30 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Interest | $ | 240,649,927 | |
| Dividends | | 191,992,337 | |
| Dividends from affiliates | | 12,056,623 | |
| Other income | | 2,140,024 | |
| Foreign withholding tax income | | 5,731 | |
Total Investment Income | | 446,844,642 | |
Expenses: | | | |
| Advisory fees | | 146,906,323 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 5,039,376 | |
| | Class C Shares | | 25,797,221 | |
| | Class R Shares | | 2,284,812 | |
| | Class S Shares | | 1,255,063 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,621,681 | |
| | Class R Shares | | 1,145,419 | |
| | Class S Shares | | 1,262,897 | |
| | Class T Shares | | 13,166,970 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 1,280,556 | |
| | Class C Shares | | 1,667,221 | |
| | Class I Shares | | 9,647,537 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 119,189 | |
| | Class C Shares | | 122,913 | |
| | Class D Shares | | 237,162 | |
| | Class I Shares | | 483,269 | |
| | Class N Shares | | 63,367 | |
| | Class R Shares | | 4,051 | |
| | Class S Shares | | 4,328 | |
| | Class T Shares | | 40,266 | |
| Shareholder reports expense | | 720,472 | |
| Affiliated fund administration fees | | 667,757 | |
| Trustees’ fees and expenses | | 566,915 | |
| Registration fees | | 325,773 | |
| Professional fees | | 232,152 | |
| Custodian fees | | 150,223 | |
| Other expenses | | 1,449,647 | |
Total Expenses | | 217,262,560 | |
Less: Excess Expense Reimbursement and Waivers | | (482,589) | |
Net Expenses | | 216,779,971 | |
Net Investment Income/(Loss) | | 230,064,671 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 31 |
Janus Henderson Balanced Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | $ | 397,625,431 | |
| Investments in affiliates | | (52,475) | |
| Futures contracts | | (60,094,855) | |
Total Net Realized Gain/(Loss) on Investments | | 337,478,101 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (4,643,081,663) | |
| Investments in affiliates | | 8,231 | |
| Futures contracts | | (30,438,808) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (4,673,512,240) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (4,105,969,468) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
32 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 230,064,671 | | $ | 219,235,486 | |
| Net realized gain/(loss) on investments | | 337,478,101 | | | 1,088,154,513 | |
| Change in unrealized net appreciation/depreciation | | (4,673,512,240) | | | 2,493,558,324 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (4,105,969,468) | | | 3,800,948,323 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (93,860,314) | | | (35,331,714) | |
| | Class C Shares | | (112,296,142) | | | (37,789,179) | |
| | Class D Shares | | (111,180,078) | | | (49,717,591) | |
| | Class I Shares | | (566,344,120) | | | (207,941,551) | |
| | Class N Shares | | (94,817,591) | | | (36,454,465) | |
| | Class R Shares | | (20,085,711) | | | (7,295,538) | |
| | Class S Shares | | (23,632,020) | | | (10,876,463) | |
| | Class T Shares | | (254,266,348) | | | (145,991,988) | |
Net Decrease from Dividends and Distributions to Shareholders | | (1,276,482,324) | | | (531,398,489) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 201,004,623 | | | 216,989,230 | |
| | Class C Shares | | (98,921,615) | | | 58,219,595 | |
| | Class D Shares | | 41,772,637 | | | 49,335,057 | |
| | Class I Shares | | 118,058,604 | | | 2,890,909,675 | |
| | Class N Shares | | 577,810,669 | | | 122,411,936 | |
| | Class R Shares | | (13,564,711) | | | 11,140,051 | |
| | Class S Shares | | (96,353,423) | | | (60,806,557) | |
| | Class T Shares | | (291,459,655) | | | (1,833,754,835) | |
Net Increase/(Decrease) from Capital Share Transactions | | 438,347,129 | | | 1,454,444,152 | |
Net Increase/(Decrease) in Net Assets | | (4,944,104,663) | | | 4,723,993,986 | |
Net Assets: | | | | | | |
| Beginning of period | | 27,085,305,314 | | | 22,361,311,328 | |
| End of period | $ | 22,141,200,651 | | $ | 27,085,305,314 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 33 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $44.26 | | | $38.77 | | | $35.45 | | | $35.22 | | | $32.46 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.34 | | | 0.34 | | | 0.49 | | | 0.60 | | | 0.50 | |
| | Net realized and unrealized gain/(loss) | | (6.67) | | | 6.02 | | | 3.75 | | | 1.82 | | | 3.87 | |
| Total from Investment Operations | | (6.33) | | | 6.36 | | | 4.24 | | | 2.42 | | | 4.37 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.33) | | | (0.41) | | | (0.53) | | | (0.60) | | | (0.50) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | |
| Total Dividends and Distributions | | (2.01) | | | (0.87) | | | (0.92) | | | (2.19) | | | (1.61) | |
| Net Asset Value, End of Period | | $35.92 | | | $44.26 | | | $38.77 | | | $35.45 | | | $35.22 | |
| Total Return* | | (15.13)% | | | 16.58% | | | 12.14% | | | 7.73% | | | 13.81% | |
| Net Assets, End of Period (in thousands) | | $1,748,525 | | | $1,963,351 | | | $1,519,093 | | | $1,082,508 | | | $768,529 | |
| Average Net Assets for the Period (in thousands) | | $2,006,053 | | | $1,788,265 | | | $1,249,156 | | | $905,165 | | | $666,296 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.89% | | | 0.89% | | | 0.90% | | | 0.93% | | | 0.95% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.89% | | | 0.89% | | | 0.90% | | | 0.93% | | | 0.95% | |
| | Ratio of Net Investment Income/(Loss) | | 0.80% | | | 0.80% | | | 1.34% | | | 1.78% | | | 1.48% | |
| Portfolio Turnover Rate | | 79%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
34 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $43.74 | | | $38.34 | | | $35.09 | | | $34.90 | | | $32.19 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.03 | | | 0.04 | | | 0.23 | | | 0.37 | | | 0.27 | |
| | Net realized and unrealized gain/(loss) | | (6.57) | | | 5.95 | | | 3.71 | | | 1.79 | | | 3.84 | |
| Total from Investment Operations | | (6.54) | | | 5.99 | | | 3.94 | | | 2.16 | | | 4.11 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | (0.13) | | | (0.30) | | | (0.38) | | | (0.29) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | |
| Total Dividends and Distributions | | (1.74) | | | (0.59) | | | (0.69) | | | (1.97) | | | (1.40) | |
| Net Asset Value, End of Period | | $35.46 | | | $43.74 | | | $38.34 | | | $35.09 | | | $34.90 | |
| Total Return* | | (15.75)% | | | 15.76% | | | 11.37% | | | 6.98% | | | 13.06% | |
| Net Assets, End of Period (in thousands) | | $2,180,941 | | | $2,817,466 | | | $2,415,890 | | | $1,992,062 | | | $1,594,610 | |
| Average Net Assets for the Period (in thousands) | | $2,683,015 | | | $2,671,210 | | | $2,207,746 | | | $1,743,474 | | | $1,403,777 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.60% | | | 1.60% | | | 1.61% | | | 1.62% | | | 1.62% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.60% | | | 1.60% | | | 1.61% | | | 1.62% | | | 1.62% | |
| | Ratio of Net Investment Income/(Loss) | | 0.08% | | | 0.10% | | | 0.64% | | | 1.10% | | | 0.81% | |
| Portfolio Turnover Rate | | 79%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | |
| | | | | | | | �� | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 35 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $44.40 | | | $38.89 | | | $35.54 | | | $35.30 | | | $32.52 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.41 | | | 0.42 | | | 0.56 | | | 0.68 | | | 0.58 | |
| | Net realized and unrealized gain/(loss) | | (6.68) | | | 6.04 | | | 3.77 | | | 1.82 | | | 3.89 | |
| Total from Investment Operations | | (6.27) | | | 6.46 | | | 4.33 | | | 2.50 | | | 4.47 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.41) | | | (0.49) | | | (0.59) | | | (0.67) | | | (0.58) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | |
| Total Dividends and Distributions | | (2.09) | | | (0.95) | | | (0.98) | | | (2.26) | | | (1.69) | |
| Net Asset Value, End of Period | | $36.04 | | | $44.40 | | | $38.89 | | | $35.54 | | | $35.30 | |
| Total Return* | | (14.97)% | | | 16.80% | | | 12.39% | | | 7.95% | | | 14.10% | |
| Net Assets, End of Period (in thousands) | | $1,946,256 | | | $2,362,421 | | | $2,022,689 | | | $1,860,900 | | | $1,761,817 | |
| Average Net Assets for the Period (in thousands) | | $2,286,371 | | | $2,246,350 | | | $1,895,563 | | | $1,759,287 | | | $1,667,210 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.70% | | | 0.70% | | | 0.71% | | | 0.72% | | | 0.71% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.70% | | | 0.70% | | | 0.71% | | | 0.72% | | | 0.71% | |
| | Ratio of Net Investment Income/(Loss) | | 0.98% | | | 0.99% | | | 1.54% | | | 2.00% | | | 1.71% | |
| Portfolio Turnover Rate | | 79%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
36 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $44.41 | | | $38.90 | | | $35.55 | | | $35.31 | | | $32.53 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.43 | | | 0.44 | | | 0.58 | | | 0.70 | | | 0.61 | |
| | Net realized and unrealized gain/(loss) | | (6.68) | | | 6.04 | | | 3.77 | | | 1.83 | | | 3.88 | |
| Total from Investment Operations | | (6.25) | | | 6.48 | | | 4.35 | | | 2.53 | | | 4.49 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.43) | | | (0.51) | | | (0.61) | | | (0.70) | | | (0.60) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | |
| Total Dividends and Distributions | | (2.11) | | | (0.97) | | | (1.00) | | | (2.29) | | | (1.71) | |
| Net Asset Value, End of Period | | $36.05 | | | $44.41 | | | $38.90 | | | $35.55 | | | $35.31 | |
| Total Return* | | (14.93)% | | | 16.86% | | | 12.45% | | | 8.02% | | | 14.18% | |
| Net Assets, End of Period (in thousands) | | $9,457,091 | | | $11,674,873 | | | $7,688,726 | | | $5,225,684 | | | $3,197,893 | |
| Average Net Assets for the Period (in thousands) | | $11,504,986 | | | $9,205,809 | | | $6,311,815 | | | $4,116,708 | | | $2,460,247 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.66% | | | 0.65% | | | 0.65% | | | 0.65% | | | 0.64% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.66% | | | 0.65% | | | 0.65% | | | 0.65% | | | 0.64% | |
| | Ratio of Net Investment Income/(Loss) | | 1.02% | | | 1.04% | | | 1.59% | | | 2.07% | | | 1.80% | |
| Portfolio Turnover Rate | | 79%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 37 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $44.37 | | | $38.86 | | | $35.51 | | | $35.28 | | | $32.50 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.47 | | | 0.48 | | | 0.61 | | | 0.73 | | | 0.63 | |
| | Net realized and unrealized gain/(loss) | | (6.69) | | | 6.03 | | | 3.76 | | | 1.81 | | | 3.88 | |
| Total from Investment Operations | | (6.22) | | | 6.51 | | | 4.37 | | | 2.54 | | | 4.51 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.46) | | | (0.54) | | | (0.63) | | | (0.72) | | | (0.62) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | |
| Total Dividends and Distributions | | (2.14) | | | (1.00) | | | (1.02) | | | (2.31) | | | (1.73) | |
| Net Asset Value, End of Period | | $36.01 | | | $44.37 | | | $38.86 | | | $35.51 | | | $35.28 | |
| Total Return* | | (14.87)% | | | 16.96% | | | 12.53% | | | 8.07% | | | 14.26% | |
| Net Assets, End of Period (in thousands) | | $1,777,708 | | | $1,611,032 | | | $1,285,159 | | | $946,741 | | | $2,480,945 | |
| Average Net Assets for the Period (in thousands) | | $1,904,719 | | | $1,562,471 | | | $1,142,389 | | | $1,651,136 | | | $2,273,486 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.57% | | | 0.57% | | | 0.57% | | | 0.58% | | | 0.57% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.57% | | | 0.57% | | | 0.57% | | | 0.58% | | | 0.57% | |
| | Ratio of Net Investment Income/(Loss) | | 1.13% | | | 1.12% | | | 1.67% | | | 2.19% | | | 1.86% | |
| Portfolio Turnover Rate | | 79%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
38 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $43.96 | | | $38.52 | | | $35.23 | | | $35.02 | | | $32.29 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.15 | | | 0.16 | | | 0.34 | | | 0.47 | | | 0.37 | |
| | Net realized and unrealized gain/(loss) | | (6.61) | | | 5.97 | | | 3.73 | | | 1.80 | | | 3.85 | |
| Total from Investment Operations | | (6.46) | | | 6.13 | | | 4.07 | | | 2.27 | | | 4.22 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.15) | | | (0.23) | | | (0.39) | | | (0.47) | | | (0.38) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | |
| Total Dividends and Distributions | | (1.83) | | | (0.69) | | | (0.78) | | | (2.06) | | | (1.49) | |
| Net Asset Value, End of Period | | $35.67 | | | $43.96 | | | $38.52 | | | $35.23 | | | $35.02 | |
| Total Return* | | (15.50)% | | | 16.08% | | | 11.71% | | | 7.29% | | | 13.38% | |
| Net Assets, End of Period (in thousands) | | $368,360 | | | $473,663 | | | $404,420 | | | $366,621 | | | $345,667 | |
| Average Net Assets for the Period (in thousands) | | $456,123 | | | $450,253 | | | $375,839 | | | $347,861 | | | $339,637 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.32% | | | 1.32% | | | 1.32% | | | 1.32% | | | 1.32% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.32% | | | 1.31% | | | 1.32% | | | 1.32% | | | 1.32% | |
| | Ratio of Net Investment Income/(Loss) | | 0.35% | | | 0.38% | | | 0.93% | | | 1.39% | | | 1.11% | |
| Portfolio Turnover Rate | | 79%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 39 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $44.24 | | | $38.76 | | | $35.43 | | | $35.20 | | | $32.44 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.25 | | | 0.27 | | | 0.43 | | | 0.55 | | | 0.46 | |
| | Net realized and unrealized gain/(loss) | | (6.65) | | | 6.00 | | | 3.76 | | | 1.82 | | | 3.87 | |
| Total from Investment Operations | | (6.40) | | | 6.27 | | | 4.19 | | | 2.37 | | | 4.33 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.25) | | | (0.33) | | | (0.47) | | | (0.55) | | | (0.46) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | |
| Total Dividends and Distributions | | (1.93) | | | (0.79) | | | (0.86) | | | (2.14) | | | (1.57) | |
| Net Asset Value, End of Period | | $35.91 | | | $44.24 | | | $38.76 | | | $35.43 | | | $35.20 | |
| Total Return* | | (15.29)% | | | 16.35% | | | 11.99% | | | 7.56% | | | 13.67% | |
| Net Assets, End of Period (in thousands) | | $373,119 | | | $566,156 | | | $551,605 | | | $551,985 | | | $589,812 | |
| Average Net Assets for the Period (in thousands) | | $503,092 | | | $570,377 | | | $532,958 | | | $549,514 | | | $610,278 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.07% | | | 1.07% | | | 1.07% | | | 1.08% | | | 1.07% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.07% | | | 1.07% | | | 1.07% | | | 1.07% | | | 1.07% | |
| | Ratio of Net Investment Income/(Loss) | | 0.59% | | | 0.63% | | | 1.18% | | | 1.64% | | | 1.36% | |
| Portfolio Turnover Rate | | 79%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
40 | SEPTEMBER 30, 2022 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | | $44.34 | | | $38.83 | | | $35.49 | | | $35.26 | | | $32.49 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | | 0.36 | | | 0.38 | | | 0.52 | | | 0.64 | | | 0.54 | |
| | Net realized and unrealized gain/(loss) | | | (6.68) | | | 6.02 | | | 3.76 | | | 1.82 | | | 3.88 | |
| Total from Investment Operations | | | (6.32) | | | 6.40 | | | 4.28 | | | 2.46 | | | 4.42 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | | (0.36) | | | (0.43) | | | (0.55) | | | (0.64) | | | (0.54) | |
| | Distributions (from capital gains) | | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | |
| Total Dividends and Distributions | | | (2.04) | | | (0.89) | | | (0.94) | | | (2.23) | | | (1.65) | |
| Net Asset Value, End of Period | | | $35.98 | | | $44.34 | | | $38.83 | | | $35.49 | | | $35.26 | |
| Total Return* | | | (15.09)% | | | 16.67% | | | 12.26% | | | 7.82% | | | 13.97% | |
| Net Assets, End of Period (in thousands) | | | $4,289,200 | | | $5,616,342 | | | $6,473,729 | | | $5,813,161 | | | $5,422,276 | |
| Average Net Assets for the Period (in thousands) | | | $5,242,961 | | | $6,945,465 | | | $6,067,333 | | | $5,475,178 | | | $5,098,558 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | | 0.82% | | | 0.82% | | | 0.82% | | | 0.83% | | | 0.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | | 0.81% | | | 0.81% | | | 0.82% | | | 0.82% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | | 0.87% | | | 0.89% | | | 1.43% | | | 1.90% | | | 1.61% | |
| Portfolio Turnover Rate | | | 79%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | |
| | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 41 |
Janus Henderson Balanced Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Balanced 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 39 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term capital growth, consistent with preservation of capital and balanced by current income. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the
Janus Henderson Balanced Fund
Notes to Financial Statements
“Distributor”) 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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 Balanced 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, 2022 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 Balanced 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. 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, 2022 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of this section.
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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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 the Adviser’s ability to establish and maintain appropriate systems and trading.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market or other markets pending investment of cash balances or to meet liquidity needs. The Fund is
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subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts are valued at the settlement price on valuation date on the exchange as reported by an approved vendor. Mini contracts, as defined in the description of the contract, shall be valued using the Actual Settlement Price or “ASET” price type as reported by an approved vendor. In the event that foreign futures trade when the foreign equity markets are closed, the last foreign futures trade price shall be used.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities (if applicable). The change in unrealized net appreciation/depreciation is reported on the Statement of Operations (if applicable). When a contract is closed, a realized gain or loss is reported on the Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract.
Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
During the year, the Fund purchased interest rate futures to increase exposure to interest rate risk.
During the year, the Fund sold interest rate futures to decrease exposure to interest rate risk.
3. Other Investments and Strategies
Additional Investment Risk
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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 the Adviser 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
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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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
Inflation-Linked Securities
The Fund may invest in inflation-indexed bonds, including municipal inflation-indexed bonds and corporate inflation-indexed bonds, or in derivatives that are linked to these securities. Inflation-linked bonds are fixed-income securities that have a principal value that is periodically adjusted according to the rate of inflation. If an index measuring inflation falls, the principal value of inflation-indexed bonds will typically be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Because of their inflation adjustment feature, inflation-linked bonds typically have lower yields than conventional fixed-rate bonds. In addition, inflation-linked bonds also normally decline in price when real interest rates rise. In the event of deflation, when prices decline over time, the principal and income of inflation-linked bonds would likely decline, resulting in losses to the Fund.
In the case of Treasury Inflation-Protected Securities, also known as TIPS, repayment of original bond principal upon maturity (as adjusted for inflation) is guaranteed by the U.S. Treasury. For inflation-linked bonds that do not provide a similar guarantee, the adjusted principal value of the inflation-linked bond repaid at maturity may be less than the original principal. Other non-U.S. sovereign governments also issue inflation-linked securities (sometimes referred to as “linkers”) that are tied to their own local consumer price indices. In certain of these non-U.S. jurisdictions, the repayment of the original bond principal upon the maturity of an inflation-linked bond is not guaranteed, allowing for the amount of the bond repaid at maturity to be less than par. Inflation-linked bonds may also be issued by, or related to, sovereign governments of other developed countries, emerging market countries, or companies or other entities not affiliated with governments.
Mortgage- and Asset-Backed Securities
Mortgage- and asset-backed securities represent interests in “pools” of commercial or residential mortgages or other assets, including consumer and commercial loans or receivables. The Fund may purchase fixed or variable rate commercial or residential mortgage-backed securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or other governmental or government-related entities. Ginnie Mae’s guarantees are backed as to the timely payment of principal and interest by the full faith and credit of the U.S. Government. Fannie Mae and Freddie Mac securities are not backed by the full faith and credit of the U.S. Government. In September 2008, the Federal Housing Finance Agency (“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship. Since that time, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases and Treasury and Federal Reserve purchases of their mortgage-backed securities. The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities’ mortgage portfolios. The FHFA has the power to cancel any contract entered into by Fannie Mae and Freddie Mac prior to FHFA’s appointment as conservator or receiver, including the guarantee obligations of Fannie Mae and Freddie Mac.
The Fund may also purchase other mortgage- and asset-backed securities through single- and multi-seller conduits, collateralized debt obligations, structured investment vehicles, and other similar securities. Asset-backed securities may be backed by various consumer obligations, including automobile loans, equipment leases, credit card receivables, or other collateral. In the event the underlying loans are not paid, the securities’ issuer could be forced to sell the assets and recognize losses on such assets, which could impact your return. Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Mortgage- and asset-backed securities are subject to both extension risk, where borrowers pay off their debt obligations more slowly in times of rising interest
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rates, and prepayment risk, where borrowers pay off their debt obligations sooner than expected in times of declining interest rates. These risks may reduce the Fund’s returns. In addition, investments in mortgage- and asset-backed securities, including those comprised of subprime mortgages, may be subject to a higher degree of credit risk, valuation risk, extension risk (if interest rates rise), and liquidity risk than various other types of fixed-income securities. Additionally, although mortgage-backed securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that guarantors or insurers will meet their obligations.
Real Estate Investing
The Fund may invest in equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Sovereign Debt
The Fund may invest in U.S. and non-U.S. government debt securities (“sovereign debt”). Some investments in sovereign debt, such as U.S. sovereign debt, are considered low risk. However, investments in sovereign debt, especially the debt of less developed countries, can involve a high degree of risk, including the risk that the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including, but not limited to, its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. The Fund may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities, which may adversely affect the Fund’s holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Fund invests in non-U.S. sovereign debt, it may be subject to currency risk.
TBA Commitments
The Fund may enter into “to be announced” or “TBA” commitments. TBAs are forward agreements for the purchase or sale of securities, including mortgage-backed securities, for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate, and mortgage terms. Although the particular TBA securities must meet industry-accepted “good delivery” standards, there can be no assurance that a security purchased on forward commitment basis will ultimately be issued or delivered by the counterparty. During the settlement period, the Fund will still bear the risk of any decline in the value of the security to be delivered. Because TBA commitments do not require the delivery of a specific security, the characteristics of the security delivered to the Fund may be less favorable than expected. If the counterparty to a transaction fails to deliver the security, the Fund could suffer a loss. To facilitate TBA commitments, the Fund will segregate or otherwise earmark liquid assets marked to market daily in an amount at least equal to such TBA commitments. Proposed rules of the Financial Industry Regulatory Authority (“FINRA”) include mandatory margin requirements for TBA commitments which, in some circumstances, will require the Fund to also post collateral. These collateral requirements may increase costs associated with the Fund’s participation in the TBA market.
When-Issued, Delayed Delivery and Forward Commitment Transactions
The Fund may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis. When purchasing a security on a when-issued, delayed delivery, or forward commitment basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. Typically, no income accrues on securities the Fund has committed to purchase prior to the time delivery of the securities is made. Because the Fund is not required to pay for the security until the delivery date, these risks are in addition to the risks associated with the Fund’s other investments. If the other
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party to a transaction fails to deliver the securities, the Fund could miss a favorable price or yield opportunity. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases are outstanding, the purchases may result in a form of leverage. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases (including TBA commitments) are outstanding, the purchases may result in a form of leverage.
When the Fund has sold a security on a when-issued, delayed delivery, or forward commitment basis, the Fund does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to pay for the securities, the Fund could suffer a loss. Additionally, when selling a security on a when-issued, delayed delivery, or forward commitment basis without owning the security, the Fund will incur a loss if the security’s price appreciates in value such that the security’s price is above the agreed upon price on the settlement date. The Fund may dispose of or renegotiate a transaction after it is entered into, and may purchase or sell when-issued, delayed delivery or forward commitment securities before the settlement date, which may result in a gain or loss.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pay the Adviser an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.55% of its average daily net assets.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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Notes to Financial Statements
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent 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.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, of up to 0.50% of the Class R Shares' average daily net assets, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $593,679.
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
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year ended September 30, 2022, redeeming shareholders of Class A Shares paid CDSCs of $43,771 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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $316,833.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser 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, 2022, the Fund engaged in cross trades amounting to $32,816,440 in purchases and $125,522,844 in sales, resulting in a net realized loss of $404,797. The net realized loss is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
Janus Henderson Balanced Fund
Notes to Financial Statements
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation and derivatives. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 29,942,570 | $ 190,364,176 | $ - | $ - | $ - | $ (621,216) | $3,475,192,737 | |
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, 2022 are noted below. The primary difference 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) |
$19,674,728,269 | $4,712,555,928 | $(1,237,363,191) | $3,475,192,737 |
Information on the tax components of derivatives as of September 30, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ (30,438,808) | $ 2,167,171 | $(32,605,979) | $ (30,438,808) |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 334,408,653 | $ 942,073,671 | $ - | $ - | |
| | | | | |
For the year ended September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 270,195,746 | $ 261,202,743 | $ - | $ - | |
Janus Henderson Balanced 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 |
$ 28,531,222 | $ 24,532,841 | $ (53,064,063) |
Capital has been adjusted by $23,648,316, all of which is long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 11,215,506 | $ 483,931,491 | | 13,764,827 | $ 577,780,633 |
Reinvested dividends and distributions | 1,748,607 | 77,348,564 | | 678,524 | 28,028,513 |
Shares repurchased | (8,644,941) | (360,275,432) | | (9,265,354) | (388,819,916) |
Net Increase/(Decrease) | 4,319,172 | $ 201,004,623 | | 5,177,997 | $ 216,989,230 |
Class C Shares: | | | | | |
Shares sold | 8,116,014 | $ 346,462,334 | | 14,639,459 | $ 609,241,001 |
Reinvested dividends and distributions | 2,307,498 | 102,685,111 | | 856,542 | 34,428,980 |
Shares repurchased | (13,341,146) | (548,069,060) | | (14,090,972) | (585,450,386) |
Net Increase/(Decrease) | (2,917,634) | $ (98,921,615) | | 1,405,029 | $ 58,219,595 |
Class D Shares: | | | | | |
Shares sold | 3,365,077 | $ 144,011,071 | | 5,033,315 | $ 212,246,387 |
Reinvested dividends and distributions | 2,435,454 | 107,803,525 | | 1,161,749 | 48,189,661 |
Shares repurchased | (5,003,519) | (210,041,959) | | (5,001,298) | (211,100,991) |
Net Increase/(Decrease) | 797,012 | $ 41,772,637 | | 1,193,766 | $ 49,335,057 |
Class I Shares: | | | | | |
Shares sold | 60,564,553 | $2,612,624,805 | | 104,377,111 | $ 4,545,352,003 |
Reinvested dividends and distributions | 11,626,166 | 514,657,671 | | 4,391,432 | 182,787,869 |
Shares repurchased | (72,736,618) | (3,009,223,872) | | (43,550,749) | (1,837,230,197) |
Net Increase/(Decrease) | (545,899) | $ 118,058,604 | | 65,217,794 | $ 2,890,909,675 |
Class N Shares: | | | | | |
Shares sold | 19,919,433 | $ 857,849,812 | | 13,020,268 | $ 539,999,694 |
Reinvested dividends and distributions | 1,949,229 | 85,765,840 | | 779,841 | 32,372,046 |
Shares repurchased | (8,813,944) | (365,804,983) | | (10,561,427) | (449,959,804) |
Net Increase/(Decrease) | 13,054,718 | $ 577,810,669 | | 3,238,682 | $ 122,411,936 |
Class R Shares: | | | | | |
Shares sold | 1,715,273 | $ 73,018,763 | | 1,999,222 | $ 83,728,367 |
Reinvested dividends and distributions | 450,411 | 20,015,516 | | 177,843 | 7,227,617 |
Shares repurchased | (2,613,108) | (106,598,990) | | (1,902,127) | (79,815,933) |
Net Increase/(Decrease) | (447,424) | $ (13,564,711) | | 274,938 | $ 11,140,051 |
Class S Shares: | | | | | |
Shares sold | 1,674,243 | $ 71,189,873 | | 2,046,106 | $ 85,738,506 |
Reinvested dividends and distributions | 525,517 | 23,439,800 | | 261,683 | 10,748,352 |
Shares repurchased | (4,606,241) | (190,983,096) | | (3,744,399) | (157,293,415) |
Net Increase/(Decrease) | (2,406,481) | $ (96,353,423) | | (1,436,610) | $ (60,806,557) |
Class T Shares: | | | | | |
Shares sold | 11,382,563 | $ 488,017,295 | | 26,166,288 | $ 1,099,594,219 |
Reinvested dividends and distributions | 5,661,980 | 251,115,612 | | 3,503,860 | 144,556,702 |
Shares repurchased | (24,520,523) | (1,030,592,562) | | (69,724,255) | (3,077,905,756) |
Net Increase/(Decrease) | (7,475,980) | $ (291,459,655) | | (40,054,107) | $(1,833,754,835) |
Janus Henderson Balanced Fund
Notes to Financial Statements
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$8,214,521,434 | $ 10,798,247,300 | $ 11,530,978,728 | $ 9,998,333,155 |
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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 Balanced Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Balanced Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Balanced Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Balanced 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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Balanced Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Balanced Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Balanced Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Balanced Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Balanced Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Balanced Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Balanced Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Balanced Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Balanced Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Balanced Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Balanced 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, 2022. 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 the Adviser 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 Balanced 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 Balanced 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 Balanced Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2022:
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Section 163(j) Interest Dividend | 52% |
Capital Gain Distributions | $970,604,893 |
Dividends Received Deduction Percentage | 78% |
Qualified Dividend Income Percentage | 80% |
Janus Henderson Balanced 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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 Balanced 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 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
Janus Henderson Balanced 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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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 Balanced 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
Janus Henderson Balanced 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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
Janus Henderson Balanced 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 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
Janus Henderson Balanced 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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
Janus Henderson Balanced 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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019) and Director of Walmart (until 2017). |
Janus Henderson Balanced 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 Co-Portfolio Manager
Janus Henderson Balanced Fund | 12/15-Present | Portfolio Manager for other Janus Henderson accounts. |
Michael Keough
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Executive Vice President and Co-Portfolio Manager Janus Henderson Balanced Fund | 12/19-Present | Portfolio Manager for other Janus Henderson accounts. |
Greg Wilensky
151 Detroit Street
Denver, CO 80206
DOB: 1967 | Executive Vice President and Co-Portfolio Manager Janus Henderson Balanced Fund | 2/20-Present | Head of U.S. Fixed Income of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. Formerly, Director and Lead Portfolio Manager of the U.S. Multi-Sector Fixed Income team at AllianceBernstein (2007-2019). |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
* 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 Balanced 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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US 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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93037 11-22 |
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| | | ANNUAL REPORT September 30, 2022 |
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| | Janus Henderson Contrarian 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 Contrarian Fund
Janus Henderson Contrarian Fund (unaudited)
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FUND SNAPSHOT This Fund seeks to generate capital appreciation by investing in companies with durable business models whose stocks are trading at a significant discount to what we believe is their fair value and whose value is expected to grow over time. We seek to accomplish this by selecting stocks from a broad opportunity set to construct an all-cap portfolio that is intended to be uncorrelated to the broad economy or market. | | | | | 
Nick Schommer portfolio manager |
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PERFORMANCE
The Janus Henderson Contrarian Fund Class I Shares returned -26.57% for the 12-month period ended September 30, 2022. The Fund’s benchmark, the S&P 500® Index, returned -15.47%.
INVESTMENT ENVIRONMENT
The period began amid optimism that increased vaccination rates and the imminent arrival of oral antiviral drugs could help lessen the health risks posed by the COVID virus, but investor mood soured rapidly as the Federal Reserve (Fed) realized that it was behind the curve in fighting inflation. Investors hoped the Fed would slow the pace of its interest rate hikes on early signs that inflation could be easing, but that did not materialize. Inflation remained elevated, and the Fed continued to tighten monetary policy aggressively and conveyed that rates would need to remain higher for longer to bring inflation back to its 2% target. The Fed’s hawkish stance underpinned gains in the U.S. dollar, which hit its highest level in more than 20 years toward the end of the period. While the U.S. economy entered a technical recession – experiencing two consecutive quarters of contraction in the first and second quarters of 2022 – the economic outlook remained uncertain, as consumer and labor force data were relatively resilient even amid fears of a weaker economic environment.
PERFORMANCE DISCUSSION
As part of our contrarian investment approach, we seek stocks that trade at a discount to our estimate of fair value, whose intrinsic value we believe will grow over time, and whose management teams are aligned with shareholders. For most stocks in our portfolio, we believe the market misunderstands the business model, undervalues the company’s assets, or underappreciates the company’s long-term growth potential. We believe a concentrated, high-conviction portfolio of such companies can drive outperformance over time as the intrinsic value of these businesses gains greater appreciation by the market.
Casino operator Caesars Entertainment was among the top detractors from performance. The company’s stock generally fell on worries about the resiliency of consumer demand for gaming in the face of a weakening economic outlook as well as concerns around Caesars’ financial leverage. In addition, there was increased concern around competition in the emerging online sports-betting industry. That said, we continue to be constructive on the company’s prospects and the resiliency of its business.
Social media operator Snap Inc. was also among the top detractors. The company suffered earlier in the period as it faced difficulty in measuring advertisers’ conversion rates due to Apple’s iOS privacy changes. Later, Snap’s stock fell when management pre-announced results below expectations, as the company had a more difficult time than expected gaining market share amid a weakening environment for advertising revenue. We exited our position in the stock during the period.
Pharmaceutical company Horizon Therapeutics was also among the top detractors for the period. The company started the year with slower growth for its lead drug, Tepezza, due to the impact of the COVID Omicron variant, with the market expecting to see an acceleration of revenue growth later in the period. That did not happen, and Horizon has since announced a plan to build out its sales force in order to reignite growth of Tepezza. The company has multiple other drugs, such as Krystexxa and Uplinza, targeted at high, unmet medical needs, that we continue to view favorably.
International oil and gas exploration and production company Occidental Petroleum was among the top contributors. During the period, the market shock from the Russia-Ukraine war and a general decline in traditional fossil fuel investment resulted in tight supply and a subsequent spike in oil and gas prices. Demand for oil and
Janus Henderson Contrarian Fund (unaudited)
gas also rose during the period as the pandemic waned and economies reopened. Occidental’s financial leverage and significant upside exposure to commodity prices were a benefit considering these developments.
Biohaven Pharmaceuticals, a healthcare name we added at the end of 2021, was also among the top contributors. In general, we believe that pharmaceutical companies are more able to adjust prices and control operating expenses to generate high profit margins even in an inflationary environment. Biohaven’s stock specifically rose during the period when it was announced that Pfizer would acquire the company for nearly $12 billion, a significant premium. Biohaven’s oral treatment for migraines, Nurtec, also recently received Food and Drug Administration (FDA) approval as a preventative medicine and has seen significant sales growth.
Gaming real estate investment trust (REIT) VICI Properties was also among the top contributors. During the period, the company’s stock rose given the general resiliency of its business model during an uncertain time. VICI was also added to the S&P 500 Index and its credit rating was upgraded to investment grade during the period.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
The strength of consumer and corporate balance sheets - which entered the current rate-hiking cycle in better condition than previous cycles - has complicated the Fed’s task of slowing demand, forcing it to take an aggressive path. At this point it appears stocks are pricing in a recession, as the Fed has forcefully communicated that it is committed to slowing inflation even at the expense of economic growth. Thus, equities have seen major valuation readjustments this year, and while much of the market movement so far has been due to multiple compression, going forward we expect negative earnings revisions as well.
To date, rate hikes have significantly boosted the value of the U.S. dollar, creating a headwind for corporate earnings, particularly for multinational companies with revenues outside the U.S. From a long-term perspective, the lessons of COVID and the vulnerability of global supply chains have accelerated the shift away from globalization. In coming years, the market will be forced to deal with the effects of de-globalization including higher inflation, a more capital-intensive economy, and structurally higher interest rates.
In the near term, we would expect the heightened market volatility to continue until investors are better able to assess how long the Fed will continue to hike interest rates and how deep the recession will be next year. However, to the upside, valuations are at levels we haven’t seen in a number of years, which makes us more optimistic over a longer-term time period, despite the difficult near-term environment. We continue to maintain a balance among the different buckets of opportunities in the Fund. We do believe the market downturn has uncovered some businesses whose growth is underappreciated or whose value has become more attractive. However, we will wait until we have further confidence in the trajectory of inflation and a potential recession before making significant allocation changes in the Fund.
Thank you for your investment in Janus Henderson Contrarian Fund.
Janus Henderson Contrarian Fund (unaudited)
Fund At A Glance
September 30, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Occidental Petroleum Corp | 2.54% | | 1.88% | | Caesars Entertainment Inc | 5.01% | | -3.96% |
| Biohaven Pharmaceutical Holding Co Ltd | 1.85% | | 1.02% | | Snap Inc | 1.81% | | -3.26% |
| VICI Properties Inc | 4.15% | | 0.90% | | Horizon Therapeutics PLC | 5.30% | | -1.78% |
| American Electric Power Co Inc | 2.78% | | 0.62% | | Rush Street Interactive Inc | 0.53% | | -0.85% |
| Sempra Energy | 2.02% | | 0.55% | | Zendesk Inc | 1.91% | | -0.79% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Real Estate | | 0.92% | | 4.15% | 2.75% |
| Utilities | | 0.74% | | 4.80% | 2.75% |
| Energy | | 0.38% | | 2.54% | 3.79% |
| Industrials | | 0.24% | | 6.90% | 7.89% |
| Other** | | 0.14% | | 1.69% | 0.00% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | -6.36% | | 16.39% | 11.83% |
| Health Care | | -1.97% | | 19.24% | 13.77% |
| Information Technology | | -1.53% | | 13.12% | 27.75% |
| Financials | | -1.29% | | 10.01% | 11.11% |
| Consumer Staples | | -0.86% | | 2.19% | 6.30% |
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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 Contrarian Fund (unaudited)
Fund At A Glance
September 30, 2022
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5 Largest Equity Holdings - (% of Net Assets) |
Crown Holdings Inc | |
Containers & Packaging | 5.9% |
Howmet Aerospace Inc | |
Aerospace & Defense | 4.8% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 4.8% |
Caesars Entertainment Inc | |
Hotels, Restaurants & Leisure | 4.2% |
Occidental Petroleum Corp | |
Oil, Gas & Consumable Fuels | 3.6% |
| | 23.3% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.6% | |
Investment Companies | | 2.8% | |
Investments Purchased with Cash Collateral from Securities Lending | | 2.2% | |
Corporate Bonds | | 1.0% | |
Other | | (2.6)% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
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Janus Henderson Contrarian 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, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -26.77% | 8.92% | 10.08% | 7.02% | | | 1.12% | 1.12% |
Class A Shares at MOP | | -30.97% | 7.65% | 9.43% | 6.74% | | | | |
Class C Shares at NAV | | -27.34% | 8.17% | 9.28% | 6.22% | | | 1.87% | 1.87% |
Class C Shares at CDSC | | -27.99% | 8.17% | 9.28% | 6.22% | | | | |
Class D Shares | | -26.60% | 9.17% | 10.31% | 7.21% | | | 0.90% | 0.90% |
Class I Shares | | -26.57% | 9.23% | 10.39% | 7.25% | | | 0.85% | 0.85% |
Class N Shares | | -26.50% | 9.31% | 10.35% | 7.21% | | | 0.77% | 0.77% |
Class R Shares | | -27.11% | 8.36% | 9.58% | 6.54% | | | 1.76% | 1.61% |
Class S Shares | | -26.94% | 8.66% | 9.88% | 6.81% | | | 1.74% | 1.36% |
Class T Shares | | -26.69% | 9.06% | 10.21% | 7.16% | | | 1.01% | 1.01% |
S&P 500 Index | | -15.47% | 9.24% | 11.70% | 6.37% | | | | |
Morningstar Quartile - Class T Shares | | 4th | 1st | 1st | 3rd | | | | |
Morningstar Ranking - based on total returns for Mid-Cap Blend Funds | | 398/415 | 8/355 | 56/282 | 87/146 | | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Janus Henderson Contrarian Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective 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.
© 2022 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 29, 2000
‡ As stated in the prospectus. Net expense ratios reflect the expense waivers, if any, contractually agreed to for at least a one-year period commencing on January 28, 2022. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Contrarian 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $729.50 | $4.55 | | $1,000.00 | $1,019.80 | $5.32 | 1.05% |
Class C Shares | $1,000.00 | $726.40 | $7.79 | | $1,000.00 | $1,016.04 | $9.10 | 1.80% |
Class D Shares | $1,000.00 | $730.50 | $3.56 | | $1,000.00 | $1,020.96 | $4.15 | 0.82% |
Class I Shares | $1,000.00 | $730.50 | $3.43 | | $1,000.00 | $1,021.11 | $4.00 | 0.79% |
Class N Shares | $1,000.00 | $731.00 | $2.99 | | $1,000.00 | $1,021.61 | $3.50 | 0.69% |
Class R Shares | $1,000.00 | $728.00 | $6.54 | | $1,000.00 | $1,017.50 | $7.64 | 1.51% |
Class S Shares | $1,000.00 | $728.50 | $5.46 | | $1,000.00 | $1,018.75 | $6.38 | 1.26% |
Class T Shares | $1,000.00 | $729.90 | $3.99 | | $1,000.00 | $1,020.46 | $4.66 | 0.92% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 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 Contrarian Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– 1.0% | | | |
Consumer Cyclical – 1.0% | | | |
| | Colt Merger Sub Inc, 5.7500%, 7/1/25 (144A)((cost $42,478,148) | | $43,320,000 | | | $41,799,468 | |
Common Stocks– 96.6% | | | |
Aerospace & Defense – 4.8% | | | |
| | Howmet Aerospace Inc | | 6,025,280 | | | 186,361,910 | |
Banks – 3.0% | | | |
| | Cullen/Frost Bankers Inc | | 895,495 | | | 118,402,349 | |
Biotechnology – 7.2% | | | |
| | AbbVie Inc | | 1,004,809 | | | 134,855,416 | |
| | Amicus Therapeutics Inc* | | 6,286,893 | | | 65,636,684 | |
| | Biohaven Pharmaceutical Holding Co Ltd* | | 538,414 | | | 81,392,044 | |
| | | 281,884,144 | |
Capital Markets – 2.7% | | | |
| | Morgan Stanley | | 1,090,044 | | | 86,124,376 | |
| | Patria Investments Ltd - Class A | | 1,372,637 | | | 17,912,913 | |
| | | 104,037,289 | |
Consumer Finance – 2.0% | | | |
| | Capital One Financial Corp | | 864,187 | | | 79,652,116 | |
Containers & Packaging – 5.9% | | | |
| | Crown Holdings Inc | | 2,825,059 | | | 228,914,531 | |
Diversified Financial Services – 1.9% | | | |
| | Apollo Global Management Inc | | 1,621,915 | | | 75,419,047 | |
Electric Utilities – 1.9% | | | |
| | American Electric Power Co Inc | | 848,472 | | | 73,350,404 | |
Entertainment – 2.1% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 1,404,070 | | | 82,138,095 | |
Equity Real Estate Investment Trusts (REITs) – 3.3% | | | |
| | VICI Properties Inc | | 4,307,271 | | | 128,572,039 | |
Health Care Equipment & Supplies – 5.1% | | | |
| | Boston Scientific Corp* | | 2,337,810 | | | 90,543,381 | |
| | Globus Medical Inc* | | 1,823,336 | | | 108,616,126 | |
| | | 199,159,507 | |
Hotels, Restaurants & Leisure – 7.2% | | | |
| | Caesars Entertainment Inc* | | 5,112,878 | | | 164,941,444 | |
| | Monarch Casino & Resort Inc* | | 613,079 | | | 34,418,255 | |
| | Sportradar Group AG - Class A* | | 3,108,135 | | | 27,351,588 | |
| | Sweetgreen Inc - Class A*,# | | 2,878,589 | | | 53,253,897 | |
| | | 279,965,184 | |
Internet & Direct Marketing Retail – 4.8% | | | |
| | Amazon.com Inc* | | 1,648,887 | | | 186,324,231 | |
Leisure Products – 2.3% | | | |
| | Hasbro Inc | | 1,355,904 | | | 91,415,048 | |
Metals & Mining – 5.2% | | | |
| | Constellium SE*,£ | | 7,597,861 | | | 77,042,311 | |
| | Freeport-McMoRan Inc | | 4,578,949 | | | 125,142,676 | |
| | | 202,184,987 | |
Multi-Utilities – 2.4% | | | |
| | Sempra Energy | | 622,939 | | | 93,403,474 | |
Oil, Gas & Consumable Fuels – 3.6% | | | |
| | Occidental Petroleum Corp | | 2,285,356 | | | 140,435,126 | |
Personal Products – 3.2% | | | |
| | Beauty Health Co/The*,#,£ | | 10,536,029 | | | 124,219,782 | |
Pharmaceuticals – 6.2% | | | |
| | Horizon Therapeutics PLC* | | 1,672,135 | | | 103,488,435 | |
| | Organon & Co | | 5,897,273 | | | 137,996,188 | |
| | | 241,484,623 | |
Semiconductor & Semiconductor Equipment – 8.9% | | | |
| | Advanced Micro Devices Inc* | | 1,375,210 | | | 87,133,306 | |
| | Analog Devices Inc | | 558,590 | | | 77,833,931 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Contrarian Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Semiconductor & Semiconductor Equipment– (continued) | | | |
| | Lam Research Corp | | 158,055 | | | $57,848,130 | |
| | Marvell Technology Inc | | 2,952,359 | | | 126,685,725 | |
| | | 349,501,092 | |
Software – 3.5% | | | |
| | Workday Inc - Class A* | | 897,528 | | | 136,621,712 | |
Textiles, Apparel & Luxury Goods – 3.1% | | | |
| | Deckers Outdoor Corp* | | 392,127 | | | 122,582,821 | |
Trading Companies & Distributors – 4.0% | | | |
| | Core & Main Inc - Class A* | | 4,341,344 | | | 98,722,163 | |
| | Ferguson PLC | | 573,800 | | | 59,061,234 | |
| | | 157,783,397 | |
Wireless Telecommunication Services – 2.3% | | | |
| | T-Mobile US Inc* | | 662,430 | | | 88,878,233 | |
Total Common Stocks (cost $3,724,237,364) | | 3,772,691,141 | |
Investment Companies– 2.8% | | | |
Money Markets – 2.8% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $108,423,134) | | 108,416,981 | | | 108,427,823 | |
Investments Purchased with Cash Collateral from Securities Lending– 2.2% | | | |
Investment Companies – 1.8% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 68,142,291 | | | 68,142,291 | |
Time Deposits – 0.4% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $17,035,573 | | | 17,035,573 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $85,177,863) | | 85,177,864 | |
Total Investments (total cost $3,960,316,509) – 102.6% | | 4,008,096,296 | |
Liabilities, net of Cash, Receivables and Other Assets – (2.6)% | | (101,662,203) | |
Net Assets – 100% | | $3,906,434,093 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $3,885,789,484 | | 97.0 | % |
Netherlands | | 77,042,311 | | 1.9 | |
Switzerland | | 27,351,588 | | 0.7 | |
Cayman Islands | | 17,912,913 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $4,008,096,296 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Contrarian Fund
Schedule of Investments
September 30, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/22 |
Common Stocks - 5.2% |
Metals & Mining - 2.0% | |
| | Constellium SE* | $ | - | $ | (232,907) | $ | (62,513,326) | $ | 77,042,311 |
Personal Products - 3.2% | |
| | Beauty Health Co/The*,# | | - | | - | | (50,726,241) | | 124,219,782 |
Total Common Stocks | $ | - | $ | (232,907) | $ | (113,239,567) | $ | 201,262,093 |
Investment Companies - 2.8% |
Money Markets - 2.8% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 834,058 | | 1,009 | | 3,666 | | 108,427,823 |
Investments Purchased with Cash Collateral from Securities Lending - 1.8% |
Investment Companies - 1.8% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 130,497∆ | | - | | - | | 68,142,291 |
Total Affiliated Investments - 9.8% | $ | 964,555 | $ | (231,898) | $ | (113,235,901) | $ | 377,832,207 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2022, this column reflects amounts for the entire year ended September 30, 2022 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Common Stocks - 5.2% |
Metals & Mining - 2.0% | |
| | Constellium SE* | | 148,291,425 | | 4,416,540 | | (12,919,421) | | 77,042,311 |
Personal Products - 3.2% | |
| | Beauty Health Co/The*,# | | 51,940,000 | | 123,006,023 | | - | | 124,219,782 |
Investment Companies - 2.8% |
Money Markets - 2.8% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 132,374,603 | | 1,336,870,518 | | (1,360,821,973) | | 108,427,823 |
Investments Purchased with Cash Collateral from Securities Lending - 1.8% |
Investment Companies - 1.8% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 8,035,668 | | 297,600,845 | | (237,494,222) | | 68,142,291 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Contrarian Fund
Schedule of Investments
September 30, 2022
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 Call Options:
Goldman Sachs:
| | | | | | | | | | | | | | |
Morgan Stanley | 3,500 | 95.00 | USD | | 10/21/22 | $ | (27,653,500) | $ | 320,250 | $ | 291,782 | $ | (28,468) |
| | | | | 320,250 | | 291,782 | | (28,468) |
UBS Securities:
| | | | | | | | | | | | | | |
Marvell Technology Inc. | 5,000 | 60.00 | USD | | 10/21/22 | | (21,455,000) | | 265,000 | | 261,673 | | (3,327) |
| | | | | 265,000 | | 261,673 | | (3,327) |
Total - Written Call Options | | | | 585,250 | | 553,455 | | (31,795) |
Total OTC Written Options | | | $ | 585,250 | $ | 553,455 | $ | (31,795) |
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, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2022 |
| | | | | |
| | | | | Equity
Contracts |
| | | |
Liability Derivatives: | | | |
Options written, at value | | | $31,795 |
| | | | |
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, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Equity
Contracts |
Written options contracts | | $3,810,966 |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Equity
Contracts |
Written options contracts | | $ 352,640 |
| | | | | |
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Contrarian Fund
Schedule of Investments
September 30, 2022
| | |
Average Ending Monthly Value of Derivative Instruments During the Year Ended September 30, 2022 |
| |
| |
Options: | |
Average value of option contracts written | $(146,267) |
| | |
| |
| |
| |
| | | | | | | | | | |
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 | $ | 82,294,973 | $ | — | $ | (82,294,973) | $ | — |
| | | | | | | | | |
Offsetting of Financial Liabilities and Derivative Liabilities |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Goldman Sachs | $ | 28,468 | $ | — | $ | — | $ | 28,468 |
UBS Securities | | 3,327 | | — | | — | | 3,327 |
| | | | | | | | | |
Total | $ | 31,795 | $ | — | $ | — | $ | 31,795 |
(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. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
Janus Henderson Contrarian 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. |
| | |
LLC | Limited Liability Company |
OTC | Over-the-Counter |
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, 2022 is $41,799,468, which represents 1.1% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
| | |
£ | 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, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Corporate Bonds | $ | - | $ | 41,799,468 | $ | - |
Common Stocks | | 3,772,691,141 | | - | | - |
Investment Companies | | - | | 108,427,823 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 85,177,864 | | - |
Total Assets | $ | 3,772,691,141 | $ | 235,405,155 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Options Written, at Value | $ | - | $ | 31,795 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures contracts, and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson Contrarian Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,561,413,451)(1) | | $ | 3,630,264,089 | |
| Affiliated investments, at value (cost $398,903,058) | | | 377,832,207 | |
| Deposits with brokers for OTC derivatives | | | 50,000 | |
| Trustees' deferred compensation | | | 117,549 | |
| Receivables: | | | | |
| | Investments sold | | | 22,073,405 | |
| | Fund shares sold | | | 6,114,087 | |
| | Dividends | | | 3,447,632 | |
| | Interest | | | 636,563 | |
| | Dividends from affiliates | | | 210,226 | |
| Other assets | | | 31,296 | |
Total Assets | | | 4,040,777,054 | |
Liabilities: | | | | |
| Due to custodian | | | 190 | |
| Collateral for securities loaned (Note 3) | | | 85,177,864 | |
| Options written, at value (premiums received $585,250) | | | 31,795 | |
| Payables: | | | — | |
| | Investments purchased | | | 39,573,505 | |
| | Fund shares repurchased | | | 6,469,709 | |
| | Advisory fees | | | 1,943,136 | |
| | Transfer agent fees and expenses | | | 652,558 | |
| | Trustees' deferred compensation fees | | | 117,549 | |
| | Professional fees | | | 57,308 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 35,286 | |
| | Trustees' fees and expenses | | | 21,350 | |
| | Affiliated fund administration fees payable | | | 9,387 | |
| | Custodian fees | | | 8,808 | |
| | Accrued expenses and other payables | | | 244,516 | |
Total Liabilities | | | 134,342,961 | |
Net Assets | | $ | 3,906,434,093 | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2022 |
Janus Henderson Contrarian Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,872,592,764 | |
| Total distributable earnings (loss) | | | 33,841,329 | |
Total Net Assets | | $ | 3,906,434,093 | |
Net Assets - Class A Shares | | $ | 54,652,104 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,618,713 | |
Net Asset Value Per Share(2) | | $ | 20.87 | |
Maximum Offering Price Per Share(3) | | $ | 22.14 | |
Net Assets - Class C Shares | | $ | 21,789,989 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,163,701 | |
Net Asset Value Per Share(2) | | $ | 18.72 | |
Net Assets - Class D Shares | | $ | 2,122,791,579 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 101,058,500 | |
Net Asset Value Per Share | | $ | 21.01 | |
Net Assets - Class I Shares | | $ | 754,492,315 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 35,916,726 | |
Net Asset Value Per Share | | $ | 21.01 | |
Net Assets - Class N Shares | | $ | 83,560,250 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,983,253 | |
Net Asset Value Per Share | | $ | 20.98 | |
Net Assets - Class R Shares | | $ | 1,628,242 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 81,798 | |
Net Asset Value Per Share | | $ | 19.91 | |
Net Assets - Class S Shares | | $ | 1,401,585 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 67,378 | |
Net Asset Value Per Share | | $ | 20.80 | |
Net Assets - Class T Shares | | $ | 866,118,029 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 41,306,035 | |
Net Asset Value Per Share | | $ | 20.97 | |
| |
(1) Includes $82,294,973 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 | 15 |
Janus Henderson Contrarian Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 57,443,831 | |
| Dividends from affiliates | | 834,058 | |
| Affiliated securities lending income, net | | 130,497 | |
| Interest | | 94,521 | |
| Unaffiliated securities lending income, net | | 19,033 | |
| Other income | | 28,727 | |
Total Investment Income | | 58,550,667 | |
Expenses: | | | |
| Advisory fees | | 34,432,249 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 165,919 | |
| | Class C Shares | | 243,415 | |
| | Class R Shares | | 9,162 | |
| | Class S Shares | | 4,055 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 3,158,481 | |
| | Class R Shares | | 4,717 | |
| | Class S Shares | | 4,074 | |
| | Class T Shares | | 2,886,723 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 63,420 | |
| | Class C Shares | | 22,726 | |
| | Class I Shares | | 881,760 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 4,112 | |
| | Class C Shares | | 1,196 | |
| | Class D Shares | | 381,110 | |
| | Class I Shares | | 36,448 | |
| | Class N Shares | | 3,579 | |
| | Class R Shares | | 123 | |
| | Class S Shares | | 67 | |
| | Class T Shares | | 12,374 | |
| Shareholder reports expense | | 348,575 | |
| Registration fees | | 272,291 | |
| Affiliated fund administration fees | | 123,455 | |
| Trustees’ fees and expenses | | 109,422 | |
| Professional fees | | 74,959 | |
| Custodian fees | | 27,606 | |
| Other expenses | | 330,411 | |
Total Expenses | | 43,602,429 | |
Less: Excess Expense Reimbursement and Waivers | | (179,363) | |
Net Expenses | | 43,423,066 | |
Net Investment Income/(Loss) | | 15,127,601 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Contrarian Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 23,243,997 | |
| Investments in affiliates | | (231,898) | |
| Written options contracts | | 3,810,966 | |
Total Net Realized Gain/(Loss) on Investments | | 26,823,065 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (1,362,785,570) | |
| Investments in affiliates | | (113,235,901) | |
| Written options contracts | | 352,640 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (1,475,668,831) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (1,433,718,165) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Contrarian Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 15,127,601 | | $ | 13,785,613 | |
| Net realized gain/(loss) on investments | | 26,823,065 | | | 439,258,196 | |
| Change in unrealized net appreciation/depreciation | (1,475,668,831) | | | 878,034,390 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | (1,433,718,165) | | | 1,331,078,199 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (6,096,729) | | | (551,331) | |
| | Class C Shares | | (2,439,370) | | | (111,698) | |
| | Class D Shares | | (269,945,160) | | | (42,701,012) | |
| | Class I Shares | | (67,446,782) | | | (2,551,582) | |
| | Class N Shares | | (9,363,778) | | | (1,040,095) | |
| | Class R Shares | | (166,324) | | | (5,233) | |
| | Class S Shares | | (163,299) | | | (5,653) | |
| | Class T Shares | | (112,642,510) | | | (15,470,567) | |
Net Decrease from Dividends and Distributions to Shareholders | (468,263,952) | | | (62,437,171) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 17,894,480 | | | 22,436,653 | |
| | Class C Shares | | 11,141,869 | | | 10,889,787 | |
| | Class D Shares | | 151,564,946 | | | 13,298,688 | |
| | Class I Shares | | 410,367,339 | | | 540,891,777 | |
| | Class N Shares | | 44,703,842 | | | 12,840,751 | |
| | Class R Shares | | 974,674 | | | 818,768 | |
| | Class S Shares | | 1,330,650 | | | 106,225 | |
| | Class T Shares | | 44,527,280 | | | 166,160,611 | |
Net Increase/(Decrease) from Capital Share Transactions | 682,505,080 | | | 767,443,260 | |
Net Increase/(Decrease) in Net Assets | | (1,219,477,037) | | | 2,036,084,288 | |
Net Assets: | | | | | | |
| Beginning of period | | 5,125,911,130 | | | 3,089,826,842 | |
| End of period | $ | 3,906,434,093 | | $ | 5,125,911,130 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2022 |
Janus Henderson Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $31.37 | | | $22.46 | | | $21.63 | | | $21.61 | | | $19.92 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.03 | | | 0.04 | | | 0.12 | | | 0.12 | | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | (7.74) | | | 9.28 | | | 3.17 | | | 1.36 | | | 3.10 | |
| Total from Investment Operations | | (7.71) | | | 9.32 | | | 3.29 | | | 1.48 | | | 3.16 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | (0.10) | | | (0.14) | | | (0.04) | | | — | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | |
| Total Dividends and Distributions | | (2.79) | | | (0.41) | | | (2.46) | | | (1.46) | | | (1.47) | |
| Net Asset Value, End of Period | | $20.87 | | | $31.37 | | | $22.46 | | | $21.63 | | | $21.61 | |
| Total Return* | | (26.77)% | | | 41.82% | | | 16.01% | | | 8.76% | | | 16.89% | |
| Net Assets, End of Period (in thousands) | | $54,652 | | | $63,005 | | | $28,123 | | | $20,126 | | | $14,940 | |
| Average Net Assets for the Period (in thousands) | | $66,066 | | | $45,546 | | | $23,713 | | | $17,754 | | | $13,854 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.08% | | | 1.12% | | | 0.97% | | | 0.94% | | | 0.87% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.08% | | | 1.12% | | | 0.97% | | | 0.94% | | | 0.87% | |
| | Ratio of Net Investment Income/(Loss) | | 0.11% | | | 0.14% | | | 0.60% | | | 0.58% | | | 0.31% | |
| Portfolio Turnover Rate | | 48% | | | 37% | | | 68% | | | 76% | | | 59% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $28.59 | | | $20.55 | | | $19.98 | | | $20.16 | | | $18.80 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.15) | | | (0.14) | | | (0.03) | | | (0.02) | | | (0.07) | |
| | Net realized and unrealized gain/(loss) | | (6.98) | | | 8.49 | | | 2.92 | | | 1.26 | | | 2.90 | |
| Total from Investment Operations | | (7.13) | | | 8.35 | | | 2.89 | | | 1.24 | | | 2.83 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | |
| Total Dividends and Distributions | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | |
| Net Asset Value, End of Period | | $18.72 | | | $28.59 | | | $20.55 | | | $19.98 | | | $20.16 | |
| Total Return* | | (27.34)% | | | 40.91% | | | 15.20% | | | 8.08% | | | 16.10% | |
| Net Assets, End of Period (in thousands) | | $21,790 | | | $21,150 | | | $7,178 | | | $10,556 | | | $19,126 | |
| Average Net Assets for the Period (in thousands) | | $24,560 | | | $12,788 | | | $9,451 | | | $12,089 | | | $21,999 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.82% | | | 1.81% | | | 1.63% | | | 1.58% | | | 1.56% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.82% | | | 1.81% | | | 1.63% | | | 1.58% | | | 1.56% | |
| | Ratio of Net Investment Income/(Loss) | | (0.63)% | | | (0.52)% | | | (0.15)% | | | (0.10)% | | | (0.38)% | |
| Portfolio Turnover Rate | | 48% | | | 37% | | | 68% | | | 76% | | | 59% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $31.54 | | | $22.56 | | | $21.70 | | | $21.65 | | | $19.97 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.09 | | | 0.10 | | | 0.17 | | | 0.16 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | (7.79) | | | 9.33 | | | 3.19 | | | 1.37 | | | 3.11 | |
| Total from Investment Operations | | (7.70) | | | 9.43 | | | 3.36 | | | 1.53 | | | 3.22 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.09) | | | (0.14) | | | (0.18) | | | (0.06) | | | (0.07) | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | |
| Total Dividends and Distributions | | (2.83) | | | (0.45) | | | (2.50) | | | (1.48) | | | (1.54) | |
| Net Asset Value, End of Period | | $21.01 | | | $31.54 | | | $22.56 | | | $21.70 | | | $21.65 | |
| Total Return* | | (26.60)% | | | 42.18% | | | 16.29% | | | 8.99% | | | 17.20% | |
| Net Assets, End of Period (in thousands) | | $2,122,792 | | | $3,021,999 | | | $2,152,848 | | | $1,988,711 | | | $1,925,749 | |
| Average Net Assets for the Period (in thousands) | | $2,758,198 | | | $2,773,321 | | | $1,994,412 | | | $1,855,826 | | | $1,841,765 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.86% | | | 0.90% | | | 0.72% | | | 0.71% | | | 0.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.86% | | | 0.90% | | | 0.72% | | | 0.71% | | | 0.65% | |
| | Ratio of Net Investment Income/(Loss) | | 0.33% | | | 0.34% | | | 0.83% | | | 0.80% | | | 0.53% | |
| Portfolio Turnover Rate | | 48% | | | 37% | | | 68% | | | 76% | | | 59% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $31.55 | | | $22.58 | | | $21.73 | | | $21.68 | | | $19.99 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.10 | | | 0.14 | | | 0.18 | | | 0.17 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | (7.79) | | | 9.30 | | | 3.20 | | | 1.37 | | | 3.12 | |
| Total from Investment Operations | | (7.69) | | | 9.44 | | | 3.38 | | | 1.54 | | | 3.24 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.11) | | | (0.16) | | | (0.21) | | | (0.07) | | | (0.08) | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | |
| Total Dividends and Distributions | | (2.85) | | | (0.47) | | | (2.53) | | | (1.49) | | | (1.55) | |
| Net Asset Value, End of Period | | $21.01 | | | $31.55 | | | $22.58 | | | $21.73 | | | $21.68 | |
| Total Return* | | (26.57)% | | | 42.18% | | | 16.37% | | | 9.05% | | | 17.29% | |
| Net Assets, End of Period (in thousands) | | $754,492 | | | $679,220 | | | $79,528 | | | $90,754 | | | $54,348 | |
| Average Net Assets for the Period (in thousands) | | $815,397 | | | $316,791 | | | $86,316 | | | $59,058 | | | $58,166 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.83% | | | 0.85% | | | 0.66% | | | 0.65% | | | 0.57% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.83% | | | 0.85% | | | 0.66% | | | 0.65% | | | 0.57% | |
| | Ratio of Net Investment Income/(Loss) | | 0.36% | | | 0.48% | | | 0.84% | | | 0.85% | | | 0.60% | |
| Portfolio Turnover Rate | | 48% | | | 37% | | | 68% | | | 76% | | | 59% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $31.50 | | | $22.54 | | | $21.68 | | | $21.63 | | | $19.96 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.12 | | | 0.13 | | | 0.20 | | | 0.19 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | (7.77) | | | 9.31 | | | 3.20 | | | 1.36 | | | 3.10 | |
| Total from Investment Operations | | (7.65) | | | 9.44 | | | 3.40 | | | 1.55 | | | 3.24 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.17) | | | (0.22) | | | (0.08) | | | (0.10) | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | |
| Total Dividends and Distributions | | (2.87) | | | (0.48) | | | (2.54) | | | (1.50) | | | (1.57) | |
| Net Asset Value, End of Period | | $20.98 | | | $31.50 | | | $22.54 | | | $21.68 | | | $21.63 | |
| Total Return* | | (26.50)% | | | 42.28% | | | 16.50% | | | 9.16% | | | 17.37% | |
| Net Assets, End of Period (in thousands) | | $83,560 | | | $78,699 | | | $48,111 | | | $39,056 | | | $26,808 | |
| Average Net Assets for the Period (in thousands) | | $98,909 | | | $60,719 | | | $39,349 | | | $28,593 | | | $24,664 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.73% | | | 0.77% | | | 0.58% | | | 0.58% | | | 0.50% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.73% | | | 0.77% | | | 0.58% | | | 0.58% | | | 0.50% | |
| | Ratio of Net Investment Income/(Loss) | | 0.46% | | | 0.46% | | | 0.97% | | | 0.92% | | | 0.69% | |
| Portfolio Turnover Rate | | 48% | | | 37% | | | 68% | | | 76% | | | 59% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $30.14 | | | $21.62 | | | $20.88 | | | $20.97 | | | $19.47 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.09) | | | (0.10) | | | 0.01 | | | 0.01 | | | (0.05) | |
| | Net realized and unrealized gain/(loss) | | (7.40) | | | 8.93 | | | 3.05 | | | 1.32 | | | 3.02 | |
| Total from Investment Operations | | (7.49) | | | 8.83 | | | 3.06 | | | 1.33 | | | 2.97 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | |
| Total Dividends and Distributions | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | |
| Net Asset Value, End of Period | | $19.91 | | | $30.14 | | | $21.62 | | | $20.88 | | | $20.97 | |
| Total Return* | | (27.11)% | | | 41.11% | | | 15.37% | | | 8.21% | | | 16.26% | |
| Net Assets, End of Period (in thousands) | | $1,628 | | | $1,450 | | | $410 | | | $780 | | | $676 | |
| Average Net Assets for the Period (in thousands) | | $1,877 | | | $1,227 | | | $804 | | | $695 | | | $667 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.62% | | | 1.76% | | | 1.70% | | | 1.74% | | | 1.47% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.55% | | | 1.61% | | | 1.50% | | | 1.48% | | | 1.41% | |
| | Ratio of Net Investment Income/(Loss) | | (0.36)% | | | (0.33)% | | | 0.07% | | | 0.04% | | | (0.24)% | |
| Portfolio Turnover Rate | | 48% | | | 37% | | | 68% | | | 76% | | | 59% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $31.34 | | | $22.41 | | | $21.55 | | | $21.53 | | | $19.89 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.02) | | | (0.03) | | | 0.05 | | | 0.07 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | (7.74) | | | 9.27 | | | 3.18 | | | 1.37 | | | 3.09 | |
| Total from Investment Operations | | (7.76) | | | 9.24 | | | 3.23 | | | 1.44 | | | 3.11 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.04) | | | — | | | (0.05) | | | — | | | — | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | |
| Total Dividends and Distributions | | (2.78) | | | (0.31) | | | (2.37) | | | (1.42) | | | (1.47) | |
| Net Asset Value, End of Period | | $20.80 | | | $31.34 | | | $22.41 | | | $21.55 | | | $21.53 | |
| Total Return* | | (26.94)% | | | 41.49% | | | 15.71% | | | 8.52% | | | 16.65% | |
| Net Assets, End of Period (in thousands) | | $1,402 | | | $739 | | | $451 | | | $1,032 | | | $1,033 | |
| Average Net Assets for the Period (in thousands) | | $1,622 | | | $628 | | | $756 | | | $996 | | | $3,068 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.41% | | | 1.74% | | | 1.46% | | | 1.35% | | | 1.04% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.30% | | | 1.35% | | | 1.21% | | | 1.18% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | (0.08)% | | | (0.09)% | | | 0.27% | | | 0.33% | | | 0.10% | |
| Portfolio Turnover Rate | | 48% | | | 37% | | | 68% | | | 76% | | | 59% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $31.48 | | | $22.54 | | | $21.68 | | | $21.63 | | | $19.95 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.06 | | | 0.07 | | | 0.15 | | | 0.14 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | (7.77) | | | 9.30 | | | 3.19 | | | 1.38 | | | 3.11 | |
| Total from Investment Operations | | (7.71) | | | 9.37 | | | 3.34 | | | 1.52 | | | 3.20 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | (0.12) | | | (0.16) | | | (0.05) | | | (0.05) | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | |
| Total Dividends and Distributions | | (2.80) | | | (0.43) | | | (2.48) | | | (1.47) | | | (1.52) | |
| Net Asset Value, End of Period | | $20.97 | | | $31.48 | | | $22.54 | | | $21.68 | | | $21.63 | |
| Total Return* | | (26.66)% | | | 41.94% | | | 16.22% | | | 8.92% | | | 17.11% | |
| Net Assets, End of Period (in thousands) | | $866,118 | | | $1,259,649 | | | $773,177 | | | $730,400 | | | $676,452 | |
| Average Net Assets for the Period (in thousands) | | $1,149,894 | | | $1,076,107 | | | $731,491 | | | $652,848 | | | $656,674 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.98% | | | 1.01% | | | 0.82% | | | 0.81% | | | 0.74% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.96% | | | 1.00% | | | 0.81% | | | 0.79% | | | 0.73% | |
| | Ratio of Net Investment Income/(Loss) | | 0.23% | | | 0.24% | | | 0.73% | | | 0.72% | | | 0.44% | |
| Portfolio Turnover Rate | | 48% | | | 37% | | | 68% | | | 76% | | | 59% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Contrarian Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Contrarian 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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) 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 Contrarian 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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 Contrarian 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, 2022 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 Contrarian 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
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, 2022 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 Contrarian 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 the Adviser’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
Janus Henderson Contrarian Fund
Notes to Financial Statements
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). 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.
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).
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.
In writing an option, the Fund bears the risk of an unfavorable change in the price of the security underlying the written option. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options written are reported as a liability on the Statement of Assets and Liabilities as “Options written, at value” (if applicable). The risk in writing call options is that the Fund gives up the opportunity for profit if the market price of the security increases and the options are exercised. The risk in writing put options is that the Fund may incur a loss if the market price of the security decreases and the options are exercised. The risk in buying options is that the Fund pays a premium whether or not the options are exercised. Exercise of an option written by the Fund could result in the Fund buying or selling a security at a price different from the current market value.
During the year, the Fund wrote call options on various equity securities for the purpose of decreasing exposure to individual equity risk and/or generating income.
3. Other Investments and Strategies
Additional Investment Risk
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one
Janus Henderson Contrarian Fund
Notes to Financial Statements
region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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. For financial reporting purposes, the Fund does not offset financial instruments’
Janus Henderson Contrarian Fund
Notes to Financial Statements
payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser 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 the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $82,294,973. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $85,177,864, resulting in the net amount due to the counterparty of $2,882,891.
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.
Janus Henderson Contrarian Fund
Notes to Financial Statements
The Offsetting Assets and Liabilities tables located in the Schedule of Investments 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, 2022” table located in the Fund’s Schedule of Investments.
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.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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 the Adviser 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 S&P 500® 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 ±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 the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’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, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.70%.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.75% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing January 28, 2022. If applicable, amounts waived and/or reimbursed
Janus Henderson Contrarian Fund
Notes to Financial Statements
to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent 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.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C
Janus Henderson Contrarian Fund
Notes to Financial Statements
Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, of up to 0.50% of the Class R Shares' average daily net assets, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $63,586.
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, 2022, redeeming shareholders of Class A Shares paid CDSCs of $11 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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $5,439.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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
Janus Henderson Contrarian Fund
Notes to Financial Statements
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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Janus Henderson Contrarian Fund
Notes to Financial Statements
As of September 30, 2022, shares of the Fund were owned by affiliates of the Adviser, and/or other funds advised by the Adviser, 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 | 34 | | 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 the Adviser 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, 2022, the Fund engaged in cross trades amounting to $8,275,867 in purchases and $15,025,305 in sales, resulting in a net realized gain of $4,590,664. 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 and derivatives. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 11,253,240 | $ - | $ - | $ - | $(19,667,443) | $ 451,148 | $ 41,804,384 | |
Janus Henderson Contrarian 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, 2022 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) |
$ 3,966,291,912 | $470,705,126 | $(428,900,742) | $ 41,804,384 |
Information on the tax components of derivatives as of September 30, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ (585,251) | $ 553,456 | $ - | $ 553,456 |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 124,200,104 | $ 344,063,848 | $ - | $ - | |
| | | | | |
For the year ended September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 29,734,170 | $ 32,703,001 | $ - | $ - | |
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 |
$ - | $ (33,726) | $ 33,726 |
Janus Henderson Contrarian Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 1,152,866 | $ 31,636,833 | | 1,037,291 | $ 30,699,744 |
Reinvested dividends and distributions | 164,479 | 4,559,347 | | 15,888 | 422,291 |
Shares repurchased | (707,120) | (18,301,700) | | (296,808) | (8,685,382) |
Net Increase/(Decrease) | 610,225 | $ 17,894,480 | | 756,371 | $ 22,436,653 |
Class C Shares: | | | | | |
Shares sold | 617,444 | $ 15,569,116 | | 527,475 | $ 14,399,575 |
Reinvested dividends and distributions | 90,315 | 2,258,775 | | 4,365 | 106,333 |
Shares repurchased | (283,921) | (6,686,022) | | (141,226) | (3,616,121) |
Net Increase/(Decrease) | 423,838 | $ 11,141,869 | | 390,614 | $ 10,889,787 |
Class D Shares: | | | | | |
Shares sold | 3,662,392 | $103,307,288 | | 6,311,733 | $185,542,741 |
Reinvested dividends and distributions | 9,388,581 | 261,472,004 | | 1,551,849 | 41,387,799 |
Shares repurchased | (7,821,632) | (213,214,346) | | (7,445,834) | (213,631,852) |
Net Increase/(Decrease) | 5,229,341 | $151,564,946 | | 417,748 | $ 13,298,688 |
Class I Shares: | | | | | |
Shares sold | 29,363,877 | $803,303,253 | | 20,840,930 | $624,629,266 |
Reinvested dividends and distributions | 2,326,660 | 64,774,205 | | 86,151 | 2,298,518 |
Shares repurchased | (17,300,101) | (457,710,119) | | (2,922,897) | (86,036,007) |
Net Increase/(Decrease) | 14,390,436 | $410,367,339 | | 18,004,184 | $540,891,777 |
Class N Shares: | | | | | |
Shares sold | 2,203,210 | $ 63,036,485 | | 1,088,820 | $ 33,285,683 |
Reinvested dividends and distributions | 333,560 | 9,266,301 | | 38,259 | 1,018,451 |
Shares repurchased | (1,051,858) | (27,598,944) | | (763,485) | (21,463,383) |
Net Increase/(Decrease) | 1,484,912 | $ 44,703,842 | | 363,594 | $ 12,840,751 |
Class R Shares: | | | | | |
Shares sold | 43,552 | $ 1,187,322 | | 70,907 | $ 2,016,233 |
Reinvested dividends and distributions | 6,157 | 163,350 | | 191 | 4,899 |
Shares repurchased | (16,025) | (375,998) | | (41,940) | (1,202,364) |
Net Increase/(Decrease) | 33,684 | $ 974,674 | | 29,158 | $ 818,768 |
Class S Shares: | | | | | |
Shares sold | 56,730 | $ 1,672,145 | | 10,193 | $ 296,736 |
Reinvested dividends and distributions | 5,902 | 163,299 | | 213 | 5,653 |
Shares repurchased | (18,824) | (504,794) | | (6,971) | (196,164) |
Net Increase/(Decrease) | 43,808 | $ 1,330,650 | | 3,435 | $ 106,225 |
Class T Shares: | | | | | |
Shares sold | 5,894,110 | $168,434,652 | | 12,964,866 | $376,240,340 |
Reinvested dividends and distributions | 3,963,364 | 110,260,797 | | 567,739 | 15,135,921 |
Shares repurchased | (8,559,479) | (234,168,169) | | (7,832,238) | (225,215,650) |
Net Increase/(Decrease) | 1,297,995 | $ 44,527,280 | | 5,700,367 | $166,160,611 |
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$2,572,999,572 | $2,290,051,029 | $ - | $ - |
Janus Henderson Contrarian Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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 Contrarian Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Contrarian Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Contrarian Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Contrarian 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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Contrarian Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Contrarian Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Contrarian Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Contrarian Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Contrarian Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Contrarian Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Contrarian Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Contrarian Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Contrarian Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Contrarian Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Contrarian 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, 2022. 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 the Adviser 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 Contrarian 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 Contrarian 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 Contrarian Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2022:
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Capital Gain Distributions | $344,063,848 |
Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income Percentage | 100% |
Janus Henderson Contrarian 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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 Contrarian 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 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
Janus Henderson Contrarian 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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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 Contrarian 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
Janus Henderson Contrarian 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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
Janus Henderson Contrarian 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 F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
Janus Henderson Contrarian 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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
Janus Henderson Contrarian 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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019) and Director of Walmart (until 2017). |
Janus Henderson Contrarian 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 |
Nick Schommer 151 Detroit Street Denver, CO 80206 DOB: 1978 | Executive Vice President and Portfolio Manager Janus Henderson Contrarian Fund | 7/17-Present | Portfolio Manager for other Janus Henderson accounts. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US 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 Henderson Services US LLC. |
* 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 Contrarian 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 |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Contrarian 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93038 11-22 |
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| | | |
| | | ANNUAL REPORT September 30, 2022 |
| | |
| | Janus Henderson Emerging Markets Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Emerging Markets Fund
Janus Henderson Emerging Markets Fund (unaudited)
| | | | | | |
FUND SNAPSHOT This style-agnostic fund seeks to identify the most compelling emerging market opportunities across countries and corporations in various stages of political and economic development. | | | | 
Matthew Culley co-portfolio manager | 
Daniel J. Graña co-portfolio manager |
| | | |
PERFORMANCE
The Janus Henderson Emerging Markets Fund Class I Shares returned -31.88% for the 12-month period ended September 30, 2022. The Fund’s benchmark, the MSCI Emerging Markets IndexSM, returned -28.11%.
INVESTMENT ENVIRONMENT
Global stocks declined as supply chain bottlenecks, rising inflation, and more restrictive central bank policies added to economic uncertainty. Higher interest rates also fueled fears of a potential recession in the U.S. and other markets, with implications for global growth. As a result, we saw a sharp sell-off in risk-related assets, particularly in countries, industries, and companies that would be sensitive to a slowing global demand. The fallout from the Russian invasion of Ukraine and regulatory and economic uncertainty in China were also headwinds for the emerging markets. Conversely, higher raw materials prices and a shift away from Russian producers provided a tailwind for economic growth and investment performance in other commodities-exporting countries, such as Indonesia. Against this backdrop, emerging market stocks underperformed developed market equities, as measured by the MSCI World IndexSM.
PERFORMANCE DISCUSSION
Emerging market stocks suffered heightened volatilty in the first quarter of 2022 after Russia’s invasion of Ukraine escalated global tensions and worsened inflation pressures. This action drew widespread criticism and prompted a series of sanctions that took a heavy toll on Russia’s economy and investment markets. Starting in late 2021, we signicantly reduced our Russian exposure as an invasion appeared more likely. However, we held onto a few Russian investments, such as e-commerce company Ozon Holdings, that we believed offered strong underlying fundamentals. On the day of the Russian invasion, we immediately sold these remaining Russian stocks as we determined that Russian equities were no longer investable. Despite this move, Ozon Holdings was still a prominent detractor for the 12-month period.
The past year has also been challenging for Chinese equities, against a backdrop of regulatory uncertainty, renewed COVID lockdowns, and concerns over the health of China’s property sector. While the Fund doesn't own any property developers in China, several of our holdings were negatively impacted because of their indirect exposure to the property market. These included Linklogis, a Chinese blockchain technology company that counts leading property developers as clients. While Linklogis may see reduced business volumes in the near term, we have continued to see long-term potential for the business given its leading blockchain technology, strong customer relationships, and expanding addressable market. As a result, we held onto the position.
Relative performance was lifted by several investments in India, as declining COVID rates led to improved economic fundamentals for the country. FSN E-Commerce, a top positive contributor, is a vertically integrated e-commerce company that has become India’s dominant online retailer of beauty and personal care products. It has built on its strong competitive positioning through its exclusive marketing relationships and new business initiatives. Because of its asset-light business model, it has been able to translate revenue growth into profitability. Additionally, we benefited from our investment in Varun Beverages, a prominent bottler of Pepsi products in India. Per capita consumption of soft drinks in India is a fraction of what it is in other countries, so we have seen ample opportunity for growth as Varun has sought to tap more of this potential market. The company experienced a rebound in on-the-go beverage consumption in India as COVID fears eased. It was also able to maintain profit margins and deliver strong financial performance despite higher commodities prices.
Janus Henderson Emerging Markets Fund (unaudited)
OUTLOOK
We expect equity markets to remain volatile in the near term given the risks around inflation, higher interest rates, slowing consumer demand, and heightened geopolitical instability. In our view, these dynamics have increased the probability of recession in many developed markets, which may ultimately dampen economic prospects for the emerging markets. We believe our disciplined investment approach may help us navigate this challenging period, guided by our multi-lens approach that considers company fundamentals and governance as well as the macro and policy landscape. In keeping with this approach, we remain on the lookout for signs of a more accommodative stance in China, one of the few emerging market countries with the ability to conduct independent macroeconomic policy. While other central banks are tightening monetary and fiscal conditions, China appears to be going in the opposite direction with measures to stimulate growth. The country also appears to be moving beyond the worst effects of COVID, which could lead to improved logistics, supply chain conditions, and consumer mobility. Outside of China, we continue to find opportunities in Vietnam, Indonesia, and Mexico. These three countries have been benefiting from the diversification of supply chains and the trend toward near-shoring, as corporations seek to secure supply chains closer to home. Above all, we remain committed to seeking good companies with good governance that operate in favorable countries. We believe this strategy may lead to favorable investment outcomes over the longer term.
Thank you for investing in the Janus Henderson Emerging Markets Fund.
Janus Henderson Emerging Markets Fund (unaudited)
Fund At A Glance
September 30, 2022
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| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| FSN E-Commerce Ventures Ltd | 0.29% | | 0.84% | | Ozon Holdings PLC (ADR) | 0.48% | | -0.95% |
| Varun Beverages Ltd | 1.53% | | 0.81% | | VTEX - Class A | 0.61% | | -0.77% |
| ICICI Bank Ltd | 2.85% | | 0.68% | | Full Truck Alliance Co (ADR) | 1.67% | | -0.57% |
| Ivanhoe Mines Ltd | 1.71% | | 0.52% | | LUKOIL PJSC (ADR) | 0.86% | | -0.56% |
| Bank Negara Indonesia Persero Tbk PT | 1.15% | | 0.50% | | Linklogis Inc - Class B | 1.44% | | -0.49% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Emerging Markets Index |
| | | Contribution | | Average Weight | Average Weight |
| Other** | | 1.27% | | 4.98% | 0.00% |
| Consumer Staples | | 0.69% | | 5.03% | 5.96% |
| Information Technology | | 0.14% | | 26.70% | 20.80% |
| Real Estate | | -0.01% | | 1.29% | 2.05% |
| Consumer Discretionary | | -0.04% | | 9.59% | 13.64% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Emerging Markets Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -1.33% | | 17.51% | 21.03% |
| Industrials | | -0.82% | | 6.12% | 5.35% |
| Communication Services | | -0.82% | | 10.19% | 10.41% |
| Energy | | -0.80% | | 1.31% | 5.31% |
| Utilities | | -0.72% | | 2.41% | 2.63% |
| | | | | | | |
| 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 Emerging Markets Fund (unaudited)
Fund At A Glance
September 30, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 8.0% |
Tencent Holdings Ltd | |
Interactive Media & Services | 4.4% |
ICICI Bank Ltd | |
Banks | 3.8% |
Housing Development Finance Corp Ltd | |
Thrifts & Mortgage Finance | 3.5% |
Samsung Electronics Co Ltd | |
Technology Hardware, Storage & Peripherals | 3.4% |
| | 23.1% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.2% | |
Investment Companies | | 1.6% | |
Private Placements | | 1.0% | |
Other | | 0.2% |
| | | 100.0% |
Emerging markets comprised 90.6% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson Emerging Markets Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2022 | | | 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 | | -32.08% | -3.54% | 0.24% | -0.94% | | | 1.67% | 1.37% |
Class A Shares at MOP | | -35.97% | -4.67% | -0.35% | -1.44% | | | | |
Class C Shares at NAV | | -32.57% | -4.28% | -0.52% | -1.69% | | | 2.49% | 2.12% |
Class C Shares at CDSC | | -33.24% | -4.28% | -0.52% | -1.69% | | | | |
Class D Shares | | -31.94% | -3.37% | 0.30% | -0.89% | | | 1.46% | 1.18% |
Class I Shares | | -31.88% | -3.31% | 0.49% | -0.69% | | | 1.37% | 1.11% |
Class N Shares | | -31.82% | -3.25% | 0.43% | -0.78% | | | 1.28% | 1.03% |
Class S Shares | | -32.21% | -3.63% | 0.02% | -1.17% | | | 4.44% | 1.54% |
Class T Shares | | -32.07% | -3.50% | 0.21% | -0.98% | | | 1.62% | 1.28% |
MSCI Emerging Markets Index | | -28.11% | -1.81% | 1.05% | 0.12% | | | | |
Morningstar Quartile - Class I Shares | | 3rd | 4th | 3rd | 3rd | | | | |
Morningstar Ranking - based on total returns for Diversified Emerging Markets Funds | | 505/813 | 490/688 | 324/493 | 292/387 | | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
Janus Henderson Emerging Markets Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Returns of the Fund shown prior to June 5, 2017 are those for Henderson Emerging Markets Fund (the “Predecessor Fund”), which merged into the Fund after the close of business on June 2, 2017. The Predecessor Fund was advised by Henderson Global Investors (North America) Inc. and subadvised by Henderson Investment Management Limited. Class A Shares, Class C Shares, Class I Shares, and Class R6 Shares of the Predecessor Fund were reorganized into Class A Shares, Class C Shares, Class I Shares, and Class N Shares, respectively, of the Fund. In connection with this reorganization, certain shareholders of the Predecessor Fund who held shares directly with the Predecessor Fund and not through an intermediary had the Class A Shares, Class C Shares, Class I Shares, and Class N Shares of the Fund received in the reorganization automatically exchanged for Class D Shares of the Fund following the reorganization. Class A Shares, Class C Shares and Class I Shares of the Predecessor Fund commenced operations with the Predecessor Fund’s inception on December 31, 2010. Class R6 Shares of the Predecessor Fund commenced operations on November 30, 2015. Class D Shares, Class S Shares, and Class T Shares commenced operations on June 5, 2017.
Performance of Class A Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class C Shares shown for periods prior to June 5, 2017, reflects the performance of Class C Shares of the Predecessor Fund, calculated using the fees and expenses of Class C Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class I Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the fees and expenses of Class I Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class N Shares shown for periods prior to June 5, 2017, reflects the performance of Class R6 Shares of the Predecessor Fund, calculated using the fees and expenses of Class R6 Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to November 30, 2015, performance for Class N Shares reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class N Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class S Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class S Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class T Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class D Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class D Shares, net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2022 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Predecessor Fund’s inception date – December 31, 2010
‡ As stated in the prospectus. Net expense ratios reflect the expense waivers, if any, contractually agreed to for at least a one-year period commencing on January 28, 2022. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Emerging Markets 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $783.00 | $6.21 | | $1,000.00 | $1,018.10 | $7.03 | 1.39% |
Class C Shares | $1,000.00 | $778.80 | $9.59 | | $1,000.00 | $1,014.29 | $10.86 | 2.15% |
Class D Shares | $1,000.00 | $783.30 | $5.41 | | $1,000.00 | $1,019.00 | $6.12 | 1.21% |
Class I Shares | $1,000.00 | $783.60 | $5.05 | | $1,000.00 | $1,019.40 | $5.72 | 1.13% |
Class N Shares | $1,000.00 | $784.10 | $4.70 | | $1,000.00 | $1,019.80 | $5.32 | 1.05% |
Class S Shares | $1,000.00 | $781.20 | $6.97 | | $1,000.00 | $1,017.25 | $7.89 | 1.56% |
Class T Shares | $1,000.00 | $782.30 | $5.76 | | $1,000.00 | $1,018.60 | $6.53 | 1.29% |
† | 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 Emerging Markets Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 97.2% | | | |
Banks – 16.7% | | | |
| | Al Rajhi Bank | | 45,724 | | | $982,618 | |
| | Alinma Bank | | 88,858 | | | 850,992 | |
| | Bank Negara Indonesia Persero Tbk PT | | 2,973,800 | | | 1,738,899 | |
| | China Merchants Bank Co Ltd - Class A | | 91,708 | | | 430,082 | |
| | Commercial Bank PQSC | | 338,219 | | | 652,222 | |
| | HDFC Bank Ltd | | 87,995 | | | 1,524,865 | |
| | ICICI Bank Ltd | | 230,010 | | | 2,409,541 | |
| | Regional SAB de CV | | 224,548 | | | 1,266,088 | |
| | Vietnam Technological & Commercial Joint Stock Bank* | | 599,100 | | | 808,916 | |
| | | 10,664,223 | |
Beverages – 2.1% | | | |
| | Becle SAB de CV | | 507,367 | | | 898,813 | |
| | Varun Beverages Ltd | | 40,105 | | | 452,495 | |
| | | 1,351,308 | |
Biotechnology – 1.4% | | | |
| | CANbridge Pharmaceuticals Inc* | | 597,481 | | | 226,832 | |
| | Zai Lab Ltd* | | 191,900 | | | 665,363 | |
| | | 892,195 | |
Building Products – 0.4% | | | |
| | Xinyi Glass Holdings Ltd | | 185,000 | | | 267,964 | |
Capital Markets – 2.1% | | | |
| | CITIC Securities Co Ltd | | 799,000 | | | 1,354,322 | |
Chemicals – 1.9% | | | |
| | Fertiglobe PLC | | 762,939 | | | 1,185,248 | |
Communications Equipment – 1.1% | | | |
| | Accton Technology Corp | | 84,000 | | | 712,325 | |
Containers & Packaging – 0.9% | | | |
| | Yunnan Energy New Material Co Ltd - Class A | | 24,748 | | | 603,251 | |
Diversified Financial Services – 1.0% | | | |
| | Linklogis Inc - Class B (144A)* | | 1,476,439 | | | 611,040 | |
Diversified Telecommunication Services – 4.7% | | | |
| | Saudi Telecom Co | | 156,347 | | | 1,633,419 | |
| | Telekomunikasi Indonesia Persero Tbk PT | | 4,722,200 | | | 1,375,786 | |
| | | 3,009,205 | |
Electronic Equipment, Instruments & Components – 5.0% | | | |
| | E Ink Holdings Inc | | 113,000 | | | 746,641 | |
| | Hon Hai Precision Industry Co Ltd | | 408,000 | | | 1,302,609 | |
| | Sinbon Electronics Co Ltd | | 78,000 | | | 647,742 | |
| | Wingtech Technology Co Ltd - Class A | | 80,235 | | | 535,236 | |
| | | 3,232,228 | |
Food & Staples Retailing – 3.4% | | | |
| | BGF retail Co Ltd | | 8,069 | | | 930,676 | |
| | Wal-Mart de Mexico SAB de CV | | 360,669 | | | 1,268,733 | |
| | | 2,199,409 | |
Food Products – 2.8% | | | |
| | Masan Group Corp | | 222,960 | | | 917,258 | |
| | Tingyi Cayman Islands Holding Corp | | 512,000 | | | 876,385 | |
| | | 1,793,643 | |
Health Care Providers & Services – 0.7% | | | |
| | New Horizon Health Ltd (144A)* | | 246,000 | | | 453,649 | |
Hotels, Restaurants & Leisure – 3.0% | | | |
| | Alamar Foods | | 13,874 | | | 498,666 | |
| | Yum China Holdings Inc | | 30,200 | | | 1,425,115 | |
| | | 1,923,781 | |
Independent Power and Renewable Electricity Producers – 1.1% | | | |
| | China Longyuan Power Group Corp Ltd | | 574,000 | | | 717,816 | |
Insurance – 1.8% | | | |
| | AIA Group Ltd | | 139,000 | | | 1,154,092 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Emerging Markets Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Interactive Media & Services – 4.8% | | | |
| | Tencent Holdings Ltd | | 83,500 | | | $2,820,052 | |
| | VTEX - Class A* | | 72,006 | | | 266,422 | |
| | | 3,086,474 | |
Internet & Direct Marketing Retail – 6.4% | | | |
| | Alibaba Group Holding Ltd* | | 207,132 | | | 2,077,785 | |
| | JD.Com Inc - Class A | | 79,492 | | | 2,007,341 | |
| | | 4,085,126 | |
Life Sciences Tools & Services – 1.7% | | | |
| | Syngene International Ltd (144A) | | 104,070 | | | 714,671 | |
| | Wuxi Biologics Cayman Inc (144A)* | | 62,000 | | | 371,481 | |
| | | 1,086,152 | |
Machinery – 1.8% | | | |
| | Sany Heavy Industry Co Ltd | | 283,616 | | | 550,921 | |
| | Shenzhen Inovance Technology Co Ltd - Class A | | 74,465 | | | 597,489 | |
| | | 1,148,410 | |
Metals & Mining – 6.6% | | | |
| | Allkem Ltd* | | 86,849 | | | 771,947 | |
| | Anglo American PLC | | 37,434 | | | 1,130,563 | |
| | Companhia Brasileira de Aluminio | | 377,208 | | | 800,026 | |
| | Ivanhoe Mines Ltd* | | 152,295 | | | 980,236 | |
| | Solaris Resources Inc* | | 134,989 | | | 566,852 | |
| | | 4,249,624 | |
Oil, Gas & Consumable Fuels – 1.5% | | | |
| | 3R Petroleum Oleo e Gas SA* | | 141,335 | | | 933,080 | |
Pharmaceuticals – 0.3% | | | |
| | Zhaoke Ophthalmology Ltd (144A)* | | 516,500 | | | 171,123 | |
Real Estate Management & Development – 1.1% | | | |
| | Vinhomes JSC (144A) | | 343,258 | | | 725,106 | |
Road & Rail – 1.9% | | | |
| | Full Truck Alliance Co (ADR)* | | 185,221 | | | 1,213,198 | |
Semiconductor & Semiconductor Equipment – 8.8% | | | |
| | LEENO Industrial Inc | | 5,526 | | | 475,670 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 390,000 | | | 5,126,594 | |
| | | 5,602,264 | |
Technology Hardware, Storage & Peripherals – 3.4% | | | |
| | Samsung Electronics Co Ltd | | 59,878 | | | 2,200,271 | |
Thrifts & Mortgage Finance – 3.5% | | | |
| | Housing Development Finance Corp Ltd | | 80,128 | | | 2,231,442 | |
Transportation Infrastructure – 1.1% | | | |
| | International Container Terminal Services Inc | | 266,150 | | | 711,646 | |
Water Utilities – 1.3% | | | |
| | China Water Affairs Group Ltd | | 1,028,000 | | | 810,323 | |
Wireless Telecommunication Services – 2.9% | | | |
| | Bharti Airtel Ltd | | 189,073 | | | 1,846,766 | |
Total Common Stocks (cost $74,300,966) | | 62,226,704 | |
Private Placements– 1.0% | | | |
Biotechnology – 0.6% | | | |
| | Structure Therapeutics Inc - Series B*,¢,§ | | 92,696 | | | 375,261 | |
Health Care Providers & Services – 0.4% | | | |
| | API Holdings Private Ltd*,¢,§ | | 758,340 | | | 282,869 | |
Total Private Placements (cost $926,137) | | 658,130 | |
Investment Companies– 1.6% | | | |
Money Markets – 1.6% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $1,012,593) | | 1,012,535 | | | 1,012,636 | |
Total Investments (total cost $76,239,696) – 99.8% | | 63,897,470 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.2% | | 119,182 | |
Net Assets – 100% | | $64,016,652 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Emerging Markets Fund
Schedule of Investments
September 30, 2022
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
China | | $18,894,065 | | 29.6 | % |
India | | 9,462,649 | | 14.8 | |
Taiwan | | 8,535,911 | | 13.4 | |
Saudi Arabia | | 3,965,695 | | 6.2 | |
South Korea | | 3,606,617 | | 5.6 | |
Mexico | | 3,433,634 | | 5.4 | |
Indonesia | | 3,114,685 | | 4.9 | |
Vietnam | | 2,451,280 | | 3.8 | |
Brazil | | 1,999,528 | | 3.1 | |
Canada | | 1,547,088 | | 2.4 | |
Hong Kong | | 1,422,056 | | 2.2 | |
United Arab Emirates | | 1,185,248 | | 1.9 | |
United Kingdom | | 1,130,563 | | 1.8 | |
United States | | 1,012,636 | | 1.6 | |
Australia | | 771,947 | | 1.2 | |
Philippines | | 711,646 | | 1.1 | |
Qatar | | 652,222 | | 1.0 | |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - 1.6% |
Money Markets - 1.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 13,782 | $ | (177) | $ | 43 | $ | 1,012,636 |
| |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - 1.6% |
Money Markets - 1.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 4,136,863 | | 45,297,854 | | (48,421,947) | | 1,012,636 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Emerging Markets Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI Emerging Markets IndexSM | MSCI Emerging Markets IndexSM reflects the equity market performance of emerging markets. |
| | |
ADR | American Depositary Receipt |
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, 2022 is $3,047,070, which represents 4.8% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2022 is $658,130, which represents 1.0% 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. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
API Holdings Private Ltd | 9/27/21 | $ | 550,876 | $ | 282,869 | | 0.4 | % |
Structure Therapeutics Inc - Series B | 7/30/21 | | 375,261 | | 375,261 | | 0.6 | |
Total | | $ | 926,137 | $ | 658,130 | | 1.0 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2022. The issuer incurs all registration costs. | |
Janus Henderson Emerging Markets 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, 2022. 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 | $ | 1,266,088 | $ | 9,398,135 | $ | - |
Beverages | | 898,813 | | 452,495 | | - |
Biotechnology | | 226,832 | | 665,363 | | - |
Food & Staples Retailing | | 1,268,733 | | 930,676 | | - |
Hotels, Restaurants & Leisure | | 498,666 | | 1,425,115 | | - |
Interactive Media & Services | | 266,422 | | 2,820,052 | | - |
Metals & Mining | | 2,347,114 | | 1,902,510 | | - |
Oil, Gas & Consumable Fuels | | 933,080 | | - | | - |
Road & Rail | | 1,213,198 | | - | | - |
All Other | | - | | 35,713,412 | | - |
Private Placements | | - | | - | | 658,130 |
Investment Companies | | - | | 1,012,636 | | - |
Total Assets | $ | 8,918,946 | $ | 54,320,394 | $ | 658,130 |
| | | | | | | |
| | | | | | | | |
Level 3 Valuation Reconciliation of Assets (for the year ended September 30, 2022) |
| | | | | | | |
| Balance
as of
September 30, 2021 | 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, 2022 |
Investment in Securities: | | | | | | | |
Preferred Stocks | | | | | | | |
Pharmaceuticals | $ 592,646 | $ - | $ - | $ - | $(592,646)(b) | $ - | $ - |
Private Placements | | | | | | | |
Biotechnology | 375,261 | - | - | - | - | - | 375,261 |
Health Care Providers & Services | 548,011 | - | (265,142) | - | - | - | 282,869 |
Total | $ 1,515,918 | $ - | $ (265,142) | $ - | $ (592,646) | $ - | $ 658,130 |
(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 Emerging Markets Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $75,227,103) | | $ | 62,884,834 | |
| Affiliated investments, at value (cost $1,012,593) | | | 1,012,636 | |
| Cash denominated in foreign currency (cost $712,977) | | | 712,304 | |
| Trustees' deferred compensation | | | 1,928 | |
| Receivables: | | | | |
| | Investments sold | | | 1,301,114 | |
| | Fund shares sold | | | 190,934 | |
| | Dividends | | | 63,309 | |
| | Foreign tax reclaims | | | 4,220 | |
| | Dividends from affiliates | | | 4,124 | |
| Other assets | | | 17,256 | |
Total Assets | | | 66,192,659 | |
Liabilities: | | | | |
| Due to custodian | | | 6 | |
| Payables: | | | — | |
| | Investments purchased | | | 1,804,711 | |
| | Fund shares repurchased | | | 103,966 | |
| | Advisory fees | | | 91,568 | |
| | Professional fees | | | 69,971 | |
| | Foreign tax liability | | | 51,740 | |
| | Custodian fees | | | 13,411 | |
| | Transfer agent fees and expenses | | | 5,509 | |
| | Trustees' deferred compensation fees | | | 1,928 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 1,732 | |
| | Trustees' fees and expenses | | | 354 | |
| | Affiliated fund administration fees payable | | | 153 | |
| | Accrued expenses and other payables | | | 30,958 | |
Total Liabilities | | | 2,176,007 | |
Net Assets | | $ | 64,016,652 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Emerging Markets Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 86,875,509 | |
| Total distributable earnings (loss) (includes $51,740 of foreign capital gains tax) | | | (22,858,857) | |
Total Net Assets | | $ | 64,016,652 | |
Net Assets - Class A Shares | | $ | 3,311,367 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 429,497 | |
Net Asset Value Per Share(1) | | $ | 7.71 | |
Maximum Offering Price Per Share(2) | | $ | 8.18 | |
Net Assets - Class C Shares | | $ | 937,710 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 125,130 | |
Net Asset Value Per Share(1) | | $ | 7.49 | |
Net Assets - Class D Shares | | $ | 11,222,878 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,446,109 | |
Net Asset Value Per Share | | $ | 7.76 | |
Net Assets - Class I Shares | | $ | 9,816,885 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,268,552 | |
Net Asset Value Per Share | | $ | 7.74 | |
Net Assets - Class N Shares | | $ | 36,963,168 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,762,429 | |
Net Asset Value Per Share | | $ | 7.76 | |
Net Assets - Class S Shares | | $ | 76,127 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,741 | |
Net Asset Value Per Share | | $ | 7.82 | |
Net Assets - Class T Shares | | $ | 1,688,517 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 217,744 | |
Net Asset Value Per Share | | $ | 7.75 | |
| |
(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, 2022 |
Janus Henderson Emerging Markets Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 1,418,211 | |
| | Non-cash dividends | | 270,379 | |
| Dividends from affiliates | | 13,782 | |
| Other income | | 545 | |
| Foreign tax withheld | | (194,637) | |
Total Investment Income | | 1,508,280 | |
Expenses: | | | |
| Advisory fees | | 878,441 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 10,844 | |
| | Class C Shares | | 14,112 | |
| | Class S Shares | | 224 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 16,960 | |
| | Class S Shares | | 224 | |
| | Class T Shares | | 6,070 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 3,520 | |
| | Class C Shares | | 1,188 | |
| | Class I Shares | | 12,129 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 327 | |
| | Class C Shares | | 100 | |
| | Class D Shares | | 6,383 | |
| | Class I Shares | | 826 | |
| | Class N Shares | | 2,129 | |
| | Class S Shares | | 8 | |
| | Class T Shares | | 70 | |
| Registration fees | | 123,223 | |
| Non-affiliated fund administration fees | | 65,191 | |
| Professional fees | | 58,300 | |
| Custodian fees | | 49,940 | |
| Shareholder reports expense | | 8,231 | |
| Affiliated fund administration fees | | 2,196 | |
| Trustees’ fees and expenses | | 1,873 | |
| Other expenses | | 9,549 | |
Total Expenses | | 1,272,058 | |
Less: Excess Expense Reimbursement and Waivers | | (290,357) | |
Net Expenses | | 981,701 | |
Net Investment Income/(Loss) | | 526,579 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Emerging Markets Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (net of foreign taxes of $61,643) | $ | (6,176,526) | |
| Investments in affiliates | | (177) | |
Total Net Realized Gain/(Loss) on Investments | | (6,176,703) | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation (net of increase in deferred foreign taxes of $49,529) | | (25,044,653) | |
| Investments in affiliates | | 43 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (25,044,610) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (30,694,734) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Emerging Markets Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 526,579 | | $ | (7,135) | |
| Net realized gain/(loss) on investments | | (6,176,703) | | | 11,980,353 | |
| Change in unrealized net appreciation/depreciation | | (25,044,610) | | | (327,611) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (30,694,734) | | | 11,645,607 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (133,124) | | | (38,800) | |
| | Class C Shares | | (23,265) | | | (3,802) | |
| | Class D Shares | | (481,190) | | | (131,423) | |
| | Class I Shares | | (539,900) | | | (247,374) | |
| | Class N Shares | | (1,789,591) | | | (452,579) | |
| | Class S Shares | | (2,399) | | | (859) | |
| | Class T Shares | | (77,857) | | | (27,803) | |
Net Decrease from Dividends and Distributions to Shareholders | | (3,047,326) | | | (902,640) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 44,305 | | | 359,459 | |
| | Class C Shares | | (329,265) | | | (1,275,874) | |
| | Class D Shares | | (936,106) | | | 6,221,816 | |
| | Class I Shares | | (3,610,108) | | | (3,990,449) | |
| | Class N Shares | | (4,367,939) | | | 20,025,314 | |
| | Class S Shares | | 19,488 | | | (17,466) | |
| | Class T Shares | | (325,699) | | | 86,155 | |
Net Increase/(Decrease) from Capital Share Transactions | | (9,505,324) | | | 21,408,955 | |
Net Increase/(Decrease) in Net Assets | | (43,247,384) | | | 32,151,922 | |
Net Assets: | | | | | | |
| Beginning of period | | 107,264,036 | | | 75,112,114 | |
| End of period | $ | 64,016,652 | | $ | 107,264,036 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $11.68 | | | $10.02 | | | $8.72 | | | $9.48 | | | $10.36 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.04 | | | (0.03) | | | 0.02 | | | 0.10 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | (3.70) | | | 1.79 | | | 1.40 | | | (0.55) | | | (0.67) | |
| Total from Investment Operations | | (3.66) | | | 1.76 | | | 1.42 | | | (0.45) | | | (0.57) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.31) | | | (0.10) | | | (0.12) | | | (0.13) | | | (0.10) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | |
| Total Dividends and Distributions | | (0.31) | | | (0.10) | | | (0.12) | | | (0.31) | | | (0.31) | |
| Net Asset Value, End of Period | | $7.71 | | | $11.68 | | | $10.02 | | | $8.72 | | | $9.48 | |
| Total Return* | | (32.11)% | | | 17.58% | | | 16.32% | | | (4.66)%(2) | | | (5.80)% | |
| Net Assets, End of Period (in thousands) | | $3,311 | | | $4,986 | | | $4,000 | | | $4,859 | | | $15,771 | |
| Average Net Assets for the Period (in thousands) | | $4,320 | | | $4,989 | | | $4,394 | | | $8,932 | | | $16,103 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.75% | | | 1.66% | | | 1.87% | | | 1.65% | | | 1.51% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.38% | | | 1.37% | | | 1.37% | | | 1.30% | | | 1.33% | |
| | Ratio of Net Investment Income/(Loss) | | 0.35% | | | (0.25)% | | | 0.27% | | | 1.11% | | | 0.93% | |
| Portfolio Turnover Rate | | 63% | | | 76% | | | 110% | | | 68% | | | 26% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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) Total return without the effect of affiliated payments would have been (4.89)%. |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2022 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $11.29 | | | $9.69 | | | $8.42 | | | $9.12 | | | $9.98 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.04) | | | (0.12) | | | (0.04) | | | 0.05 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | (3.60) | | | 1.74 | | | 1.35 | | | (0.55) | | | (0.65) | |
| Total from Investment Operations | | (3.64) | | | 1.62 | | | 1.31 | | | (0.50) | | | (0.64) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.16) | | | (0.02) | | | (0.04) | | | (0.02) | | | (0.01) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | |
| Total Dividends and Distributions | | (0.16) | | | (0.02) | | | (0.04) | | | (0.20) | | | (0.22) | |
| Net Asset Value, End of Period | | $7.49 | | | $11.29 | | | $9.69 | | | $8.42 | | | $9.12 | |
| Total Return* | | (32.66)% | | | 16.67% | | | 15.56% | | | (5.38)%(2) | | | (6.59)% | |
| Net Assets, End of Period (in thousands) | | $938 | | | $1,802 | | | $2,573 | | | $3,432 | | | $5,985 | |
| Average Net Assets for the Period (in thousands) | | $1,432 | | | $2,385 | | | $2,927 | | | $4,604 | | | $8,442 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.63% | | | 2.48% | | | 2.61% | | | 2.54% | | | 2.26% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.11% | | | 2.11% | | | 2.09% | | | 2.11% | | | 2.07% | |
| | Ratio of Net Investment Income/(Loss) | | (0.40)% | | | (1.06)% | | | (0.44)% | | | 0.56% | | | 0.11% | |
| Portfolio Turnover Rate | | 63% | | | 76% | | | 110% | | | 68% | | | 26% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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) Total return without the effect of affiliated payments would have been (5.61)%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $11.77 | | | $10.09 | | | $8.78 | | | $9.53 | | | $10.41 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | (0.01) | | | 0.05 | | | 0.14 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | (3.72) | | | 1.81 | | | 1.41 | | | (0.59) | | | (0.67) | |
| Total from Investment Operations | | (3.67) | | | 1.80 | | | 1.46 | | | (0.45) | | | (0.56) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.34) | | | (0.12) | | | (0.15) | | | (0.12) | | | (0.11) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | |
| Total Dividends and Distributions | | (0.34) | | | (0.12) | | | (0.15) | | | (0.30) | | | (0.32) | |
| Net Asset Value, End of Period | | $7.76 | | | $11.77 | | | $10.09 | | | $8.78 | | | $9.53 | |
| Total Return* | | (32.03)% | | | 17.85% | | | 16.66% | | | (4.59)%(2) | | | (5.64)% | |
| Net Assets, End of Period (in thousands) | | $11,223 | | | $17,993 | | | $10,854 | | | $10,957 | | | $13,104 | |
| Average Net Assets for the Period (in thousands) | | $14,826 | | | $20,727 | | | $10,785 | | | $12,337 | | | $15,607 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.55% | | | 1.45% | | | 1.70% | | | 1.80% | | | 1.38% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.19% | | | 1.17% | | | 1.19% | | | 1.19% | | | 1.15% | |
| | Ratio of Net Investment Income/(Loss) | | 0.53% | | | (0.07)% | | | 0.50% | | | 1.51% | | | 1.08% | |
| Portfolio Turnover Rate | | 63% | | | 76% | | | 110% | | | 68% | | | 26% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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) Total return without the effect of affiliated payments would have been (4.82)%. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2022 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $11.74 | | | $10.07 | | | $8.78 | | | $9.52 | | | $10.42 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.06 | | | —(2) | | | 0.05 | | | 0.14 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | (3.71) | | | 1.80 | | | 1.41 | | | (0.57) | | | (0.69) | |
| Total from Investment Operations | | (3.65) | | | 1.80 | | | 1.46 | | | (0.43) | | | (0.57) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.35) | | | (0.13) | | | (0.17) | | | (0.13) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | |
| Total Dividends and Distributions | | (0.35) | | | (0.13) | | | (0.17) | | | (0.31) | | | (0.33) | |
| Net Asset Value, End of Period | | $7.74 | | | $11.74 | | | $10.07 | | | $8.78 | | | $9.52 | |
| Total Return* | | (31.97)% | | | 17.94% | | | 16.68% | | | (4.38)%(3) | | | (5.72)% | |
| Net Assets, End of Period (in thousands) | | $9,817 | | | $19,208 | | | $19,939 | | | $34,499 | | | $107,276 | |
| Average Net Assets for the Period (in thousands) | | $15,044 | | | $21,247 | | | $25,327 | | | $71,330 | | | $119,036 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.45% | | | 1.37% | | | 1.54% | | | 1.45% | | | 1.26% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.11% | | | 1.11% | | | 1.13% | | | 1.09% | |
| | Ratio of Net Investment Income/(Loss) | | 0.58% | | | (0.02)% | | | 0.50% | | | 1.49% | | | 1.17% | |
| Portfolio Turnover Rate | | 63% | | | 76% | | | 110% | | | 68% | | | 26% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. (3) Total return without the effect of affiliated payments would have been (4.61)%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $11.77 | | | $10.09 | | | $8.79 | | | $9.53 | | | $10.42 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.07 | | | 0.01 | | | 0.06 | | | 0.15 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | (3.72) | | | 1.80 | | | 1.40 | | | (0.57) | | | (0.68) | |
| Total from Investment Operations | | (3.65) | | | 1.81 | | | 1.46 | | | (0.42) | | | (0.56) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.36) | | | (0.13) | | | (0.16) | | | (0.14) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | |
| Total Dividends and Distributions | | (0.36) | | | (0.13) | | | (0.16) | | | (0.32) | | | (0.33) | |
| Net Asset Value, End of Period | | $7.76 | | | $11.77 | | | $10.09 | | | $8.79 | | | $9.53 | |
| Total Return* | | (31.91)% | | | 18.00% | | | 16.74% | | | (4.33)%(2) | | | (5.63)% | |
| Net Assets, End of Period (in thousands) | | $36,963 | | | $60,241 | | | $35,207 | | | $16,531 | | | $25,134 | |
| Average Net Assets for the Period (in thousands) | | $49,362 | | | $53,668 | | | $30,308 | | �� | $21,520 | | | $29,832 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.35% | | | 1.28% | | | 1.48% | | | 1.41% | | | 1.20% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.04% | | | 1.03% | | | 1.03% | | | 1.03% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | 0.69% | | | 0.10% | | | 0.68% | | | 1.65% | | | 1.15% | |
| Portfolio Turnover Rate | | 63% | | | 76% | | | 110% | | | 68% | | | 26% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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) Total return without the effect of affiliated payments would have been (4.56)%. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $11.85 | | | $10.17 | | | $8.81 | | | $9.51 | | | $10.41 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.02 | | | (0.05) | | | 0.02 | | | 0.08 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | (3.75) | | | 1.83 | | | 1.41 | | | (0.52) | | | (0.73) | |
| Total from Investment Operations | | (3.73) | | | 1.78 | | | 1.43 | | | (0.44) | | | (0.60) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.30) | | | (0.10) | | | (0.07) | | | (0.08) | | | (0.09) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | |
| Total Dividends and Distributions | | (0.30) | | | (0.10) | | | (0.07) | | | (0.26) | | | (0.30) | |
| Net Asset Value, End of Period | | $7.82 | | | $11.85 | | | $10.17 | | | $8.81 | | | $9.51 | |
| Total Return* | | (32.21)% | | | 17.47% | | | 16.26% | | | (4.49)%(2) | | | (5.98)% | |
| Net Assets, End of Period (in thousands) | | $76 | | | $93 | | | $95 | | | $77 | | | $1,753 | |
| Average Net Assets for the Period (in thousands) | | $89 | | | $113 | | | $79 | | | $488 | | | $1,189 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 5.24% | | | 4.44% | | | 5.74% | | | 2.25% | | | 1.85% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.55% | | | 1.49% | | | 1.46% | | | 1.18% | | | 1.47% | |
| | Ratio of Net Investment Income/(Loss) | | 0.22% | | | (0.38)% | | | 0.27% | | | 0.89% | | | 1.28% | |
| Portfolio Turnover Rate | | 63% | | | 76% | | | 110% | | | 68% | | | 26% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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) Total return without the effect of affiliated payments would have been (4.72)%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $11.75 | | | $10.08 | | | $8.78 | | | $9.52 | | | $10.42 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.04 | | | (0.02) | | | 0.04 | | | 0.13 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | (3.72) | | | 1.80 | | | 1.40 | | | (0.57) | | | (0.68) | |
| Total from Investment Operations | | (3.68) | | | 1.78 | | | 1.44 | | | (0.44) | | | (0.58) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.32) | | | (0.11) | | | (0.14) | | | (0.12) | | | (0.11) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | |
| Total Dividends and Distributions | | (0.32) | | | (0.11) | | | (0.14) | | | (0.30) | | | (0.32) | |
| Net Asset Value, End of Period | | $7.75 | | | $11.75 | | | $10.08 | | | $8.78 | | | $9.52 | |
| Total Return* | | (32.10)% | | | 17.69% | | | 16.43% | | | (4.56)%(2) | | | (5.86)% | |
| Net Assets, End of Period (in thousands) | | $1,689 | | | $2,940 | | | $2,444 | | | $3,008 | | | $4,862 | |
| Average Net Assets for the Period (in thousands) | | $2,419 | | | $3,095 | | | $2,477 | | | $4,046 | | | $7,275 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.72% | | | 1.62% | | | 1.82% | | | 1.73% | | | 1.45% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.28% | | | 1.28% | | | 1.28% | | | 1.27% | | | 1.26% | |
| | Ratio of Net Investment Income/(Loss) | | 0.44% | | | (0.18)% | | | 0.40% | | | 1.41% | | | 0.93% | |
| Portfolio Turnover Rate | | 63% | | | 76% | | | 110% | | | 68% | | | 26% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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) Total return without the effect of affiliated payments would have been (4.79)%. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2022 |
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson Emerging Markets 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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
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, 2022 | Valuation Technique | Unobservable Input | Input Amount or Range | Impact to Valuation from an Increase in Input |
Private Placements | | | | | |
Biotechnology | $375,261 | Market Approach | Transaction Price | $4.05 | Increase |
Health Care Providers & Services | $282,869 | Market Approach | Transaction Price | INR 30.34 | Increase |
| | | | | | |
INR Indian Rupee
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, 2022 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.
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
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 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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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 the Adviser 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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. Emerging market countries in which the Fund may invest include frontier market countries, the economies of which are less developed than other emerging market countries. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
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 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.
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 the Adviser 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 | 1.00 |
Next $1 Billion | 0.90 |
Over $2 Billion | 0.85 |
The Fund’s actual investment advisory fee rate for the reporting period was 1.00% of average annual net assets before any applicable waivers.
The Adviser 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 the Adviser. In this capacity, such employees of HGIL are subject to the oversight and supervision of the Adviser and may provide portfolio management, research, and related services to the Fund on behalf of the Adviser.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 1.03% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform certain
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, 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 Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $708.
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 the Distributor during the year ended September 30, 2022.
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended September 30, 2022, redeeming shareholders of Class C Shares paid CDSCs of $137.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
As of September 30, 2022, shares of the Fund were owned by affiliates of the Adviser, and/or other funds advised by the Adviser, 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 | 94 | | 54 | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes (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) | |
$ - | $ - | $ (8,337,306) | $ (307,443) | $ - | $ 14,577 | $(14,228,685) | |
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2022, 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, 2022 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(6,060,132) | $(2,277,174) | $ (8,337,306) | | |
Janus Henderson Emerging Markets 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, 2022 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) |
$ 78,074,415 | $ 2,852,914 | $(17,029,859) | $ (14,176,945) |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 3,047,326 | $ - | $ - | $ - | |
| | | | | |
For the year ended September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 902,640 | $ - | $ - | $ - | |
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 |
$ - | $ 960,036 | $ (960,036) |
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 64,466 | $ 636,436 | | 178,947 | $ 2,206,832 |
Reinvested dividends and distributions | 12,270 | 133,124 | | 3,383 | 38,800 |
Shares repurchased | (73,948) | (725,255) | | (154,674) | (1,886,173) |
Net Increase/(Decrease) | 2,788 | $ 44,305 | | 27,656 | $ 359,459 |
Class C Shares: | | | | | |
Shares sold | 12,073 | $ 116,222 | | 16,056 | $ 194,003 |
Reinvested dividends and distributions | 2,184 | 23,174 | | 340 | 3,793 |
Shares repurchased | (48,716) | (468,661) | | (122,409) | (1,473,670) |
Net Increase/(Decrease) | (34,459) | $ (329,265) | | (106,013) | $ (1,275,874) |
Class D Shares: | | | | | |
Shares sold | 294,071 | $ 3,055,369 | | 1,995,197 | $25,518,859 |
Reinvested dividends and distributions | 43,574 | 475,390 | | 11,263 | 129,977 |
Shares repurchased | (420,550) | (4,466,865) | | (1,553,046) | (19,427,020) |
Net Increase/(Decrease) | (82,905) | $ (936,106) | | 453,414 | $ 6,221,816 |
Class I Shares: | | | | | |
Shares sold | 215,855 | $ 2,137,803 | | 188,840 | $ 2,310,448 |
Reinvested dividends and distributions | 49,669 | 539,900 | | 21,333 | 245,325 |
Shares repurchased | (633,258) | (6,287,811) | | (553,189) | (6,546,222) |
Net Increase/(Decrease) | (367,734) | $(3,610,108) | | (343,016) | $ (3,990,449) |
Class N Shares: | | | | | |
Shares sold | 545,904 | $ 5,025,205 | | 1,932,868 | $23,679,300 |
Reinvested dividends and distributions | 164,333 | 1,789,591 | | 39,252 | 452,579 |
Shares repurchased | (1,065,368) | (11,182,735) | | (342,716) | (4,106,565) |
Net Increase/(Decrease) | (355,131) | $(4,367,939) | | 1,629,404 | $20,025,314 |
Class S Shares: | | | | | |
Shares sold | 1,983 | $ 19,974 | | 790 | $ 9,712 |
Reinvested dividends and distributions | 218 | 2,399 | | 74 | 859 |
Shares repurchased | (304) | (2,885) | | (2,330) | (28,037) |
Net Increase/(Decrease) | 1,897 | $ 19,488 | | (1,466) | $ (17,466) |
Class T Shares: | | | | | |
Shares sold | 103,734 | $ 1,189,907 | | 70,496 | $ 867,562 |
Reinvested dividends and distributions | 7,136 | 77,857 | | 2,411 | 27,803 |
Shares repurchased | (143,262) | (1,593,463) | | (65,195) | (809,210) |
Net Increase/(Decrease) | (32,392) | $ (325,699) | | 7,712 | $ 86,155 |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$53,434,347 | $ 63,056,455 | $ - | $ - |
7.Recent Accounting Pronouncements
The FASB issued Accounting Standards Update 2022-03: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”) in June 2022. The new guidance in the ASU clarifies existing guidance
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
in ASC 820 related to the fair value measurement of an equity security subject to contractual sale restrictions with the intent to reduce diversity in interpretation. Under the guidance, a contractual restriction on the sale of an equity security would not be considered when measuring fair value as such restriction is not treated as part of the equity security’s unit of account. The amendments would be applied prospectively on or after adoption date to equity securities with a contract containing a sale restriction that is executed or modified after such date. The effective date set by the FASB is December 15, 2023, with early adoption permitted. The Adviser is currently evaluating whether to early adopt and does not anticipate it to have a material impact on the Fund.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson Emerging Markets Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Emerging Markets Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Emerging Markets Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Emerging Markets 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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Emerging Markets 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, 2022. 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 the Adviser 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 Emerging Markets 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 Emerging Markets 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 Emerging Markets Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2022:
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Foreign Taxes Paid | $194,158 |
Foreign Source Income | $1,583,196 |
Qualified Dividend Income Percentage | 86% |
Janus Henderson Emerging Markets 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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. Except as otherwise disclosed, Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Janus Henderson Emerging Markets 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 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
Janus Henderson Emerging Markets 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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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 Emerging Markets 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
Janus Henderson Emerging Markets 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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
Janus Henderson Emerging Markets 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 F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
Janus Henderson Emerging Markets 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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
Janus Henderson Emerging Markets 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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019) and Director of Walmart (until 2017). |
Janus Henderson Emerging Markets 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 |
Matthew Culley
151 Detroit Street
Denver, CO 80206
DOB:1986 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Emerging Markets Fund | 3/22-Present | Portfolio Manager for other Janus Henderson accounts and an Analyst for the Adviser. Formerly, portfolio manager at Putnam Investment Management, LLC (2008-2019). |
Daniel J. Graña
151 Detroit Street
Denver, CO 80206
DOB:1971 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Emerging Markets Fund | 9/19-Present | Portfolio Manager for other Janus Henderson accounts. Formerly, portfolio manager at Putnam Investment Management, LLC (2003-2019). |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US LLC (2009-2017). |
* 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 Emerging Markets 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 |
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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Emerging Markets Fund
Notes
NotesPage1
Janus Henderson Emerging Markets Fund
Notes
NotesPage2
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| | | | | |
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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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93079 11-22 |
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| | | |
| | | ANNUAL REPORT September 30, 2022 |
| | |
| | Janus Henderson Enterprise Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Enterprise Fund
Janus Henderson Enterprise Fund (unaudited)
| | | | | | |
FUND SNAPSHOT By taking a moderate approach to an asset class with potential for rapid growth, this mid-cap growth fund seeks long-term growth of capital. Unlike other competitor products that focus on short-term growth rates, this strategy seeks to invest in companies that exhibit sustainable and durable growth. | | | | 
Brian Demain co-portfolio manager | 
Cody Wheaton co-portfolio manager |
| | | |
PERFORMANCE OVERVIEW
The Janus Henderson Enterprise Fund Class I Shares returned -18.77% for the 12-month period ended September 30, 2022. The Fund’s benchmark, the Russell Midcap® Growth Index, returned -29.50%.
INVESTMENT ENVIRONMENT
Stocks declined over the 12-month period as soaring inflation, rising interest rates, and fears of recession led to market turbulence. Equities started out the period with positive if volatile performance in the fourth quarter of 2021, as investors focused on strong corporate earnings news. This volatility increased in the first quarter of 2022 as supply constraints, geopolitical uncertainty, and surging commodities prices weighed on investor sentiment. Expectations for more restrictive Federal Reserve (Fed) policy also triggered a sell-off in higher-valuation growth stocks. The Fed raised interest rates by 25 basis points (bps) in March, but then moved more aggressively with a 50-bps increase in May and consecutive 75-bps rate hikes in June, July, and September. The Fed also signaled that additional rate hikes were likely into 2023, which kept upward pressure on bond yields. As this aggressive pace of tightening fueled recession fears, economic data confirmed that higher costs and rising interest rates had pressured economic growth, especially in housing and select consumer sectors. Corporate earnings growth also slowed as companies faced weaker demand, higher input and financing costs, and currency pressures. Against this backdrop, market declines were widespread. Mid-cap growth underperformed mid-cap value for the 12-month period, as measured by the Russell indices.
PERFORMANCE DISCUSSION
During this challenging period, we were reassured that the Fund performed more defensively, mitigating declines relative to the benchmark index. For several years we have warned about imbalances in the mid-cap growth market, as a focus on revenue growth often eclipsed concerns over profitability or valuation. We believed this dynamic was unsustainable, and we remained highly skeptical of stocks where we saw a disconnect between valuation and earnings growth. As interest rates started to rise in 2022, investors paid more attention to profitability, valuation, and balance sheet strength. This led to a sell-off in many speculative growth stocks, especially for companies with high debt levels or ongoing funding requirements that may be harder to meet in a tighter capital markets environment. Because of our disciplined investment approach, we have largely avoided such names, which were among the largest detractors from index performance. This disciplined approach helped the Fund outperform the index for the twelve months, as well as the trailing three- and five-year performance periods.
A renewed focus on fundamentals also benefited several of our long-term holdings. LPL Financial, a top contributor, provides a full-service, technology-enabled investment platform that helps financial advisors serve their clients and improve their practices. The company’s revenue growth has continued to expand as it has signed new advisors to its network. It has also benefited from higher interest rates due to the float income it earns on client accounts. As a result, it meaningfully exceeded its earnings targets.
ON Semiconductor was another top contributor. Under the leadership of a new management team, this semiconductor manufacturer has boosted its profit margins by streamlining its operations while focusing on high-growth end markets such as electric vehicles (EVs). This helped the company deliver strong earnings performance.
On a negative note, economic uncertainty pressured several of our consumer-related holdings. Online furniture retailer Wayfair was a prominent detractor, as the company faced business headwinds due to supply chain
Janus Henderson Enterprise Fund (unaudited)
disruptions, a cooling housing market, and a weaker outlook for big-ticket consumer spending. Despite these near-term challenges, we held onto our investment in Wayfair due to our confidence in its management team and long-term business opportunity. We also held onto our position in CarMax, another detractor. This multichannel used car retailer saw its business slow as weaker discretionary consumer spending affected vehicle sales. Additionally, rising interest rates have pressured returns from its automotive finance business. While we recognize near-term uncertainty for CarMax’s revenue growth, we have continued to see long-term potential for the company’s multichannel strategy, as consumers have become more comfortable buying and selling cars online.
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 believe markets may remain volatile in the near term as investors try to gauge the extent and impact of Fed rate hikes and assess the economic and earnings backdrop. While price-to-earnings multiples appear less extended relative to a year ago, we are concerned that corporate earnings may slow further along with the economy. Despite this uncertainty, we have welcomed some signs of easing inflation pressures. Supply chain bottlenecks have loosened, while commodity prices have retreated from their highs earlier in 2022. At the same time, we recognize that geopolitical uncertainty, continued tight labor markets, and a potential energy crisis in Europe may complicate the inflation outlook. A shift away from global supply chains and a need to invest in infrastructure both could also result in a period of higher structural inflation. In our view, these crosscurrents may lead to not just elevated but more volatile inflation readings, complicating the Fed’s attempts to achieve a soft landing. Given the risks that Fed rate hikes may end in recession, we continue to look for companies with robust balance sheets and healthy free cash flows, as well as strong competitive positioning that should allow them to better navigate this environment. We also remain focused on our three- to five-year time horizon, looking for opportunities to capitalize on long-term trends such as the reshoring of manufacturing capacity, developments in gene therapy, and investments in the energy transition.
Thank you for investing in the Janus Henderson Enterprise Fund.
Janus Henderson Enterprise Fund (unaudited)
Fund At A Glance
September 30, 2022
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| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| LPL Financial Holdings Inc | 3.65% | | 1.82% | | Wayfair Inc - Class A | 0.57% | | -0.50% |
| ON Semiconductor Corp | 3.07% | | 1.26% | | CarMax Inc | 1.91% | | -0.42% |
| WR Berkley Corp | 2.30% | | 1.17% | | Ceridian HCM Holding Inc | 1.37% | | -0.39% |
| Intact Financial Corp | 2.60% | | 0.93% | | Cimpress PLC | 0.62% | | -0.38% |
| Amdocs Ltd | 2.24% | | 0.74% | | Redfin Corp | 0.28% | | -0.35% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell Midcap Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | 4.72% | | 13.06% | 5.35% |
| Information Technology | | 3.76% | | 36.77% | 33.33% |
| Communication Services | | 1.87% | | 2.07% | 3.86% |
| Other** | | 0.91% | | 3.41% | 0.00% |
| Health Care | | 0.50% | | 16.71% | 16.83% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell Midcap Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | -0.77% | | 1.78% | 2.85% |
| Consumer Staples | | -0.44% | | 0.00% | 2.25% |
| Real Estate | | -0.20% | | 1.62% | 2.30% |
| Materials | | -0.13% | | 1.13% | 2.51% |
| Consumer Discretionary | | 0.03% | | 8.31% | 15.31% |
| | | | | | | |
| 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 Enterprise Fund (unaudited)
Fund At A Glance
September 30, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
LPL Financial Holdings Inc | |
Capital Markets | 4.0% |
ON Semiconductor Corp | |
Semiconductor & Semiconductor Equipment | 3.9% |
Intact Financial Corp | |
Insurance | 3.0% |
Constellation Software Inc/Canada | |
Software | 2.8% |
Boston Scientific Corp | |
Health Care Equipment & Supplies | 2.8% |
| | 16.5% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.0% | |
Investment Companies | | 3.8% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.2% | |
Other | | (0.0)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson Enterprise Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -19.07% | 8.51% | 12.23% | 10.51% | | | 1.13% |
Class A Shares at MOP | | -23.72% | 7.24% | 11.57% | 10.29% | | | |
Class C Shares at NAV | | -19.45% | 7.91% | 11.55% | 9.76% | | | 1.72% |
Class C Shares at CDSC | | -20.13% | 7.91% | 11.55% | 9.76% | | | |
Class D Shares | | -18.80% | 8.85% | 12.57% | 10.68% | | | 0.79% |
Class I Shares | | -18.77% | 8.91% | 12.64% | 10.72% | | | 0.74% |
Class N Shares | | -18.70% | 9.01% | 12.75% | 10.73% | | | 0.66% |
Class R Shares | | -19.30% | 8.20% | 11.91% | 10.13% | | | 1.41% |
Class S Shares | | -19.10% | 8.47% | 12.19% | 10.40% | | | 1.16% |
Class T Shares | | -18.89% | 8.74% | 12.47% | 10.64% | | | 0.91% |
Russell Midcap Growth Index | | -29.50% | 7.62% | 10.85% | 9.67% | | | |
Morningstar Quartile - Class T Shares | | 1st | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Mid-Cap Growth Funds | | 49/590 | 129/528 | 38/487 | 28/136 | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
Janus Henderson Enterprise Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective 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.
© 2022 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – September 1, 1992
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Enterprise 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $822.40 | $5.12 | | $1,000.00 | $1,019.45 | $5.67 | 1.12% |
Class C Shares | $1,000.00 | $820.50 | $7.26 | | $1,000.00 | $1,017.10 | $8.04 | 1.59% |
Class D Shares | $1,000.00 | $823.80 | $3.66 | | $1,000.00 | $1,021.06 | $4.05 | 0.80% |
Class I Shares | $1,000.00 | $824.00 | $3.48 | | $1,000.00 | $1,021.26 | $3.85 | 0.76% |
Class N Shares | $1,000.00 | $824.30 | $3.06 | | $1,000.00 | $1,021.71 | $3.40 | 0.67% |
Class R Shares | $1,000.00 | $821.30 | $6.48 | | $1,000.00 | $1,017.95 | $7.18 | 1.42% |
Class S Shares | $1,000.00 | $822.30 | $5.34 | | $1,000.00 | $1,019.20 | $5.92 | 1.17% |
Class T Shares | $1,000.00 | $823.30 | $4.16 | | $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 Enterprise Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 96.0% | | | |
Aerospace & Defense – 3.6% | | | |
| | L3Harris Technologies Inc | | 1,382,480 | | | $287,320,818 | |
| | Teledyne Technologies Inc* | | 842,069 | | | 284,173,025 | |
| | | 571,493,843 | |
Airlines – 0.7% | | | |
| | Ryanair Holdings PLC (ADR)* | | 2,030,937 | | | 118,647,340 | |
Auto Components – 0.5% | | | |
| | Visteon Corp* | | 755,985 | | | 80,179,769 | |
Banks – 0.4% | | | |
| | SVB Financial Group* | | 195,688 | | | 65,708,117 | |
Biotechnology – 2.9% | | | |
| | Ascendis Pharma A/S (ADR)* | | 999,428 | | | 103,200,935 | |
| | BioMarin Pharmaceutical Inc* | | 1,595,564 | | | 135,255,960 | |
| | Neurocrine Biosciences Inc* | | 1,071,799 | | | 113,835,772 | |
| | Sarepta Therapeutics Inc* | | 1,073,081 | | | 118,618,374 | |
| | | 470,911,041 | |
Capital Markets – 6.7% | | | |
| | Cboe Global Markets Inc | | 1,599,178 | | | 187,695,522 | |
| | Charles Schwab Corp | | 2,339,048 | | | 168,107,380 | |
| | LPL Financial Holdings Inc£ | | 2,896,825 | | | 632,898,326 | |
| | MSCI Inc | | 181,334 | | | 76,484,868 | |
| | | 1,065,186,096 | |
Chemicals – 0.8% | | | |
| | Corteva Inc | | 2,178,102 | | | 124,478,529 | |
Commercial Services & Supplies – 1.6% | | | |
| | Cimpress PLC*,£ | | 2,154,740 | | | 52,748,035 | |
| | Rentokil Initial PLC | | 4,436,094 | | | 23,419,002 | |
| | Ritchie Bros Auctioneers Inc | | 2,988,678 | | | 186,732,601 | |
| | | 262,899,638 | |
Containers & Packaging – 0.9% | | | |
| | Sealed Air Corp | | 3,101,763 | | | 138,059,471 | |
Diversified Consumer Services – 1.5% | | | |
| | Frontdoor Inc* | | 3,437,401 | | | 70,088,606 | |
| | Terminix Global Holdings Inc* | | 4,325,747 | | | 165,632,853 | |
| | | 235,721,459 | |
Electric Utilities – 0.7% | | | |
| | Alliant Energy Corp | | 2,107,613 | | | 111,682,413 | |
Electrical Equipment – 2.2% | | | |
| | Regal Beloit Corp | | 675,040 | | | 94,748,614 | |
| | Sensata Technologies Holding PLC | | 7,037,320 | | | 262,351,290 | |
| | | 357,099,904 | |
Electronic Equipment, Instruments & Components – 5.7% | | | |
| | Flex Ltd* | | 18,018,604 | | | 300,189,943 | |
| | National Instruments Corp | | 5,780,684 | | | 218,163,014 | |
| | TE Connectivity Ltd | | 3,494,938 | | | 385,701,358 | |
| | | 904,054,315 | |
Entertainment – 1.8% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 4,955,946 | | | 289,922,841 | |
Equity Real Estate Investment Trusts (REITs) – 1.2% | | | |
| | Lamar Advertising Co | | 2,400,381 | | | 198,007,429 | |
Health Care Equipment & Supplies – 8.5% | | | |
| | Boston Scientific Corp* | | 11,572,478 | | | 448,202,073 | |
| | Cooper Cos Inc | | 637,960 | | | 168,357,644 | |
| | Dentsply Sirona Inc | | 4,421,283 | | | 125,343,373 | |
| | ICU Medical Inc*,£ | | 1,241,382 | | | 186,952,129 | |
| | STERIS PLC | | 1,002,052 | | | 166,621,207 | |
| | Teleflex Inc | | 1,326,016 | | | 267,139,183 | |
| | | 1,362,615,609 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Enterprise Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Hotels, Restaurants & Leisure – 1.9% | | | |
| | Aramark | | 6,810,731 | | | $212,494,807 | |
| | Entain PLC | | 8,182,852 | | | 98,243,095 | |
| | | 310,737,902 | |
Information Technology Services – 11.2% | | | |
| | Amdocs Ltd | | 5,484,437 | | | 435,738,520 | |
| | Broadridge Financial Solutions Inc | | 1,636,063 | | | 236,116,612 | |
| | Fidelity National Information Services Inc | | 2,652,558 | | | 200,453,808 | |
| | Global Payments Inc | | 1,982,747 | | | 214,235,813 | |
| | GoDaddy Inc* | | 5,769,561 | | | 408,946,484 | |
| | WEX Inc*,£ | | 2,342,299 | | | 297,331,435 | |
| | | 1,792,822,672 | |
Insurance – 7.2% | | | |
| | Aon PLC - Class A | | 435,636 | | | 116,693,815 | |
| | Intact Financial Corp | | 3,446,752 | | | 487,840,681 | |
| | Ryan Specialty Group Holdings Inc - Class A* | | 3,055,362 | | | 124,108,804 | |
| | WR Berkley Corp | | 6,548,968 | | | 422,932,353 | |
| | | 1,151,575,653 | |
Internet & Direct Marketing Retail – 0.2% | | | |
| | Wayfair Inc - Class A*,# | | 943,840 | | | 30,721,992 | |
Life Sciences Tools & Services – 3.2% | | | |
| | Avantor Inc* | | 7,886,766 | | | 154,580,614 | |
| | Illumina Inc* | | 651,919 | | | 124,379,626 | |
| | PerkinElmer Inc | | 1,262,833 | | | 151,956,695 | |
| | Waters Corp* | | 317,293 | | | 85,519,982 | |
| | | 516,436,917 | |
Machinery – 3.0% | | | |
| | Ingersoll Rand Inc | | 6,084,961 | | | 263,235,413 | |
| | Wabtec Corp | | 2,699,268 | | | 219,585,452 | |
| | | 482,820,865 | |
Multiline Retail – 0.4% | | | |
| | Dollar Tree Inc* | | 508,758 | | | 69,241,964 | |
Oil, Gas & Consumable Fuels – 2.1% | | | |
| | Magellan Midstream Partners LP | | 7,147,831 | | | 339,593,451 | |
Pharmaceuticals – 1.5% | | | |
| | Catalent Inc* | | 2,265,136 | | | 163,905,241 | |
| | Elanco Animal Health Inc* | | 6,520,644 | | | 80,921,192 | |
| | | 244,826,433 | |
Professional Services – 0.2% | | | |
| | Upwork Inc* | | 1,795,397 | | | 24,453,307 | |
Road & Rail – 2.6% | | | |
| | JB Hunt Transport Services Inc | | 2,622,869 | | | 410,269,169 | |
Semiconductor & Semiconductor Equipment – 8.5% | | | |
| | KLA Corp | | 738,035 | | | 223,351,532 | |
| | Lam Research Corp | | 243,093 | | | 88,972,038 | |
| | Microchip Technology Inc | | 3,891,004 | | | 237,467,974 | |
| | NXP Semiconductors NV | | 1,251,940 | | | 184,673,669 | |
| | ON Semiconductor Corp* | | 10,126,024 | | | 631,155,076 | |
| | | 1,365,620,289 | |
Software – 10.0% | | | |
| | Atlassian Corp PLC - Class A* | | 471,028 | | | 99,193,787 | |
| | Ceridian HCM Holding Inc* | | 3,541,159 | | | 197,879,965 | |
| | Constellation Software Inc/Canada | | 322,346 | | | 448,579,513 | |
| | Dynatrace Inc* | | 2,531,693 | | | 88,128,233 | |
| | j2 Global Inc* | | 1,213,356 | | | 83,090,619 | |
| | Nice Ltd (ADR)* | | 1,197,077 | | | 225,337,775 | |
| | SS&C Technologies Holdings Inc | | 8,676,112 | | | 414,284,348 | |
| | Topicus.com Inc* | | 857,331 | | | 41,227,863 | |
| | | 1,597,722,103 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Enterprise Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Specialty Retail – 2.0% | | | |
| | Burlington Stores Inc* | | 793,935 | | | $88,833,387 | |
| | CarMax Inc* | | 3,515,098 | | | 232,066,770 | |
| | | 320,900,157 | |
Textiles, Apparel & Luxury Goods – 1.0% | | | |
| | Gildan Activewear Inc | | 5,342,285 | | | 151,026,397 | |
Trading Companies & Distributors – 1.3% | | | |
| | Ferguson PLC# | | 2,052,528 | | | 211,266,707 | |
Total Common Stocks (cost $11,299,354,648) | | 15,376,703,792 | |
Investment Companies– 3.8% | | | |
Money Markets – 3.8% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $605,336,502) | | 605,309,648 | | | 605,370,179 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.2% | | | |
Investment Companies – 0.2% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 22,240,695 | | | 22,240,695 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $5,908,074 | | | 5,908,074 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $28,148,769) | | 28,148,769 | |
Total Investments (total cost $11,932,839,919) – 100.0% | | 16,010,222,740 | |
Liabilities, net of Cash, Receivables and Other Assets – (0)% | | (1,432,270) | |
Net Assets – 100% | | $16,008,790,470 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $14,026,773,751 | | 87.6 | % |
Canada | | 1,315,407,055 | | 8.2 | |
Israel | | 225,337,775 | | 1.4 | |
United Kingdom | | 121,662,097 | | 0.8 | |
Ireland | | 118,647,340 | | 0.7 | |
Denmark | | 103,200,935 | | 0.7 | |
Australia | | 99,193,787 | | 0.6 | |
| | | | | | |
| | | | | | |
Total | | $16,010,222,740 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Enterprise Fund
Schedule of Investments
September 30, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/22 |
Common Stocks - 3.4% |
Capital Markets - N/A | |
| | LPL Financial Holdings Incš | $ | 3,858,624 | $ | 215,513,343 | $ | 38,870,379 | $ | N/A |
Commercial Services & Supplies - 0.3% | |
| | Cimpress PLC* | | - | | - | | (134,348,039) | | 52,748,035 |
Health Care Equipment & Supplies - 1.2% | |
| | ICU Medical Inc* | | - | | - | | (98,563,773) | | 186,952,129 |
Information Technology Services - 1.9% | |
| | WEX Inc* | | - | | - | | 45,344,435 | | 297,331,435 |
Total Common Stocks | $ | 3,858,624 | $ | 215,513,343 | $ | (148,696,998) | $ | 537,031,599 |
Investment Companies - 3.8% |
Money Markets - 3.8% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 5,343,948 | | 5,042 | | (992) | | 605,370,179 |
Investments Purchased with Cash Collateral from Securities Lending - 0.2% |
Investment Companies - 0.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 82,698∆ | | - | | - | | 22,240,695 |
Total Affiliated Investments - 7.4% | $ | 9,285,270 | $ | 215,518,385 | $ | (148,697,990) | $ | 1,164,642,473 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2022, this column reflects amounts for the entire year ended September 30, 2022 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Common Stocks - 3.4% |
Capital Markets - N/A | |
| | LPL Financial Holdings Incš | | 644,474,847 | | - | | (265,960,243) | | 632,898,326 |
Commercial Services & Supplies - 0.3% | |
| | Cimpress PLC* | | 187,096,074 | | - | | - | | 52,748,035 |
Health Care Equipment & Supplies - 1.2% | |
| | ICU Medical Inc* | | 235,963,983 | | 49,551,919 | | - | | 186,952,129 |
Information Technology Services - 1.9% | |
| | WEX Inc* | | - | | 251,987,000 | | - | | 297,331,435 |
Investment Companies - 3.8% |
Money Markets - 3.8% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 744,167,504 | | 2,193,227,551 | | (2,332,028,926) | | 605,370,179 |
Investments Purchased with Cash Collateral from Securities Lending - 0.2% |
Investment Companies - 0.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 3,046,145 | | 679,037,519 | | (659,842,969) | | 22,240,695 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Enterprise Fund
Schedule of Investments
September 30, 2022
| | | | | | | |
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.: | | | | | | | | |
Canadian Dollar | 12/22/22 | (134,490,000) | $ | 102,255,490 | $ | 4,833,810 | | |
Euro | 12/22/22 | (30,865,000) | | 31,051,888 | | 605,765 | | |
| | | | | | | | | |
| | | | | | | 5,439,575 | | |
Citibank, National Association: | | | | | | | | |
Canadian Dollar | 12/22/22 | 45,973,000 | | (34,222,763) | | (920,905) | | |
Canadian Dollar | 12/22/22 | (134,490,000) | | 102,244,133 | | 4,822,452 | | |
Euro | 12/22/22 | 3,800,000 | | (3,820,884) | | (72,455) | | |
Euro | 12/22/22 | (46,241,000) | | 46,572,141 | | 958,691 | | |
| | | | | | | | | |
| | | | | | | 4,787,783 | | |
HSBC Securities (USA), Inc.: | | | | | | | | |
Canadian Dollar | 12/22/22 | (134,490,000) | | 102,283,397 | | 4,861,717 | | |
Euro | 12/22/22 | 9,360,000 | | (9,110,931) | | 122,043 | | |
Euro | 12/22/22 | 11,408,000 | | (11,483,772) | | (230,593) | | |
Euro | 12/22/22 | (23,702,000) | | 23,858,670 | | 478,337 | | |
| | | | | | | | | |
| | | | | | | 5,231,504 | | |
JPMorgan Chase Bank, National Association: | | | | | | | | |
Canadian Dollar | 12/22/22 | (174,054,000) | | 131,848,413 | | 5,767,416 | | |
Euro | 12/22/22 | 6,900,000 | | (6,767,363) | | 38,995 | | |
Euro | 12/22/22 | (46,642,000) | | 46,939,343 | | 930,335 | | |
| | | | | | | | | |
| | | | | | | 6,736,746 | | |
State Street Bank and Trust Company: | | | | | | | | |
Canadian Dollar | 12/22/22 | 7,370,000 | | (5,445,311) | | (106,641) | | |
Canadian Dollar | 12/22/22 | (134,490,000) | | 102,342,641 | | 4,920,961 | | |
Euro | 12/22/22 | (38,291,000) | | 38,575,311 | | 803,969 | | |
| | | | | | | | | |
| | | | | | | 5,618,289 | | |
Total | | | | | $ | 27,813,897 | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
Janus Henderson Enterprise Fund
Schedule of Investments
September 30, 2022
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, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2022 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $29,144,491 |
| | | | |
Liability Derivatives: | | | |
Forward foreign currency exchange contracts | | | $ 1,330,594 |
| | | | |
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, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $68,629,823 |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $13,626,496 |
| | | | | |
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 Value of Derivative Instruments During the Year Ended September 30, 2022 |
| |
| |
Forward foreign currency exchange contracts: | |
Average amounts purchased - in USD | $126,382,705 |
Average amounts sold - in USD | 835,244,458 |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Enterprise Fund
Schedule of Investments
September 30, 2022
| | | | | | | | | | |
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. | $ | 5,439,575 | $ | — | $ | — | $ | 5,439,575 |
Citibank, National Association | | 5,781,143 | | (993,360) | | — | | 4,787,783 |
HSBC Securities (USA), Inc. | | 5,462,097 | | (230,593) | | — | | 5,231,504 |
JPMorgan Chase Bank, National Association | | 32,358,613 | | — | | (25,621,867) | | 6,736,746 |
State Street Bank and Trust Company | | 5,724,930 | | (106,641) | | — | | 5,618,289 |
| | | | | | | | | |
Total | $ | 54,766,358 | $ | (1,330,594) | $ | (25,621,867) | $ | 27,813,897 |
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 | $ | 993,360 | $ | (993,360) | $ | — | $ | — |
HSBC Securities (USA), Inc. | | 230,593 | | (230,593) | | — | | — |
State Street Bank and Trust Company | | 106,641 | | (106,641) | | — | | — |
| | | | | | | | | |
Total | $ | 1,330,594 | $ | (1,330,594) | $ | — | $ | — |
(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. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2022 |
Janus Henderson Enterprise Fund
Notes to Schedule of Investments and Other Information
| | |
Russell Midcap® Growth Index | Russell Midcap® Growth Index reflects the performance of U.S. mid-cap equities with higher price-to-book ratios and higher forecasted growth values. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
| | |
£ | 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, 2022. |
| | |
∆ | 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, 2022. 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 | | | | | | |
Commercial Services & Supplies | $ | 239,480,636 | $ | 23,419,002 | $ | - |
Hotels, Restaurants & Leisure | | 212,494,807 | | 98,243,095 | | - |
All Other | | 14,803,066,252 | | - | | - |
Investment Companies | | - | | 605,370,179 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 28,148,769 | | - |
Total Investments in Securities | $ | 15,255,041,695 | $ | 755,181,045 | $ | - |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 29,144,491 | | - |
Total Assets | $ | 15,255,041,695 | $ | 784,325,536 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 1,330,594 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures contracts, and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson Enterprise Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $10,647,076,600)(1) | | $ | 14,845,580,267 | |
| Affiliated investments, at value (cost $1,285,763,319) | | | 1,164,642,473 | |
| Forward foreign currency exchange contracts | | | 29,144,491 | |
| Cash denominated in foreign currency (cost $2,317,182) | | | 2,208,215 | |
| Trustees' deferred compensation | | | 481,658 | |
| Receivables: | | | | |
| | Fund shares sold | | | 131,097,739 | |
| | Investments sold | | | 40,235,569 | |
| | Dividends | | | 6,388,875 | |
| | Dividends from affiliates | | | 1,490,460 | |
| Other assets | | | 34,692 | |
Total Assets | | | 16,221,304,439 | |
Liabilities: | | | | |
| Due to custodian | | | 880 | |
| Collateral for securities loaned (Note 3) | | | 28,148,769 | |
| Forward foreign currency exchange contracts | | | 1,330,594 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 130,449,369 | |
| | Investments purchased | | | 39,020,070 | |
| | Advisory fees | | | 9,790,147 | |
| | Transfer agent fees and expenses | | | 2,061,586 | |
| | Trustees' deferred compensation fees | | | 481,658 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 286,634 | |
| | Trustees' fees and expenses | | | 82,419 | |
| | Professional fees | | | 65,891 | |
| | Custodian fees | | | 56,151 | |
| | Affiliated fund administration fees payable | | | 38,243 | |
| | Accrued expenses and other payables | | | 701,558 | |
Total Liabilities | | | 212,513,969 | |
Net Assets | | $ | 16,008,790,470 | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Enterprise Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 10,406,487,575 | |
| Total distributable earnings (loss) | | | 5,602,302,895 | |
Total Net Assets | | $ | 16,008,790,470 | |
Net Assets - Class A Shares | | $ | 327,175,593 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,815,096 | |
Net Asset Value Per Share(2) | | $ | 116.22 | |
Maximum Offering Price Per Share(3) | | $ | 123.31 | |
Net Assets - Class C Shares | | $ | 110,936,313 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,086,446 | |
Net Asset Value Per Share(2) | | $ | 102.11 | |
Net Assets - Class D Shares | | $ | 1,937,787,095 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 16,028,885 | |
Net Asset Value Per Share | | $ | 120.89 | |
Net Assets - Class I Shares | | $ | 5,404,044,895 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 44,383,742 | |
Net Asset Value Per Share | | $ | 121.76 | |
Net Assets - Class N Shares | | $ | 4,678,461,972 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 38,208,705 | |
Net Asset Value Per Share | | $ | 122.44 | |
Net Assets - Class R Shares | | $ | 69,756,081 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 635,749 | |
Net Asset Value Per Share | | $ | 109.72 | |
Net Assets - Class S Shares | | $ | 283,177,217 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,457,619 | |
Net Asset Value Per Share | | $ | 115.22 | |
Net Assets - Class T Shares | | $ | 3,197,451,304 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 26,693,826 | |
Net Asset Value Per Share | | $ | 119.78 | |
| |
(1) Includes $25,621,867 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 Enterprise Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 176,015,689 | |
| Dividends from affiliates | | 9,202,572 | |
| Affiliated securities lending income, net | | 82,698 | |
| Unaffiliated securities lending income, net | | 18,902 | |
| Other income | | 23,041 | |
| Foreign tax withheld | | (3,361,527) | |
Total Investment Income | | 181,981,375 | |
Expenses: | | | |
| Advisory fees | | 127,889,926 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 1,002,839 | |
| | Class C Shares | | 1,323,688 | |
| | Class R Shares | | 478,462 | |
| | Class S Shares | | 941,117 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,679,117 | |
| | Class R Shares | | 244,195 | |
| | Class S Shares | | 943,095 | |
| | Class T Shares | | 10,371,916 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 896,617 | |
| | Class C Shares | | 100,960 | |
| | Class I Shares | | 6,456,455 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 24,854 | |
| | Class C Shares | | 7,326 | |
| | Class D Shares | | 299,645 | |
| | Class I Shares | | 310,494 | |
| | Class N Shares | | 189,910 | |
| | Class R Shares | | 1,503 | |
| | Class S Shares | | 7,270 | |
| | Class T Shares | | 39,066 | |
| Shareholder reports expense | | 779,528 | |
| Affiliated fund administration fees | | 499,570 | |
| Trustees’ fees and expenses | | 403,021 | |
| Registration fees | | 307,260 | |
| Custodian fees | | 301,330 | |
| Professional fees | | 134,120 | |
| Other expenses | | 1,084,128 | |
Total Expenses | | 157,717,412 | |
Less: Excess Expense Reimbursement and Waivers | | (474,656) | |
Net Expenses | | 157,242,756 | |
Net Investment Income/(Loss) | | 24,738,619 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2022 |
Janus Henderson Enterprise Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 1,470,998,039 | |
| Investments in affiliates | | 215,518,385 | |
| Forward foreign currency exchange contracts | | 68,629,823 | |
Total Net Realized Gain/(Loss) on Investments | | 1,755,146,247 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (5,388,390,142) | |
| Investments in affiliates | | (148,697,990) | |
| Forward foreign currency exchange contracts | | 13,626,496 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (5,523,461,636) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (3,743,576,770) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Enterprise Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 24,738,619 | | $ | 33,292,119 | |
| Net realized gain/(loss) on investments | | 1,755,146,247 | | | 3,648,893,083 | |
| Change in unrealized net appreciation/depreciation | | (5,523,461,636) | | | 2,631,753,149 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (3,743,576,770) | | | 6,313,938,351 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (65,714,839) | | | (39,548,234) | |
| | Class C Shares | | (28,152,759) | | | (16,803,309) | |
| | Class D Shares | | (359,561,565) | | | (182,191,933) | |
| | Class I Shares | | (1,130,089,504) | | | (616,012,620) | |
| | Class N Shares | | (789,979,114) | | | (437,937,089) | |
| | Class R Shares | | (16,455,015) | | | (10,772,784) | |
| | Class S Shares | | (62,009,288) | | | (39,534,196) | |
| | Class T Shares | | (699,266,902) | | | (471,925,055) | |
Net Decrease from Dividends and Distributions to Shareholders | | (3,151,228,986) | | | (1,814,725,220) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (3,987,499) | | | (82,099,821) | |
| | Class C Shares | | (11,161,089) | | | (28,623,413) | |
| | Class D Shares | | 244,637,951 | | | 63,796,686 | |
| | Class I Shares | | (137,205,137) | | | (432,474,164) | |
| | Class N Shares | | 850,530,593 | | | (332,892,132) | |
| | Class R Shares | | (5,979,734) | | | (32,913,124) | |
| | Class S Shares | | (26,518,543) | | | (120,403,166) | |
| | Class T Shares | | (577,826,097) | | | (1,151,012,592) | |
Net Increase/(Decrease) from Capital Share Transactions | | 332,490,445 | | | (2,116,621,726) | |
Net Increase/(Decrease) in Net Assets | | (6,562,315,311) | | | 2,382,591,405 | |
Net Assets: | | | | | | |
| Beginning of period | | 22,571,105,781 | | | 20,188,514,376 | |
| End of period | $ | 16,008,790,470 | | $ | 22,571,105,781 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2022 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $168.35 | | | $137.77 | | | $136.07 | | | $131.70 | | | $111.15 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.30) | | | (0.27) | | | (0.09) | | | (0.02) | | | (0.15) | |
| | Net realized and unrealized gain/(loss) | | (27.16) | | | 43.67 | | | 7.94 | | | 11.19 | | | 22.79 | |
| Total from Investment Operations | | (27.46) | | | 43.40 | | | 7.85 | | | 11.17 | | | 22.64 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | |
| Total Dividends and Distributions | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | |
| Net Asset Value, End of Period | | $116.22 | | | $168.35 | | | $137.77 | | | $136.07 | | | $131.70 | |
| Total Return* | | (19.08)% | | | 32.57% | | | 5.81% | | | 9.88% | | | 20.63% | |
| Net Assets, End of Period (in thousands) | | $327,176 | | | $472,904 | | | $456,433 | | | $547,328 | | | $666,848 | |
| Average Net Assets for the Period (in thousands) | | $399,310 | | | $493,097 | | | $493,576 | | | $611,182 | | | $647,856 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.14% | | | 1.13% | | | 1.17% | | | 1.15% | | | 1.16% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.11% | | | 1.12% | | | 1.11% | | | 1.12% | |
| | Ratio of Net Investment Income/(Loss) | | (0.21)% | | | (0.17)% | | | (0.07)% | | | (0.02)% | | | (0.13)% | |
| Portfolio Turnover Rate | | 9% | | | 12% | | | 14% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $151.54 | | | $125.75 | | | $125.40 | | | $122.67 | | | $104.26 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.87) | | | (1.06) | | | (0.77) | | | (0.71) | | | (0.81) | |
| | Net realized and unrealized gain/(loss) | | (23.89) | | | 39.67 | | | 7.27 | | | 10.24 | | | 21.31 | |
| Total from Investment Operations | | (24.76) | | | 38.61 | | | 6.50 | | | 9.53 | | | 20.50 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | |
| Total Dividends and Distributions | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | |
| Net Asset Value, End of Period | | $102.11 | | | $151.54 | | | $125.75 | | | $125.40 | | | $122.67 | |
| Total Return* | | (19.47)% | | | 31.83% | | | 5.21% | | | 9.25% | | | 19.93% | |
| Net Assets, End of Period (in thousands) | | $110,936 | | | $179,240 | | | $173,129 | | | $212,985 | | | $254,496 | |
| Average Net Assets for the Period (in thousands) | | $153,213 | | | $187,356 | | | $188,953 | | | $219,505 | | | $255,949 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.60% | | | 1.67% | | | 1.69% | | | 1.70% | | | 1.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.60% | | | 1.67% | | | 1.69% | | | 1.70% | | | 1.70% | |
| | Ratio of Net Investment Income/(Loss) | | (0.69)% | | | (0.73)% | | | (0.64)% | | | (0.61)% | | | (0.71)% | |
| Portfolio Turnover Rate | | 9% | | | 12% | | | 14% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $174.13 | | | $142.10 | | | $139.87 | | | $134.99 | | | $113.64 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.25 | | | 0.33 | | | 0.37 | | | 0.23 | |
| | Net realized and unrealized gain/(loss) | | (28.23) | | | 45.06 | | | 8.20 | | | 11.50 | | | 23.31 | |
| Total from Investment Operations | | (28.05) | | | 45.31 | | | 8.53 | | | 11.87 | | | 23.54 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.52) | | | (0.46) | | | (0.15) | | | (0.19) | | | (0.10) | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | |
| Total Dividends and Distributions | | (25.19) | | | (13.28) | | | (6.30) | | | (6.99) | | | (2.19) | |
| Net Asset Value, End of Period | | $120.89 | | | $174.13 | | | $142.10 | | | $139.87 | | | $134.99 | |
| Total Return* | | (18.82)% | | | 32.99% | | | 6.15% | | | 10.22% | | | 20.99% | |
| Net Assets, End of Period (in thousands) | | $1,937,787 | | | $2,507,220 | | | $1,983,824 | | | $2,061,471 | | | $1,973,861 | |
| Average Net Assets for the Period (in thousands) | | $2,337,701 | | | $2,394,871 | | | $1,974,784 | | | $1,930,540 | | | $1,853,456 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.79% | | | 0.80% | | | 0.81% | | | 0.81% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.79% | | | 0.80% | | | 0.81% | | | 0.81% | |
| | Ratio of Net Investment Income/(Loss) | | 0.12% | | | 0.15% | | | 0.25% | | | 0.28% | | | 0.18% | |
| Portfolio Turnover Rate | | 9% | | | 12% | | | 14% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $175.21 | | | $142.89 | | | $140.62 | | | $135.69 | | | $114.20 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.23 | | | 0.32 | | | 0.40 | | | 0.45 | | | 0.32 | |
| | Net realized and unrealized gain/(loss) | | (28.42) | | | 45.33 | | | 8.24 | | | 11.55 | | | 23.42 | |
| Total from Investment Operations | | (28.19) | | | 45.65 | | | 8.64 | | | 12.00 | | | 23.74 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.59) | | | (0.51) | | | (0.22) | | | (0.27) | | | (0.16) | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | |
| Total Dividends and Distributions | | (25.26) | | | (13.33) | | | (6.37) | | | (7.07) | | | (2.25) | |
| Net Asset Value, End of Period | | $121.76 | | | $175.21 | | | $142.89 | | | $140.62 | | | $135.69 | |
| Total Return* | | (18.78)% | | | 33.06% | | | 6.20% | | | 10.28% | | | 21.07% | |
| Net Assets, End of Period (in thousands) | | $5,404,045 | | | $8,014,607 | | | $6,919,545 | | | $7,666,702 | | | $6,443,068 | |
| Average Net Assets for the Period (in thousands) | | $6,984,545 | | | $7,776,971 | | | $7,335,476 | | | $6,775,060 | | | $5,408,221 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.74% | | | 0.75% | | | 0.75% | | | 0.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.74% | | | 0.75% | | | 0.75% | | | 0.75% | |
| | Ratio of Net Investment Income/(Loss) | | 0.16% | | | 0.19% | | | 0.30% | | | 0.34% | | | 0.25% | |
| Portfolio Turnover Rate | | 9% | | | 12% | | | 14% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $176.05 | | | $143.53 | | | $141.19 | | | $136.18 | | | $114.57 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.38 | | | 0.47 | | | 0.53 | | | 0.56 | | | 0.42 | |
| | Net realized and unrealized gain/(loss) | | (28.59) | | | 45.53 | | | 8.28 | | | 11.60 | | | 23.51 | |
| Total from Investment Operations | | (28.21) | | | 46.00 | | | 8.81 | | | 12.16 | | | 23.93 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.73) | | | (0.66) | | | (0.32) | | | (0.35) | | | (0.23) | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | |
| Total Dividends and Distributions | | (25.40) | | | (13.48) | | | (6.47) | | | (7.15) | | | (2.32) | |
| Net Asset Value, End of Period | | $122.44 | | | $176.05 | | | $143.53 | | | $141.19 | | | $136.18 | |
| Total Return* | | (18.71)% | | | 33.17% | | | 6.30% | | | 10.38% | | | 21.18% | |
| Net Assets, End of Period (in thousands) | | $4,678,462 | | | $5,636,167 | | | $4,867,667 | | | $4,860,043 | | | $3,947,225 | |
| Average Net Assets for the Period (in thousands) | | $5,415,323 | | | $5,609,015 | | | $4,941,595 | | | $4,213,287 | | | $3,463,197 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | |
| | Ratio of Net Investment Income/(Loss) | | 0.26% | | | 0.28% | | | 0.39% | | | 0.43% | | | 0.34% | |
| Portfolio Turnover Rate | | 9% | | | 12% | | | 14% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $160.72 | | | $132.38 | | | $131.34 | | | $127.76 | | | $108.20 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.67) | | | (0.69) | | | (0.46) | | | (0.39) | | | (0.50) | |
| | Net realized and unrealized gain/(loss) | | (25.66) | | | 41.85 | | | 7.65 | | | 10.77 | | | 22.15 | |
| Total from Investment Operations | | (26.33) | | | 41.16 | | | 7.19 | | | 10.38 | | | 21.65 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | |
| Total Dividends and Distributions | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | |
| Net Asset Value, End of Period | | $109.72 | | | $160.72 | | | $132.38 | | | $131.34 | | | $127.76 | |
| Total Return* | | (19.32)% | | | 32.18% | | | 5.51% | | | 9.56% | | | 20.27% | |
| Net Assets, End of Period (in thousands) | | $69,756 | | | $110,802 | | | $119,190 | | | $150,860 | | | $162,271 | |
| Average Net Assets for the Period (in thousands) | | $97,291 | | | $124,162 | | | $130,918 | | | $150,191 | | | $167,123 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.41% | | | 1.40% | | | 1.41% | | | 1.41% | | | 1.41% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.41% | | | 1.40% | | | 1.41% | | | 1.41% | | | 1.41% | |
| | Ratio of Net Investment Income/(Loss) | | (0.50)% | | | (0.45)% | | | (0.36)% | | | (0.32)% | | | (0.43)% | |
| Portfolio Turnover Rate | | 9% | | | 12% | | | 14% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $167.17 | | | $136.94 | | | $135.34 | | | $131.09 | | | $110.70 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.36) | | | (0.34) | | | (0.14) | | | (0.08) | | | (0.21) | |
| | Net realized and unrealized gain/(loss) | | (26.92) | | | 43.39 | | | 7.89 | | | 11.13 | | | 22.69 | |
| Total from Investment Operations | | (27.28) | | | 43.05 | | | 7.75 | | | 11.05 | | | 22.48 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | |
| Total Dividends and Distributions | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | |
| Net Asset Value, End of Period | | $115.22 | | | $167.17 | | | $136.94 | | | $135.34 | | | $131.09 | |
| Total Return* | | (19.12)% | | | 32.51% | | | 5.77% | | | 9.84% | | | 20.57% | |
| Net Assets, End of Period (in thousands) | | $283,177 | | | $442,011 | | | $465,207 | | | $589,792 | | | $626,458 | |
| Average Net Assets for the Period (in thousands) | | $375,663 | | | $480,226 | | | $538,012 | | | $592,420 | | | $593,963 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | |
| | Ratio of Net Investment Income/(Loss) | | (0.25)% | | | (0.21)% | | | (0.11)% | | | (0.06)% | | | (0.17)% | |
| Portfolio Turnover Rate | | 9% | | | 12% | | | 14% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | 27 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | | $172.66 | | | $141.02 | | | $138.90 | | | $134.10 | | | $112.96 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | | 0.01 | | | 0.07 | | | 0.20 | | | 0.24 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | | (27.97) | | | 44.71 | | | 8.13 | | | 11.44 | | | 23.17 | |
| Total from Investment Operations | | | (27.96) | | | 44.78 | | | 8.33 | | | 11.68 | | | 23.28 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | | (0.25) | | | (0.32) | | | (0.06) | | | (0.08) | | | (0.05) | |
| | Distributions (from capital gains) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | |
| Total Dividends and Distributions | | | (24.92) | | | (13.14) | | | (6.21) | | | (6.88) | | | (2.14) | |
| Net Asset Value, End of Period | | | $119.78 | | | $172.66 | | | $141.02 | | | $138.90 | | | $134.10 | |
| Total Return* | | | (18.91)% | | | 32.84% | | | 6.04% | | | 10.12% | | | 20.88% | |
| Net Assets, End of Period (in thousands) | | | $3,197,451 | | | $5,208,155 | | | $5,203,521 | | | $5,461,958 | | | $5,344,306 | |
| Average Net Assets for the Period (in thousands) | | | $4,131,052 | | | $5,723,820 | | | $5,246,105 | | | $5,059,206 | | | $4,920,845 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | |
| | 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) | | | 0.01% | | | 0.05% | | | 0.15% | | | 0.19% | | | 0.09% | |
| Portfolio Turnover Rate | | | 9% | | | 12% | | | 14% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | | |
| |
* 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. |
| |
28 | SEPTEMBER 30, 2022 |
Janus Henderson Enterprise Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the
Janus Henderson Enterprise Fund
Notes to Financial Statements
“Distributor”) 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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 Enterprise 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, 2022 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 Enterprise 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. 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, 2022 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the
Janus Henderson Enterprise Fund
Notes to Financial Statements
securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on the Adviser’s ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign
Janus Henderson Enterprise Fund
Notes to Financial Statements
currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE 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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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 the Adviser 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.
Janus Henderson Enterprise Fund
Notes to Financial Statements
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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund
Janus Henderson Enterprise Fund
Notes to Financial Statements
and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser 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 the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $25,621,867. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $28,148,769, resulting in the net amount due to the counterparty of $2,526,902.
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 Offsetting Assets and Liabilities tables located in the Schedule of Investments 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, 2022” table located in the Fund’s Schedule of Investments.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.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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 Henderson Enterprise Fund
Notes to Financial Statements
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent 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.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Henderson Enterprise Fund
Notes to Financial Statements
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, of up to 0.50% of the Class R Shares' average daily net assets, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $15,083.
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 the Distributor during the year ended September 30, 2022.
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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $1,569.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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 Enterprise Fund
Notes to Financial Statements
as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser 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, 2022, the Fund engaged in cross trades amounting to $67,276,852 in purchases and $14,110,475 in sales, resulting in a net realized gain of $1,623,329. The net realized gain is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation, derivatives, and foreign currency contract adjustments. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ - | $ 1,418,691,981 | $ - | $ (5,086,553) | $ - | $ (588,685) | $4,189,286,152 | |
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, 2022 are noted below. The primary difference 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) |
$ 11,820,936,588 | $5,396,887,573 | $(1,207,601,421) | $ 4,189,286,152 |
Janus Henderson Enterprise Fund
Notes to Financial Statements
Information on the tax components of derivatives as of September 30, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 27,813,897 | $ - | $ - | $ - |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 220,514,658 | $ 2,930,714,328 | $ - | $ - | |
| | | | | |
For the year ended September 30, 2021 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 62,927,507 | $ 1,751,797,713 | $ - | $ - | |
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 |
$ 165,417,638 | $ (29,743,622) | $ (135,674,016) |
Capital has been adjusted by 165,417,638, all of which is long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Enterprise Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 837,971 | $ 116,608,375 | | 623,354 | $ 99,334,382 |
Reinvested dividends and distributions | 297,360 | 42,632,523 | | 175,459 | 26,494,246 |
Shares repurchased | (1,129,349) | (163,228,397) | | (1,302,821) | (207,928,449) |
Net Increase/(Decrease) | 5,982 | $ (3,987,499) | | (504,008) | $ (82,099,821) |
Class C Shares: | | | | | |
Shares sold | 62,501 | $ 7,928,856 | | 46,061 | $ 6,656,959 |
Reinvested dividends and distributions | 217,666 | 27,523,875 | | 115,145 | 15,720,744 |
Shares repurchased | (376,526) | (46,613,820) | | (355,216) | (51,001,116) |
Net Increase/(Decrease) | (96,359) | $ (11,161,089) | | (194,010) | $ (28,623,413) |
Class D Shares: | | | | | |
Shares sold | 478,632 | $ 70,710,123 | | 604,201 | $ 99,963,713 |
Reinvested dividends and distributions | 2,340,660 | 348,173,218 | | 1,135,443 | 176,890,607 |
Shares repurchased | (1,188,599) | (174,245,390) | | (1,302,329) | (213,057,634) |
Net Increase/(Decrease) | 1,630,693 | $ 244,637,951 | | 437,315 | $ 63,796,686 |
Class I Shares: | | | | | |
Shares sold | 11,811,951 | $1,707,347,149 | | 10,671,413 | $ 1,782,257,942 |
Reinvested dividends and distributions | 6,230,188 | 933,095,224 | | 3,162,055 | 495,494,094 |
Shares repurchased | (19,402,149) | (2,777,647,510) | | (16,516,799) | (2,710,226,200) |
Net Increase/(Decrease) | (1,360,010) | $ (137,205,137) | | (2,683,331) | $ (432,474,164) |
Class N Shares: | | | | | |
Shares sold | 10,969,680 | $1,521,926,877 | | 4,712,549 | $ 781,848,813 |
Reinvested dividends and distributions | 5,161,986 | 776,930,572 | | 2,741,978 | 431,450,288 |
Shares repurchased | (9,937,540) | (1,448,326,856) | | (9,354,922) | (1,546,191,233) |
Net Increase/(Decrease) | 6,194,126 | $ 850,530,593 | | (1,900,395) | $ (332,892,132) |
Class R Shares: | | | | | |
Shares sold | 110,709 | $ 14,873,704 | | 134,921 | $ 20,428,800 |
Reinvested dividends and distributions | 119,781 | 16,249,554 | | 73,206 | 10,577,543 |
Shares repurchased | (284,150) | (37,102,992) | | (419,107) | (63,919,467) |
Net Increase/(Decrease) | (53,660) | $ (5,979,734) | | (210,980) | $ (32,913,124) |
Class S Shares: | | | | | |
Shares sold | 280,458 | $ 39,604,865 | | 290,570 | $ 45,840,839 |
Reinvested dividends and distributions | 435,205 | 61,877,468 | | 263,171 | 39,475,606 |
Shares repurchased | (902,055) | (128,000,876) | | (1,306,884) | (205,719,611) |
Net Increase/(Decrease) | (186,392) | $ (26,518,543) | | (753,143) | $ (120,403,166) |
Class T Shares: | | | | | |
Shares sold | 5,573,071 | $ 777,199,170 | | 3,888,927 | $ 630,422,843 |
Reinvested dividends and distributions | 4,668,938 | 688,715,006 | | 3,013,650 | 465,970,549 |
Shares repurchased | (13,712,032) | (2,043,740,273) | | (13,639,082) | (2,247,405,984) |
Net Increase/(Decrease) | (3,470,023) | $ (577,826,097) | | (6,736,505) | $(1,151,012,592) |
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$1,645,336,425 | $4,259,562,819 | $ - | $ - |
Janus Henderson Enterprise Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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 Enterprise Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Enterprise Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Enterprise Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson Enterprise 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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Enterprise Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Enterprise Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Enterprise Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Enterprise Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Enterprise Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Enterprise Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Enterprise Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Enterprise Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Enterprise Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Enterprise Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Enterprise 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, 2022. 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 the Adviser 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 Enterprise 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 Enterprise 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 Enterprise Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2022:
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Capital Gain Distributions | $3,096,131,966 |
Dividends Received Deduction Percentage | 100% |
Janus Henderson Enterprise 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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 Enterprise 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 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
Janus Henderson Enterprise 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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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 Enterprise 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
Janus Henderson Enterprise 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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
Janus Henderson Enterprise 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 F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
Janus Henderson Enterprise 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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
Janus Henderson Enterprise 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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), Director of Chicago Council on Global Affairs (until 2019), InnerWorkings (until 2019) and Director of Walmart (until 2017). |
Janus Henderson Enterprise 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 |
Brian Demain
151 Detroit Street
Denver, CO 80206
DOB: 1977 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Enterprise Fund | 11/07-Present | Portfolio Manager for other Janus Henderson accounts. |
Cody Wheaton
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Enterprise Fund | 7/16-Present | Portfolio Manager for other Janus Henderson accounts and Analyst for the Adviser. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US LLC (2009-2017). |
* 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 Enterprise 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 |
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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Enterprise 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93040 11-22 |
| | | | |
| | | |
| | | ANNUAL REPORT September 30, 2022 |
| | |
| | Janus Henderson European Focus Fund |
| | |
| | Janus Investment Fund |
| |
| | | 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)
| | | | | | |
FUND SNAPSHOT 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 |
| | | |
PERFORMANCE
The Janus Henderson European Focus Fund Class I Shares returned -26.59% for the 12-month period ended September 30, 2022, underperforming its benchmark, the MSCI Europe IndexSM, which returned -24.80%.
INVESTMENT ENVIRONMENT
Equity markets declined over the 12-month period as high levels of inflation in many of the world’s key economies prompted aggressive monetary and fiscal tightening, triggering fears of global recession. Equities began the period with positive, if volatile, performance in the fourth quarter of 2021, as investors focused on strong corporate earnings. However, global stock markets sold off in February following Russia’s invasion of Ukraine. Geopolitical turmoil and ongoing supply chain issues drove prices higher, with particularly sharp increases in commodities. Steep inflation prompted several central banks to raise interest rates, causing a rotation from long-duration growth stocks to more cyclical companies. To head off inflationary pressures, the European Central Bank flipped rates from -0.50% to +0.75%. The Bank of England likewise embarked on a rate hiking cycle.
Adding to investors’ concerns was a looming energy crisis as Russia substantially reduced gas supplies to several European countries. Toward period end, the Ukraine war had begun to spill over into hybrid warfare in Europe, with hacking attacks on defense companies, the cutting of rail data network cables, and explosions along the Nordstream gas pipelines. The sharp OPEC+ oil production output cut fostered speculation about U.S. geostrategic countermeasures plus depletion of the Strategic Petroleum Reserve. Over the third quarter of 2022, European equities were trying to price what a winter of gas rationing and further elevated gas prices mean for the various industries and households that are located on the continent.
PERFORMANCE DISCUSSION
The largest detractor at the individual stock level was KION Group, a manufacturer of forklifts and warehouse automation equipment. The company encountered significant execution problems in its warehouse automation business as underlying projects had not been protected adequately against cost inflation. Music streaming service Pandora also weighed on relative returns due to fears surrounding the cost-of-living crisis.
German defense company Rheinmetall was the largest individual contributor, with outperformance due to the step change in European defense spending beginning to be factored into future earnings. Deutsche Telekom also contributed positively, as a beneficiary of telecommunications companies generally being perceived, as of the second quarter of 2022, as defensive and attractively valued versus other areas of the market.
Key sector overweights in the portfolio are information technology (semiconductors) and industrials (defense stocks and renewable energy). The latter two long thematics have simply not worked. Extremely slow bureaucracies are to blame for both, with the equity market not able to stomach the order and profit and loss (P&L) volatility of these companies in the interim given wider market stresses. We firmly believe these are just timing issues, and steady shareholders could see gains in the not-too-distant future. We also have positions in the energy sector but with no exposure to the refinery sector. We are underweight basic materials, due to chemicals and construction); financials, especially financial services; and healthcare – mostly medtech, due to valuation and consumer discretionary spend exposure.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Janus Henderson European Focus Fund (unaudited)
OUTLOOK
In our view, markets will have to wait longer for a true Western central bank pivot moment. Until then, the real narrow money (liquid financial assets – physical currency, coins, demand deposits, etc. – held by the central bank) creation remains significantly negative, which is typically associated with poor equity market returns and high volatility. In the past, we had held out hope that the real economy, as measured by the change in industrial output in Group of Seven (G7) and Emerging 7 (E7) countries, soon would be undershooting the real narrow money rate of change (ROC). Historically, when the rate of change in the real economy has undershot the rate of change in inflation-adjusted money creation, the backdrop for stocks becomes less negative. A monetary environment characterized by 1) a negative but no-longer-falling rate of change in real narrow money creation, and 2) an undershooting of the real economy versus monetary growth rate, usually is accompanied by only slightly negative equity market returns and potentially throws up promising buying opportunities in early-cycle stocks.
Thank you for investing in the Janus Henderson European Focus Fund.
Janus Henderson European Focus Fund (unaudited)
Fund At A Glance
September 30, 2022
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| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Rheinmetall AG | 1.09% | | 0.72% | | KION Group AG | 0.63% | | -0.70% |
| Terna Rete Elettrica Nazionale SpA | 1.60% | | 0.43% | | Pandora A/S | 1.98% | | -0.67% |
| Anglo American PLC | 2.67% | | 0.37% | | Wizz Air Holdings PLC | 0.76% | | -0.65% |
| Wacker Chemie AG | 1.21% | | 0.35% | | Vestas Wind Systems A/S | 1.50% | | -0.63% |
| Deutsche Boerse AG | 0.58% | | 0.31% | | BioNTech SE (ADR) | 0.14% | | -0.49% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Europe Index |
| | | Contribution | | Average Weight | Average Weight |
| Materials | | 0.87% | | 8.63% | 7.60% |
| Information Technology | | 0.64% | | 7.77% | 7.66% |
| Other** | | 0.48% | | 2.08% | 0.00% |
| Communication Services | | 0.47% | | 0.85% | 3.77% |
| Utilities | | 0.36% | | 6.28% | 4.30% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Europe Index |
| | | Contribution | | Average Weight | Average Weight |
| Industrials | | -1.76% | | 18.78% | 14.53% |
| Financials | | -0.99% | | 12.54% | 16.08% |
| Health Care | | -0.82% | | 13.20% | 15.32% |
| Energy | | -0.76% | | 5.18% | 5.67% |
| Consumer Staples | | -0.25% | | 12.52% | 13.18% |
| | | | | | | |
| 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, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Nestle SA (REG) | |
Food Products | 5.0% |
Roche Holding AG | |
Pharmaceuticals | 3.8% |
RELX PLC | |
Professional Services | 3.1% |
Nordea Bank Abp | |
Banks | 3.0% |
UBS Group AG | |
Capital Markets | 2.9% |
| | 17.8% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.5% | |
Investment Companies | | 3.1% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.4% | |
Other | | (1.0)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson European Focus Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -26.79% | -0.03% | 4.42% | 10.15% | | | 1.41% | 1.30% |
Class A Shares at MOP | | -30.99% | -1.21% | 3.80% | 9.84% | | | | |
Class C Shares at NAV | | -27.36% | -0.78% | 3.62% | 9.32% | | | 2.18% | 2.06% |
Class C Shares at CDSC | | -28.08% | -0.78% | 3.62% | 9.32% | | | | |
Class D Shares | | -26.66% | 0.17% | 4.52% | 10.20% | | | 1.28% | 1.11% |
Class I Shares | | -26.59% | 0.24% | 4.69% | 10.33% | | | 1.14% | 1.03% |
Class N Shares | | -26.54% | 0.32% | 4.63% | 10.25% | | | 1.11% | 0.96% |
Class S Shares | | -26.64% | 0.07% | 4.42% | 10.15% | | | 6.00% | 1.46% |
Class T Shares | | -26.73% | 0.08% | 4.47% | 10.17% | | | 1.38% | 1.21% |
MSCI Europe Index | | -24.80% | -1.24% | 3.45% | 4.18% | | | | |
Morningstar Quartile - Class A Shares | | 2nd | 1st | 2nd | 1st | | | | |
Morningstar Ranking - based on total returns for Europe Stock Funds | | 37/93 | 15/88 | 21/71 | 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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
Janus Henderson European Focus Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson 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.
© 2022 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.”
See important disclosures on the next page.
Janus Henderson European Focus Fund (unaudited)
Performance
*The Predecessor Fund’s inception date – August 31, 2001
‡ As stated in the prospectus. Net expense ratios reflect the expense waivers, if any, contractually agreed to for at least a one-year period commencing on January 28, 2022. 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $773.20 | $5.82 | | $1,000.00 | $1,018.50 | $6.63 | 1.31% |
Class C Shares | $1,000.00 | $770.00 | $9.27 | | $1,000.00 | $1,014.59 | $10.56 | 2.09% |
Class D Shares | $1,000.00 | $773.80 | $4.98 | | $1,000.00 | $1,019.45 | $5.67 | 1.12% |
Class I Shares | $1,000.00 | $774.20 | $4.63 | | $1,000.00 | $1,019.85 | $5.27 | 1.04% |
Class N Shares | $1,000.00 | $774.50 | $4.36 | | $1,000.00 | $1,020.16 | $4.96 | 0.98% |
Class S Shares | $1,000.00 | $773.60 | $5.25 | | $1,000.00 | $1,019.15 | $5.97 | 1.18% |
Class T Shares | $1,000.00 | $773.30 | $5.51 | | $1,000.00 | $1,018.85 | $6.28 | 1.24% |
† | 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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 97.5% | | | |
Aerospace & Defense – 4.5% | | | |
| | Hensoldt AG | | 219,437 | | | $4,406,782 | |
| | Rheinmetall AG | | 43,963 | | | 6,808,509 | |
| | Safran SA | | 41,461 | | | 3,769,256 | |
| | | 14,984,547 | |
Air Freight & Logistics – 1.4% | | | |
| | DSV Panalpina A/S | | 39,146 | | | 4,538,099 | |
Automobiles – 2.3% | | | |
| | Daimler AG | | 146,324 | | | 7,481,536 | |
Banks – 8.1% | | | |
| | BNP Paribas SA | | 147,894 | | | 6,242,750 | |
| | Commerzbank AG* | | 493,836 | | | 3,542,759 | |
| | FinecoBank Banca Fineco SpA | | 347,850 | | | 4,274,811 | |
| | Natwest Group PLC | | 1,079,394 | | | 2,693,166 | |
| | Nordea Bank Abp | | 1,162,826 | | | 9,954,821 | |
| | | 26,708,307 | |
Beverages – 1.8% | | | |
| | Diageo PLC | | 142,648 | | | 5,977,836 | |
Building Products – 1.3% | | | |
| | Cie de Saint-Gobain | | 120,745 | | | 4,305,580 | |
Capital Markets – 4.1% | | | |
| | Deutsche Boerse AG | | 23,370 | | | 3,846,987 | |
| | UBS Group AG | | 674,236 | | | 9,741,966 | |
| | | 13,588,953 | |
Construction & Engineering – 1.7% | | | |
| | Vinci SA | | 71,843 | | | 5,769,950 | |
Containers & Packaging – 1.4% | | | |
| | Smurfit Kappa Group PLC | | 166,080 | | | 4,691,295 | |
Electrical Equipment – 1.0% | | | |
| | Vestas Wind Systems A/S | | 179,236 | | | 3,286,707 | |
Food Products – 9.1% | | | |
| | Chocoladefabriken Lindt & Spruengli AG (PC) | | 652 | | | 6,301,226 | |
| | Danone SA | | 151,934 | | | 7,157,576 | |
| | Nestle SA (REG) | | 152,682 | | | 16,535,700 | |
| | | 29,994,502 | |
Hotels, Restaurants & Leisure – 1.9% | | | |
| | Compass Group PLC | | 311,895 | | | 6,233,115 | |
Life Sciences Tools & Services – 1.3% | | | |
| | Lonza Group AG | | 8,879 | | | 4,318,812 | |
Machinery – 7.0% | | | |
| | Atlas Copco AB - Class A | | 580,242 | | | 5,375,937 | |
| | Daimler Truck Holding AG* | | 175,155 | | | 4,007,977 | |
| | KION Group AG | | 155,612 | | | 3,014,903 | |
| | VAT Group AG (144A) | | 30,936 | | | 6,246,828 | |
| | Volvo AB | | 331,451 | | | 4,679,280 | |
| | | 23,324,925 | |
Metals & Mining – 1.5% | | | |
| | Anglo American PLC | | 162,267 | | | 4,900,707 | |
Multi-Utilities – 2.4% | | | |
| | RWE AG | | 214,389 | | | 7,887,203 | |
Oil, Gas & Consumable Fuels – 6.2% | | | |
| | BP PLC | | 1,350,859 | | | 6,422,350 | |
| | Equinor ASA | | 146,254 | | | 4,826,552 | |
| | Shell PLC | | 380,229 | | | 9,458,056 | |
| | | 20,706,958 | |
Paper & Forest Products – 1.4% | | | |
| | UPM-Kymmene Oyj | | 143,954 | | | 4,573,790 | |
Personal Products – 3.5% | | | |
| | L'Oreal SA | | 18,682 | | | 5,947,786 | |
| | |
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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Personal Products– (continued) | | | |
| | Unilever PLC | | 132,361 | | | $5,822,538 | |
| | | 11,770,324 | |
Pharmaceuticals – 10.9% | | | |
| | AstraZeneca PLC | | 84,700 | | | 9,312,343 | |
| | Novo Nordisk A/S | | 89,962 | | | 8,968,527 | |
| | Roche Holding AG | | 38,197 | | | 12,457,002 | |
| | Sanofi | | 71,689 | | | 5,470,499 | |
| | | 36,208,371 | |
Professional Services – 5.2% | | | |
| | RELX PLC | | 420,461 | | | 10,262,221 | |
| | Wolters Kluwer NV | | 71,027 | | | 6,914,222 | |
| | | 17,176,443 | |
Semiconductor & Semiconductor Equipment – 12.8% | | | |
| | AIXTRON SE | | 224,218 | | | 5,420,946 | |
| | ASM International NV | | 25,211 | | | 5,639,859 | |
| | ASML Holding NV | | 13,756 | | | 5,705,008 | |
| | BE Semiconductor Industries NV | | 134,726 | | | 5,733,189 | |
| | Infineon Technologies AG | | 267,612 | | | 5,929,532 | |
| | Meyer Burger Technology AG*,# | | 7,800,578 | | | 3,068,178 | |
| | Nordic Semiconductor ASA* | | 385,627 | | | 5,053,678 | |
| | STMicroelectronics NV | | 189,747 | | | 5,853,676 | |
| | | 42,404,066 | |
Textiles, Apparel & Luxury Goods – 4.8% | | | |
| | Hugo Boss AG | | 150,842 | | | 7,096,650 | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 14,862 | | | 8,735,086 | |
| | | 15,831,736 | |
Water Utilities – 1.9% | | | |
| | Severn Trent PLC | | 238,433 | | | 6,231,547 | |
Total Common Stocks (cost $358,997,732) | | 322,895,309 | |
Investment Companies– 3.1% | | | |
Money Markets – 3.1% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $10,391,302) | | 10,390,263 | | | 10,391,302 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.4% | | | |
Investment Companies – 0.3% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 1,136,698 | | | 1,136,698 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $284,174 | | | 284,174 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $1,420,872) | | 1,420,872 | |
Total Investments (total cost $370,809,906) – 101.0% | | 334,707,483 | |
Liabilities, net of Cash, Receivables and Other Assets – (1.0)% | | (3,390,317) | |
Net Assets – 100% | | $331,317,166 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson European Focus Fund
Schedule of Investments
September 30, 2022
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
Germany | | $59,443,784 | | 17.8 | % |
Switzerland | | 58,669,712 | | 17.5 | |
United Kingdom | | 57,855,823 | | 17.3 | |
France | | 47,398,483 | | 14.2 | |
Netherlands | | 33,450,334 | | 10.0 | |
Denmark | | 16,793,333 | | 5.0 | |
Finland | | 14,528,611 | | 4.3 | |
United States | | 11,812,174 | | 3.5 | |
Sweden | | 10,055,217 | | 3.0 | |
Norway | | 9,880,230 | | 3.0 | |
Singapore | | 5,853,676 | | 1.7 | |
Ireland | | 4,691,295 | | 1.4 | |
Italy | | 4,274,811 | | 1.3 | |
| | | | | | |
| | | | | | |
Total | | $334,707,483 | | 100.0 | % |
| | |
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, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - 3.1% |
Money Markets - 3.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 71,769 | $ | (998) | $ | - | $ | 10,391,302 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 100,381∆ | | - | | - | | 1,136,698 |
Total Affiliated Investments - 3.4% | $ | 172,150 | $ | (998) | $ | - | $ | 11,528,000 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - 3.1% |
Money Markets - 3.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 2,579,657 | | 307,197,934 | | (299,385,291) | | 10,391,302 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | - | | 35,259,207 | | (34,122,509) | | 1,136,698 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
Janus Henderson European Focus Fund
Schedule of Investments
September 30, 2022
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, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Equity
Contracts |
Purchased options contracts | | $(1,057,289) |
Written options contracts | | 3,609,919 |
| | | | | |
Total | | $ 2,552,630 |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Equity
Contracts |
Written options contracts | | $ (167,997) |
| | | | | |
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 Value of Derivative Instruments During the Year Ended September 30, 2022 |
| |
| |
Options: | |
Average value of option contracts purchased | $325,878 |
Average value of option contracts written | (286,570) |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson European Focus Fund
Schedule of Investments
September 30, 2022
| | | | | | | | | | |
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 | $ | 1,241,928 | $ | — | $ | (1,241,928) | $ | — |
| | | | | | | | | |
(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. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2022 |
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 |
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, 2022 is $6,246,828, which represents 1.9% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
| | |
£ | 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, 2022. 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 | $ | - | $ | 322,895,309 | $ | - |
Investment Companies | | - | | 10,391,302 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 1,420,872 | | - |
Total Assets | $ | - | $ | 334,707,483 | $ | - |
| | | | | | | |
Janus Henderson European Focus Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $359,281,906)(1) | | $ | 323,179,483 | |
| Affiliated investments, at value (cost $11,528,000) | | | 11,528,000 | |
| Cash denominated in foreign currency (cost $946,619) | | | 937,938 | |
| Trustees' deferred compensation | | | 9,975 | |
| Receivables: | | | | |
| | Foreign tax reclaims | | | 2,734,746 | |
| | Fund shares sold | | | 464,171 | |
| | Dividends | | | 114,127 | |
| | Dividends from affiliates | | | 5,263 | |
| Other assets | | | 4,250 | |
Total Assets | | | 338,977,953 | |
Liabilities: | | | | |
| Due to custodian | | | 2,048 | |
| Collateral for securities loaned (Note 3) | | | 1,420,872 | |
| Payables: | | | — | |
| | Investments purchased | | | 4,645,420 | |
| | Fund shares repurchased | | | 698,627 | |
| | Advisory fees | | | 297,825 | |
| | Transfer agent fees and expenses | | | 53,863 | |
| | Professional fees | | | 48,259 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 32,343 | |
| | Custodian fees | | | 15,299 | |
| | Trustees' deferred compensation fees | | | 9,975 | |
| | Trustees' fees and expenses | | | 1,888 | |
| | Affiliated fund administration fees payable | | | 796 | |
| | Accrued expenses and other payables | | | 433,572 | |
Total Liabilities | | | 7,660,787 | |
Net Assets | | $ | 331,317,166 | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson European Focus Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 815,651,137 | |
| Total distributable earnings (loss) | | | (484,333,971) | |
Total Net Assets | | $ | 331,317,166 | |
Net Assets - Class A Shares | | $ | 96,858,286 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,978,468 | |
Net Asset Value Per Share(2) | | $ | 32.52 | |
Maximum Offering Price Per Share(3) | | $ | 34.50 | |
Net Assets - Class C Shares | | $ | 9,828,656 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 322,970 | |
Net Asset Value Per Share(2) | | $ | 30.43 | |
Net Assets - Class D Shares | | $ | 6,898,687 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 213,455 | |
Net Asset Value Per Share | | $ | 32.32 | |
Net Assets - Class I Shares | | $ | 196,067,912 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,059,260 | |
Net Asset Value Per Share | | $ | 32.36 | |
Net Assets - Class N Shares | | $ | 14,169,803 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 440,747 | |
Net Asset Value Per Share | | $ | 32.15 | |
Net Assets - Class S Shares | | $ | 101,492 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,271 | |
Net Asset Value Per Share | | $ | 31.03 | |
Net Assets - Class T Shares | | $ | 7,392,330 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 229,086 | |
Net Asset Value Per Share | | $ | 32.27 | |
| |
(1) Includes $1,241,928 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 European Focus Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 14,620,614 | |
| Non-cash dividends | | 2,115,743 | |
| Affiliated securities lending income, net | | 100,381 | |
| Dividends from affiliates | | 71,769 | |
| Unaffiliated securities lending income, net | | 2,474 | |
| Other income | | 606,582 | |
| Foreign tax withheld | | (1,726,631) | |
Total Investment Income | | 15,790,932 | |
Expenses: | | | |
| Advisory fees | | 4,535,036 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 323,662 | |
| | Class C Shares | | 171,329 | |
| | Class S Shares | | — | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 10,720 | |
| | Class S Shares | | 239 | |
| | Class T Shares | | 26,120 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 103,380 | |
| | Class C Shares | | 16,997 | |
| | Class I Shares | | 189,846 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 8,770 | |
| | Class C Shares | | 1,010 | |
| | Class D Shares | | 3,000 | |
| | Class I Shares | | 13,236 | |
| | Class N Shares | | 520 | |
| | Class S Shares | | 5 | |
| | Class T Shares | | 816 | |
| Registration fees | | 132,819 | |
| Professional fees | | 47,782 | |
| Custodian fees | | 44,082 | |
| Shareholder reports expense | | 28,624 | |
| Affiliated fund administration fees | | 11,348 | |
| Trustees’ fees and expenses | | 9,771 | |
| Other expenses | | 99,370 | |
Total Expenses | | 5,778,482 | |
Less: Excess Expense Reimbursement and Waivers | | (545,291) | |
Net Expenses | | 5,233,191 | |
Net Investment Income/(Loss) | | 10,557,741 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2022 |
Janus Henderson European Focus Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | (56,735,284) | |
| Investments in affiliates | | (998) | |
| Purchased options contracts | | (1,057,289) | |
| Written options contracts | | 3,609,919 | |
Total Net Realized Gain/(Loss) on Investments | | (54,183,652) | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (82,974,040) | |
| Written options contracts | | (167,997) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (83,142,037) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (126,767,948) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson European Focus Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 10,557,741 | | $ | 2,166,450 | |
| Net realized gain/(loss) on investments | | (54,183,652) | | | 99,624,270 | |
| Change in unrealized net appreciation/depreciation | | (83,142,037) | | | 6,825,774 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (126,767,948) | | | 108,616,494 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (199,461) | | | (362,388) | |
| | Class D Shares | | (33,496) | | | (20,930) | |
| | Class I Shares | | (1,094,982) | | | (1,148,633) | |
| | Class N Shares | | (45,092) | | | (26,735) | |
| | Class S Shares | | (279) | | | (185) | |
| | Class T Shares | | (34,594) | | | (12,244) | |
Net Decrease from Dividends and Distributions to Shareholders | | (1,407,904) | | | (1,571,115) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (8,375,717) | | | (8,045,062) | |
| | Class C Shares | | (9,044,345) | | | (14,066,619) | |
| | Class D Shares | | (467,101) | | | 5,355,988 | |
| | Class I Shares | | (26,183,219) | | | 29,583,028 | |
| | Class N Shares | | 8,572,500 | | | 3,380,544 | |
| | Class S Shares | | 46,405 | | | 15,445 | |
| | Class T Shares | | (77,072) | | | 8,380,996 | |
Net Increase/(Decrease) from Capital Share Transactions | | (35,528,549) | | | 24,604,320 | |
Net Increase/(Decrease) in Net Assets | | (163,704,401) | | | 131,649,699 | |
Net Assets: | | | | | | |
| Beginning of period | | 495,021,567 | | | 363,371,868 | |
| End of period | $ | 331,317,166 | | $ | 495,021,567 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2022 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $44.48 | | | $34.23 | | | $27.21 | | | $31.73 | | | $35.02 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.90 | | | 0.16 | | | 0.11 | | | 0.41 | | | 0.46 | |
| | Net realized and unrealized gain/(loss) | | (12.80) | | | 10.20 | | | 7.22 | | | (3.91) | | | (3.16) | |
| Total from Investment Operations | | (11.90) | | | 10.36 | | | 7.33 | | | (3.50) | | | (2.70) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | (0.11) | | | (0.31) | | | (1.02) | | | (0.59) | |
| Total Dividends and Distributions | | (0.06) | | | (0.11) | | | (0.31) | | | (1.02) | | | (0.59) | |
| Net Asset Value, End of Period | | $32.52 | | | $44.48 | | | $34.23 | | | $27.21 | | | $31.73 | |
| Total Return* | | (26.79)% | | | 30.31% | | | 27.04% | | | (10.61)% | | | (7.84)% | |
| Net Assets, End of Period (in thousands) | | $96,858 | | | $141,908 | | | $116,047 | | | $112,110 | | | $176,690 | |
| Average Net Assets for the Period (in thousands) | | $128,933 | | | $136,809 | | | $109,879 | | | $135,260 | | | $227,911 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.42% | | | 1.41% | | | 1.45% | | | 1.46% | | | 1.31% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.30% | | | 1.30% | | | 1.31% | | | 1.32% | | | 1.30% | |
| | Ratio of Net Investment Income/(Loss) | | 2.17% | | | 0.37% | | | 0.38% | | | 1.49% | | | 1.37% | |
| Portfolio Turnover Rate | | 145% | | | 184% | | | 160% | | | 145% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $41.90 | | | $32.40 | | | $25.69 | | | $29.66 | | | $32.68 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.57 | | | (0.18) | | | (0.11) | | | 0.16 | | | 0.21 | |
| | Net realized and unrealized gain/(loss) | | (12.04) | | | 9.68 | | | 6.82 | | | (3.57) | | | (2.97) | |
| Total from Investment Operations | | (11.47) | | | 9.50 | | | 6.71 | | | (3.41) | | | (2.76) | |
| 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 | | $30.43 | | | $41.90 | | | $32.40 | | | $25.69 | | | $29.66 | |
| Total Return* | | (27.37)% | | | 29.32% | | | 26.12% | | | (11.26)% | | | (8.51)% | |
| Net Assets, End of Period (in thousands) | | $9,829 | | | $23,302 | | | $29,652 | | | $43,110 | | | $118,408 | |
| Average Net Assets for the Period (in thousands) | | $17,189 | | | $27,919 | | | $37,468 | | | $62,633 | | | $154,929 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.20% | | | 2.17% | | | 2.19% | | | 2.19% | | | 2.04% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.07% | | | 2.05% | | | 2.06% | | | 2.06% | | | 2.02% | |
| | Ratio of Net Investment Income/(Loss) | | 1.44% | | | (0.46)% | | | (0.40)% | | | 0.62% | | | 0.65% | |
| Portfolio Turnover Rate | | 145% | | | 184% | | | 160% | | | 145% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $44.21 | | | $34.01 | | | $27.05 | | | $31.61 | | | $35.02 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.98 | | | 0.24 | | | 0.18 | | | 0.49 | | | 0.57 | |
| | Net realized and unrealized gain/(loss) | | (12.73) | | | 10.13 | | | 7.16 | | | (3.92) | | | (3.20) | |
| Total from Investment Operations | | (11.75) | | | 10.37 | | | 7.34 | | | (3.43) | | | (2.63) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.17) | | | (0.38) | | | (1.13) | | | (0.78) | |
| Total Dividends and Distributions | | (0.14) | | | (0.17) | | | (0.38) | | | (1.13) | | | (0.78) | |
| Net Asset Value, End of Period | | $32.32 | | | $44.21 | | | $34.01 | | | $27.05 | | | $31.61 | |
| Total Return* | | (26.66)% | | | 30.57% | | | 27.27% | | | (10.39)% | | | (7.67)% | |
| Net Assets, End of Period (in thousands) | | $6,899 | | | $10,102 | | | $3,510 | | | $2,293 | | | $2,875 | |
| Average Net Assets for the Period (in thousands) | | $9,366 | | | $6,844 | | | $2,636 | | | $2,421 | | | $3,071 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.30% | | | 1.28% | | | 1.40% | | | 1.59% | | | 1.19% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.11% | | | 1.10% | | | 1.11% | | | 1.14% | | | 1.11% | |
| | Ratio of Net Investment Income/(Loss) | | 2.39% | | | 0.57% | | | 0.60% | | | 1.81% | | | 1.71% | |
| Portfolio Turnover Rate | | 145% | | | 184% | | | 160% | | | 145% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $44.25 | | | $34.03 | | | $27.07 | | | $31.59 | | | $34.94 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 1.02 | | | 0.26 | | | 0.19 | | | 0.42 | | | 0.54 | |
| | Net realized and unrealized gain/(loss) | | (12.75) | | | 10.15 | | | 7.17 | | | (3.82) | | | (3.14) | |
| Total from Investment Operations | | (11.73) | | | 10.41 | | | 7.36 | | | (3.40) | | | (2.60) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.16) | | | (0.19) | | | (0.40) | | | (1.12) | | | (0.75) | |
| Total Dividends and Distributions | | (0.16) | | | (0.19) | | | (0.40) | | | (1.12) | | | (0.75) | |
| Net Asset Value, End of Period | | $32.36 | | | $44.25 | | | $34.03 | | | $27.07 | | | $31.59 | |
| Total Return* | | (26.60)% | | | 30.66% | | | 27.35% | | | (10.30)% | | | (7.60)% | |
| Net Assets, End of Period (in thousands) | | $196,068 | | | $299,272 | | | $208,159 | | | $220,722 | | | $695,302 | |
| Average Net Assets for the Period (in thousands) | | $272,758 | | | $263,587 | | | $204,753 | | | $353,101 | | | $1,025,799 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.16% | | | 1.14% | | | 1.17% | | | 1.16% | | | 1.03% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.04% | | | 1.03% | | | 1.04% | | | 1.03% | | | 1.02% | |
| | Ratio of Net Investment Income/(Loss) | | 2.47% | | | 0.62% | | | 0.64% | | | 1.53% | | | 1.60% | |
| Portfolio Turnover Rate | | 145% | | | 184% | | | 160% | | | 145% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2022 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $43.95 | | | $33.80 | | | $26.86 | | | $31.64 | | | $34.89 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.95 | | | 0.35 | | | 0.34 | | | 0.49 | | | 0.56 | |
| | Net realized and unrealized gain/(loss) | | (12.56) | | | 10.01 | | | 7.01 | | | (3.91) | | | (3.14) | |
| Total from Investment Operations | | (11.61) | | | 10.36 | | | 7.35 | | | (3.42) | | | (2.58) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.19) | | | (0.21) | | | (0.41) | | | (1.36) | | | (0.67) | |
| Total Dividends and Distributions | | (0.19) | | | (0.21) | | | (0.41) | | | (1.36) | | | (0.67) | |
| Net Asset Value, End of Period | | $32.15 | | | $43.95 | | | $33.80 | | | $26.86 | | | $31.64 | |
| Total Return* | | (26.54)% | | | 30.72% | | | 27.51% | | | (10.25)% | | | (7.54)% | |
| Net Assets, End of Period (in thousands) | | $14,170 | | | $9,763 | | | $4,371 | | | $139 | | | $284 | |
| Average Net Assets for the Period (in thousands) | | $13,374 | | | $9,327 | | | $3,114 | | | $207 | | | $332 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.11% | | | 1.11% | | | 1.20% | | | 2.56% | | | 1.43% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.97% | | | 0.96% | | | 0.96% | | | 0.97% | | | 0.97% | |
| | Ratio of Net Investment Income/(Loss) | | 2.40% | | | 0.85% | | | 1.17% | | | 1.82% | | | 1.68% | |
| Portfolio Turnover Rate | | 145% | | | 184% | | | 160% | | | 145% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $42.42 | | | $32.57 | | | $25.98 | | | $31.53 | | | $35.01 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.88 | | | 0.23 | | | 0.11 | | | 0.45 | | | 0.47 | |
| | Net realized and unrealized gain/(loss) | | (12.13) | | | 9.73 | | | 6.85 | | | (3.98) | | | (3.20) | |
| Total from Investment Operations | | (11.25) | | | 9.96 | | | 6.96 | | | (3.53) | | | (2.73) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.11) | | | (0.37) | | | (2.02) | | | (0.75) | |
| Total Dividends and Distributions | | (0.14) | | | (0.11) | | | (0.37) | | | (2.02) | | | (0.75) | |
| Net Asset Value, End of Period | | $31.03 | | | $42.42 | | | $32.57 | | | $25.98 | | | $31.53 | |
| Total Return* | | (26.61)% | | | 30.63% | | | 26.93% | | | (10.35)% | | | (7.96)% | |
| Net Assets, End of Period (in thousands) | | $101 | | | $85 | | | $54 | | | $43 | | | $48 | |
| Average Net Assets for the Period (in thousands) | | $95 | | | $68 | | | $48 | | | $43 | | | $50 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 4.51% | | | 5.71% | | | 7.83% | | | 8.50% | | | 4.42% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.10% | | | 1.07% | | | 1.34% | | | 1.17% | | | 1.35% | |
| | Ratio of Net Investment Income/(Loss) | | 2.27% | | | 0.58% | | | 0.40% | | | 1.73% | | | 1.42% | |
| Portfolio Turnover Rate | | 145% | | | 184% | | | 160% | | | 145% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
26 | SEPTEMBER 30, 2022 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $44.17 | | | $34.02 | | | $27.06 | | | $31.57 | | | $35.03 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.93 | | | 0.20 | | | 0.12 | | | 0.47 | | | 0.54 | |
| | Net realized and unrealized gain/(loss) | | (12.70) | | | 10.12 | | | 7.20 | | | (3.90) | | | (3.21) | |
| Total from Investment Operations | | (11.77) | | | 10.32 | | | 7.32 | | | (3.43) | | | (2.67) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.17) | | | (0.36) | | | (1.08) | | | (0.79) | |
| Total Dividends and Distributions | | (0.13) | | | (0.17) | | | (0.36) | | | (1.08) | | | (0.79) | |
| Net Asset Value, End of Period | | $32.27 | | | $44.17 | | | $34.02 | | | $27.06 | | | $31.57 | |
| Total Return* | | (26.73)% | | | 30.41% | | | 27.20% | | | (10.43)% | | | (7.79)% | |
| Net Assets, End of Period (in thousands) | | $7,392 | | | $10,590 | | | $1,579 | | | $676 | | | $929 | |
| Average Net Assets for the Period (in thousands) | | $10,408 | | | $5,237 | | | $839 | | | $762 | | | $1,598 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.37% | | | 1.38% | | | 1.70% | | | 1.76% | | | 1.31% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.22% | | | 1.21% | | | 1.19% | | | 1.18% | | | 1.20% | |
| | Ratio of Net Investment Income/(Loss) | | 2.25% | | | 0.47% | | | 0.41% | | | 1.74% | | | 1.59% | |
| Portfolio Turnover Rate | | 145% | | | 184% | | | 160% | | | 145% | | | 82% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory
Janus Henderson European Focus Fund
Notes to Financial Statements
programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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
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Notes to Financial Statements
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, 2022 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 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.
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Notes to Financial Statements
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. 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, 2022 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or
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Notes to Financial Statements
other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on the Adviser’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
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Notes to Financial Statements
market quotation, a broker quotation or an internal valuation using the Black-Scholes model, the Cox-Rubinstein Binomial Option Pricing Model, or other appropriate option pricing model is used. Certain options contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities as “Variation margin receivable” or “Variation margin payable” (if applicable).
The Fund may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Fund generally invests in options to hedge against adverse movements in the value of portfolio holdings. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying an option and the asset being hedged, or unexpected adverse price movements, could render the Fund’s hedging strategy unsuccessful. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased or sold. The Fund may be subject to counterparty risk, interest rate risk, liquidity risk, equity risk, commodity risk, and currency risk in the normal course of pursuing its investment objective through its investments in options contracts.
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded OTC expose the Fund to counterparty risk in the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.
The Fund may purchase put options to hedge against a decline in the value of its portfolio. By using put options in this way, the Fund will reduce any profit it might otherwise have realized in the underlying security by the amount of the premium paid for the put option and by transaction costs. The Fund may purchase call options to hedge against an increase in the price of securities that it may buy in the future. The premium paid for the call option plus any transaction costs will reduce the benefit, if any, realized by the Fund upon exercise of the option, and, unless the price of the underlying security rises sufficiently, the option may expire worthless to the Fund. The risk in buying options is that the Fund pays a premium whether or not the options are exercised. Options purchased are reported in the Schedule of Investments (if applicable).
During the year, the Fund purchased call options on various equity index securities for the purpose of increasing exposure to broad equity risk.
During the year, the Fund purchased call options on various equity index securities for the purpose of increasing exposure to individual equity risk.
During the year, the Fund purchased put options on various equity index securities for the purpose of decreasing exposure to broad equity risk.
There were no purchased options held at September 30, 2022.
In writing an option, the Fund bears the risk of an unfavorable change in the price of the security underlying the written option. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options written are reported as a liability on the Statement of Assets and Liabilities as “Options written, at value” (if applicable). The risk in writing call options is that the Fund gives up the opportunity for profit if the market price of the security increases and the options are exercised. The risk in writing put options is that the Fund may incur a loss if the market price of the security decreases and the options are exercised. The risk in buying options is that the Fund pays a premium whether or not the options are exercised. Exercise of an option written by the Fund could result in the Fund buying or selling a security at a price different from the current market value.
During the year, the Fund wrote put options on various equity securities for the purpose of increasing exposure to individual equity risk and/or generating income.
During the year, the Fund wrote put options on various equity indices for the purpose of increasing exposure to broad equity risk.
During the year, the Fund wrote call options on various equity indices for the purpose of decreasing exposure to broad equity risk.
There were no written options held at September 30, 2022.
Janus Henderson European Focus Fund
Notes to Financial Statements
3. Other Investments and Strategies
Additional Investment Risk
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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 the Adviser 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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
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Notes to Financial Statements
securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser 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 the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $1,241,928. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $1,420,872, resulting in the net amount due to the counterparty of $178,944.
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.
Janus Henderson European Focus Fund
Notes to Financial Statements
The Offsetting Assets and Liabilities table located in the Schedule of Investments 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.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
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Average Daily Net Assets of the 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.
The Adviser 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 the Adviser. In this capacity, such employees of HGIL are subject to the oversight and supervision of the Adviser and may provide portfolio management, research, and related services to the Fund on behalf of the Adviser.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Henderson European Focus Fund
Notes to Financial Statements
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares as detailed below.
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Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, 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 Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $3,482.
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 the Distributor during the year ended September 30, 2022.
Janus Henderson European Focus Fund
Notes to Financial Statements
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the year ended September 30, 2022, redeeming shareholders of Class C Shares paid CDSCs of $1,527.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Janus Henderson European Focus Fund
Notes to Financial Statements
As of September 30, 2022, shares of the Fund were owned by affiliates of the Adviser, and/or other funds advised by the Adviser, 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 | 82 | | 4 | | |
Class S Shares | 51 | | -* | | |
Class T Shares | - | | - | | |
| | | | | | |
* | Less than 0.50% | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. 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) | |
$ 10,137,464 | $ - | $(447,525,119) | $ - | $ - | $ (369,182) | $(46,577,134) | |
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2022, 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, 2022 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(233,795,597) | $(213,729,522) | $ (447,525,119) | | |
Janus Henderson European Focus 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, 2022 are noted below. The primary difference 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) |
$ 381,284,617 | $ 6,820,098 | $(53,397,232) | $ (46,577,134) |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 1,407,904 | $ - | $ - | $ - | |
| | | | | |
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 | $ - | $ - | $ - | |
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 |
$ - | $ (417,908) | $ 417,908 |
Janus Henderson European Focus Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 331,159 | $ 13,680,666 | | 416,402 | $ 17,599,243 |
Reinvested dividends and distributions | 3,908 | 175,228 | | 8,199 | 321,149 |
Shares repurchased | (546,754) | (22,231,611) | | (624,419) | (25,965,454) |
Net Increase/(Decrease) | (211,687) | $ (8,375,717) | | (199,818) | $ (8,045,062) |
Class C Shares: | | | | | |
Shares sold | 30,784 | $ 1,227,701 | | 78,064 | $ 2,985,510 |
Reinvested dividends and distributions | - | - | | - | - |
Shares repurchased | (263,979) | (10,272,046) | | (437,142) | (17,052,129) |
Net Increase/(Decrease) | (233,195) | $ (9,044,345) | | (359,078) | $(14,066,619) |
Class D Shares: | | | | | |
Shares sold | 66,649 | $ 2,930,962 | | 181,755 | $ 7,699,475 |
Reinvested dividends and distributions | 731 | 32,517 | | 523 | 20,335 |
Shares repurchased | (82,413) | (3,430,580) | | (56,979) | (2,363,822) |
Net Increase/(Decrease) | (15,033) | $ (467,101) | | 125,299 | $ 5,355,988 |
Class I Shares: | | | | | |
Shares sold | 1,838,037 | $ 73,103,509 | | 1,698,263 | $ 73,365,880 |
Reinvested dividends and distributions | 22,853 | 1,017,664 | | 28,012 | 1,089,119 |
Shares repurchased | (2,565,510) | (100,304,392) | | (1,079,177) | (44,871,971) |
Net Increase/(Decrease) | (704,620) | $(26,183,219) | | 647,098 | $ 29,583,028 |
Class N Shares: | | | | | |
Shares sold | 280,620 | $ 11,023,913 | | 201,165 | $ 8,001,484 |
Reinvested dividends and distributions | 1,020 | 45,092 | | 693 | 26,735 |
Shares repurchased | (63,038) | (2,496,505) | | (109,036) | (4,647,675) |
Net Increase/(Decrease) | 218,602 | $ 8,572,500 | | 92,822 | $ 3,380,544 |
Class S Shares: | | | | | |
Shares sold | 1,249 | $ 46,126 | | 339 | $ 15,260 |
Reinvested dividends and distributions | 7 | 279 | | 5 | 185 |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 1,256 | $ 46,405 | | 344 | $ 15,445 |
Class T Shares: | | | | | |
Shares sold | 217,630 | $ 9,367,473 | | 280,176 | $ 12,166,569 |
Reinvested dividends and distributions | 773 | 34,381 | | 310 | 12,060 |
Shares repurchased | (229,049) | (9,478,926) | | (87,171) | (3,797,633) |
Net Increase/(Decrease) | (10,646) | $ (77,072) | | 193,315 | $ 8,380,996 |
Janus Henderson European Focus Fund
Notes to Financial Statements
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$634,228,328 | $ 657,088,182 | $ - | $ - |
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
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).
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson European Focus Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson European Focus Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson European Focus Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson European Focus Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson European Focus Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson European Focus Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson European Focus Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson European Focus Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson European Focus Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson European Focus Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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Foreign Taxes Paid | $1,686,917 |
Foreign Source Income | $13,410,364 |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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 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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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)
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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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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)
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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 |
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). |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US 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 Henderson Services US LLC. |
* 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 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 |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson European Focus 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93080 11-22 |
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| | | ANNUAL REPORT September 30, 2022 |
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| | Janus Henderson Forty 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 Forty Fund
Janus Henderson Forty Fund (unaudited)
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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. | | | 
Brian Recht co-portfolio manager | 
Doug Rao co-portfolio manager | 
Nick Schommer co-portfolio manager |
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PERFORMANCE
The Janus Henderson Forty Fund Class I Shares returned -33.84% for the 12-month period ended September 30, 2022, versus a return of -22.59% for the Fund’s primary benchmark, the Russell 1000® Growth Index. The Fund’s secondary benchmark, the S&P 500® Index, returned -15.47% for the period.
INVESTMENT ENVIRONMENT
The period began amid optimism that increased vaccination rates and the imminent arrival of oral antiviral drugs could help lessen the health risks posed by the COVID virus, but investor sentiment soured rapidly as the Federal Reserve (Fed) realized that it was behind the curve in fighting inflation. Inflation remained elevated throughout the period, and the Fed continued to tighten monetary policy aggressively and conveyed that rates would need to remain higher for longer to bring inflation back to its 2% target. The Fed’s hawkish stance underpinned gains in the U.S. dollar, which hit its highest level in more than 20 years toward the end of the period. While the U.S. economy entered a technical recession - experiencing two consecutive quarters of contraction in the first and second quarters of 2022 - the economic outlook remained uncertain, as consumer and labor force data were relatively resilient even amid fears of a weaker economic environment.
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 detractors from relative performance. The company suffered earlier in the period as it faced difficulty in measuring advertisers’ conversion rates due to Apple’s iOS privacy changes. Later, the company had a more difficult time than expected gaining market share amid a weakening environment for advertising revenue. We exited our position in the stock during the period.
Cloud-based customer engagement platform Twilio was also among the top relative detractors. At the onset of the COVID-19 pandemic, the company saw demand for its core products grow swiftly as digital transformation efforts accelerated. However, more recently, the stock suffered from difficult year-over-year comparisons, lowered growth expectations, and margins below expectations. High-growth stocks with expected cash flows far out into the future also generally fell during the period as interest rates rose significantly. We exited our position in the stock during the period.
Managed healthcare operator UnitedHealth Group was among the top contributors as the more defensive healthcare sector generally held up better than the market during a volatile time. The company also reported strong growth and moderately raised guidance during the period, and has seen continued strength in its Medicare Advantage healthcare plan and Optum, its information and technology-enabled health services business focused on lowering costs within the healthcare system.
Agriculture and industrial equipment manufacturer Deere & Company was also among the top relative contributors. The stock rallied during the period as prices for agricultural commodities spiked as a result of the
Janus Henderson Forty Fund (unaudited)
Russia-Ukraine war. Higher grain prices that translate into higher profits for farmers could result in increased investment in farm equipment. Deere has also benefited as the market begins to recognize the company’s transition from a more cyclical, agricultural-based company to a more technology-centric provider of precision agriculture products.
OUTLOOK
The continuing strength of the U.S. consumer combined with a level of consumer interest-rate sensitivity that is lower than in previous rate-hiking cycles has complicated the Fed’s task of slowing demand. This has forced the Fed to take an aggressive path. At this point it appears many stocks are pricing in a significant recession, and the Fed has forcefully communicated that it is committed to slowing inflation even at the expense of economic growth. Rate hikes have also significantly strengthened the value of the U.S. dollar, creating a headwind for corporate earnings.
We continue to look for evidence of slowing consumer demand, which could signal a moderation in inflation. We are starting to see a decline in transactions for financeable items, which could be a precursor to a drop in prices. However, there remains a tremendous amount of uncertainty around where interest rate levels will eventually land and what a potential recession will look like. Volatility will likely continue as markets attempt to determine the eventual effects for both company earnings and multiples. From a longer-term perspective, COVID - and the unprecedented fiscal and monetary response - accelerated a shift away from the deflationary forces of two decades of globalization. In coming years, the economy will also be forced to deal with the effects of de-globalization in both labor markets and supply chains.
Amid the numerous risks investors now face, we still view relatively short-term price movements as temporary for quality growth businesses, in contrast to the risk of permanent loss of capital for companies with broken business models. As the market outlook remains uncertain, we have sought to concentrate on companies with significant competitive advantages as well as greater visibility into their revenue and earnings trajectories. We think there are opportunities for these quality companies to emerge from the current circumstances and thrive.
Thank you for your investment in Janus Henderson Forty Fund.
Janus Henderson Forty Fund (unaudited)
Fund At A Glance
September 30, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| NVIDIA Corp | 1.89% | | 0.60% | | Snap Inc | 2.11% | | -3.15% |
| UnitedHealth Group Inc | 2.04% | | 0.57% | | Twilio Inc | 1.46% | | -1.41% |
| Deere & Co | 2.94% | | 0.53% | | Align Technology Inc | 2.18% | | -1.39% |
| Procter & Gamble Co | 1.56% | | 0.34% | | Apple Inc | 6.00% | | -1.03% |
| Danaher Corp | 3.88% | | 0.29% | | Match Group Inc | 1.49% | | -0.85% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Other** | | 0.34% | | 1.85% | 0.00% |
| Industrials | | 0.17% | | 5.37% | 6.36% |
| Real Estate | | 0.07% | | 2.89% | 1.74% |
| Materials | | -0.06% | | 2.87% | 1.10% |
| Financials | | -0.14% | | 3.75% | 2.60% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Communication Services | | -4.83% | | 13.25% | 10.19% |
| Information Technology | | -2.58% | | 37.58% | 45.24% |
| Consumer Discretionary | | -1.85% | | 16.92% | 17.80% |
| Health Care | | -1.26% | | 13.96% | 9.61% |
| Consumer Staples | | -0.50% | | 1.56% | 4.61% |
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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, 2022
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5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 11.1% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 7.6% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 7.4% |
Mastercard Inc | |
Information Technology Services | 5.9% |
Deere & Co | |
Machinery | 4.5% |
| | 36.5% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 95.6% | |
Investment Companies | | 4.2% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.4% | |
Other | | (0.2)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson Forty 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, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -34.00% | 8.98% | 12.05% | 10.74% | | | 1.02% |
Class A Shares at MOP | | -37.80% | 7.69% | 11.39% | 10.48% | | | |
Class C Shares at NAV | | -34.43% | 8.29% | 11.33% | 10.05% | | | 1.77% |
Class C Shares at CDSC | | -35.01% | 8.29% | 11.33% | 10.05% | | | |
Class D Shares | | -33.86% | 9.22% | 12.17% | 10.71% | | | 0.82% |
Class I Shares | | -33.84% | 9.28% | 12.38% | 10.93% | | | 0.77% |
Class N Shares | | -33.78% | 9.36% | 12.47% | 10.83% | | | 0.70% |
Class R Shares | | -34.26% | 8.56% | 11.64% | 10.36% | | | 1.45% |
Class S Shares | | -34.11% | 8.82% | 11.93% | 10.62% | | | 1.20% |
Class T Shares | | -33.94% | 9.11% | 12.20% | 10.76% | | | 0.95% |
Russell 1000 Growth Index | | -22.59% | 12.17% | 13.70% | 8.29% | | | |
S&P 500 Index | | -15.47% | 9.24% | 11.70% | 8.08% | | | |
Morningstar Quartile - Class S Shares | | 4th | 3rd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Large Growth Funds | | 1,021/1,269 | 637/1,146 | 409/1,050 | 24/516 | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
Janus Henderson Forty 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), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, 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.
© 2022 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, 2022, A. Douglas Rao, Brian Recht, and Nick Schommer are Co-Portfolio Managers of the Fund.
*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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $707.90 | $3.55 | | $1,000.00 | $1,020.91 | $4.20 | 0.83% |
Class C Shares | $1,000.00 | $705.30 | $6.41 | | $1,000.00 | $1,017.55 | $7.59 | 1.50% |
Class D Shares | $1,000.00 | $708.60 | $2.70 | | $1,000.00 | $1,021.91 | $3.19 | 0.63% |
Class I Shares | $1,000.00 | $708.60 | $2.44 | | $1,000.00 | $1,022.21 | $2.89 | 0.57% |
Class N Shares | $1,000.00 | $709.00 | $2.14 | | $1,000.00 | $1,022.56 | $2.54 | 0.50% |
Class R Shares | $1,000.00 | $706.50 | $5.30 | | $1,000.00 | $1,018.85 | $6.28 | 1.24% |
Class S Shares | $1,000.00 | $707.20 | $4.24 | | $1,000.00 | $1,020.10 | $5.01 | 0.99% |
Class T Shares | $1,000.00 | $708.10 | $3.13 | | $1,000.00 | $1,021.41 | $3.70 | 0.73% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 95.6% | | | |
Automobiles – 0.6% | | | |
| | Rivian Automotive Inc - Class A*,# | | 2,592,062 | | | $85,304,761 | |
Biotechnology – 3.5% | | | |
| | AbbVie Inc | | 3,490,314 | | | 468,435,042 | |
Capital Markets – 4.5% | | | |
| | Blackstone Group Inc | | 3,963,152 | | | 331,715,822 | |
| | Charles Schwab Corp | | 3,947,114 | | | 283,679,083 | |
| | | 615,394,905 | |
Chemicals – 1.2% | | | |
| | Sherwin-Williams Co | | 812,939 | | | 166,449,260 | |
Equity Real Estate Investment Trusts (REITs) – 3.3% | | | |
| | American Tower Corp | | 2,061,724 | | | 442,652,143 | |
Health Care Equipment & Supplies – 8.1% | | | |
| | Align Technology Inc* | | 469,143 | | | 97,164,207 | |
| | Danaher Corp | | 2,297,077 | | | 593,312,018 | |
| | DexCom Inc* | | 2,660,054 | | | 214,240,749 | |
| | Edwards Lifesciences Corp* | | 2,377,827 | | | 196,479,845 | |
| | | 1,101,196,819 | |
Health Care Providers & Services – 3.1% | | | |
| | UnitedHealth Group Inc | | 824,866 | | | 416,590,325 | |
Hotels, Restaurants & Leisure – 0.8% | | | |
| | Caesars Entertainment Inc* | | 3,558,988 | | | 114,812,953 | |
Household Products – 1.0% | | | |
| | Procter & Gamble Co | | 1,029,817 | | | 130,014,396 | |
Information Technology Services – 5.9% | | | |
| | Mastercard Inc | | 2,819,799 | | | 801,781,648 | |
Interactive Media & Services – 6.2% | | | |
| | Alphabet Inc - Class C* | | 5,704,915 | | | 548,527,577 | |
| | Match Group Inc* | | 2,708,982 | | | 129,353,891 | |
| | Meta Platforms Inc - Class A* | | 1,213,848 | | | 164,694,897 | |
| | | 842,576,365 | |
Internet & Direct Marketing Retail – 9.3% | | | |
| | Amazon.com Inc* | | 8,901,090 | | | 1,005,823,170 | |
| | Booking Holdings Inc* | | 158,688 | | | 260,757,709 | |
| | | 1,266,580,879 | |
Machinery – 4.5% | | | |
| | Deere & Co | | 1,823,824 | | | 608,956,595 | |
Metals & Mining – 0.9% | | | |
| | Freeport-McMoRan Inc | | 4,296,175 | | | 117,414,463 | |
Professional Services – 3.2% | | | |
| | CoStar Group Inc* | | 6,149,386 | | | 428,304,735 | |
Semiconductor & Semiconductor Equipment – 8.5% | | | |
| | Advanced Micro Devices Inc* | | 4,329,065 | | | 274,289,558 | |
| | ASML Holding NV | | 851,566 | | | 353,697,938 | |
| | NVIDIA Corp | | 1,162,377 | | | 141,100,944 | |
| | Texas Instruments Inc | | 2,491,639 | | | 385,655,885 | |
| | | 1,154,744,325 | |
Software – 18.0% | | | |
| | Atlassian Corp PLC - Class A* | | 1,567,397 | | | 330,078,134 | |
| | Microsoft Corp | | 6,432,481 | | | 1,498,124,825 | |
| | Workday Inc - Class A* | | 3,988,859 | | | 607,184,117 | |
| | | 2,435,387,076 | |
Specialty Retail – 2.8% | | | |
| | TJX Cos Inc | | 6,057,843 | | | 376,313,207 | |
Technology Hardware, Storage & Peripherals – 7.6% | | | |
| | Apple Inc | | 7,460,498 | | | 1,031,040,824 | |
Textiles, Apparel & Luxury Goods – 2.6% | | | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 370,226 | | | 217,598,975 | |
| | |
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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Textiles, Apparel & Luxury Goods– (continued) | | | |
| | NIKE Inc - Class B | | 1,579,209 | | | $131,263,852 | |
| | | 348,862,827 | |
Total Common Stocks (cost $9,426,773,742) | | 12,952,813,548 | |
Investment Companies– 4.2% | | | |
Money Markets – 4.2% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $572,160,745) | | 572,112,143 | | | 572,169,354 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.4% | | | |
Investment Companies – 0.3% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 46,190,522 | | | 46,190,522 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $11,547,631 | | | 11,547,631 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $57,738,153) | | 57,738,153 | |
Total Investments (total cost $10,056,672,640) – 100.2% | | 13,582,721,055 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.2)% | | (26,452,292) | |
Net Assets – 100% | | $13,556,268,763 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $12,681,346,008 | | 93.4 | % |
Netherlands | | 353,697,938 | | 2.6 | |
Australia | | 330,078,134 | | 2.4 | |
France | | 217,598,975 | | 1.6 | |
| | | | | | |
| | | | | | |
Total | | $13,582,721,055 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Forty Fund
Schedule of Investments
September 30, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/22 |
Common Stocks - N/A |
Diversified Financial Services - N/A | |
| | Altimeter Growth Corp - Class A* | $ | - | $ | - | $ | (918,158) | $ | - |
Private Investment in Public Equity (PIPES) - N/A |
Diversified Financial Services - N/A | |
| | Altimeter Growth Corp* | | - | | - | | (2,215,938) | | - |
Warrants - N/A |
Diversified Financial Services - N/A | |
| | Altimeter Growth Corp* | | - | | - | | 970,572 | | - |
Investment Companies - 4.2% |
Money Markets - 4.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 2,342,694 | | 2,368 | | (3,735) | | 572,169,354 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 1,388,126∆ | | - | | - | | 46,190,522 |
Total Affiliated Investments - 4.5% | $ | 3,730,820 | $ | 2,368 | $ | (2,167,259) | $ | 618,359,876 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2022, this column reflects amounts for the entire year ended September 30, 2022 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Common Stocks - N/A |
Diversified Financial Services - N/A | |
| | Altimeter Growth Corp - Class A** | | 50,283,167 | | - | | (49,365,009)Ð | | - |
Private Investment in Public Equity (PIPES) - N/A |
Diversified Financial Services - N/A | |
| | Altimeter Growth Corp* | | 102,940,398 | | - | | (100,724,460)Ð | | - |
Warrants - N/A |
Diversified Financial Services - N/A | |
| | Altimeter Growth Corp* | | 2,174,673 | | - | | (3,145,245)Ð | | - |
Investment Companies - 4.2% |
Money Markets - 4.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 491,130,492 | | 4,765,893,343 | | (4,684,853,114) | | 572,169,354 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 30,214,439 | | 541,983,126 | | (526,007,043) | | 46,190,522 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Forty Fund
Schedule of Investments
September 30, 2022
| | | | | | | | | | |
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 | $ | 57,580,685 | $ | — | $ | (57,580,685) | $ | — |
| | | | | | | | | |
(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. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
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. |
| | |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
| | |
£ | 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. |
| | | | | | | | | | | | | |
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, 2022. 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 | $ | 131,263,852 | $ | 217,598,975 | $ | - |
All Other | | 12,603,950,721 | | - | | - |
Investment Companies | | - | | 572,169,354 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 57,738,153 | | - |
Total Assets | $ | 12,735,214,573 | $ | 847,506,482 | $ | - |
| | | | | | | |
Janus Henderson Forty Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $9,438,321,373)(1) | | $ | 12,964,361,179 | |
| Affiliated investments, at value (cost $618,351,267) | | | 618,359,876 | |
| Trustees' deferred compensation | | | 408,091 | |
| Receivables: | | | | |
| | Investments sold | | | 45,932,148 | |
| | Fund shares sold | | | 17,805,566 | |
| | Dividends | | | 3,204,566 | |
| | Dividends from affiliates | | | 997,947 | |
| | Foreign tax reclaims | | | 374,177 | |
| Other assets | | | 23,903 | |
Total Assets | | | 13,651,467,453 | |
Liabilities: | | | | |
| Due to custodian | | | 686 | |
| Collateral for securities loaned (Note 2) | | | 57,738,153 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 25,655,270 | |
| | Advisory fees | | | 6,073,407 | |
| | Investments purchased | | | 2,166,745 | |
| | Transfer agent fees and expenses | | | 2,057,608 | |
| | Trustees' deferred compensation fees | | | 408,091 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 271,358 | |
| | Trustees' fees and expenses | | | 74,924 | |
| | Professional fees | | | 56,445 | |
| | Custodian fees | | | 33,522 | |
| | Affiliated fund administration fees payable | | | 32,340 | |
| | Accrued expenses and other payables | | | 630,141 | |
Total Liabilities | | | 95,198,690 | |
Net Assets | | $ | 13,556,268,763 | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2022 |
Janus Henderson Forty Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 10,113,420,286 | |
| Total distributable earnings (loss) | | | 3,442,848,477 | |
Total Net Assets | | $ | 13,556,268,763 | |
Net Assets - Class A Shares | | $ | 326,566,199 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,693,030 | |
Net Asset Value Per Share(2) | | $ | 33.69 | |
Maximum Offering Price Per Share(3) | | $ | 35.75 | |
Net Assets - Class C Shares | | $ | 89,165,904 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,557,511 | |
Net Asset Value Per Share(2) | | $ | 25.06 | |
Net Assets - Class D Shares | | $ | 8,069,315,825 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 248,524,483 | |
Net Asset Value Per Share | | $ | 32.47 | |
Net Assets - Class I Shares | | $ | 1,547,667,859 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 43,432,079 | |
Net Asset Value Per Share | | $ | 35.63 | |
Net Assets - Class N Shares | | $ | 371,702,371 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,365,439 | |
Net Asset Value Per Share | | $ | 35.86 | |
Net Assets - Class R Shares | | $ | 60,026,781 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,107,853 | |
Net Asset Value Per Share | | $ | 28.48 | |
Net Assets - Class S Shares | | $ | 331,902,537 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,454,820 | |
Net Asset Value Per Share | | $ | 31.75 | |
Net Assets - Class T Shares | | $ | 2,759,921,287 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 83,825,648 | |
Net Asset Value Per Share | | $ | 32.92 | |
| |
(1) Includes $57,580,685 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 | 15 |
Janus Henderson Forty Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 132,124,234 | |
| Dividends from affiliates | | 2,342,694 | |
| Affiliated securities lending income, net | | 1,388,126 | |
| Unaffiliated securities lending income, net | | 14,392 | |
| Other income | | 59,468 | |
| Foreign tax withheld | | (2,597,816) | |
Total Investment Income | | 133,331,098 | |
Expenses: | | | |
| Advisory fees | | 101,977,196 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 1,145,239 | |
| | Class C Shares | | 1,128,116 | |
| | Class R Shares | | 412,697 | |
| | Class S Shares | | 1,202,649 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 12,615,799 | |
| | Class R Shares | | 213,043 | |
| | Class S Shares | | 1,205,835 | |
| | Class T Shares | | 9,582,533 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 327,710 | |
| | Class C Shares | | 94,165 | |
| | Class I Shares | | 1,536,888 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 27,914 | |
| | Class C Shares | | 6,113 | |
| | Class D Shares | | 746,000 | |
| | Class I Shares | | 88,247 | |
| | Class N Shares | | 17,334 | |
| | Class R Shares | | 900 | |
| | Class S Shares | | 6,519 | |
| | Class T Shares | | 28,109 | |
| Shareholder reports expense | | 592,560 | |
| Affiliated fund administration fees | | 467,063 | |
| Trustees’ fees and expenses | | 394,826 | |
| Registration fees | | 245,551 | |
| Professional fees | | 139,447 | |
| Custodian fees | | 103,003 | |
| Other expenses | | 1,033,941 | |
Total Expenses | | 135,339,397 | |
Less: Excess Expense Reimbursement and Waivers | | (999,588) | |
Net Expenses | | 134,339,809 | |
Net Investment Income/(Loss) | | (1,008,711) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Forty Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 140,234,814 | |
| Investments in affiliates | | 2,368 | |
Total Net Realized Gain/(Loss) on Investments | | 140,237,182 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (7,257,779,570) | |
| Investments in affiliates | | (2,167,259) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (7,259,946,829) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (7,120,718,358) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Forty Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (1,008,711) | | $ | (66,820,716) | |
| Net realized gain/(loss) on investments | | 140,237,182 | | | 2,250,876,617 | |
| Change in unrealized net appreciation/depreciation | | (7,259,946,829) | | | 2,909,573,043 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (7,120,718,358) | | | 5,093,628,944 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (48,616,877) | | | (33,598,159) | |
| | Class C Shares | | (18,893,463) | | | (14,455,246) | |
| | Class D Shares | | (1,230,067,488) | | | (866,959,615) | |
| | Class I Shares | | (212,301,037) | | | (141,602,894) | |
| | Class N Shares | | (53,508,841) | | | (39,775,852) | |
| | Class R Shares | | (10,782,896) | | | (9,043,233) | |
| | Class S Shares | | (54,847,467) | | | (43,872,591) | |
| | Class T Shares | | (420,959,121) | | | (302,858,400) | |
Net Decrease from Dividends and Distributions to Shareholders | | (2,049,977,190) | | | (1,452,165,990) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 23,871,855 | | | 25,051,230 | |
| | Class C Shares | | (2,036,149) | | | (1,600,042) | |
| | Class D Shares | | 668,279,371 | | | 396,508,500 | |
| | Class I Shares | | 207,944,828 | | | 183,240,069 | |
| | Class N Shares | | 44,485,275 | | | (27,031,815) | |
| | Class R Shares | | (392,706) | | | (15,860,764) | |
| | Class S Shares | | (18,253,964) | | | (60,632,171) | |
| | Class T Shares | | 174,769,965 | | | 86,098,289 | |
Net Increase/(Decrease) from Capital Share Transactions | | 1,098,668,475 | | | 585,773,296 | |
Net Increase/(Decrease) in Net Assets | | (8,072,027,073) | | | 4,227,236,250 | |
Net Assets: | | | | | | |
| Beginning of period | | 21,628,295,836 | | | 17,401,059,586 | |
| End of period | $ | 13,556,268,763 | | $ | 21,628,295,836 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2022 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $56.20 | | | $46.81 | | | $37.16 | | | $37.42 | | | $33.03 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.08) | | | (0.26) | | | (0.08) | | | 0.02 | | | (0.04) | |
| | Net realized and unrealized gain/(loss) | | (17.22) | | | 13.50 | | | 12.27 | | | 2.25 | | | 7.38 | |
| Total from Investment Operations | | (17.30) | | | 13.24 | | | 12.19 | | | 2.27 | | | 7.34 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.01) | | | — | | | — | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | |
| Total Dividends and Distributions | | (5.21) | | | (3.85) | | | (2.54) | | | (2.53) | | | (2.95) | |
| Net Asset Value, End of Period | | $33.69 | | | $56.20 | | | $46.81 | | | $37.16 | | | $37.42 | |
| Total Return* | | (34.00)% | | | 29.72% | | | 34.62% | | | 7.77% | | | 23.77% | |
| Net Assets, End of Period (in thousands) | | $326,566 | | | $525,208 | | �� | $411,899 | | | $303,070 | | | $237,547 | |
| Average Net Assets for the Period (in thousands) | | $456,270 | | | $483,419 | | | $339,815 | | | $268,921 | | | $220,973 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.89% | | | 1.02% | | | 1.01% | | | 1.01% | | | 1.04% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.89% | | | 1.02% | | | 1.01% | | | 0.98% | | | 0.98% | |
| | Ratio of Net Investment Income/(Loss) | | (0.17)% | | | (0.50)% | | | (0.21)% | | | 0.05% | | | (0.13)% | |
| Portfolio Turnover Rate | | 39% | | | 31% | | | 42% | | | 44% | | | 37% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $43.38 | | | $37.15 | | | $30.17 | | | $31.11 | | | $28.08 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.28) | | | (0.47) | | | (0.28) | | | (0.16) | | | (0.21) | |
| | Net realized and unrealized gain/(loss) | | (12.83) | | | 10.55 | | | 9.79 | | | 1.75 | | | 6.19 | |
| Total from Investment Operations | | (13.11) | | | 10.08 | | | 9.51 | | | 1.59 | | | 5.98 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | |
| Total Dividends and Distributions | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | |
| Net Asset Value, End of Period | | $25.06 | | | $43.38 | | | $37.15 | | | $30.17 | | | $31.11 | |
| Total Return* | | (34.43)% | | | 28.88% | | | 33.67% | | | 7.11% | | | 23.05% | |
| Net Assets, End of Period (in thousands) | | $89,166 | | | $160,133 | | | $137,952 | | | $126,726 | | | $227,488 | |
| Average Net Assets for the Period (in thousands) | | $129,956 | | | $153,590 | | | $128,357 | | | $154,535 | | | $235,933 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.51% | | | 1.68% | | | 1.68% | | | 1.63% | | | 1.66% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.51% | | | 1.68% | | | 1.68% | | | 1.58% | | | 1.59% | |
| | Ratio of Net Investment Income/(Loss) | | (0.80)% | | | (1.15)% | | | (0.87)% | | | (0.58)% | | | (0.74)% | |
| Portfolio Turnover Rate | | 39% | | | 31% | | | 42% | | | 44% | | | 37% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $54.28 | | | $45.24 | | | $35.99 | | | $36.25 | | | $32.02 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.01 | | | (0.15) | | | —(2) | | | 0.09 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | (16.58) | | | 13.04 | | | 11.86 | | | 2.18 | | | 7.15 | |
| Total from Investment Operations | | (16.57) | | | 12.89 | | | 11.86 | | | 2.27 | | | 7.19 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | — | | | (0.08) | | | — | | | (0.01) | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | |
| Total Dividends and Distributions | | (5.24) | | | (3.85) | | | (2.61) | | | (2.53) | | | (2.96) | |
| Net Asset Value, End of Period | | $32.47 | | | $54.28 | | | $45.24 | | | $35.99 | | | $36.25 | |
| Total Return* | | (33.86)% | | | 30.00% | | | 34.88% | | | 8.03% | | | 24.06% | |
| Net Assets, End of Period (in thousands) | | $8,069,316 | | | $12,846,210 | | | $10,287,828 | | | $8,018,389 | | | $7,842,180 | |
| Average Net Assets for the Period (in thousands) | | $11,038,490 | | | $11,890,281 | | | $8,759,841 | | | $7,517,796 | | | $7,241,280 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.69% | | | 0.82% | | | 0.80% | | | 0.79% | | | 0.79% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.69% | | | 0.82% | | | 0.80% | | | 0.75% | | | 0.73% | |
| | Ratio of Net Investment Income/(Loss) | | 0.03% | | | (0.29)% | | | 0.00%(3) | | | 0.27% | | | 0.13% | |
| Portfolio Turnover Rate | | 39% | | | 31% | | | 42% | | | 44% | | | 37% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. (3) Less than 0.005%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $59.06 | | | $48.89 | | | $38.69 | | | $38.74 | | | $34.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.04 | | | (0.13) | | | 0.03 | | | 0.12 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | (18.21) | | | 14.15 | | | 12.80 | | | 2.36 | | | 7.63 | |
| Total from Investment Operations | | (18.17) | | | 14.02 | | | 12.83 | | | 2.48 | | | 7.70 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | — | | | (0.10) | | | — | | | (0.01) | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | |
| Total Dividends and Distributions | | (5.26) | | | (3.85) | | | (2.63) | | | (2.53) | | | (2.96) | |
| Net Asset Value, End of Period | | $35.63 | | | $59.06 | | | $48.89 | | | $38.69 | | | $38.74 | |
| Total Return* | | (33.84)% | | | 30.07% | | | 34.97% | | | 8.06% | | | 24.19% | |
| Net Assets, End of Period (in thousands) | | $1,547,668 | | | $2,360,269 | | | $1,783,057 | | | $1,178,733 | | | $1,125,445 | |
| Average Net Assets for the Period (in thousands) | | $2,082,585 | | | $2,119,223 | | | $1,416,287 | | | $1,081,498 | | | $1,024,982 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.64% | | | 0.76% | | | 0.74% | | | 0.72% | | | 0.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.64% | | | 0.76% | | | 0.74% | | | 0.68% | | | 0.66% | |
| | Ratio of Net Investment Income/(Loss) | | 0.08% | | | (0.24)% | | | 0.06% | | | 0.34% | | | 0.19% | |
| Portfolio Turnover Rate | | 39% | | | 31% | | | 42% | | | 44% | | | 37% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $59.38 | | | $49.11 | | | $38.85 | | | $38.86 | | | $34.08 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.07 | | | (0.10) | | | 0.05 | | | 0.15 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | (18.30) | | | 14.22 | | | 12.86 | | | 2.37 | | | 7.66 | |
| Total from Investment Operations | | (18.23) | | | 14.12 | | | 12.91 | | | 2.52 | | | 7.75 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.08) | | | — | | | (0.12) | | | — | | | (0.02) | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | |
| Total Dividends and Distributions | | (5.29) | | | (3.85) | | | (2.65) | | | (2.53) | | | (2.97) | |
| Net Asset Value, End of Period | | $35.86 | | | $59.38 | | | $49.11 | | | $38.85 | | | $38.86 | |
| Total Return* | | (33.78)% | | | 30.15% | | | 35.06% | | | 8.15% | | | 24.27% | |
| Net Assets, End of Period (in thousands) | | $371,702 | | | $581,225 | | | $511,465 | | | $273,438 | | | $199,929 | |
| Average Net Assets for the Period (in thousands) | | $516,542 | | | $533,647 | | | $384,360 | | | $212,223 | | | $178,576 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.56% | | | 0.70% | | | 0.67% | | | 0.65% | | | 0.66% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.56% | | | 0.70% | | | 0.67% | | | 0.62% | | | 0.60% | |
| | Ratio of Net Investment Income/(Loss) | | 0.15% | | | (0.17)% | | | 0.12% | | | 0.40% | | | 0.26% | |
| Portfolio Turnover Rate | | 39% | | | 31% | | | 42% | | | 44% | | | 37% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $48.48 | | | $41.01 | | | $32.97 | | | $33.65 | | | $30.08 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.23) | | | (0.40) | | | (0.21) | | | (0.10) | | | (0.15) | |
| | Net realized and unrealized gain/(loss) | | (14.56) | | | 11.72 | | | 10.78 | | | 1.95 | | | 6.67 | |
| Total from Investment Operations | | (14.79) | | | 11.32 | | | 10.57 | | | 1.85 | | | 6.52 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | |
| Total Dividends and Distributions | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | |
| Net Asset Value, End of Period | | $28.48 | | | $48.48 | | | $41.01 | | | $32.97 | | | $33.65 | |
| Total Return* | | (34.26)% | | | 29.21% | | | 34.05% | | | 7.36% | | | 23.34% | |
| Net Assets, End of Period (in thousands) | | $60,027 | | | $103,653 | | | $101,440 | | | $106,843 | | | $127,954 | |
| Average Net Assets for the Period (in thousands) | | $84,882 | | | $106,256 | | | $101,751 | | | $113,204 | | | $123,528 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.31% | | | 1.43% | | | 1.41% | | | 1.40% | | | 1.40% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.30% | | | 1.42% | | | 1.41% | | | 1.36% | | | 1.34% | |
| | Ratio of Net Investment Income/(Loss) | | (0.59)% | | | (0.90)% | | | (0.60)% | | | (0.34)% | | | (0.49)% | |
| Portfolio Turnover Rate | | 39% | | | 31% | | | 42% | | | 44% | | | 37% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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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24 | SEPTEMBER 30, 2022 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $53.33 | | | $44.67 | | | $35.61 | | | $36.02 | | | $31.93 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.15) | | | (0.33) | | | (0.13) | | | (0.03) | | | (0.08) | |
| | Net realized and unrealized gain/(loss) | | (16.22) | | | 12.84 | | | 11.72 | | | 2.15 | | | 7.12 | |
| Total from Investment Operations | | (16.37) | | | 12.51 | | | 11.59 | | | 2.12 | | | 7.04 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | |
| Total Dividends and Distributions | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | |
| Net Asset Value, End of Period | | $31.75 | | | $53.33 | | | $44.67 | | | $35.61 | | | $36.02 | |
| Total Return* | | (34.09)% | | | 29.50% | | | 34.40% | | | 7.65% | | | 23.63% | |
| Net Assets, End of Period (in thousands) | | $331,903 | | | $586,481 | | | $546,341 | | | $475,553 | | | $516,748 | |
| Average Net Assets for the Period (in thousands) | | $480,481 | | | $571,789 | | | $491,995 | | | $468,610 | | | $525,707 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.07% | | | 1.20% | | | 1.17% | | | 1.15% | | | 1.15% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.05% | | | 1.19% | | | 1.16% | | | 1.10% | | | 1.08% | |
| | Ratio of Net Investment Income/(Loss) | | (0.34)% | | | (0.66)% | | | (0.36)% | | | (0.08)% | | | (0.23)% | |
| Portfolio Turnover Rate | | 39% | | | 31% | | | 42% | | | 44% | | | 37% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | 25 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $54.99 | | | $45.83 | | | $36.44 | | | $36.70 | | | $32.40 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.03) | | | (0.21) | | | (0.04) | | | 0.06 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | (16.83) | | | 13.22 | | | 12.01 | | | 2.21 | | | 7.24 | |
| Total from Investment Operations | | (16.86) | | | 13.01 | | | 11.97 | | | 2.27 | | | 7.25 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.05) | | | — | | | —(2) | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | |
| Total Dividends and Distributions | | (5.21) | | | (3.85) | | | (2.58) | | | (2.53) | | | (2.95) | |
| Net Asset Value, End of Period | | $32.92 | | | $54.99 | | | $45.83 | | | $36.44 | | | $36.70 | |
| Total Return* | | (33.94)% | | | 29.86% | | | 34.71% | | | 7.93% | | | 23.96% | |
| Net Assets, End of Period (in thousands) | | $2,759,921 | | | $4,465,117 | | | $3,621,078 | | | $2,914,481 | | | $2,935,096 | |
| Average Net Assets for the Period (in thousands) | | $3,817,603 | | | $4,169,739 | | | $3,138,440 | | | $2,750,999 | | | $2,727,557 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.81% | | | 0.95% | | | 0.92% | | | 0.90% | | | 0.91% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.93% | | | 0.91% | | | 0.85% | | | 0.83% | |
| | Ratio of Net Investment Income/(Loss) | | (0.07)% | | | (0.41)% | | | (0.10)% | | | 0.17% | | | 0.02% | |
| Portfolio Turnover Rate | | 39% | | | 31% | | | 42% | | | 44% | | | 37% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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. |
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See Notes to Financial Statements. |
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26 | SEPTEMBER 30, 2022 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the
Janus Henderson Forty Fund
Notes to Financial Statements
“Distributor”) 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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, 2022 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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one
Janus Henderson Forty Fund
Notes to Financial Statements
region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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. For financial reporting purposes, the Fund does not offset financial instruments’
Janus Henderson Forty Fund
Notes to Financial Statements
payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser 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 the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $57,580,685. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $57,738,153, resulting in the net amount due to the counterparty of $157,468.
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 Offsetting Assets and Liabilities table located in the Schedule of Investments 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.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The investment advisory fee rate paid to the Adviser 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
Janus Henderson Forty Fund
Notes to Financial Statements
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 the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’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, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.55%.
The Fund pays the Adviser an investment advisory fee rate that may adjust up or down based on the Fund’s performance relative to its benchmark index.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Forty Fund
Notes to Financial Statements
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent 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.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, of up to 0.50% of the Class R Shares' average daily net assets, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Janus Henderson Forty Fund
Notes to Financial Statements
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $57,736.
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, 2022, redeeming shareholders of Class A Shares paid CDSCs of $9 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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $17,348.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser 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
Janus Henderson Forty Fund
Notes to Financial Statements
current market price to save costs where allowed. During the year ended September 30, 2022, the Fund engaged in cross trades amounting to $15,559,275 in sales, resulting in a net realized loss of $13,041,082. 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) | |
$ - | $ 8,507,211 | $ - | $(14,713,930) | $ - | $ (462,353) | $3,449,517,549 | |
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, 2022 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) |
$10,133,203,506 | $4,466,724,265 | $(1,017,206,716) | $3,449,517,549 |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 109,860,354 | $ 1,940,116,836 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
Janus Henderson Forty Fund
Notes to Financial Statements
| | | |
| | |
Increase/(Decrease) to Capital | Increase/(Decrease) to Undistributed
Net Investment Income/Loss | Increase/(Decrease) to Undistributed
Net Realized Gain/Loss |
$ 344,866 | $ 205,310 | $ (550,176) |
Capital has been adjusted by $344,866, 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, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 1,824,221 | $ 88,895,333 | | 1,923,980 | $ 98,440,290 |
Reinvested dividends and distributions | 753,582 | 38,854,683 | | 553,577 | 26,449,919 |
Shares repurchased | (2,230,354) | (103,878,161) | | (1,931,980) | (99,838,979) |
Net Increase/(Decrease) | 347,449 | $ 23,871,855 | | 545,577 | $ 25,051,230 |
Class C Shares: | | | | | |
Shares sold | 624,052 | $ 22,361,504 | | 827,558 | $ 32,934,290 |
Reinvested dividends and distributions | 436,951 | 16,848,831 | | 342,199 | 12,685,302 |
Shares repurchased | (1,195,072) | (41,246,484) | | (1,191,802) | (47,219,634) |
Net Increase/(Decrease) | (134,069) | $ (2,036,149) | | (22,045) | $ (1,600,042) |
Class D Shares: | | | | | |
Shares sold | 5,936,260 | $ 273,175,986 | | 7,868,804 | $392,766,804 |
Reinvested dividends and distributions | 23,777,109 | 1,179,582,360 | | 18,092,686 | 833,530,050 |
Shares repurchased | (17,863,300) | (784,478,975) | | (16,696,195) | (829,788,354) |
Net Increase/(Decrease) | 11,850,069 | $ 668,279,371 | | 9,265,295 | $396,508,500 |
Class I Shares: | | | | | |
Shares sold | 15,427,444 | $ 742,458,563 | | 11,693,146 | $638,016,744 |
Reinvested dividends and distributions | 3,292,138 | 179,158,152 | | 2,333,899 | 116,951,685 |
Shares repurchased | (15,253,091) | (713,671,887) | | (10,531,626) | (571,728,360) |
Net Increase/(Decrease) | 3,466,491 | $ 207,944,828 | | 3,495,419 | $183,240,069 |
Class N Shares: | | | | | |
Shares sold | 2,274,992 | $ 118,148,906 | | 3,128,306 | $171,897,432 |
Reinvested dividends and distributions | 907,966 | 49,702,045 | | 756,748 | 38,109,828 |
Shares repurchased | (2,605,013) | (123,365,676) | | (4,511,737) | (237,039,075) |
Net Increase/(Decrease) | 577,945 | $ 44,485,275 | | (626,683) | $ (27,031,815) |
Class R Shares: | | | | | |
Shares sold | 303,952 | $ 11,770,800 | | 403,015 | $ 18,154,560 |
Reinvested dividends and distributions | 242,433 | 10,599,178 | | 211,734 | 8,755,197 |
Shares repurchased | (576,615) | (22,762,684) | | (950,263) | (42,770,521) |
Net Increase/(Decrease) | (30,230) | $ (392,706) | | (335,514) | $ (15,860,764) |
Class S Shares: | | | | | |
Shares sold | 1,203,621 | $ 53,277,110 | | 1,477,965 | $ 72,325,291 |
Reinvested dividends and distributions | 1,123,563 | 54,650,126 | | 959,158 | 43,545,766 |
Shares repurchased | (2,869,276) | (126,181,200) | | (3,672,033) | (176,503,228) |
Net Increase/(Decrease) | (542,092) | $ (18,253,964) | | (1,234,910) | $ (60,632,171) |
Class T Shares: | | | | | |
Shares sold | 6,709,598 | $ 309,462,841 | | 7,415,102 | $374,476,972 |
Reinvested dividends and distributions | 8,122,878 | 408,986,887 | | 6,309,473 | 294,778,584 |
Shares repurchased | (12,209,097) | (543,679,763) | | (11,527,480) | (583,157,267) |
Net Increase/(Decrease) | 2,623,379 | $ 174,769,965 | | 2,197,095 | $ 86,098,289 |
Janus Henderson Forty Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$7,051,315,912 | $8,232,515,226 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
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Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
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Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Forty Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
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Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Forty Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
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Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Forty Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Forty Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Forty Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Forty Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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Capital Gain Distributions | $1,940,461,702 |
Dividends Received Deduction Percentage | 15% |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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. |
Brian Recht
151 Detroit Street
Denver, CO 80206
DOB: 1987 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Forty Fund | 3/22-Present | Portfolio Manager for other Janus Henderson accounts and Analyst for the Adviser. |
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. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
* 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)
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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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US 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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93041 11-22 |
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| | | ANNUAL REPORT September 30, 2022 |
| | |
| | Janus Henderson Global Equity Income Fund |
| | |
| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Equity Income Fund
Janus Henderson Global Equity Income Fund (unaudited)
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FUND SNAPSHOT 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 |
| | | |
PERFORMANCE
The Janus Henderson Global Equity Income Fund Class I Shares returned -12.78% for the 12-month period ended September 30, 2022. The Fund’s primary benchmark, the MSCI World IndexSM, returned -19.63%, and the Fund’s secondary benchmark, the 85% MSCI ACWI ex-US High Dividend Yield / 15% MSCI USA High Dividend Yield Index, returned -15.23%.
INVESTMENT ENVIRONMENT
Global equity markets declined over the 12-month period as high levels of inflation in many of the world’s key developed economies prompted aggressive monetary and fiscal tightening, triggering fears of global recession. Equities began the period with positive, if volatile, performance in the fourth quarter of 2021, as investors focused on strong corporate earnings. However, global stock markets sold off in February following Russia’s invasion of Ukraine. Geopolitical turmoil and ongoing supply chain issues drove prices higher, with particularly sharp increases in commodities. Steep inflation prompted several central banks to raise interest rates, causing a rotation from long-duration growth stocks to more cyclical companies. The Federal Reserve raised rates by 0.25% in March, but then moved more aggressively with a 0.50% increase in May and consecutive 0.75% hikes in June, July, and September. Higher interest rates also fueled fears of a potential recession in the U.S. and other markets, with implications for global growth. As a result, we saw a sharp sell-off in risk-related assets, particularly in countries, industries, and companies that would be sensitive to a slowing global demand. Against this backdrop, emerging market stocks underperformed developed market equities, as measured by the MSCI World IndexSM. Adding to investors’ concerns in Europe was a looming energy crisis as Russia substantially reduced gas supplies to several European countries. Meanwhile circumstances in China weighed upon markets as the country reinstituted COVID-19 restrictions, suffered continued property market declines, and faced a sharp slowdown in gross domestic product (GDP) growth. Unlike most central banks, the Bank of Japan continued its yield curve control policy, suppressing both short- and long-term interest rates. This resulted in the Yen weakening significantly versus the U.S. dollar due to widening interest rate differentials. China witnessed a similar weakening of its currency relative to the U.S. dollar.
PERFORMANCE DISCUSSION
Over the period, the Fund continued to meet its high-income objectives and outperformed both its primary and secondary benchmarks. The Fund's focus on reasonable valuations, attractive
dividends, strong cash flows, and conservative balance sheets helped provide downside relief to strong declines seen across global equity markets.
Stock selection drove relative performance over the period. By sector, communication services, materials, and healthcare contributed to performance. The Fund's stock selection in communication services was additive, with holdings in the telecommunications industry the main driver of outperformance during the period, as these companies were viewed as defensive and attractively valued versus other areas of the market. Our stock selection and overweight in the materials sector contributed positively, with holdings in mining and agriculture performing well as commodity prices rose post the invasion of Ukraine. Canadian agricultural chemicals company Nutrien was the Fund’s top individual contributor to performance over the period.
Stock selection in financials, industrials, and real estate detracted from relative returns. In industrials, the Fund's European industrial holdings were the key detractors, as
Janus Henderson Global Equity Income Fund (unaudited)
they were exposed to fears of an economic slowdown and disruption in Europe caused by high energy prices.
At the individual stock level, pharmaceutical giant GSK (formerly GlaxoSmithKline) was among the top detractors from relative performance. The company underperformed due to its exposure to former gastrointestinal blockbuster drug Zantac, which is at the center of a U.S. class action lawsuit. Although sentiment may remain negative until there is clarity on the financial implications for these companies, the share price reactions appear to be pricing in a worst-case scenario and do not account for the potential shared liability given Zantac has been owned over the years by multiple pharmaceutical companies.
DERIVATIVE USAGE
The Fund makes use of derivatives because they are generally the most efficient and liquid way to gain our desired exposures. The Fund enters into forward foreign currency exchange contracts (“forward currency contracts”) with the obligation to purchase or sell foreign currencies in the future at an agreed-upon rate in order to decrease exposure to currency risk associated with foreign-currency-denominated securities held by the Fund. In aggregate, these contracts detracted from performance during the period.
Please see “Notes to Financial Statements” for information about the derivatives used by the Fund.
OUTLOOK
It is a difficult time to make predictions. Interest rates are rising in a slowing growth environment, so the short-term outlook for economic growth is more negative than expected earlier in the year. We are confident, however, that the companies held in the portfolio can weather the current conditions, and that a great deal of bad news is priced in. We continue to be positively surprised by the shareholder returns being announced, in terms of both dividends and share buybacks, which suggests that management teams share our confidence in the long-term outlooks for their companies.
We think a prolonged period of market volatility is likely. This will provide the opportunity to identify what we see as attractively valued companies with strong free-cash-flow characteristics and balance sheets that we believe are well positioned to navigate the more challenging economic environment.
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, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Nutrien Ltd | 1.68% | | 0.90% | | Samsung Electronics Co Ltd | 1.74% | | -0.48% |
| TotalEnergies SE | 3.01% | | 0.69% | | Persimmon PLC | 0.75% | | -0.36% |
| Bristol-Myers Squibb Co | 1.95% | | 0.63% | | Enel SpA | 0.98% | | -0.30% |
| British American Tobacco PLC | 2.31% | | 0.56% | | Taiwan Semiconductor Manufacturing Co Ltd (ADR) | 1.66% | | -0.29% |
| Merck & Co Inc | 2.13% | | 0.55% | | GSK PLC | 1.49% | | -0.29% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Communication Services | | 2.35% | | 9.21% | 7.91% |
| Materials | | 1.92% | | 9.88% | 4.29% |
| Health Care | | 0.93% | | 14.18% | 12.99% |
| Other** | | 0.55% | | 2.64% | 0.00% |
| Information Technology | | 0.33% | | 9.33% | 22.24% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -0.99% | | 17.40% | 13.64% |
| Industrials | | -0.35% | | 6.59% | 10.07% |
| Real Estate | | -0.14% | | 0.62% | 2.80% |
| Utilities | | -0.04% | | 5.54% | 2.94% |
| Energy | | 0.19% | | 6.71% | 4.27% |
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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, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
British American Tobacco PLC | |
Tobacco | 3.4% |
Bristol-Myers Squibb Co | |
Pharmaceuticals | 3.4% |
Total SE | |
Oil, Gas & Consumable Fuels | 3.1% |
Unilever PLC | |
Personal Products | 3.1% |
Merck & Co Inc | |
Pharmaceuticals | 2.9% |
| | 15.9% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.1% | |
Preferred Stocks | | 1.3% | |
Other | | 1.6% |
| | | 100.0% |
Emerging markets comprised 5.0% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson Global Equity Income Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended September 30, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -13.05% | -0.58% | 3.61% | 2.94% | | | 1.14% |
Class A Shares at MOP | | -18.06% | -1.76% | 3.00% | 2.55% | | | |
Class C Shares at NAV | | -13.62% | -1.26% | 2.87% | 2.19% | | | 1.76% |
Class C Shares at CDSC | | -14.42% | -1.26% | 2.87% | 2.19% | | | |
Class D Shares | | -12.88% | -0.40% | 3.70% | 3.00% | | | 0.89% |
Class I Shares | | -12.78% | -0.26% | 3.90% | 3.18% | | | 0.78% |
Class N Shares | | -12.70% | -0.20% | 3.86% | 3.10% | | | 0.70% |
Class S Shares | | -13.18% | -0.71% | 3.47% | 2.85% | | | 1.21% |
Class T Shares | | -12.91% | -0.40% | 3.69% | 2.99% | | | 0.94% |
MSCI World Index | | -19.63% | 5.30% | 8.11% | 5.20% | | | |
85% MSCI ACWI ex-US High Div Yld/15% MSCI USA High Div Yld Index | | -15.23% | 0.00% | 3.28% | 2.55% | | | |
Morningstar Quartile - Class A Shares | | 1st | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Foreign Large Value Funds | | 17/348 | 35/306 | 38/249 | 10/175 | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
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 Equity Income Fund (unaudited)
Performance
Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson 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.
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.
© 2022 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 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.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $814.50 | $5.46 | | $1,000.00 | $1,019.05 | $6.07 | 1.20% |
Class C Shares | $1,000.00 | $811.80 | $7.99 | | $1,000.00 | $1,016.24 | $8.90 | 1.76% |
Class D Shares | $1,000.00 | $814.60 | $4.32 | | $1,000.00 | $1,020.31 | $4.81 | 0.95% |
Class I Shares | $1,000.00 | $814.50 | $3.78 | | $1,000.00 | $1,020.91 | $4.20 | 0.83% |
Class N Shares | $1,000.00 | $816.00 | $3.32 | | $1,000.00 | $1,021.41 | $3.70 | 0.73% |
Class S Shares | $1,000.00 | $814.20 | $5.82 | | $1,000.00 | $1,018.65 | $6.48 | 1.28% |
Class T Shares | $1,000.00 | $814.60 | $4.50 | | $1,000.00 | $1,020.10 | $5.01 | 0.99% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 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, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 97.1% | | | |
Auto Components – 0.3% | | | |
| | Compagnie Generale des Etablissements Michelin SCA | | 553,776 | | | $12,335,665 | |
Automobiles – 2.3% | | | |
| | Stellantis NV | | 3,499,436 | | | 41,317,684 | |
| | Toyota Motor Corp | | 5,486,600 | | | 71,428,021 | |
| | | 112,745,705 | |
Banks – 4.1% | | | |
| | BNP Paribas SA | | 1,506,424 | | | 63,587,631 | |
| | Natwest Group PLC | | 24,821,144 | | | 61,930,556 | |
| | Sumitomo Mitsui Financial Group Inc | | 2,580,600 | | | 71,821,906 | |
| | | 197,340,093 | |
Beverages – 3.2% | | | |
| | Carlsberg A/S | | 491,743 | | | 57,386,924 | |
| | Coca-Cola Co | | 1,704,715 | | | 95,498,134 | |
| | | 152,885,058 | |
Biotechnology – 1.4% | | | |
| | AbbVie Inc | | 515,168 | | | 69,140,701 | |
Building Products – 0.7% | | | |
| | Cie de Saint-Gobain | | 973,248 | | | 34,704,516 | |
Capital Markets – 2.1% | | | |
| | 3i Group PLC | | 3,856,017 | | | 46,289,286 | |
| | Blackstone Group Inc | | 613,212 | | | 51,325,844 | |
| | CITIC Securities Co Ltd | | 2,101,500 | | | 3,562,088 | |
| | | 101,177,218 | |
Chemicals – 1.1% | | | |
| | Nutrien Ltd | | 664,595 | | | 55,431,034 | |
Communications Equipment – 2.0% | | | |
| | Cisco Systems Inc | | 2,397,913 | | | 95,916,520 | |
Construction Materials – 0.7% | | | |
| | LafargeHolcim Ltd* | | 880,484 | | | 35,929,054 | |
Containers & Packaging – 0.4% | | | |
| | DS Smith PLC | | 6,407,402 | | | 18,189,291 | |
Diversified Financial Services – 0.6% | | | |
| | M&G PLC | | 16,405,102 | | | 30,195,085 | |
Diversified Telecommunication Services – 2.6% | | | |
| | Koninklijke KPN NV | | 15,010,784 | | | 40,668,960 | |
| | Telstra Corp Ltd | | 14,573,959 | | | 35,711,670 | |
| | TELUS Corp | | 2,373,021 | | | 47,127,111 | |
| | | 123,507,741 | |
Electric Utilities – 3.2% | | | |
| | Enel SpA | | 14,740,210 | | | 60,396,616 | |
| | Iberdrola SA | | 4,982,630 | | | 46,313,420 | |
| | SSE PLC | | 2,930,450 | | | 49,674,610 | |
| | | 156,384,646 | |
Electrical Equipment – 2.1% | | | |
| | nVent Electric PLC | | 1,199,853 | | | 37,927,353 | |
| | Schneider Electric SE | | 449,473 | | | 50,419,176 | |
| | Signify NV (144A) | | 429,971 | | | 11,126,419 | |
| | | 99,472,948 | |
Entertainment – 0.7% | | | |
| | Nintendo Co Ltd | | 803,000 | | | 32,520,106 | |
Food & Staples Retailing – 2.5% | | | |
| | Koninklijke Ahold Delhaize NV | | 2,594,337 | | | 66,052,096 | |
| | Tesco PLC | | 25,091,496 | | | 57,439,405 | |
| | | 123,491,501 | |
Household Durables – 0.6% | | | |
| | Persimmon PLC | | 2,058,193 | | | 28,328,570 | |
Insurance – 6.2% | | | |
| | Direct Line Insurance Group PLC | | 19,494,188 | | | 40,090,978 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Global Equity Income Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Insurance– (continued) | | | |
| | Legal & General Group PLC | | 19,355,913 | | | $46,308,343 | |
| | NN Group NV | | 574,080 | | | 22,340,327 | |
| | Phoenix Group Holdings PLC | | 6,571,535 | | | 38,251,696 | |
| | Sampo Oyj | | 37,726 | | | 1,609,808 | |
| | Tokio Marine Holdings Inc | | 5,748,600 | | | 102,187,488 | |
| | Zurich Insurance Group AG | | 123,347 | | | 49,043,389 | |
| | | 299,832,029 | |
Machinery – 1.6% | | | |
| | Sandvik AB | | 2,392,368 | | | 32,594,934 | |
| | Volvo AB | | 3,179,484 | | | 44,886,558 | |
| | | 77,481,492 | |
Media – 0.9% | | | |
| | Publicis Groupe SA | | 938,043 | | | 44,379,454 | |
Metals & Mining – 7.1% | | | |
| | Anglo American PLC | | 2,360,285 | | | 71,284,146 | |
| | BHP Group Ltd | | 4,607,727 | | | 114,728,215 | |
| | Norsk Hydro ASA | | 3,928,782 | | | 21,146,064 | |
| | Rio Tinto PLC | | 1,368,195 | | | 74,089,381 | |
| | South32 Ltd | | 27,608,017 | | | 63,797,941 | |
| | | 345,045,747 | |
Multi-Utilities – 1.8% | | | |
| | Sempra Energy | | 310,977 | | | 46,627,891 | |
| | Veolia Environnement SA | | 2,101,364 | | | 39,863,461 | |
| | | 86,491,352 | |
Oil, Gas & Consumable Fuels – 9.1% | | | |
| | Pioneer Natural Resources Co | | 649,684 | | | 140,676,077 | |
| | Total SE | | 3,173,712 | | | 149,363,821 | |
| | Williams Cos Inc | | 2,015,393 | | | 57,700,702 | |
| | Woodside Energy Group Ltd | | 4,675,298 | | | 95,089,830 | |
| | | 442,830,430 | |
Paper & Forest Products – 0.9% | | | |
| | UPM-Kymmene Oyj | | 1,323,393 | | | 42,047,609 | |
Personal Products – 3.1% | | | |
| | Unilever PLC | | 3,384,567 | | | 149,249,175 | |
Pharmaceuticals – 16.0% | | | |
| | Bayer AG | | 420,091 | | | 19,383,404 | |
| | Bristol-Myers Squibb Co | | 2,288,190 | | | 162,667,427 | |
| | GSK PLC | | 6,864,529 | | | 68,774,038 | |
| | Johnson & Johnson | | 293,494 | | | 47,945,180 | |
| | Merck & Co Inc | | 1,655,305 | | | 142,554,867 | |
| | Novartis AG | | 599,631 | | | 45,721,086 | |
| | Novo Nordisk A/S | | 473,898 | | | 47,244,027 | |
| | Roche Holding AG | | 383,976 | | | 125,224,228 | |
| | Sanofi | | 1,532,215 | | | 116,921,434 | |
| | | 776,435,691 | |
Professional Services – 3.1% | | | |
| | Hays PLC | | 19,112,575 | | | 21,577,601 | |
| | Randstad NV | | 1,280,277 | | | 55,354,581 | |
| | SGS SA | | 33,791 | | | 72,193,474 | |
| | | 149,125,656 | |
Real Estate Management & Development – 0.1% | | | |
| | Aroundtown SA | | 3,100,017 | | | 6,839,212 | |
Semiconductor & Semiconductor Equipment – 5.5% | | | |
| | Broadcom Inc | | 154,381 | | | 68,546,708 | |
| | MediaTek Inc | | 2,437,000 | | | 42,416,580 | |
| | SK Square Co Ltd* | | 201,342 | | | 5,026,132 | |
| | Taiwan Semiconductor Manufacturing Co Ltd (ADR) | | 868,023 | | | 59,511,657 | |
| | |
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, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Semiconductor & Semiconductor Equipment– (continued) | | | |
| | Tokyo Electron Ltd | | 359,900 | | | $89,120,301 | |
| | | 264,621,378 | |
Software – 1.2% | | | |
| | SAP SE | | 690,207 | | | 56,888,495 | |
Technology Hardware, Storage & Peripherals – 0.4% | | | |
| | Lenovo Group Ltd | | 28,102,000 | | | 19,306,186 | |
Textiles, Apparel & Luxury Goods – 0.9% | | | |
| | Cie Financiere Richemont SA (REG) | | 447,186 | | | 41,969,445 | |
Tobacco – 5.0% | | | |
| | British American Tobacco PLC | | 4,566,791 | | | 163,268,517 | |
| | Imperial Brands PLC | | 3,811,297 | | | 78,631,182 | |
| | | 241,899,699 | |
Wireless Telecommunication Services – 3.6% | | | |
| | KDDI Corp | | 1,806,500 | | | 52,991,858 | |
| | SK Telecom Co Ltd | | 1,419,864 | | | 50,158,810 | |
| | Tele2 AB | | 8,377,148 | | | 72,292,062 | |
| | | 175,442,730 | |
Total Common Stocks (cost $5,668,322,324) | | 4,699,581,232 | |
Preferred Stocks– 1.3% | | | |
Technology Hardware, Storage & Peripherals – 1.3% | | | |
| | Samsung Electronics Co Ltd((cost $78,415,425) | | 1,962,013 | | | 63,845,442 | |
Total Investments (total cost $5,746,737,749) – 98.4% | | 4,763,426,674 | |
Cash, Receivables and Other Assets, net of Liabilities – 1.6% | | 77,216,091 | |
Net Assets – 100% | | $4,840,642,765 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $1,096,427,861 | | 23.0 | % |
United Kingdom | | 825,548,647 | | 17.3 | |
France | | 511,575,158 | | 10.7 | |
Japan | | 420,069,680 | | 8.8 | |
Switzerland | | 370,080,676 | | 7.8 | |
Netherlands | | 333,665,139 | | 7.0 | |
Australia | | 309,327,656 | | 6.5 | |
Sweden | | 149,773,554 | | 3.2 | |
South Korea | | 119,030,384 | | 2.5 | |
Denmark | | 104,630,951 | | 2.2 | |
Canada | | 102,558,145 | | 2.2 | |
Taiwan | | 101,928,237 | | 2.1 | |
Italy | | 101,714,300 | | 2.1 | |
Germany | | 83,111,111 | | 1.8 | |
Spain | | 46,313,420 | | 1.0 | |
Finland | | 43,657,417 | | 0.9 | |
China | | 22,868,274 | | 0.5 | |
Norway | | 21,146,064 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $4,763,426,674 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Global Equity Income Fund
Schedule of Investments
September 30, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - N/A |
Money Markets - N/A | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 1,255,297 | $ | (10,996) | $ | - | $ | - |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 282,416∆ | | - | | - | | - |
Total Affiliated Investments – N/A | $ | 1,537,713 | $ | (10,996) | $ | - | $ | - |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - N/A |
Money Markets - N/A | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 71,301,247 | | 2,805,831,589 | | (2,877,121,840) | | - |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 78,584,373 | | 354,404,504 | | (432,988,877) | | - |
| | | | | | | |
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 | 10/26/22 | (249,062,606) | $ | 285,611,867 | $ | 7,447,730 | | |
Euro | 10/26/22 | (457,066,387) | | 459,814,432 | | 11,167,486 | | |
Total | | | | | $ | 18,615,216 | | |
| | |
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, 2022
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, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2022 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $18,615,216 |
| | | | |
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, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $114,871,142 |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ 10,447,584 |
| | | | | |
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 Value of Derivative Instruments During the Year Ended September 30, 2022 |
| |
| |
Forward foreign currency exchange contracts: | |
Average amounts sold - in USD | $683,586,701 |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
Janus Henderson Global Equity Income Fund
Schedule of Investments
September 30, 2022
| | | | | | | | | | |
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 | $ | 18,615,216 | $ | — | $ | — | $ | 18,615,216 |
| | | | | | | | | |
(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. |
| | |
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 |
| | |
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, 2022 is $11,126,419, which represents 0.2% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
∆ | 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, 2022. 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 | | | | | | |
Beverages | $ | 95,498,134 | $ | 57,386,924 | $ | - |
Biotechnology | | 69,140,701 | | - | | - |
Capital Markets | | 51,325,844 | | 49,851,374 | | - |
Chemicals | | 55,431,034 | | - | | - |
Communications Equipment | | 95,916,520 | | - | | - |
Diversified Telecommunication Services | | 47,127,111 | | 76,380,630 | | - |
Electrical Equipment | | 37,927,353 | | 61,545,595 | | - |
Multi-Utilities | | 46,627,891 | | 39,863,461 | | - |
Oil, Gas & Consumable Fuels | | 198,376,779 | | 244,453,651 | | - |
Pharmaceuticals | | 353,167,474 | | 423,268,217 | | - |
Semiconductor & Semiconductor Equipment | | 128,058,365 | | 136,563,013 | | - |
All Other | | - | | 2,431,671,161 | | - |
Preferred Stocks | | - | | 63,845,442 | | - |
Total Investments in Securities | $ | 1,178,597,206 | $ | 3,584,829,468 | $ | - |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 18,615,216 | | - |
Total Assets | $ | 1,178,597,206 | $ | 3,603,444,684 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures contracts, and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson Global Equity Income Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Investments, at value (cost $5,746,737,749) | | $ | 4,763,426,674 | |
| Forward foreign currency exchange contracts | | | 18,615,216 | |
| Cash denominated in foreign currency (cost $6,642,578) | | | 6,805,176 | |
| Trustees' deferred compensation | | | 144,728 | |
| Receivables: | | | | |
| | Investments sold | | | 64,593,404 | |
| | Foreign tax reclaims | | | 38,997,360 | |
| | Dividends | | | 35,364,225 | |
| | Fund shares sold | | | 19,258,539 | |
| | Dividends from affiliates | | | 231,844 | |
| Other assets | | | 7,492 | |
Total Assets | | | 4,947,444,658 | |
Liabilities: | | | | |
| Due to custodian | | | 7,994,444 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 47,707,823 | |
| | Investments purchased | | | 26,148,086 | |
| | Dividends | | | 11,349,460 | |
| | Foreign withholding tax reclaim fee (Note 1) | | | 4,064,011 | |
| | Advisory fees | | | 3,006,608 | |
| | Transfer agent fees and expenses | | | 766,331 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 436,782 | |
| | Trustees' deferred compensation fees | | | 144,728 | |
| | Custodian fees | | | 94,900 | |
| | Professional fees | | | 55,554 | |
| | Trustees' fees and expenses | | | 24,332 | |
| | Affiliated fund administration fees payable | | | 11,432 | |
| | Accrued expenses and other payables | | | 4,997,402 | |
Total Liabilities | | | 106,801,893 | |
Net Assets | | $ | 4,840,642,765 | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Global Equity Income Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 7,164,125,948 | |
| Total distributable earnings (loss) | | | (2,323,483,183) | |
Total Net Assets | | $ | 4,840,642,765 | |
Net Assets - Class A Shares | | $ | 558,994,731 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 107,033,927 | |
Net Asset Value Per Share(1) | | $ | 5.22 | |
Maximum Offering Price Per Share(2) | | $ | 5.54 | |
Net Assets - Class C Shares | | $ | 314,777,773 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 61,244,633 | |
Net Asset Value Per Share(1) | | $ | 5.14 | |
Net Assets - Class D Shares | | $ | 21,653,265 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,153,059 | |
Net Asset Value Per Share | | $ | 5.21 | |
Net Assets - Class I Shares | | $ | 3,552,770,556 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 678,233,703 | |
Net Asset Value Per Share | | $ | 5.24 | |
Net Assets - Class N Shares | | $ | 255,001,318 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 48,645,975 | |
Net Asset Value Per Share | | $ | 5.24 | |
Net Assets - Class S Shares | | $ | 14,587,101 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,819,140 | |
Net Asset Value Per Share | | $ | 5.17 | |
Net Assets - Class T Shares | | $ | 122,858,021 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 23,569,875 | |
Net Asset Value Per Share | | $ | 5.21 | |
| |
(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 | 17 |
Janus Henderson Global Equity Income Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 377,628,206 | |
| | Non-cash dividends | | 60,403,547 | |
| Dividends from affiliates | | 1,255,297 | |
| Affiliated securities lending income, net | | 282,416 | |
| Unaffiliated securities lending income, net | | 1,442 | |
| Other income | | 297,765 | |
| Foreign withholding tax income (net of foreign withholding tax reclaim fee of $4,064,011 (Note 1)) | | 5,081,133 | |
Total Investment Income | | 444,949,806 | |
Expenses: | | | |
| Advisory fees | | 35,738,829 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 1,686,933 | |
| | Class C Shares | | 3,832,385 | |
| | Class S Shares | | 42,190 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 23,660 | |
| | Class S Shares | | 42,228 | |
| | Class T Shares | | 259,369 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 1,419,725 | |
| | Class C Shares | | 306,106 | |
| | Class I Shares | | 3,647,726 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 41,971 | |
| | Class C Shares | | 19,897 | |
| | Class D Shares | | 5,663 | |
| | Class I Shares | | 174,463 | |
| | Class N Shares | | 9,671 | |
| | Class S Shares | | 190 | |
| | Class T Shares | | 1,297 | |
| Professional fees | | 5,097,211 | |
| Custodian fees | | 288,246 | |
| Registration fees | | 260,460 | |
| Shareholder reports expense | | 225,388 | |
| Affiliated fund administration fees | | 136,342 | |
| Trustees’ fees and expenses | | 114,845 | |
| Other expenses | | 388,528 | |
Total Expenses | | 53,763,323 | |
Less: Excess Expense Reimbursement and Waivers | | (63,416) | |
Net Expenses | | 53,699,907 | |
Net Investment Income/(Loss) | | 391,249,899 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2022 |
Janus Henderson Global Equity Income Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | (261,185,728) | |
| Investments in affiliates | | (10,996) | |
| Forward foreign currency exchange contracts | | 114,871,142 | |
Total Net Realized Gain/(Loss) on Investments | | (146,325,582) | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (1,038,389,541) | |
| Forward foreign currency exchange contracts | | 10,447,584 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (1,027,941,957) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (783,017,640) | |
| | | | | |
| | |
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, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 391,249,899 | | $ | 364,393,540 | |
| Net realized gain/(loss) on investments | | (146,325,582) | | | 313,913,548 | |
| Change in unrealized net appreciation/depreciation | | (1,027,941,957) | | | 95,014,689 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (783,017,640) | | | 773,321,777 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (49,466,615) | | | (47,571,920) | |
| | Class C Shares | | (28,085,172) | | | (31,626,263) | |
| | Class D Shares | | (1,719,590) | | | (873,001) | |
| | Class I Shares | | (309,759,436) | | | (265,514,591) | |
| | Class N Shares | | (20,170,604) | | | (8,574,137) | |
| | Class S Shares | | (1,241,114) | | | (1,095,477) | |
| | Class T Shares | | (9,040,877) | | | (6,017,587) | |
Net Decrease from Dividends and Distributions to Shareholders | | (419,483,408) | | | (361,272,976) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 35,171,613 | | | (9,889,322) | |
| | Class C Shares | | (43,202,804) | | | (84,565,650) | |
| | Class D Shares | | 14,558,070 | | | 4,232,707 | |
| | Class I Shares | | 714,146,923 | | | 607,907,308 | |
| | Class N Shares | | 184,097,489 | | | 60,200,231 | |
| | Class S Shares | | 1,593,179 | | | 4,661,637 | |
| | Class T Shares | | 81,086,096 | | | (8,101,526) | |
Net Increase/(Decrease) from Capital Share Transactions | | 987,450,566 | | | 574,445,385 | |
Net Increase/(Decrease) in Net Assets | | (215,050,482) | | | 986,494,186 | |
Net Assets: | | | | | | |
| Beginning of period | | 5,055,693,247 | | | 4,069,199,061 | |
| End of period | $ | 4,840,642,765 | | $ | 5,055,693,247 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2022 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $6.54 | | | $5.90 | | | $6.58 | | | $7.16 | | | $7.80 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.45(2) | | | 0.49 | | | 0.51 | | | 0.46 | | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | (1.29) | | | 0.64 | | | (0.72) | | | (0.56) | | | (0.65) | |
| Total from Investment Operations | | (0.84) | | | 1.13 | | | (0.21) | | | (0.10) | | | (0.16) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.48) | | | (0.49) | | | (0.47) | | | (0.48) | | | (0.48) | |
| Total Dividends and Distributions | | (0.48) | | | (0.49) | | | (0.47) | | | (0.48) | | | (0.48) | |
| Net Asset Value, End of Period | | $5.22 | | | $6.54 | | | $5.90 | | | $6.58 | | | $7.16 | |
| Total Return* | | (13.71)% | | | 19.08% | | | (2.98)% | | | (1.22)% | | | (2.13)% | |
| Net Assets, End of Period (in thousands) | | $558,995 | | | $662,514 | | | $610,106 | | | $684,235 | | | $818,548 | |
| Average Net Assets for the Period (in thousands) | | $671,651 | | | $666,761 | | | $639,082 | | | $695,276 | | | $878,570 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.25%(3) | | | 1.14% | | | 1.14% | | | 1.12% | | | 1.09% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.24% | | | 1.14% | | | 1.14% | | | 1.12% | | | 1.09% | |
| | Ratio of Net Investment Income/(Loss) | | 6.86%(2) | | | 7.28% | | | 8.15% | | | 6.91% | | | 6.43% | |
| Portfolio Turnover Rate | | 86% | | | 123% | | | 227% | | | 142% | | | 137% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.05 and 0.69%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.09%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $6.46 | | | $5.83 | | | $6.53 | | | $7.11 | | | $7.75 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.40(2) | | | 0.44 | | | 0.47 | | | 0.42 | | | 0.44 | |
| | Net realized and unrealized gain/(loss) | | (1.27) | | | 0.64 | | | (0.73) | | | (0.56) | | | (0.65) | |
| Total from Investment Operations | | (0.87) | | | 1.08 | | | (0.26) | | | (0.14) | | | (0.21) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.45) | | | (0.45) | | | (0.44) | | | (0.44) | | | (0.43) | |
| Total Dividends and Distributions | | (0.45) | | | (0.45) | | | (0.44) | | | (0.44) | | | (0.43) | |
| Net Asset Value, End of Period | | $5.14 | | | $6.46 | | | $5.83 | | | $6.53 | | | $7.11 | |
| Total Return* | | (14.29)% | | | 18.54% | | | (3.92)% | | | (1.88)% | | | (2.76)% | |
| Net Assets, End of Period (in thousands) | | $314,778 | | | $437,512 | | | $469,891 | | | $677,303 | | | $1,037,471 | |
| Average Net Assets for the Period (in thousands) | | $410,449 | | | $478,215 | | | $579,718 | | | $804,713 | | | $1,127,161 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.80%(3) | | | 1.72% | | | 1.75% | | | 1.76% | | | 1.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.80% | | | 1.72% | | | 1.75% | | | 1.76% | | | 1.75% | |
| | Ratio of Net Investment Income/(Loss) | | 6.22%(2) | | | 6.66% | | | 7.49% | | | 6.24% | | | 5.82% | |
| Portfolio Turnover Rate | | 86% | | | 123% | | | 227% | | | 142% | | | 137% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.05 and 0.69%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.09%. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $6.52 | | | $5.88 | | | $6.57 | | | $7.15 | | | $7.79 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.50(2) | | | 0.51 | | | 0.54 | | | 0.48 | | | 0.53 | |
| | Net realized and unrealized gain/(loss) | | (1.31) | | | 0.63 | | | (0.74) | | | (0.57) | | | (0.67) | |
| Total from Investment Operations | | (0.81) | | | 1.14 | | | (0.20) | | | (0.09) | | | (0.14) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.50) | | | (0.50) | | | (0.49) | | | (0.49) | | | (0.50) | |
| Total Dividends and Distributions | | (0.50) | | | (0.50) | | | (0.49) | | | (0.49) | | | (0.50) | |
| Net Asset Value, End of Period | | $5.21 | | | $6.52 | | | $5.88 | | | $6.57 | | | $7.15 | |
| Total Return* | | (13.38)% | | | 19.43% | | | (2.92)% | | | (1.06)% | | | (1.91)% | |
| Net Assets, End of Period (in thousands) | | $21,653 | | | $13,132 | | | $8,277 | | | $8,028 | | | $8,359 | |
| Average Net Assets for the Period (in thousands) | | $20,449 | | | $11,156 | | | $8,001 | | | $7,928 | | | $7,765 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.95%(3) | | | 0.89% | | | 0.92% | | | 0.99% | | | 0.88% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.95% | | | 0.89% | | | 0.92% | | | 0.99% | | | 0.88% | |
| | Ratio of Net Investment Income/(Loss) | | 7.72%(2) | | | 7.60% | | | 8.59% | | | 7.17% | | | 7.02% | |
| Portfolio Turnover Rate | | 86% | | | 123% | | | 227% | | | 142% | | | 137% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.04 and 0.69%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.09%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $6.55 | | | $5.91 | | | $6.60 | | | $7.18 | | | $7.81 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.48(2) | | | 0.52 | | | 0.54 | | | 0.49 | | | 0.53 | |
| | Net realized and unrealized gain/(loss) | | (1.29) | | | 0.63 | | | (0.73) | | | (0.57) | | | (0.66) | |
| Total from Investment Operations | | (0.81) | | | 1.15 | | | (0.19) | | | (0.08) | | | (0.13) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.50) | | | (0.51) | | | (0.50) | | | (0.50) | | | (0.50) | |
| Total Dividends and Distributions | | (0.50) | | | (0.51) | | | (0.50) | | | (0.50) | | | (0.50) | |
| Net Asset Value, End of Period | | $5.24 | | | $6.55 | | | $5.91 | | | $6.60 | | | $7.18 | |
| Total Return* | | (13.27)% | | | 19.43% | | | (2.78)% | | | (0.89)% | | | (1.68)% | |
| Net Assets, End of Period (in thousands) | | $3,552,771 | | | $3,719,987 | | | $2,830,699 | | | $3,008,858 | | | $3,509,735 | |
| Average Net Assets for the Period (in thousands) | | $3,964,612 | | | $3,469,535 | | | $2,946,792 | | | $2,998,950 | | | $3,534,302 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.87%(3) | | | 0.78% | | | 0.78% | | | 0.79% | | | 0.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.87% | | | 0.78% | | | 0.78% | | | 0.79% | | | 0.76% | |
| | Ratio of Net Investment Income/(Loss) | | 7.33%(2) | | | 7.70% | | | 8.62% | | | 7.30% | | | 6.88% | |
| Portfolio Turnover Rate | | 86% | | | 123% | | | 227% | | | 142% | | | 137% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.05 and 0.69%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.09%. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2022 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $6.55 | | | $5.91 | | | $6.60 | | | $7.18 | | | $7.81 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.50(2) | | | 0.53 | | | 0.51 | | | 0.50 | | | 0.52 | |
| | Net realized and unrealized gain/(loss) | | (1.31) | | | 0.62 | | | (0.70) | | | (0.57) | | | (0.64) | |
| Total from Investment Operations | | (0.81) | | | 1.15 | | | (0.19) | | | (0.07) | | | (0.12) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.50) | | | (0.51) | | | (0.50) | | | (0.51) | | | (0.51) | |
| Total Dividends and Distributions | | (0.50) | | | (0.51) | | | (0.50) | | | (0.51) | | | (0.51) | |
| Net Asset Value, End of Period | | $5.24 | | | $6.55 | | | $5.91 | | | $6.60 | | | $7.18 | |
| Total Return* | | (13.20)% | | | 19.51% | | | (2.71)% | | | (0.82)% | | | (1.64)% | |
| Net Assets, End of Period (in thousands) | | $255,001 | | | $134,486 | | | $68,993 | | | $12,886 | | | $6,841 | |
| Average Net Assets for the Period (in thousands) | | $239,690 | | | $106,437 | | | $27,720 | | | $10,817 | | | $5,880 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.78%(3) | | | 0.70% | | | 0.72% | | | 0.75% | | | 0.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.78% | | | 0.70% | | | 0.72% | | | 0.75% | | | 0.72% | |
| | Ratio of Net Investment Income/(Loss) | | 7.69%(2) | | | 7.85% | | | 8.37% | | | 7.53% | | | 6.83% | |
| Portfolio Turnover Rate | | 86% | | | 123% | | | 227% | | | 142% | | | 137% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.05 and 0.69%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.09%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $6.49 | | | $5.86 | | | $6.56 | | | $7.15 | | | $7.79 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.44(2) | | | 0.49 | | | 0.59 | | | 0.49 | | | 0.54 | |
| | Net realized and unrealized gain/(loss) | | (1.28) | | | 0.62 | | | (0.82) | | | (0.60) | | | (0.70) | |
| Total from Investment Operations | | (0.84) | | | 1.11 | | | (0.23) | | | (0.11) | | | (0.16) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.48) | | | (0.48) | | | (0.47) | | | (0.48) | | | (0.48) | |
| Total Dividends and Distributions | | (0.48) | | | (0.48) | | | (0.47) | | | (0.48) | | | (0.48) | |
| Net Asset Value, End of Period | | $5.17 | | | $6.49 | | | $5.86 | | | $6.56 | | | $7.15 | |
| Total Return* | | (13.85)% | | | 19.01% | | | (3.30)% | | | (1.31)% | | | (2.16)% | |
| Net Assets, End of Period (in thousands) | | $14,587 | | | $16,510 | | | $10,825 | | | $2,470 | | | $232 | |
| Average Net Assets for the Period (in thousands) | | $16,811 | | | $14,755 | | | $6,983 | | | $1,805 | | | $127 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.30%(3) | | | 1.21% | | | 1.25% | | | 1.38% | | | 2.37% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.30% | | | 1.21% | | | 1.25% | | | 1.34% | | | 1.27% | |
| | Ratio of Net Investment Income/(Loss) | | 6.81%(2) | | | 7.31% | | | 9.83% | | | 7.35% | | | 7.23% | |
| Portfolio Turnover Rate | | 86% | | | 123% | | | 227% | | | 142% | | | 137% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.05 and 0.69%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.09%. |
| | |
See Notes to Financial Statements. |
| |
26 | SEPTEMBER 30, 2022 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $6.52 | | | $5.88 | | | $6.57 | | | $7.15 | | | $7.78 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.50(2) | | | 0.52 | | | 0.52 | | | 0.49 | | | 0.54 | |
| | Net realized and unrealized gain/(loss) | | (1.32) | | | 0.62 | | | (0.72) | | | (0.58) | | | (0.68) | |
| Total from Investment Operations | | (0.82) | | | 1.14 | | | (0.20) | | | (0.09) | | | (0.14) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.49) | | | (0.50) | | | (0.49) | | | (0.49) | | | (0.49) | |
| Total Dividends and Distributions | | (0.49) | | | (0.50) | | | (0.49) | | | (0.49) | | | (0.49) | |
| Net Asset Value, End of Period | | $5.21 | | | $6.52 | | | $5.88 | | | $6.57 | | | $7.15 | |
| Total Return* | | (13.41)% | | | 19.35% | | | (2.94)% | | | (1.04)% | | | (1.84)% | |
| Net Assets, End of Period (in thousands) | | $122,858 | | | $71,551 | | | $70,408 | | | $70,735 | | | $53,548 | |
| Average Net Assets for the Period (in thousands) | | $103,061 | | | $85,441 | | | $71,828 | | | $65,061 | | | $55,040 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.02%(3) | | | 0.94% | | | 0.95% | | | 0.97% | | | 0.94% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.01% | | | 0.94% | | | 0.94% | | | 0.95% | | | 0.93% | |
| | Ratio of Net Investment Income/(Loss) | | 7.76%(2) | | | 7.70% | | | 8.29% | | | 7.41% | | | 7.12% | |
| Portfolio Turnover Rate | | 86% | | | 123% | | | 227% | | | 142% | | | 137% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.04 and 0.69%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.09%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 27 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct
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institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on
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an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of September 30, 2022 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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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.
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 $41,553,869 of tax reclaims received as well as $5,022,602 of professional fees and $4,064,011 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. 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, 2022 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
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(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
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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 the Adviser’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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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 the Adviser 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.
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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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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. Emerging market countries in which the Fund may invest include frontier market countries, the economies of which are less developed than other emerging market countries. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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.
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.
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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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser 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
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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 the Adviser 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, 2022.
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 Offsetting Assets and Liabilities table located in the Schedule of Investments 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, 2022” table located in the Fund’s Schedule of Investments.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.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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.
The Adviser 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 the Adviser. In this capacity, such employees of HGIL are subject to the oversight and supervision of the Adviser and may provide portfolio management, research, and related services to the Fund on behalf of the Adviser.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.12%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, 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 Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $190,698.
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, 2022, redeeming shareholders of Class A Shares paid CDSCs of $1,388 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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $31,715.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
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) | |
$ 32,165,842 | $ - | $(1,238,870,766) | $ - | $ - | $(9,000,293) | $(1,107,777,966) | |
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2022, 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, 2022 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(1,067,550,413) | $(171,320,353) | $(1,238,870,766) | | |
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, 2022 are noted below. The primary difference 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) |
$ 5,871,204,640 | $112,965,223 | $(1,220,743,189) | $ (1,107,777,966) |
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
Information on the tax components of derivatives as of September 30, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 18,615,216 | $ - | $ - | $ - |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 419,483,408 | $ - | $ - | $ - | |
| | | | | |
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 | $ - | $ - | $ - | |
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 |
$ (199,139) | $ 24,055,075 | $ (23,855,936) |
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 26,042,246 | $ 170,106,039 | | 30,176,328 | $ 204,549,615 |
Reinvested dividends and distributions | 6,460,032 | 39,274,744 | | 5,608,120 | 37,672,140 |
Shares repurchased | (26,724,082) | (174,209,170) | | (37,899,973) | (252,111,077) |
Net Increase/(Decrease) | 5,778,196 | $ 35,171,613 | | (2,115,525) | $ (9,889,322) |
Class C Shares: | | | | | |
Shares sold | 9,693,945 | $ 62,699,198 | | 10,026,600 | $ 67,608,705 |
Reinvested dividends and distributions | 4,414,963 | 26,529,716 | | 4,419,518 | 29,312,763 |
Shares repurchased | (20,632,456) | (132,431,718) | | (27,235,267) | (181,487,118) |
Net Increase/(Decrease) | (6,523,548) | $ (43,202,804) | | (12,789,149) | $ (84,565,650) |
Class D Shares: | | | | | |
Shares sold | 3,469,211 | $ 23,220,470 | | 929,926 | $ 6,382,496 |
Reinvested dividends and distributions | 274,746 | 1,638,772 | | 122,986 | 823,397 |
Shares repurchased | (1,604,948) | (10,301,172) | | (446,174) | (2,973,186) |
Net Increase/(Decrease) | 2,139,009 | $ 14,558,070 | | 606,738 | $ 4,232,707 |
Class I Shares: | | | | | |
Shares sold | 263,428,202 | $1,716,422,281 | | 180,870,695 | $1,227,854,603 |
Reinvested dividends and distributions | 46,766,003 | 284,016,160 | | 35,370,434 | 237,791,085 |
Shares repurchased | (199,588,995) | (1,286,291,518) | | (127,740,329) | (857,738,380) |
Net Increase/(Decrease) | 110,605,210 | $ 714,146,923 | | 88,500,800 | $ 607,907,308 |
Class N Shares: | | | | | |
Shares sold | 37,175,265 | $ 243,821,876 | | 13,748,966 | $ 92,754,224 |
Reinvested dividends and distributions | 1,766,310 | 10,605,934 | | 732,139 | 4,925,185 |
Shares repurchased | (10,822,569) | (70,330,321) | | (5,636,693) | (37,479,178) |
Net Increase/(Decrease) | 28,119,006 | $ 184,097,489 | | 8,844,412 | $ 60,200,231 |
Class S Shares: | | | | | |
Shares sold | 640,634 | $ 4,058,722 | | 808,110 | $ 5,403,626 |
Reinvested dividends and distributions | 206,259 | 1,241,114 | | 164,475 | 1,095,477 |
Shares repurchased | (572,985) | (3,706,657) | | (275,737) | (1,837,466) |
Net Increase/(Decrease) | 273,908 | $ 1,593,179 | | 696,848 | $ 4,661,637 |
Class T Shares: | | | | | |
Shares sold | 17,541,703 | $ 113,127,786 | | 8,813,926 | $ 59,293,455 |
Reinvested dividends and distributions | 1,497,548 | 8,905,613 | | 882,872 | 5,914,028 |
Shares repurchased | (6,446,732) | (40,947,303) | | (10,697,705) | (73,309,009) |
Net Increase/(Decrease) | 12,592,519 | $ 81,086,096 | | (1,000,907) | $ (8,101,526) |
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$5,658,790,434 | $4,482,863,119 | $ - | $ - |
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, 2022 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 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
November 28, 2022
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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Dividends Received Deduction Percentage | 8% |
Qualified Dividend Income Percentage | 91% |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
* 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
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US 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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Global Equity Income 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
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| | | ANNUAL REPORT September 30, 2022 |
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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 The Fund seeks to harness the rapid innovation in healthcare to generate returns by investing in companies addressing unmet medical needs or those that seek to make the healthcare system more efficient. | | | | | 
Andy Acker Portfolio Manager |
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PERFORMANCE
Janus Henderson Global Life Sciences Fund Class I Shares returned -11.80% for the 12-month period ended September 30, 2022, underperforming its primary benchmark, the MSCI World Health Care IndexSM, which delivered -9.79%, but outperforming its secondary benchmark, the S&P 500® Index, which declined -15.47% during the period.
INVESTMENT ENVIRONMENT
Like the broader equity market, healthcare stocks declined during the 12-month period as investors reacted to rising interest rates and unusually high inflation. However, healthcare’s defensive qualities led the sector to outperform. Specifically, healthcare distributors and managed healthcare firms averaged double-digit gains during the period as these companies tend to be inflation-resistant and have strong free cash flows. High-growth segments of healthcare with elevated valuations, by contrast, saw declines. These included healthcare supply and technology companies. Medical device makers also struggled with staffing shortages and sluggish demand following the pandemic. Small- and mid-cap biotechnology stocks sold off for much of the period. However, these stocks staged a rebound starting in June, riding a wave of positive clinical trial data in major disease categories, such as Alzheimer’s. An uptick in mergers and acquisitions, clarity around drug pricing reform in the U.S., and the appointment of a permanent commissioner to the Food and Drug Administration (FDA) were additional tailwinds.
PERFORMANCE DISCUSSION
The Fund’s positioning in pharmaceuticals detracted most from relative performance, while stock selection in healthcare equipment, as well as an underweight to the subsector, aided returns.
Looking at individual holdings, Align Technology, a dental products maker, was the top detractor. The stock came under pressure as part of a broader pullback in medical equipment and technology stocks. During the period, Align reported that inflation, supply constraints, and ongoing COVID outbreaks weighed on sales of Invisalign, the company’s alternative to metal braces. Even so, Invisalign has captured just a small percentage of the global market among teenagers and is viewed as a superior product. Meanwhile, iTero, a scanner that digitally models the structure of teeth and gums, has started to roll out in new markets and add-ons such as servicing are ramping up. Efficiencies created by digitization could also shine amid stubbornly high inflation.
An underweight to Johnson & Johnson also weighed on performance. This traditionally low-volatility stock outperformed amid the market’s risk-off environment. Investors also favored Johnson & Johnson’s robust balance sheet and strong near-term free cash flow. These qualities are appealing, but we remain underweight the stock in favor of potentially higher, long-term growth opportunities in the pharmaceutical industry.
Other holdings aided performance, including Global Blood Therapeutics. The stock climbed after Pfizer announced it would acquire the firm for $5.4 billion, a more than 100% premium to the unaffected stock price (the share price of a target company prior to an announced deal). Global Blood markets Oxbryta for the treatment of sickle cell disease, a devastating genetic condition that affects roughly 100,000 people in the U.S. Oxbryta sales have been accelerating, with the drug recently expanded to the pediatric population and approved for use in Europe and the UK. We are also excited about the company’s next-generation product GBT-601, a follow-on to Oxbryta with greater than tenfold higher potency. Janus Henderson was a top holder in Global Blood before the acquisition.
Sarepta Therapeutics was another top contributor. During the period, the company announced it had filed for accelerated approval for SRP-9001, a gene therapy for Duchenne muscular dystrophy (DMD). The move is earlier than expected and could transform both Sarepta and
Janus Henderson Global Life Sciences Fund (unaudited)
patient lives: DMD is a fatal, hereditary muscle-wasting disease that affects tens of thousands of children. Sarepta has presented integrated data from several clinical trials of SRP-9001 showing what we believe is a clinically meaningful benefit with a favorable safety profile. In addition, the firm is conducting studies for an improved version of an alternative DMD program known as exon skipping, which could prove complementary to the gene therapy approach.
OUTLOOK
Throughout the past 12 months, healthcare’s defensive qualities have been on display, helping the sector outperform the broader equity market. With inflation remaining elevated and rate hikes likely to continue, we think this pattern could persist into 2023. As such, we are maintaining the more defensive barbell approach we adopted almost a year ago, balancing growth with valuation. We favor large-cap biopharma and other companies with lower multiples and strong free-cash-flow generation. In biotech, we added to companies with newly launching products or later-stage development opportunities. In medical devices, we remain tilted toward defensive areas with secular tailwinds, which should hold up better amid a potential recession. We also added to areas such as managed healthcare firms, which tend to be inflation-resistant and can benefit from higher interest rates.
That said, we also see signs that biotech’s prospects finally could be improving after a long drawdown. Medical breakthroughs, for one, have occurred in recent months in fatty liver disease, Alzheimer’s disease, and dry age-related macular degeneration (a leading cause of blindness in the elderly), leading to significant returns for some stocks and successful capital raises. Merger and acquisition activity has also picked up, with several multibillion-dollar deals announced at over 100% premiums. And the FDA, now with a permanent commissioner, is delivering fewer negative regulatory surprises, while drug pricing reform in the U.S. passed with what should be manageable consequences for the industry. In short, we think biotech could be set to deliver continued pockets of sizable returns despite a challenging macroeconomic backdrop. We are selectively investing where we believe both the science and commercial opportunities offer attractive risk/reward potential.
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, 2022
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Global Blood Therapeutics Inc | 0.63% | | 0.89% | | Align Technology Inc | 1.50% | | -0.94% |
| Moderna Inc | 0.32% | | 0.72% | | Johnson & Johnson | 1.04% | | -0.61% |
| Sarepta Therapeutics Inc | 2.04% | | 0.71% | | Pfizer Inc | 0.89% | | -0.57% |
| Vertex Pharmaceuticals Inc | 2.17% | | 0.65% | | Allakos Inc | 0.13% | | -0.57% |
| Akero Therapeutics Inc | 0.36% | | 0.37% | | Horizon Therapeutics PLC | 1.36% | | -0.42% |
| | | | | | | |
| 1 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Health Care Index |
| | | Contribution | | Average Weight | Average Weight |
| Other** | | 0.12% | | 0.57% | 0.00% |
| | | | | | |
| | | | | | |
| 1 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Health Care Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | -1.89% | | 99.43% | 100.00% |
| | | | | | | |
| 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, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
UnitedHealth Group Inc | |
Health Care Providers & Services | 7.0% |
AstraZeneca PLC | |
Pharmaceuticals | 4.2% |
AbbVie Inc | |
Biotechnology | 3.7% |
Eli Lilly & Co | |
Pharmaceuticals | 3.1% |
Roche Holding AG | |
Pharmaceuticals | 2.7% |
| | 20.7% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.4% | |
Private Placements | | 2.1% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.7% | |
Investment Companies | | 0.1% | |
Rights | | 0.0% | |
Warrants | | 0.0% | |
Other | | 0.7% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
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, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -11.99% | 8.43% | 13.99% | 10.80% | | | 0.97% |
Class A Shares at MOP | | -17.06% | 7.16% | 13.32% | 10.52% | | | |
Class C Shares at NAV | | -12.58% | 7.66% | 13.15% | 9.99% | | | 1.75% |
Class C Shares at CDSC | | -13.37% | 7.66% | 13.15% | 9.99% | | | |
Class D Shares | | -11.84% | 8.62% | 14.20% | 10.98% | | | 0.80% |
Class I Shares | | -11.80% | 8.68% | 14.26% | 11.01% | | | 0.75% |
Class N Shares | | -11.71% | 8.75% | 14.22% | 10.98% | | | 0.67% |
Class S Shares | | -12.16% | 8.22% | 13.80% | 10.63% | | | 1.18% |
Class T Shares | | -11.92% | 8.51% | 14.09% | 10.92% | | | 0.91% |
MSCI World Health Care Index | | -9.79% | 7.70% | 10.73% | 6.37% | | | |
S&P 500 Index | | -15.47% | 9.24% | 11.70% | 6.59% | | | |
Morningstar Quartile - Class T Shares | | 2nd | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Health Funds | | 56/169 | 28/138 | 13/124 | 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), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Janus Henderson Global 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.
© 2022 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $899.30 | $4.67 | | $1,000.00 | $1,020.16 | $4.96 | 0.98% |
Class C Shares | $1,000.00 | $896.20 | $8.03 | | $1,000.00 | $1,016.60 | $8.54 | 1.69% |
Class D Shares | $1,000.00 | $900.20 | $3.86 | | $1,000.00 | $1,021.01 | $4.10 | 0.81% |
Class I Shares | $1,000.00 | $900.40 | $3.62 | | $1,000.00 | $1,021.26 | $3.85 | 0.76% |
Class N Shares | $1,000.00 | $900.80 | $3.19 | | $1,000.00 | $1,021.71 | $3.40 | 0.67% |
Class S Shares | $1,000.00 | $898.50 | $5.62 | | $1,000.00 | $1,019.15 | $5.97 | 1.18% |
Class T Shares | $1,000.00 | $899.80 | $4.33 | | $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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 96.4% | | | |
Biotechnology – 28.0% | | | |
| | 4D Molecular Therapeutics Inc* | | 329,440 | | | $2,648,698 | |
| | AbbVie Inc | | 1,111,027 | | | 149,110,934 | |
| | Akero Therapeutics Inc* | | 1,105,057 | | | 37,627,191 | |
| | Alnylam Pharmaceuticals Inc* | | 179,391 | | | 35,906,903 | |
| | Altimmune Inc* | | 986,387 | | | 12,596,162 | |
| | Amicus Therapeutics Inc* | | 2,786,835 | | | 29,094,557 | |
| | Argenx SE (ADR)* | | 177,953 | | | 62,826,307 | |
| | Ascendis Pharma A/S (ADR)*,# | | 466,931 | | | 48,215,295 | |
| | Bicycle Therapeutics Ltd (ADR)*,# | | 486,491 | | | 11,315,781 | |
| | BioAtla LLC*,# | | 496,318 | | | 3,821,649 | |
| | BioMarin Pharmaceutical Inc* | | 640,448 | | | 54,290,777 | |
| | Biomea Fusion Inc*,# | | 708,936 | | | 6,933,394 | |
| | C4 Therapeutics Inc* | | 323,981 | | | 2,841,313 | |
| | CANbridge Pharmaceuticals Inc* | | 4,250,920 | | | 1,613,848 | |
| | Centessa Pharmacuticals PLC (ADR)*,# | | 764,786 | | | 3,074,440 | |
| | Cerevel Therapeutics Holdings Inc* | | 415,935 | | | 11,754,323 | |
| | Design Therapeutics Inc*,# | | 400,276 | | | 6,692,615 | |
| | DiCE Molecules Holdings LLC* | | 192,261 | | | 3,899,053 | |
| | Fate Therapeutics Inc* | | 207,327 | | | 4,646,198 | |
| | Gilead Sciences Inc | | 469,294 | | | 28,950,747 | |
| | Global Blood Therapeutics Inc* | | 166,668 | | | 11,350,091 | |
| | Insmed Inc* | | 946,827 | | | 20,394,654 | |
| | IVERIC bio Inc* | | 1,654,329 | | | 29,678,662 | |
| | Janux Therapeutics Inc* | | 555,889 | | | 7,526,737 | |
| | Legend Biotech Corp (ADR)* | | 503,187 | | | 20,530,030 | |
| | Mirati Therapeutics Inc* | | 129,681 | | | 9,056,921 | |
| | Moderna Inc* | | 75,316 | | | 8,906,117 | |
| | Myovant Sciences Ltd* | | 937,667 | | | 16,840,499 | |
| | Neurocrine Biosciences Inc* | | 590,365 | | | 62,702,667 | |
| | Nuvalent Inc - Class A*,# | | 91,440 | | | 1,777,594 | |
| | Olema Pharmaceuticals Inc* | | 741,191 | | | 2,045,687 | |
| | PTC Therapeutics Inc* | | 561,038 | | | 28,164,108 | |
| | Regeneron Pharmaceuticals Inc* | | 61,956 | | | 42,679,630 | |
| | Rhythm Pharmaceuticals Inc*,# | | 616,186 | | | 15,096,557 | |
| | Sage Therapeutics Inc* | | 252,598 | | | 9,891,738 | |
| | Sarepta Therapeutics Inc* | | 981,147 | | | 108,455,989 | |
| | Seres Therapeutics Inc* | | 2,472,064 | | | 15,870,651 | |
| | Travere Therapeutics Inc* | | 1,020,596 | | | 25,147,485 | |
| | United Therapeutics Corp* | | 155,416 | | | 32,541,002 | |
| | Vaxcyte Inc* | | 632,312 | | | 15,175,488 | |
| | Vertex Pharmaceuticals Inc* | | 332,482 | | | 96,266,838 | |
| | Zai Lab Ltd (ADR)* | | 612,499 | | | 20,947,466 | |
| | | 1,118,906,796 | |
Health Care Equipment & Supplies – 16.5% | | | |
| | Abbott Laboratories | | 941,337 | | | 91,083,768 | |
| | Align Technology Inc* | | 133,208 | | | 27,588,709 | |
| | Boston Scientific Corp* | | 2,298,614 | | | 89,025,320 | |
| | Cooper Cos Inc | | 109,922 | | | 29,008,416 | |
| | Danaher Corp | | 352,481 | | | 91,042,317 | |
| | Dentsply Sirona Inc | | 348,695 | | | 9,885,503 | |
| | DexCom Inc* | | 329,527 | | | 26,540,105 | |
| | Edwards Lifesciences Corp* | | 569,803 | | | 47,082,822 | |
| | Globus Medical Inc* | | 480,233 | | | 28,607,480 | |
| | ICU Medical Inc* | | 74,650 | | | 11,242,290 | |
| | Insulet Corp* | | 40,161 | | | 9,212,933 | |
| | Intuitive Surgical Inc* | | 140,574 | | | 26,349,191 | |
| | Medtronic PLC | | 372,205 | | | 30,055,554 | |
| | Penumbra Inc* | | 162,681 | | | 30,844,318 | |
| | Silk Road Medical Inc* | | 263,826 | | | 11,872,170 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Global Life Sciences Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Health Care Equipment & Supplies– (continued) | | | |
| | STERIS PLC | | 163,241 | | | $27,143,713 | |
| | Stryker Corp | | 193,719 | | | 39,235,846 | |
| | Tandem Diabetes Care Inc* | | 177,080 | | | 8,473,278 | |
| | Teleflex Inc | | 117,696 | | | 23,711,036 | |
| | | 658,004,769 | |
Health Care Providers & Services – 14.8% | | | |
| | AmerisourceBergen Corp | | 342,032 | | | 46,287,191 | |
| | Anthem Inc | | 171,163 | | | 77,749,081 | |
| | Centene Corp* | | 936,020 | | | 72,831,716 | |
| | Humana Inc | | 175,650 | | | 85,223,623 | |
| | Privia Health Group Inc* | | 391,074 | | | 13,319,980 | |
| | Quest Diagnostics Inc | | 111,068 | | | 13,626,933 | |
| | UnitedHealth Group Inc | | 554,181 | | | 279,883,572 | |
| | | 588,922,096 | |
Health Care Technology – 0.1% | | | |
| | Health Catalyst Inc* | | 313,374 | | | 3,039,728 | |
Life Sciences Tools & Services – 5.0% | | | |
| | ICON PLC* | | 83,643 | | | 15,371,911 | |
| | Illumina Inc* | | 219,354 | | | 41,850,550 | |
| | IQVIA Holdings Inc* | | 164,137 | | | 29,731,776 | |
| | NeoGenomics Inc* | | 1,372,784 | | | 11,819,670 | |
| | SomaLogic Inc* | | 984,737 | | | 2,855,737 | |
| | Thermo Fisher Scientific Inc | | 194,296 | | | 98,544,988 | |
| | | 200,174,632 | |
Pharmaceuticals – 32.0% | | | |
| | Astellas Pharma Inc | | 2,866,600 | | | 37,896,986 | |
| | AstraZeneca PLC | | 1,516,829 | | | 166,767,789 | |
| | Bayer AG | | 396,971 | | | 18,316,624 | |
| | Bristol-Myers Squibb Co | | 1,502,227 | | | 106,793,317 | |
| | Catalent Inc* | | 190,535 | | | 13,787,113 | |
| | Collegium Pharmaceutical Inc* | | 665,534 | | | 10,661,855 | |
| | DICE Therapeutics Inc*,# | | 355,532 | | | 7,210,189 | |
| | Edgewise Therapeutics Inc*,# | | 408,268 | | | 4,017,357 | |
| | Elanco Animal Health Inc* | | 1,259,513 | | | 15,630,556 | |
| | Eli Lilly & Co | | 379,612 | | | 122,747,540 | |
| | Harmony Biosciences Holdings Inc* | | 392,800 | | | 17,397,112 | |
| | Horizon Therapeutics PLC* | | 733,226 | | | 45,379,357 | |
| | Jazz Pharmaceuticals PLC* | | 404,090 | | | 53,861,156 | |
| | Johnson & Johnson | | 309,651 | | | 50,584,587 | |
| | Merck & Co Inc | | 1,249,728 | | | 107,626,575 | |
| | Novartis AG (ADR) | | 1,207,410 | | | 91,775,234 | |
| | Novo Nordisk A/S | | 611,940 | | | 61,005,765 | |
| | Organon & Co | | 1,595,174 | | | 37,327,072 | |
| | Pfizer Inc | | 1,177,310 | | | 51,519,086 | |
| | Roche Holding AG | | 336,006 | | | 109,580,005 | |
| | Royalty Pharma PLC - Class A | | 884,615 | | | 35,543,831 | |
| | Sanofi | | 1,007,348 | | | 76,869,482 | |
| | Takeda Pharmaceutical Co Ltd | | 754,636 | | | 19,602,232 | |
| | Ventyx Biosciences Inc*,# | | 448,794 | | | 15,667,399 | |
| | | 1,277,568,219 | |
Total Common Stocks (cost $2,807,392,560) | | 3,846,616,240 | |
Private Placements– 2.1% | | | |
Biotechnology – 1.2% | | | |
| | Arbor Biotechnologies Inc*,¢,§ | | 156,426 | | | 2,591,979 | |
| | Asher Biotherapeutics Inc*,¢,§ | | 1,214,301 | | | 1,951,139 | |
| | Attralus Inc*,¢,§ | | 669,935 | | | 3,483,662 | |
| | Disc Medicine Inc*,¢,§ | | 1,084,584 | | | 1,769,255 | |
| | Element Biosciences Inc*,¢,§ | | 425,023 | | | 6,991,628 | |
| | |
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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Private Placements– (continued) | | | |
Biotechnology– (continued) | | | |
| | Flame Biosciences*,¢,§ | | 919,200 | | | $2,837,662 | |
| | HemoShear Therapeutics LLC*,¢,§ | | 289,280 | | | 3,839,396 | |
| | LEXEO Therapeutics Inc - Series A*,¢,§ | | 3,643,715 | | | 6,268,975 | |
| | LEXEO Therapeutics Inc - Series B*,¢,§ | | 883,469 | | | 1,520,000 | |
| | Shoreline Biosciences Inc*,¢,§ | | 747,187 | | | 6,017,769 | |
| | Sonoma Biotherapeutics Inc*,¢,§ | | 1,255,200 | | | 2,480,652 | |
| | Synthekine Inc*,¢,§ | | 2,192,937 | | | 6,290,001 | |
| | TwinStrand Biosciences Inc*,¢,§ | | 344,314 | | | 2,750,001 | |
| | | 48,792,119 | |
Health Care Providers & Services – 0.5% | | | |
| | Bigfoot Biomedical Inc - Series B*,¢,§ | | 1,035,873 | | | 8,440,811 | |
| | Bigfoot Biomedical Inc - Series C-1*,¢,§ | | 168,418 | | | 1,372,354 | |
| | Freenome Holdings Inc*,¢,§ | | 342,803 | | | 4,000,511 | |
| | Freenome Inc*,¢,§ | | 337,474 | | | 3,938,322 | |
| | | 17,751,998 | |
Health Care Technology – 0.1% | | | |
| | Magnolia Medical Technologies Inc - Series D*,¢,§ | | 1,821,717 | | | 3,092,693 | |
Pharmaceuticals – 0.3% | | | |
| | Neurogene Inc*,¢,§ | | 1,336,317 | | | 3,260,613 | |
| | Neurogene Inc - Series B*,¢,§ | | 1,486,727 | | | 3,627,614 | |
| | VALENZABio - Series A*,¢,§ | | 700,559 | | | 6,235,276 | |
| | | 13,123,503 | |
Total Private Placements (cost $87,834,582) | | 82,760,313 | |
Rights– 0% | | | |
Biotechnology – 0% | | | |
| | Clementia Pharmaceuticals Inc CVR*,¢((cost $1,180,320) | | 874,311 | | | 0 | |
Warrants– 0% | | | |
Health Care Technology – 0% | | | |
| | Magnolia Medical Technologies Inc - Series D, expires 12/31/22*,¢,§((cost $0) | | 1 | | | 0 | |
Investment Companies– 0.1% | | | |
Money Markets – 0.1% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $5,298,703) | | 5,298,408 | | | 5,298,938 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.7% | | | |
Investment Companies – 0.6% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 21,402,690 | | | 21,402,690 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $5,350,673 | | | 5,350,673 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $26,753,363) | | 26,753,363 | |
Total Investments (total cost $2,928,459,528) – 99.3% | | 3,961,428,854 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.7% | | 29,277,310 | |
Net Assets – 100% | | $3,990,706,164 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Global Life Sciences Fund
Schedule of Investments
September 30, 2022
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $3,219,324,129 | | 81.3 | % |
Switzerland | | 201,355,239 | | 5.1 | |
United Kingdom | | 178,083,570 | | 4.5 | |
Denmark | | 109,221,060 | | 2.7 | |
France | | 76,869,482 | | 1.9 | |
Belgium | | 62,826,307 | | 1.6 | |
Japan | | 57,499,218 | | 1.4 | |
China | | 22,561,314 | | 0.6 | |
Germany | | 18,316,624 | | 0.5 | |
Ireland | | 15,371,911 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $3,961,428,854 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - 0.1% |
Money Markets - 0.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 129,576 | $ | (189) | $ | 235 | $ | 5,298,938 |
Investments Purchased with Cash Collateral from Securities Lending - 0.6% |
Investment Companies - 0.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 490,999∆ | | - | | - | | 21,402,690 |
Total Affiliated Investments - 0.7% | $ | 620,575 | $ | (189) | $ | 235 | $ | 26,701,628 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - 0.1% |
Money Markets - 0.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 13,474,132 | | 430,208,146 | | (438,383,386) | | 5,298,938 |
Investments Purchased with Cash Collateral from Securities Lending - 0.6% |
Investment Companies - 0.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 14,830,192 | | 354,251,716 | | (347,679,218) | | 21,402,690 |
| | |
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, 2022
| | | | | | | | | | |
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 | $ | 26,105,000 | $ | — | $ | (26,105,000) | $ | — |
| | | | | | | | | |
(a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. |
(b) | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
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 |
CVR | Contingent Value Right |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2022 is $82,760,313, which represents 2.1% 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, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Arbor Biotechnologies Inc | 10/29/21 | $ | 2,591,979 | $ | 2,591,979 | | 0.1 | % |
Asher Biotherapeutics Inc | 8/23/21 | | 2,438,924 | | 1,951,139 | | 0.0 | |
Attralus Inc | 8/31/21 | | 5,198,696 | | 3,483,662 | | 0.1 | |
Bigfoot Biomedical Inc - Series B | 11/21/17 | | 9,808,940 | | 8,440,811 | | 0.2 | |
Bigfoot Biomedical Inc - Series C-1 | 12/27/19 | | 1,355,580 | | 1,372,354 | | 0.1 | |
Disc Medicine Inc | 8/23/21 | | 2,603,002 | | 1,769,255 | | 0.0 | |
Element Biosciences Inc | 6/21/21 | | 8,737,070 | | 6,991,628 | | 0.2 | |
Flame Biosciences | 9/28/20 | | 6,020,760 | | 2,837,662 | | 0.1 | |
Freenome Holdings Inc | 11/22/21 | | 2,585,523 | | 4,000,511 | | 0.1 | |
Freenome Inc | 8/14/20 | | 2,231,817 | | 3,938,322 | | 0.1 | |
HemoShear Therapeutics LLC | 2/5/21 | | 3,839,496 | | 3,839,396 | | 0.1 | |
LEXEO Therapeutics Inc - Series A | 11/20/20-7/30/21 | | 3,643,715 | | 6,268,975 | | 0.1 | |
LEXEO Therapeutics Inc - Series B | 8/10/21 | | 1,520,000 | | 1,520,000 | | 0.0 | |
Magnolia Medical Technologies Inc - Series D, 12/31/22 | 1/10/22 | | 0 | | 0 | | 0.0 | |
Magnolia Medical Technologies Inc - Series D | 1/10/22 | | 3,092,693 | | 3,092,693 | | 0.1 | |
Neurogene Inc | 12/15/20-9/22/21 | | 3,260,613 | | 3,260,613 | | 0.1 | |
Neurogene Inc - Series B | 3/4/22 | | 3,627,614 | | 3,627,614 | | 0.1 | |
Shoreline Biosciences Inc | 10/28/21 | | 7,522,230 | | 6,017,769 | | 0.1 | |
Sonoma Biotherapeutics Inc | 7/23/21 | | 2,480,652 | | 2,480,652 | | 0.1 | |
Synthekine Inc | 6/3/21 | | 6,290,001 | | 6,290,001 | | 0.2 | |
TwinStrand Biosciences Inc | 4/30/21 | | 2,750,001 | | 2,750,001 | | 0.1 | |
VALENZABio - Series A | 3/25/21 | | 6,235,276 | | 6,235,276 | | 0.1 | |
Total | | $ | 87,834,582 | $ | 82,760,313 | | 2.1 | % |
| | | | | | | | | |
Janus Henderson Global Life Sciences Fund
Notes to Schedule of Investments and Other Information
| | |
The Fund has registration rights for certain restricted securities held as of September 30, 2022. 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, 2022. 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 | | | | | | |
Pharmaceuticals | $ | 787,529,336 | $ | 490,038,883 | $ | - |
All Other | | 2,569,048,021 | | - | | - |
Private Placements | | - | | - | | 82,760,313 |
Rights | | - | | - | | 0 |
Warrants | | - | | - | | 0 |
Investment Companies | | - | | 5,298,938 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 26,753,363 | | - |
Total Assets | $ | 3,356,577,357 | $ | 522,091,184 | $ | 82,760,313 |
| | | | | | | |
| | | | | | | | |
Level 3 Valuation Reconciliation of Assets (for the year ended September 30, 2022) |
| | | | | | | |
| Balance
as of
September 30, 2021 | 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, 2022 |
Investment in Securities: | | | | | | | |
Preferred Stocks | | | | | | | |
Biotechnology | $ 6,761,234 | $ - | $ (843,420) | $ 750,000(b) | $ (6,667,814)(b) | $ - | $ - |
Pharmaceuticals | 9,822,045 | 10,119,629 | - | - | (19,941,674)(b) | - | - |
Private Placements | | | | | | | |
Biotechnology | 48,147,477 | - | (9,469,567) | 10,114,209 | - | - | 48,792,119 |
Health Care Providers & Services | 13,635,549 | - | 1,530,926 | 2,585,523 | - | - | 17,751,998 |
Health Care Technology | - | - | - | 3,092,693 | - | - | 3,092,693 |
Pharmaceuticals | 9,495,889 | - | - | 3,627,614 | - | - | 13,123,503 |
Rights | | | | | | | |
Biotechnology | - | - | - | - | - | - | - |
Warrants | | | | | | | |
Health Care Technology | - | - | - | - | - | - | - |
Total | $ 87,862,194 | $10,119,629 | $(8,782,061) | $20,170,039 | $(26,609,488) | $ - | $ 82,760,313 |
(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, 2022
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $2,901,758,135)(1) | | $ | 3,934,727,226 | |
| Affiliated investments, at value (cost $26,701,393) | | | 26,701,628 | |
| Cash denominated in foreign currency (cost $81,173) | | | 75,450 | |
| Trustees' deferred compensation | | | 120,048 | |
| Receivables: | | | | |
�� | | Investments sold | | | 59,013,253 | |
| | Foreign tax reclaims | | | 4,900,612 | |
| | Fund shares sold | | | 4,883,972 | |
| | Dividends | | | 2,526,922 | |
| | Dividends from affiliates | | | 35,923 | |
| Other assets | | | 52,876 | |
Total Assets | | | 4,033,037,910 | |
Liabilities: | | | | |
| Due to custodian | | | 231 | |
| Collateral for securities loaned (Note 2) | | | 26,753,363 | |
| Payables: | | | — | |
| | Investments purchased | | | 6,204,439 | |
| | Fund shares repurchased | | | 5,572,246 | |
| | Advisory fees | | | 2,327,274 | |
| | Transfer agent fees and expenses | | | 630,201 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 158,613 | |
| | Trustees' deferred compensation fees | | | 120,048 | |
| | Professional fees | | | 60,545 | |
| | Custodian fees | | | 23,197 | |
| | Trustees' fees and expenses | | | 19,449 | |
| | Affiliated fund administration fees payable | | | 9,091 | |
| | Accrued expenses and other payables | | | 453,049 | |
Total Liabilities | | | 42,331,746 | |
Net Assets | | $ | 3,990,706,164 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Life Sciences Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,021,694,071 | |
| Total distributable earnings (loss) | | | 969,012,093 | |
Total Net Assets | | $ | 3,990,706,164 | |
Net Assets - Class A Shares | | $ | 238,774,435 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,135,871 | |
Net Asset Value Per Share(2) | | $ | 57.73 | |
Maximum Offering Price Per Share(3) | | $ | 61.25 | |
Net Assets - Class C Shares | | $ | 106,818,713 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,085,486 | |
Net Asset Value Per Share(2) | | $ | 51.22 | |
Net Assets - Class D Shares | | $ | 1,538,659,918 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 26,038,689 | |
Net Asset Value Per Share | | $ | 59.09 | |
Net Assets - Class I Shares | | $ | 839,582,265 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 14,176,682 | |
Net Asset Value Per Share | | $ | 59.22 | |
Net Assets - Class N Shares | | $ | 138,494,777 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,346,485 | |
Net Asset Value Per Share | | $ | 59.02 | |
Net Assets - Class S Shares | | $ | 24,128,303 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 427,822 | |
Net Asset Value Per Share | | $ | 56.40 | |
Net Assets - Class T Shares | | $ | 1,104,247,753 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 18,805,933 | |
Net Asset Value Per Share | | $ | 58.72 | |
| |
(1) Includes $26,105,000 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, 2022 |
Janus Henderson Global Life Sciences Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 49,020,977 | |
| Affiliated securities lending income, net | | 490,999 | |
| Dividends from affiliates | | 129,576 | |
| Unaffiliated securities lending income, net | | 40,750 | |
| Other income | | 32,990 | |
| Foreign tax withheld | | (2,679,000) | |
Total Investment Income | | 47,036,292 | |
Expenses: | | | |
| Advisory fees | | 28,945,812 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 655,139 | |
| | Class C Shares | | 1,201,380 | |
| | Class S Shares | | 67,681 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,955,454 | |
| | Class S Shares | | 67,768 | |
| | Class T Shares | | 3,127,532 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 141,419 | |
| | Class C Shares | | 119,455 | |
| | Class I Shares | | 871,491 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 16,413 | |
| | Class C Shares | | 6,612 | |
| | Class D Shares | | 230,862 | |
| | Class I Shares | | 43,816 | |
| | Class N Shares | | 6,161 | |
| | Class S Shares | | 367 | |
| | Class T Shares | | 13,294 | |
| Shareholder reports expense | | 271,444 | |
| Custodian fees | | 198,437 | |
| Registration fees | | 152,672 | |
| Affiliated fund administration fees | | 113,069 | |
| Trustees’ fees and expenses | | 94,945 | |
| Professional fees | | 78,732 | |
| Other expenses | | 315,527 | |
Total Expenses | | 38,695,482 | |
Less: Excess Expense Reimbursement and Waivers | | (165,268) | |
Net Expenses | | 38,530,214 | |
Net Investment Income/(Loss) | | 8,506,078 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Life Sciences Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | (1,926,418) | |
| Investments in affiliates | | (189) | |
Total Net Realized Gain/(Loss) on Investments | | (1,926,607) | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (563,450,428) | |
| Investments in affiliates | | 235 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (563,450,193) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (556,870,722) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2022 |
Janus Henderson Global Life Sciences Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 8,506,078 | | $ | 10,762,121 | |
| Net realized gain/(loss) on investments | | (1,926,607) | | | 471,576,883 | |
| Change in unrealized net appreciation/depreciation | | (563,450,193) | | | 292,698,976 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (556,870,722) | | | 775,037,980 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (26,218,234) | | | (18,584,738) | |
| | Class C Shares | | (14,503,583) | | | (12,865,282) | |
| | Class D Shares | | (168,341,359) | | | (135,531,132) | |
| | Class I Shares | | (98,682,706) | | | (75,698,067) | |
| | Class N Shares | | (17,490,827) | | | (15,855,433) | |
| | Class S Shares | | (2,696,808) | | | (2,041,558) | |
| | Class T Shares | | (124,306,069) | | | (103,625,067) | |
Net Decrease from Dividends and Distributions to Shareholders | | (452,239,586) | | | (364,201,277) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 12,473,104 | | | 35,581,878 | |
| | Class C Shares | | (18,489,015) | | | (11,323,552) | |
| | Class D Shares | | 67,853,188 | | | 37,946,936 | |
| | Class I Shares | | (21,496,544) | | | 79,042,566 | |
| | Class N Shares | | (128,226) | | | 21,543,883 | |
| | Class S Shares | | 2,804,530 | | | 1,021,030 | |
| | Class T Shares | | 3,892,712 | | | (8,784,551) | |
Net Increase/(Decrease) from Capital Share Transactions | | 46,909,749 | | | 155,028,190 | |
Net Increase/(Decrease) in Net Assets | | (962,200,559) | | | 565,864,893 | |
Net Assets: | | | | | | |
| Beginning of period | | 4,952,906,723 | | | 4,387,041,830 | |
| End of period | $ | 3,990,706,164 | | $ | 4,952,906,723 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $72.24 | | | $66.20 | | | $53.89 | | | $64.96 | | | $55.76 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.04 | | | 0.07 | | | 0.41(2) | | | 0.17 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | (7.84) | | | 11.44 | | | 15.62 | | | (4.52) | | | 9.74 | |
| Total from Investment Operations | | (7.80) | | | 11.51 | | | 16.03 | | | (4.35) | | | 9.75 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.76) | | | (0.66) | | | (0.40) | | | — | | | (0.07) | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | |
| Total Dividends and Distributions | | (6.71) | | | (5.47) | | | (3.72) | | | (6.72) | | | (0.55) | |
| Net Asset Value, End of Period | | $57.73 | | | $72.24 | | | $66.20 | | | $53.89 | | | $64.96 | |
| Total Return* | | (11.96)% | | | 17.70% | | | 30.58% | | | (5.85)% | | | 17.70% | |
| Net Assets, End of Period (in thousands) | | $238,774 | | | $285,239 | | | $228,005 | | | $177,862 | | | $195,674 | |
| Average Net Assets for the Period (in thousands) | | $260,738 | | | $264,335 | | | $198,807 | | | $182,919 | | | $181,464 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.98% | | | 0.97% | | | 0.98% | | | 1.00% | | | 0.99% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.98% | | | 0.97% | | | 0.98% | | | 1.00% | | | 0.99% | |
| | Ratio of Net Investment Income/(Loss) | | 0.07% | | | 0.10% | | | 0.69%(2) | | | 0.30% | | | 0.02% | |
| Portfolio Turnover Rate | | 21% | | | 32% | | | 43% | | | 36% | | | 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) 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. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2022 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $64.73 | | | $59.83 | | | $49.00 | | | $60.16 | | | $52.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.35) | | | (0.39) | | | —(2)(3) | | | (0.21) | | | (0.40) | |
| | Net realized and unrealized gain/(loss) | | (6.96) | | | 10.32 | | | 14.15 | | | (4.23) | | | 9.04 | |
| Total from Investment Operations | | (7.31) | | | 9.93 | | | 14.15 | | | (4.44) | | | 8.64 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.25) | | | (0.22) | | | —(3) | | | — | | | — | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | |
| Total Dividends and Distributions | | (6.20) | | | (5.03) | | | (3.32) | | | (6.72) | | | (0.48) | |
| Net Asset Value, End of Period | | $51.22 | | | $64.73 | | | $59.83 | | | $49.00 | | | $60.16 | |
| Total Return* | | (12.55)% | | | 16.86% | | | 29.66% | | | (6.53)% | | | 16.81% | |
| Net Assets, End of Period (in thousands) | | $106,819 | | | $157,110 | | | $155,599 | | | $148,147 | | | $182,894 | |
| Average Net Assets for the Period (in thousands) | | $134,801 | | | $165,379 | | | $156,935 | | | $163,407 | | | $173,167 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.65% | | | 1.69% | | | 1.69% | | | 1.71% | | | 1.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.65% | | | 1.69% | | | 1.69% | | | 1.71% | | | 1.75% | |
| | Ratio of Net Investment Income/(Loss) | | (0.61)% | | | (0.61)% | | | (0.01)%(2) | | | (0.42)% | | | (0.74)% | |
| Portfolio Turnover Rate | | 21% | | | 32% | | | 43% | | | 36% | | | 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) 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 $0.27 and 0.49%, respectively. (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 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $73.77 | | | $67.47 | | | $54.86 | | | $65.89 | | | $56.59 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.16 | | | 0.20 | | | 0.53(2) | | | 0.27 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | (8.02) | | | 11.66 | | | 15.90 | | | (4.58) | | | 9.86 | |
| Total from Investment Operations | | (7.86) | | | 11.86 | | | 16.43 | | | (4.31) | | | 9.98 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.87) | | | (0.75) | | | (0.50) | | | — | | | (0.20) | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | |
| Total Dividends and Distributions | | (6.82) | | | (5.56) | | | (3.82) | | | (6.72) | | | (0.68) | |
| Net Asset Value, End of Period | | $59.09 | | | $73.77 | | | $67.47 | | | $54.86 | | | $65.89 | |
| Total Return* | | (11.81)% | | | 17.91% | | | 30.80% | | | (5.69)% | | | 17.91% | |
| Net Assets, End of Period (in thousands) | | $1,538,660 | | | $1,848,983 | | | $1,653,849 | | | $1,372,808 | | | $1,549,599 | |
| Average Net Assets for the Period (in thousands) | | $1,704,598 | | | $1,837,079 | | | $1,526,148 | | | $1,449,521 | | | $1,404,624 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.80% | | | 0.80% | | | 0.81% | | | 0.82% | | | 0.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | | | 0.80% | | | 0.81% | | | 0.82% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | 0.24% | | | 0.28% | | | 0.87%(2) | | | 0.48% | | | 0.20% | |
| Portfolio Turnover Rate | | 21% | | | 32% | | | 43% | | | 36% | | | 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) 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, 2022 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $73.93 | | | $67.61 | | | $54.96 | | | $65.96 | | | $56.66 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.23 | | | 0.57(2) | | | 0.30 | | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | (8.03) | | | 11.69 | | | 15.93 | | | (4.58) | | | 9.87 | |
| Total from Investment Operations | | (7.85) | | | 11.92 | | | 16.50 | | | (4.28) | | | 10.02 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.91) | | | (0.79) | | | (0.53) | | | — | | | (0.24) | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | |
| Total Dividends and Distributions | | (6.86) | | | (5.60) | | | (3.85) | | | (6.72) | | | (0.72) | |
| Net Asset Value, End of Period | | $59.22 | | | $73.93 | | | $67.61 | | | $54.96 | | | $65.96 | |
| Total Return* | | (11.77)% | | | 17.96% | | | 30.89% | | | (5.63)% | | | 17.97% | |
| Net Assets, End of Period (in thousands) | | $839,582 | | | $1,079,081 | | | $911,963 | | | $692,575 | | | $762,127 | |
| Average Net Assets for the Period (in thousands) | | $963,599 | | | $1,033,591 | | | $790,645 | | | $719,800 | | | $688,302 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.75% | | | 0.75% | | | 0.77% | | | 0.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.75% | | | 0.75% | | | 0.77% | | | 0.76% | |
| | Ratio of Net Investment Income/(Loss) | | 0.28% | | | 0.32% | | | 0.93%(2) | | | 0.53% | | | 0.26% | |
| Portfolio Turnover Rate | | 21% | | | 32% | | | 43% | | | 36% | | | 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) 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. |
| |
Janus Investment Fund | 23 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018(1) | |
| Net Asset Value, Beginning of Period | | $73.69 | | | $67.41 | | | $54.81 | | | $65.76 | | | $59.59 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.24 | | | 0.31 | | | 0.66(3) | | | 0.36 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | (7.99) | | | 11.62 | | | 15.85 | | | (4.59) | | | 6.01 | |
| Total from Investment Operations | | (7.75) | | | 11.93 | | | 16.51 | | | (4.23) | | | 6.17 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.97) | | | (0.84) | | | (0.59) | | | — | | | — | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | — | |
| Total Dividends and Distributions | | (6.92) | | | (5.65) | | | (3.91) | | | (6.72) | | | — | |
| Net Asset Value, End of Period | | $59.02 | | | $73.69 | | | $67.41 | | | $54.81 | | | $65.76 | |
| Total Return* | | (11.68)% | | | 18.04% | | | 30.99% | | | (5.57)% | | | 10.35% | |
| Net Assets, End of Period (in thousands) | | $138,495 | | | $176,576 | | | $144,543 | | | $90,958 | | | $104,903 | |
| Average Net Assets for the Period (in thousands) | | $165,129 | | | $176,137 | | | $110,308 | | | $99,924 | | | $24,212 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.67% | | | 0.67% | | | 0.67% | | | 0.68% | | | 0.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.67% | | | 0.67% | | | 0.68% | | | 0.70% | |
| | Ratio of Net Investment Income/(Loss) | | 0.37% | | | 0.43% | | | 1.08%(3) | | | 0.63% | | | 0.39% | |
| Portfolio Turnover Rate | | 21% | | | 32% | | | 43% | | | 36% | | | 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) 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. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2022 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $70.72 | | | $64.93 | | | $52.94 | | | $64.07 | | | $55.09 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.08) | | | (0.07) | | | 0.31(2) | | | 0.07 | | | (0.08) | |
| | Net realized and unrealized gain/(loss) | | (7.66) | | | 11.21 | | | 15.31 | | | (4.48) | | | 9.60 | |
| Total from Investment Operations | | (7.74) | | | 11.14 | | | 15.62 | | | (4.41) | | | 9.52 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.63) | | | (0.54) | | | (0.31) | | | — | | | (0.06) | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | |
| Total Dividends and Distributions | | (6.58) | | | (5.35) | | | (3.63) | | | (6.72) | | | (0.54) | |
| Net Asset Value, End of Period | | $56.40 | | | $70.72 | | | $64.93 | | | $52.94 | | | $64.07 | |
| Total Return* | | (12.13)% | | | 17.46% | | | 30.33% | | | (6.04)% | | | 17.49% | |
| Net Assets, End of Period (in thousands) | | $24,128 | | | $27,575 | | | $24,287 | | | $18,981 | | | $20,113 | |
| Average Net Assets for the Period (in thousands) | | $26,974 | | | $27,694 | | | $22,312 | | | $19,870 | | | $18,269 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.18% | | | 1.17% | | | 1.18% | | | 1.19% | | | 1.18% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.18% | | | 1.17% | | | 1.18% | | | 1.18% | | | 1.17% | |
| | Ratio of Net Investment Income/(Loss) | | (0.13)% | | | (0.09)% | | | 0.52%(2) | | | 0.14% | | | (0.14)% | |
| Portfolio Turnover Rate | | 21% | | | 32% | | | 43% | | | 36% | | | 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) 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. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $73.33 | | | $67.11 | | | $54.59 | | | $65.66 | | | $56.39 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.09 | | | 0.12 | | | 0.46(2) | | | 0.22 | | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | (7.96) | | | 11.60 | | | 15.82 | | | (4.57) | | | 9.84 | |
| Total from Investment Operations | | (7.87) | | | 11.72 | | | 16.28 | | | (4.35) | | | 9.90 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.79) | | | (0.69) | | | (0.44) | | | — | | | (0.15) | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | |
| Total Dividends and Distributions | | (6.74) | | | (5.50) | | | (3.76) | | | (6.72) | | | (0.63) | |
| Net Asset Value, End of Period | | $58.72 | | | $73.33 | | | $67.11 | | | $54.59 | | | $65.66 | |
| Total Return* | | (11.89)% | | | 17.78% | | | 30.66% | | | (5.78)% | | | 17.80% | |
| Net Assets, End of Period (in thousands) | | $1,104,248 | | | $1,378,342 | | | $1,268,796 | | | $1,102,667 | | | $1,293,953 | |
| Average Net Assets for the Period (in thousands) | | $1,244,923 | | | $1,394,446 | | | $1,191,342 | | | $1,180,068 | | | $1,230,729 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.91% | | | 0.92% | | | 0.92% | | | 0.92% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.91% | | | 0.90% | | | 0.91% | | | 0.91% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | 0.14% | | | 0.17% | | | 0.76%(2) | | | 0.38% | | | 0.10% | |
| Portfolio Turnover Rate | | 21% | | | 32% | | | 43% | | | 36% | | | 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) 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. |
| |
26 | SEPTEMBER 30, 2022 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
“Distributor”) 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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 Life Sciences 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. 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, 2022 | Valuation Technique | Unobservable Input | Input Amount or Range | Weighted Average(1) | Impact to Valuation from an Increase in Input |
Private Placements | | | | | | |
Biotechnology | $1,769,255 | Market Approach | Discount Rate | 10% | 10% | Decrease |
| | $2,837,662 | Income Approach | Liquidation Value | $3.09 | $3.09 | Increase |
| | $25,741,003 | Market Approach | Transaction Price | $1.72 - $16.57 | $5.91 | Increase |
| | $18,444,199 | Market Approach | Transaction Price | $2.01 - $20.56 | $12.76 | Increase |
| | | | Discount | 20% - 33% | 22% | Decrease |
Health Care Providers & Services | $7,938,833 | Market Approach | Transaction Price | $11.67 | $11.67 | Increase |
| | $9,813,165 | Market Approach | Adjustment based on market comparables | (62%) - 3% | (62%) - 3% | Decrease |
Health Care Technology | $3,092,693 | Market Approach | Transaction Price | $1.70 | $1.70 | Increase |
Pharmaceuticals | $13,123,503 | Market Approach | Transaction Price | $2.44-$8.90 | $5.51 | 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, 2022 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.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. 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 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
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
The 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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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 the Adviser 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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.
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
105% value of the securities on loan. The cash collateral invested by the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $26,105,000. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $26,753,363, resulting in the net amount due to the counterparty of $648,363.
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 Offsetting Assets and Liabilities table located in the Schedule of Investments 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.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $27,712.
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, 2022, redeeming shareholders of Class A Shares paid CDSCs of $1,088 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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $7,999.
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
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser 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, 2022, the Fund engaged in cross trades amounting to $5,408,567 in purchases and $595,769 in sales, resulting in a net realized loss of $5,219. 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
The Fund has elected to defer post-October losses as noted in the table below. These losses will be deferred for tax purposes and recognized during the next fiscal year.
| | | | | | | | |
| | | Loss Deferrals | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Late-Year
Ordinary Loss | Post-October
Capital Loss | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 7,738,458 | $ - | $ - | $ - | $(11,211,392) | $ (344,027) | $972,829,054 | |
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, 2022 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) |
$2,988,599,800 | $1,202,962,450 | $(230,133,396) | $972,829,054 |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 179,518,295 | $ 272,721,291 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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 |
$ - | $ 1,934,235 | $ (1,934,235) |
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 735,975 | $ 46,852,292 | | 987,440 | $ 69,959,356 |
Reinvested dividends and distributions | 283,164 | 18,688,820 | | 185,271 | 12,904,091 |
Shares repurchased | (831,936) | (53,068,008) | | (668,185) | (47,281,569) |
Net Increase/(Decrease) | 187,203 | $ 12,473,104 | | 504,526 | $ 35,581,878 |
Class C Shares: | | | | | |
Shares sold | 145,429 | $ 8,363,484 | | 318,940 | $ 20,349,513 |
Reinvested dividends and distributions | 229,759 | 13,525,931 | | 189,458 | 11,894,185 |
Shares repurchased | (716,737) | (40,378,430) | | (682,174) | (43,567,250) |
Net Increase/(Decrease) | (341,549) | $ (18,489,015) | | (173,776) | $ (11,323,552) |
Class D Shares: | | | | | |
Shares sold | 824,955 | $ 53,865,569 | | 1,219,273 | $ 87,819,205 |
Reinvested dividends and distributions | 2,417,153 | 163,061,184 | | 1,852,297 | 131,568,627 |
Shares repurchased | (2,268,686) | (149,073,565) | | (2,518,669) | (181,440,896) |
Net Increase/(Decrease) | 973,422 | $ 67,853,188 | | 552,901 | $ 37,946,936 |
Class I Shares: | | | | | |
Shares sold | 3,435,132 | $224,972,692 | | 3,555,786 | $257,040,480 |
Reinvested dividends and distributions | 1,185,696 | 80,141,190 | | 863,183 | 61,415,492 |
Shares repurchased | (5,041,043) | (326,610,426) | | (3,310,779) | (239,413,406) |
Net Increase/(Decrease) | (420,215) | $ (21,496,544) | | 1,108,190 | $ 79,042,566 |
Class N Shares: | | | | | |
Shares sold | 756,520 | $ 50,543,407 | | 2,265,994 | $162,865,089 |
Reinvested dividends and distributions | 259,287 | 17,452,575 | | 223,607 | 15,851,522 |
Shares repurchased | (1,065,372) | (68,124,208) | | (2,237,919) | (157,172,728) |
Net Increase/(Decrease) | (49,565) | $ (128,226) | | 251,682 | $ 21,543,883 |
Class S Shares: | | | | | |
Shares sold | 106,733 | $ 6,976,861 | | 87,091 | $ 6,027,153 |
Reinvested dividends and distributions | 41,766 | 2,696,808 | | 29,891 | 2,041,558 |
Shares repurchased | (110,603) | (6,869,139) | | (101,125) | (7,047,681) |
Net Increase/(Decrease) | 37,896 | $ 2,804,530 | | 15,857 | $ 1,021,030 |
Class T Shares: | | | | | |
Shares sold | 1,010,460 | $ 65,704,756 | | 1,915,324 | $137,627,328 |
Reinvested dividends and distributions | 1,809,837 | 121,421,995 | | 1,432,638 | 101,244,513 |
Shares repurchased | (2,810,104) | (183,234,039) | | (3,457,768) | (247,656,392) |
Net Increase/(Decrease) | 10,193 | $ 3,892,712 | | (109,806) | $ (8,784,551) |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$950,902,824 | $1,353,175,715 | $ - | $ - |
7. Recent Accounting Pronouncements
The FASB issued Accounting Standards Update 2022-03: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”) in June 2022. The new guidance in the ASU clarifies existing guidance
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
in ASC 820 related to the fair value measurement of an equity security subject to contractual sale restrictions with the intent to reduce diversity in interpretation. Under the guidance, a contractual restriction on the sale of an equity security would not be considered when measuring fair value as such restriction is not treated as part of the equity security’s unit of account. The amendments would be applied prospectively on or after adoption date to equity securities with a contract containing a sale restriction that is executed or modified after such date. The effective date set by the FASB is December 15, 2023, with early adoption permitted. The Adviser is currently evaluating whether to early adopt and does not anticipate it to have a material impact on the Fund.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, 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, 2022, 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, 2022 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, 2022 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 28, 2022
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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Capital Gain Distributions | $272,721,291 |
Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income Percentage | 100% |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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 | | | | |
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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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)
| | | | | | |
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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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)
| | | | |
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. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US 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 Henderson Services US LLC. |
* 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
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 |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Global Life Sciences 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93043 11-22 |
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| | | |
| | | ANNUAL REPORT September 30, 2022 |
| | |
| | Janus Henderson Global Real Estate Fund |
| | |
| | Janus Investment Fund |
| |
| | | 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 total return through a combination of capital appreciation and current income. The Fund invests in real estate investment trusts (REITs) and real estate-related businesses. Our emphasis on local property market knowledge combined with a repeatable, disciplined investment process seeks to provide diversification from traditional asset classes for investors. | | | 
Greg Kuhl co-portfolio manager | 
Tim Gibson co-portfolio manager | 
Guy Barnard co-portfolio manager |
| | | |
PERFORMANCE
The Janus Henderson Global Real Estate Fund Class I Shares returned -24.04% for the 12-month period ended September 30, 2022. The Fund’s primary benchmark, the FTSE EPRA Nareit Global Index, returned -22.38%, while its secondary benchmark, the FTSE EPRA Nareit Global Net Index, returned -23.01%.
INVESTMENT ENVIRONMENT
Global equity markets posted negative returns for the 12-month period, falling amid soaring inflation, monetary and fiscal tightening, and concerns of an economic recession. Although stocks gained early in the period, market volatility increased in 2022 as persistent supply chain disruptions, Russia’s invasion of Ukraine, and surging commodities prices contributed to an increasingly challenging backdrop for equities. As prospects for economic growth dimmed, many investors turned to defensive stocks, while valuation multiples for faster-growing companies compressed. The Federal Reserve (Fed) hiked interest rates five times between March and September and the European Central Bank raised rates twice, its first hikes in 11 years. Other central banks joined the fight against inflation as prices continued to rise, and markets grappled with the possibility of further rate hikes into 2023. In Europe, a looming energy crisis added to negative sentiment.
Global property stocks, as measured by the FTSE EPRA Nareit Global Index, fell 22% over the period, underperforming wider equity markets, which fell 20%, as measured by the MSCI World IndexSM. Investors in property looked for market evidence to better understand the magnitude of pricing adjustment needed to reflect higher funding costs, at the same time as a weakening global economy made rental income streams harder for investors to underwrite. German property stocks suffered sharp declines, as well as those in Sweden and the UK. In the U.S., perceived defensive areas of the market, such as self-storage, apartments, and net lease, outperformed, with offices and data centers lagging.
On the operational front, the second-quarter 2022 earnings season for U.S. real estate investment trusts (REITs) proved to be the strongest, versus expectations, in 15 years. Approximately 70% of REITs raised 2022 earnings guidance, reflecting ongoing operational strength across the sector. The industrial, apartment, and storage sectors delivered particularly strong earnings guidance increases despite broader macro uncertainty, pointing to accelerating rent growth driven by record tenant demand and muted levels of new supply. Despite fundamental strength, global property stocks traded at an approximately 25% discount to net asset value (NAV) at the end of the 12-month period, a level last seen in 2009, suggesting listed REITs already are reflecting significant uncertainty and pricing in severe declines in property values.
PERFORMANCE DISCUSSION
Our holdings in real estate operators and hotel and resort REITs detracted, while our exposure to the U.S. net lease sector proved beneficial, with holdings adding value on perceived defensiveness of cash flows in a recession. Exposure to niche property sectors also was additive, with storage and single-family rental housing making positive contributions.
At the individual stock level, Shimao Group Holdings was the top detractor from relative performance. The Chinese property developer was pressured by rising policy risks and regulatory clampdowns over the period. Gaming REIT VICI Properties was the top contributor. The company’s stock rose given the general resiliency of its business model during an uncertain time. VICI was also added to the S&P 500 Index and its credit rating was upgraded to investment grade during the period.
Janus Henderson Global Real Estate Fund (unaudited)
Toward period end, we sold out of a hotel owner given limited earnings visibility in a tougher macroeconomic environment. We also sold out of an industrial owner, and rotated proceeds into an existing holding in a warehouse REIT where we have higher total return expectations. Additionally, we took profits in a U.S. healthcare owner following completion of its merger with an owner and operator of medical office buildings, and initiated a new position in an industrial landlord, with valuation overly discounted given the company’s solid future growth prospects. Following strong share price performance, we trimmed outperformers in the U.S. net lease sector. Proceeds were allocated to existing holdings in the portfolio where we saw attractive expected total returns coupled with strong conviction in the investment thesis.
OUTLOOK
While real estate will not be immune to the changing macroeconomic landscape, its potential to provide more dependable income streams, diversification benefits, and inflation protection over time should provide some comfort. Within the sector, real estate fundamentals are likely to reflect ongoing divergence across different property types 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. The importance of management, asset, and balance sheet quality are also likely to come to the fore again.
The direct property market will take time to adjust to higher funding costs, but the listed market has reacted already, resulting in shares trading at wide discounts to previous asset values and reflecting a highly uncertain environment. This may overlook the attractive, reliable and growing income streams that many real estate companies can generate 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, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| VICI Properties Inc | 2.92% | | 0.73% | | Shimao Group Holdings Ltd | 0.20% | | -0.48% |
| Agree Realty Corp | 0.88% | | 0.39% | | Fastighets AB Balder - Class B | 1.38% | | -0.48% |
| Life Storage Inc | 2.58% | | 0.36% | | Instone Real Estate Group SE | 0.56% | | -0.46% |
| National Retail Properties Inc | 2.44% | | 0.36% | | Park Hotels & Resorts Inc | 2.48% | | -0.37% |
| Rexford Industrial Realty Inc | 2.80% | | 0.35% | | GDS Holdings Ltd | 0.43% | | -0.34% |
| | | | | | | |
| 3 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | FTSE EPRA Nareit Global Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | 0.18% | | 1.02% | 0.13% |
| Other** | | 0.13% | | 1.91% | 0.05% |
| Health Care | | 0.00% | | 0.00% | 0.11% |
| | | | | | |
| | | | | | |
| 3 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | FTSE EPRA Nareit Global Index |
| | | Contribution | | Average Weight | Average Weight |
| Real Estate | | -0.65% | | 95.28% | 99.71% |
| Information Technology | | -0.34% | | 0.43% | 0.00% |
| Communication Services | | -0.25% | | 1.36% | 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 Real Estate Fund (unaudited)
Fund At A Glance
September 30, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Prologis Inc | |
Equity Real Estate Investment Trusts (REITs) | 6.7% |
Alexandria Real Estate Equities Inc | |
Equity Real Estate Investment Trusts (REITs) | 4.7% |
VICI Properties Inc | |
Equity Real Estate Investment Trusts (REITs) | 4.4% |
Digital Realty Trust Inc | |
Equity Real Estate Investment Trusts (REITs) | 4.0% |
Rexford Industrial Realty Inc | |
Equity Real Estate Investment Trusts (REITs) | 3.8% |
| | 23.6% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 98.2% | |
Investment Companies | | 1.4% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.0% | |
Other | | 0.4% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson Global Real Estate Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended September 30, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -24.19% | 2.67% | 5.17% | 4.16% | | | 1.23% |
Class A Shares at MOP | | -28.53% | 1.46% | 4.54% | 3.75% | | | |
Class C Shares at NAV | | -24.81% | 1.86% | 4.37% | 3.42% | | | 2.04% |
Class C Shares at CDSC | | -25.53% | 1.86% | 4.37% | 3.42% | | | |
Class D Shares | | -24.05% | 2.86% | 5.36% | 3.70% | | | 1.06% |
Class I Shares | | -24.04% | 2.93% | 5.45% | 4.43% | | | 1.00% |
Class N Shares | | -23.94% | 3.03% | 5.50% | 4.47% | | | 0.90% |
Class S Shares | | -24.37% | 2.45% | 4.99% | 4.00% | | | 1.43% |
Class T Shares | | -24.15% | 2.77% | 5.29% | 3.91% | | | 1.14% |
FTSE EPRA Nareit Global Index | | -22.38% | -0.76% | 3.32% | 1.88% | | | |
FTSE EPRA Nareit Global Net Index | | -23.01% | -1.61% | 2.48% | N/A** | | | |
Morningstar Quartile - Class I Shares | | 3rd | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Global Real Estate Funds | | 112/192 | 16/181 | 7/146 | 4/107 | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
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 Real Estate Fund (unaudited)
Performance
Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares commenced operations on July 6, 2009, 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.
© 2022 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $739.30 | $5.58 | | $1,000.00 | $1,018.65 | $6.48 | 1.28% |
Class C Shares | $1,000.00 | $736.20 | $8.97 | | $1,000.00 | $1,014.74 | $10.40 | 2.06% |
Class D Shares | $1,000.00 | $740.10 | $4.84 | | $1,000.00 | $1,019.50 | $5.62 | 1.11% |
Class I Shares | $1,000.00 | $740.00 | $4.54 | | $1,000.00 | $1,019.85 | $5.27 | 1.04% |
Class N Shares | $1,000.00 | $740.70 | $4.10 | | $1,000.00 | $1,020.36 | $4.76 | 0.94% |
Class S Shares | $1,000.00 | $738.10 | $6.41 | | $1,000.00 | $1,017.70 | $7.44 | 1.47% |
Class T Shares | $1,000.00 | $740.00 | $5.15 | | $1,000.00 | $1,019.15 | $5.97 | 1.18% |
† | 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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 98.2% | | | |
Diversified Telecommunication Services – 0.8% | | | |
| | Cellnex Telecom SA (144A)* | | 164,000 | | | $5,055,581 | |
Equity Real Estate Investment Trusts (REITs) – 78.9% | | | |
| | Activia Properties Inc | | 1,581 | | | 4,624,687 | |
| | Advance Residence Investment Corp | | 1,434 | | | 3,504,860 | |
| | Agree Realty Corp | | 151,937 | | | 10,267,902 | |
| | Alexandria Real Estate Equities Inc | | 209,192 | | | 29,326,626 | |
| | CapitaLand Mall Trust | | 6,493,126 | | | 8,634,764 | |
| | CubeSmart | | 505,616 | | | 20,254,977 | |
| | Digital Realty Trust Inc | | 253,272 | | | 25,119,517 | |
| | Equity LifeStyle Properties Inc | | 229,277 | | | 14,407,767 | |
| | Essex Property Trust Inc | | 86,079 | | | 20,850,916 | |
| | Gecina SA | | 57,000 | | | 4,429,717 | |
| | Goodman Group | | 660,242 | | | 6,595,227 | |
| | Hulic Inc | | 4,745 | | | 5,429,922 | |
| | Industrial & Infrastructure Fund Investment Corp | | 2,330 | | | 2,635,789 | |
| | Invitation Homes Inc | | 655,460 | | | 22,134,884 | |
| | Japan Hotel Investment Corp | | 10,534 | | | 5,246,616 | |
| | Japan Retail Fund Investment Corp | | 8,063 | | | 6,066,204 | |
| | Land Securities Group PLC | | 740,000 | | | 4,255,142 | |
| | LaSalle Logiport | | 2,498 | | | 2,788,598 | |
| | Life Storage Inc | | 112,488 | | | 12,459,171 | |
| | Link | | 1,727,500 | | | 12,057,736 | |
| | Mapletree Logistics Trust | | 6,302,245 | | | 6,806,564 | |
| | Merlin Properties Socimi SA | | 745,000 | | | 5,721,853 | |
| | National Retail Properties Inc | | 436,960 | | | 17,417,226 | |
| | Orix JREIT Inc | | 7,533 | | | 9,607,015 | |
| | Prologis Inc | | 408,951 | | | 41,549,422 | |
| | Rexford Industrial Realty Inc | | 449,607 | | | 23,379,564 | |
| | Safestore Holdings PLC | | 415,371 | | | 3,883,427 | |
| | SBA Communications Corp | | 27,160 | | | 7,731,094 | |
| | Segro PLC | | 865,000 | | | 7,246,404 | |
| | SITE Centers Corp | | 829,500 | | | 8,883,945 | |
| | Spirit Realty Capital Inc | | 511,584 | | | 18,498,877 | |
| | STAG Industrial Inc | | 585,859 | | | 16,655,971 | |
| | Stockland | | 3,529,787 | | | 7,348,432 | |
| | Sun Communities Inc | | 156,054 | | | 21,118,788 | |
| | UDR Inc | | 363,083 | | | 15,144,192 | |
| | UNITE Group PLC | | 472,360 | | | 4,478,205 | |
| | VICI Properties Inc | | 917,247 | | | 27,379,823 | |
| | Vicinity Centres | | 3,960,643 | | | 4,421,365 | |
| | Welltower Inc | | 312,427 | | | 20,095,305 | |
| | Workspace Group PLC | | 500,000 | | | 2,197,604 | |
| | | 490,656,098 | |
Real Estate Management & Development – 18.5% | | | |
| | Ayala Land Inc | | 10,516,500 | | | 4,009,597 | |
| | China Resources Land Ltd | | 3,118,000 | | | 12,155,978 | |
| | China Vanke Co Ltd | | 2,958,500 | | | 5,378,657 | |
| | City Developments Ltd | | 936,700 | | | 4,939,447 | |
| | CK Asset Holdings Ltd | | 1,681,500 | | | 10,090,253 | |
| | CTP NV (144A) | | 380,000 | | | 3,923,631 | |
| | Fastighets AB Balder - Class B* | | 1,250,000 | | | 4,942,971 | |
| | Hang Lung Properties Ltd | | 2,920,000 | | | 4,766,780 | |
| | Helical PLC | | 950,000 | | | 3,789,685 | |
| | LEG Immobilien AG# | | 64,000 | | | 3,850,297 | |
| | Mitsui Fudosan Co Ltd | | 1,033,600 | | | 19,705,368 | |
| | Swire Properties Ltd | | 2,774,400 | | | 5,962,157 | |
| | Tokyu Fudosan Holdings Corp | | 704,400 | | | 3,673,899 | |
| | Tricon Capital Group Inc | | 1,550,878 | | | 13,418,037 | |
| | VGP NV | | 37,500 | | | 3,542,551 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Global Real Estate Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Real Estate Management & Development– (continued) | | | |
| | Vonovia SE | | 485,000 | | | $10,553,818 | |
| | | 114,703,126 | |
Total Common Stocks (cost $692,716,903) | | 610,414,805 | |
Investment Companies– 1.4% | | | |
Money Markets – 1.4% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $8,309,444) | | 8,308,613 | | | 8,309,444 | |
Investments Purchased with Cash Collateral from Securities Lending– 0% | | | |
Investment Companies – 0% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 55,187 | | | 55,187 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $13,797 | | | 13,797 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $68,984) | | 68,984 | |
Total Investments (total cost $701,095,331) – 99.6% | | 618,793,233 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.4% | | 2,748,466 | |
Net Assets – 100% | | $621,541,699 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $381,054,395 | | 61.6 | % |
Japan | | 63,282,958 | | 10.2 | |
Hong Kong | | 32,876,926 | | 5.3 | |
United Kingdom | | 25,850,467 | | 4.2 | |
Singapore | | 20,380,775 | | 3.3 | |
Australia | | 18,365,024 | | 3.0 | |
China | | 17,534,635 | | 2.8 | |
Germany | | 14,404,115 | | 2.3 | |
Canada | | 13,418,037 | | 2.2 | |
Spain | | 10,777,434 | | 1.7 | |
Sweden | | 4,942,971 | | 0.8 | |
France | | 4,429,717 | | 0.7 | |
Philippines | | 4,009,597 | | 0.7 | |
Netherlands | | 3,923,631 | | 0.6 | |
Belgium | | 3,542,551 | | 0.6 | |
| | | | | | |
| | | | | | |
Total | | $618,793,233 | | 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, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - 1.4% |
Money Markets - 1.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 83,824 | $ | 212 | $ | - | $ | 8,309,444 |
Investments Purchased with Cash Collateral from Securities Lending - 0.0% |
Investment Companies - 0.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 9,965∆ | | - | | - | | 55,187 |
Total Affiliated Investments - 1.4% | $ | 93,789 | $ | 212 | $ | - | $ | 8,364,631 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - 1.4% |
Money Markets - 1.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 18,131,688 | | 156,954,156 | | (166,776,612) | | 8,309,444 |
Investments Purchased with Cash Collateral from Securities Lending - 0.0% |
Investment Companies - 0.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 3,032,104 | | 31,950,751 | | (34,927,668) | | 55,187 |
| | | | | | | | | | |
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 | $ | 68,824 | $ | — | $ | (68,824) | $ | — |
| | | | | | | | | |
(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. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
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, 2022 is $8,979,212, which represents 1.4% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
| | |
£ | 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, 2022. 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) | $ | 372,675,967 | $ | 117,980,131 | $ | - |
Real Estate Management & Development | | 13,418,037 | | 101,285,089 | | - |
All Other | | - | | 5,055,581 | | - |
Investment Companies | | - | | 8,309,444 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 68,984 | | - |
Total Assets | $ | 386,094,004 | $ | 232,699,229 | $ | - |
| | | | | | | |
Janus Henderson Global Real Estate Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $692,730,700)(1) | | $ | 610,428,602 | |
| Affiliated investments, at value (cost $8,364,631) | | | 8,364,631 | |
| Cash denominated in foreign currency (cost $132,072) | | | 131,649 | |
| Trustees' deferred compensation | | | 18,644 | |
| Receivables: | | | | |
| | Dividends | | | 3,205,065 | |
| | Fund shares sold | | | 1,871,010 | |
| | Foreign tax reclaims | | | 271,258 | |
| | Investments sold | | | 108,805 | |
| | Dividends from affiliates | | | 7,104 | |
| Other assets | | | 4,866 | |
Total Assets | | | 624,411,634 | |
Liabilities: | | | | |
| Due to custodian | | | 1,949 | |
| Collateral for securities loaned (Note 2) | | | 68,984 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 1,669,366 | |
| | Advisory fees | | | 545,239 | |
| | Dividends | | | 239,796 | |
| | Transfer agent fees and expenses | | | 103,218 | |
| | Professional fees | | | 57,732 | |
| | Trustees' deferred compensation fees | | | 18,644 | |
| | Custodian fees | | | 15,217 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 8,951 | |
| | Trustees' fees and expenses | | | 3,648 | |
| | Affiliated fund administration fees payable | | | 1,524 | |
| | Accrued expenses and other payables | | | 135,667 | |
Total Liabilities | | | 2,869,935 | |
Net Assets | | $ | 621,541,699 | |
| | |
See Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
Janus Henderson Global Real Estate Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 727,102,326 | |
| Total distributable earnings (loss) | | | (105,560,627) | |
Total Net Assets | | $ | 621,541,699 | |
Net Assets - Class A Shares | | $ | 11,566,174 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,098,731 | |
Net Asset Value Per Share(2) | | $ | 10.53 | |
Maximum Offering Price Per Share(3) | | $ | 11.17 | |
Net Assets - Class C Shares | | $ | 4,548,148 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 442,376 | |
Net Asset Value Per Share(2) | | $ | 10.28 | |
Net Assets - Class D Shares | | $ | 44,665,845 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,207,568 | |
Net Asset Value Per Share | | $ | 10.62 | |
Net Assets - Class I Shares | | $ | 383,144,106 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 36,140,482 | |
Net Asset Value Per Share | | $ | 10.60 | |
Net Assets - Class N Shares | | $ | 82,484,452 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 7,777,845 | |
Net Asset Value Per Share | | $ | 10.61 | |
Net Assets - Class S Shares | | $ | 7,237,709 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 690,383 | |
Net Asset Value Per Share | | $ | 10.48 | |
Net Assets - Class T Shares | | $ | 87,895,265 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 8,294,517 | |
Net Asset Value Per Share | | $ | 10.60 | |
| |
(1) Includes $68,824 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, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 24,217,726 | |
| Dividends from affiliates | | 83,824 | |
| Affiliated securities lending income, net | | 9,965 | |
| Unaffiliated securities lending income, net | | 1,716 | |
| Other income | | 10,258 | |
| Foreign tax withheld | | (704,117) | |
Total Investment Income | | 23,619,372 | |
Expenses: | | | |
| Advisory fees | | 7,289,354 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 38,058 | |
| | Class C Shares | | 59,305 | |
| | Class S Shares | | 23,333 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 66,973 | |
| | Class S Shares | | 23,360 | |
| | Class T Shares | | 287,977 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 10,612 | |
| | Class C Shares | | 5,859 | |
| | Class I Shares | | 572,424 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 1,083 | |
| | Class C Shares | | 342 | |
| | Class D Shares | | 15,843 | |
| | Class I Shares | | 25,227 | |
| | Class N Shares | | 4,119 | |
| | Class S Shares | | 304 | |
| | Class T Shares | | 1,588 | |
| Registration fees | | 154,063 | |
| Professional fees | | 65,120 | |
| Shareholder reports expense | | 52,843 | |
| Custodian fees | | 45,619 | |
| Affiliated fund administration fees | | 21,125 | |
| Trustees’ fees and expenses | | 18,659 | |
| Other expenses | | 110,701 | |
Total Expenses | | 8,893,891 | |
Less: Excess Expense Reimbursement and Waivers | | (5,849) | |
Net Expenses | | 8,888,042 | |
Net Investment Income/(Loss) | | 14,731,330 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2022 |
Janus Henderson Global Real Estate Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | (13,010,250) | |
| Investments in affiliates | | 212 | |
Total Net Realized Gain/(Loss) on Investments | | (13,010,038) | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (205,235,857) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (205,235,857) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (203,514,565) | |
| | | | | |
| | |
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, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 14,731,330 | | $ | 18,589,076 | |
| Net realized gain/(loss) on investments | | (13,010,038) | | | 58,759,905 | |
| Change in unrealized net appreciation/depreciation | | (205,235,857) | | | 68,822,681 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (203,514,565) | | | 146,171,662 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (839,084) | | | (218,230) | |
| | Class C Shares | | (330,381) | | | (87,047) | |
| | Class D Shares | | (3,281,953) | | | (873,853) | |
| | Class I Shares | | (30,872,396) | | | (8,514,426) | |
| | Class N Shares | | (6,399,486) | | | (1,821,131) | |
| | Class S Shares | | (485,221) | | | (125,581) | |
| | Class T Shares | | (6,552,609) | | | (1,837,581) | |
Net Decrease from Dividends and Distributions to Shareholders | | (48,761,130) | | | (13,477,849) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 904,085 | | | 3,314,454 | |
| | Class C Shares | | (306,068) | | | (230,118) | |
| | Class D Shares | | 3,842,929 | | | 8,121,071 | |
| | Class I Shares | | (9,479,268) | | | 58,822,137 | |
| | Class N Shares | | (434,386) | | | 8,064,462 | |
| | Class S Shares | | 971,554 | | | 1,261,319 | |
| | Class T Shares | | 414,322 | | | 12,025,332 | |
Net Increase/(Decrease) from Capital Share Transactions | | (4,086,832) | | | 91,378,657 | |
Net Increase/(Decrease) in Net Assets | | (256,362,527) | | | 224,072,470 | |
Net Assets: | | | | | | |
| Beginning of period | | 877,904,226 | | | 653,831,756 | |
| End of period | $ | 621,541,699 | | $ | 877,904,226 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $14.65 | | | $12.18 | | | $13.00 | | | $11.68 | | | $11.28 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.21 | | | 0.32 | | | 0.18 | | | 0.18 | | | 0.18 | |
| | Net realized and unrealized gain/(loss) | | (3.55) | | | 2.38 | | | (0.49) | | | 1.72 | | | 0.68 | |
| Total from Investment Operations | | (3.34) | | | 2.70 | | | (0.31) | | | 1.90 | | | 0.86 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.38) | | | (0.23) | | | (0.37) | | | (0.36) | | | (0.46) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | |
| Total Dividends and Distributions | | (0.78) | | | (0.23) | | | (0.51) | | | (0.58) | | | (0.46) | |
| Net Asset Value, End of Period | | $10.53 | | | $14.65 | | | $12.18 | | | $13.00 | | | $11.68 | |
| Total Return* | | (24.19)% | | | 22.32% | | | (2.53)% | | | 17.12% | | | 7.76% | |
| Net Assets, End of Period (in thousands) | | $11,566 | | | $15,294 | | | $9,857 | | | $9,167 | | | $5,828 | |
| Average Net Assets for the Period (in thousands) | | $15,160 | | | $12,864 | | | $11,509 | | | $7,245 | | | $5,093 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.27% | | | 1.23% | | | 1.25% | | | 1.36% | | | 1.26% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.27% | | | 1.23% | | | 1.25% | | | 1.35% | | | 1.26% | |
| | Ratio of Net Investment Income/(Loss) | | 1.56% | | | 2.25% | | | 1.42% | | | 1.46% | | | 1.60% | |
| Portfolio Turnover Rate | | 68% | | | 77% | | | 69% | | | 61% | | | 78% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $14.34 | | | $11.98 | | | $12.81 | | | $11.53 | | | $11.14 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.10 | | | 0.18 | | | 0.08 | | | 0.09 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | (3.46) | | | 2.37 | | | (0.49) | | | 1.69 | | | 0.67 | |
| Total from Investment Operations | | (3.36) | | | 2.55 | | | (0.41) | | | 1.78 | | | 0.77 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.30) | | | (0.19) | | | (0.28) | | | (0.28) | | | (0.38) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | |
| Total Dividends and Distributions | | (0.70) | | | (0.19) | | | (0.42) | | | (0.50) | | | (0.38) | |
| Net Asset Value, End of Period | | $10.28 | | | $14.34 | | | $11.98 | | | $12.81 | | | $11.53 | |
| Total Return* | | (24.81)% | | | 21.34% | | | (3.33)% | | | 16.19% | | | 7.01% | |
| Net Assets, End of Period (in thousands) | | $4,548 | | | $6,766 | | | $5,908 | | | $8,020 | | | $6,970 | |
| Average Net Assets for the Period (in thousands) | | $6,321 | | | $6,420 | | | $7,522 | | | $7,211 | | | $6,717 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.00% | | | 2.03% | | | 2.03% | | | 2.09% | | | 2.00% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.00% | | | 2.03% | | | 2.03% | | | 2.09% | | | 2.00% | |
| | Ratio of Net Investment Income/(Loss) | | 0.75% | | | 1.31% | | | 0.65% | | | 0.73% | | | 0.84% | |
| Portfolio Turnover Rate | | 68% | | | 77% | | | 69% | | | 61% | | | 78% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $14.77 | | | $12.26 | | | $13.09 | | | $11.76 | | | $11.35 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.24 | | | 0.34 | | | 0.20 | | | 0.20 | | | 0.20 | |
| | Net realized and unrealized gain/(loss) | | (3.58) | | | 2.41 | | | (0.50) | | | 1.73 | | | 0.69 | |
| Total from Investment Operations | | (3.34) | | | 2.75 | | | (0.30) | | | 1.93 | | | 0.89 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.41) | | | (0.24) | | | (0.39) | | | (0.38) | | | (0.48) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | |
| Total Dividends and Distributions | | (0.81) | | | (0.24) | | | (0.53) | | | (0.60) | | | (0.48) | |
| Net Asset Value, End of Period | | $10.62 | | | $14.77 | | | $12.26 | | | $13.09 | | | $11.76 | |
| Total Return* | | (24.05)% | | | 22.59% | | | (2.39)% | | | 17.31% | | | 7.98% | |
| Net Assets, End of Period (in thousands) | | $44,666 | | | $58,872 | | | $42,584 | | | $46,239 | | | $36,579 | |
| Average Net Assets for the Period (in thousands) | | $58,433 | | | $49,730 | | | $47,764 | | | $39,590 | | | $35,963 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.08% | | | 1.06% | | | 1.08% | | | 1.16% | | | 1.08% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.08% | | | 1.06% | | | 1.08% | | | 1.16% | | | 1.08% | |
| | Ratio of Net Investment Income/(Loss) | | 1.74% | | | 2.41% | | | 1.62% | | | 1.65% | | | 1.75% | |
| Portfolio Turnover Rate | | 68% | | | 77% | | | 69% | | | 61% | | | 78% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $14.75 | | | $12.25 | | | $13.08 | | | $11.75 | | | $11.33 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.24 | | | 0.34 | | | 0.22 | | | 0.20 | | | 0.22 | |
| | Net realized and unrealized gain/(loss) | | (3.58) | | | 2.41 | | | (0.51) | | | 1.74 | | | 0.69 | |
| Total from Investment Operations | | (3.34) | | | 2.75 | | | (0.29) | | | 1.94 | | | 0.91 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.41) | | | (0.25) | | | (0.40) | | | (0.39) | | | (0.49) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | |
| Total Dividends and Distributions | | (0.81) | | | (0.25) | | | (0.54) | | | (0.61) | | | (0.49) | |
| Net Asset Value, End of Period | | $10.60 | | | $14.75 | | | $12.25 | | | $13.08 | | | $11.75 | |
| Total Return* | | (24.04)% | | | 22.56% | | | (2.31)% | | | 17.41% | | | 8.21% | |
| Net Assets, End of Period (in thousands) | | $383,144 | | | $551,129 | | | $408,928 | | | $211,998 | | | $147,863 | |
| Average Net Assets for the Period (in thousands) | | $531,316 | | | $484,077 | | | $291,765 | | | $186,262 | | | $120,270 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.03% | | | 1.00% | | | 1.02% | | | 1.09% | | | 0.96% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.03% | | | 1.00% | | | 1.02% | | | 1.09% | | | 0.96% | |
| | Ratio of Net Investment Income/(Loss) | | 1.77% | | | 2.44% | | | 1.83% | | | 1.68% | | | 1.91% | |
| Portfolio Turnover Rate | | 68% | | | 77% | | | 69% | | | 61% | | | 78% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018(1) | |
| Net Asset Value, Beginning of Period | | $14.76 | | | $12.24 | | | $13.07 | | | $11.75 | | | $11.81 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.26 | | | 0.35 | | | 0.23 | | | 0.27 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | (3.58) | | | 2.42 | | | (0.51) | | | 1.67 | | | (0.10) | |
| Total from Investment Operations | | (3.32) | | | 2.77 | | | (0.28) | | | 1.94 | | | 0.07 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.43) | | | (0.25) | | | (0.41) | | | (0.40) | | | (0.13) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | |
| Total Dividends and Distributions | | (0.83) | | | (0.25) | | | (0.55) | | | (0.62) | | | (0.13) | |
| Net Asset Value, End of Period | | $10.61 | | | $14.76 | | | $12.24 | | | $13.07 | | | $11.75 | |
| Total Return* | | (23.94)% | | | 22.80% | | | (2.22)% | | | 17.43% | | | 0.59% | |
| Net Assets, End of Period (in thousands) | | $82,484 | | | $114,928 | | | $88,550 | | | $71,472 | | | $35,316 | |
| Average Net Assets for the Period (in thousands) | | $106,338 | | | $104,011 | | | $80,627 | | | $34,671 | | | $28,132 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.90% | | | 0.92% | | | 0.99% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.92% | | | 0.90% | | | 0.92% | | | 0.99% | | | 0.93% | |
| | Ratio of Net Investment Income/(Loss) | | 1.88% | | | 2.49% | | | 1.84% | | | 2.28% | | | 2.14% | |
| Portfolio Turnover Rate | | 68% | | | 77% | | | 69% | | | 61% | | | 78% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | 21 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $14.59 | | | $12.15 | | | $12.97 | | | $11.66 | | | $11.26 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.19 | | | 0.29 | | | 0.16 | | | 0.15 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | (3.54) | | | 2.37 | | | (0.49) | | | 1.72 | | | 0.67 | |
| Total from Investment Operations | | (3.35) | | | 2.66 | | | (0.33) | | | 1.87 | | | 0.83 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.36) | | | (0.22) | | | (0.35) | | | (0.34) | | | (0.43) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | |
| Total Dividends and Distributions | | (0.76) | | | (0.22) | | | (0.49) | | | (0.56) | | | (0.43) | |
| Net Asset Value, End of Period | | $10.48 | | | $14.59 | | | $12.15 | | | $12.97 | | | $11.66 | |
| Total Return* | | (24.37)% | | | 22.03% | | | (2.69)% | | | 16.86% | | | 7.56% | |
| Net Assets, End of Period (in thousands) | | $7,238 | | | $9,178 | | | $6,692 | | | $5,177 | | | $2,464 | |
| Average Net Assets for the Period (in thousands) | | $9,305 | | | $7,647 | | | $6,265 | | | $3,433 | | | $2,615 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.46% | | | 1.43% | | | 1.46% | | | 1.57% | | | 1.45% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.45% | | | 1.43% | | | 1.46% | | | 1.53% | | | 1.45% | |
| | Ratio of Net Investment Income/(Loss) | | 1.38% | | | 2.06% | | | 1.30% | | | 1.28% | | | 1.35% | |
| Portfolio Turnover Rate | | 68% | | | 77% | | | 69% | | | 61% | | | 78% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $14.75 | | | $12.25 | | | $13.08 | | | $11.75 | | | $11.34 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.23 | | | 0.32 | | | 0.19 | | | 0.19 | | | 0.19 | |
| | Net realized and unrealized gain/(loss) | | (3.59) | | | 2.42 | | | (0.50) | | | 1.74 | | | 0.69 | |
| Total from Investment Operations | | (3.36) | | | 2.74 | | | (0.31) | | | 1.93 | | | 0.88 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.39) | | | (0.24) | | | (0.38) | | | (0.38) | | | (0.47) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | |
| Total Dividends and Distributions | | (0.79) | | | (0.24) | | | (0.52) | | | (0.60) | | | (0.47) | |
| Net Asset Value, End of Period | | $10.60 | | | $14.75 | | | $12.25 | | | $13.08 | | | $11.75 | |
| Total Return* | | (24.15)% | | | 22.49% | | | (2.47)% | | | 17.27% | | | 7.90% | |
| Net Assets, End of Period (in thousands) | | $87,895 | | | $121,737 | | | $91,313 | | | $80,573 | | | $43,490 | |
| Average Net Assets for the Period (in thousands) | | $114,716 | | | $107,523 | | | $95,019 | | | $54,353 | | | $51,128 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.17% | | | 1.14% | | | 1.16% | | | 1.23% | | | 1.14% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.14% | | | 1.16% | | | 1.23% | | | 1.14% | |
| | Ratio of Net Investment Income/(Loss) | | 1.65% | | | 2.30% | | | 1.57% | | | 1.59% | | | 1.64% | |
| Portfolio Turnover Rate | | 68% | | | 77% | | | 69% | | | 61% | | | 78% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
“Distributor”) 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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.
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, 2022 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
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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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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
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other operational systems upon which the Fund’s service providers, including the Adviser 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser makes efforts to balance the benefits and risks from granting such loans. All loans will be
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Notes to Financial Statements
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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser 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 the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $68,824. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $68,984, resulting in the net amount due to the counterparty of $160.
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 Offsetting Assets and Liabilities table located in the Schedule of Investments 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.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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 the Adviser 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-
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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 0.75%, 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 the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’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, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.86%.
The Adviser 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 the Adviser. In this capacity, such employees of HGIL are subject to the oversight and supervision of the Adviser and may provide portfolio management, research, and related services to the Fund on behalf of the Adviser.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and
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Notes to Financial Statements
certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
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Notes to Financial Statements
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $7,040.
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, 2022, redeeming shareholders of Class A Shares paid CDSCs of $366 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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $521.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
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
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The Fund has elected to defer post-October losses as noted in the table below. These losses will be deferred for tax purposes and recognized during the next fiscal year.
| | | | | | | | |
| | | 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) | |
$ 1,987,538 | $ - | $ - | $ - | $(16,179,128) | $ (86,180) | $(91,282,857) | |
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, 2022 are noted below. The primary difference 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) |
$ 710,076,090 | $22,933,873 | $(114,216,730) | $ (91,282,857) |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 24,663,167 | $ 24,097,963 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | $ - | |
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 |
$ - | $ 1,057,571 | $ (1,057,571) |
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 222,130 | $ 3,085,637 | | 416,186 | $ 5,829,137 |
Reinvested dividends and distributions | 49,083 | 705,517 | | 13,023 | 180,706 |
Shares repurchased | (216,286) | (2,887,069) | | (194,664) | (2,695,389) |
Net Increase/(Decrease) | 54,927 | $ 904,085 | | 234,545 | $ 3,314,454 |
Class C Shares: | | | | | |
Shares sold | 59,826 | $ 815,647 | | 204,019 | $ 2,734,463 |
Reinvested dividends and distributions | 20,592 | 294,979 | | 5,850 | 79,612 |
Shares repurchased | (109,948) | (1,416,694) | | (231,177) | (3,044,193) |
Net Increase/(Decrease) | (29,530) | $ (306,068) | | (21,308) | $ (230,118) |
Class D Shares: | | | | | |
Shares sold | 870,256 | $ 12,510,701 | | 1,214,758 | $ 17,785,841 |
Reinvested dividends and distributions | 222,584 | 3,212,973 | | 61,609 | 859,013 |
Shares repurchased | (870,874) | (11,880,745) | | (762,784) | (10,523,783) |
Net Increase/(Decrease) | 221,966 | $ 3,842,929 | | 513,583 | $ 8,121,071 |
Class I Shares: | | | | | |
Shares sold | 10,806,963 | $149,882,756 | | 13,964,809 | $195,161,807 |
Reinvested dividends and distributions | 1,919,517 | 27,671,302 | | 547,064 | 7,610,971 |
Shares repurchased | (13,943,994) | (187,033,326) | | (10,548,274) | (143,950,641) |
Net Increase/(Decrease) | (1,217,514) | $ (9,479,268) | | 3,963,599 | $ 58,822,137 |
Class N Shares: | | | | | |
Shares sold | 1,590,545 | $ 21,781,419 | | 2,375,838 | $ 32,887,203 |
Reinvested dividends and distributions | 294,697 | 4,241,519 | | 76,598 | 1,077,336 |
Shares repurchased | (1,894,627) | (26,457,324) | | (1,897,809) | (25,900,077) |
Net Increase/(Decrease) | (9,385) | $ (434,386) | | 554,627 | $ 8,064,462 |
Class S Shares: | | | | | |
Shares sold | 198,787 | $ 2,799,261 | | 257,001 | $ 3,663,716 |
Reinvested dividends and distributions | 33,774 | 485,221 | | 9,077 | 125,581 |
Shares repurchased | (171,061) | (2,312,928) | | (188,196) | (2,527,978) |
Net Increase/(Decrease) | 61,500 | $ 971,554 | | 77,882 | $ 1,261,319 |
Class T Shares: | | | | | |
Shares sold | 1,502,556 | $ 20,495,414 | | 3,327,595 | $ 47,129,030 |
Reinvested dividends and distributions | 448,196 | 6,474,103 | | 130,475 | 1,816,882 |
Shares repurchased | (1,912,303) | (26,555,195) | | (2,656,538) | (36,920,580) |
Net Increase/(Decrease) | 38,449 | $ 414,322 | | 801,532 | $ 12,025,332 |
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$ 554,454,144 | $ 579,778,040 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, 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, 2022, 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, 2022 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, 2022 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 28, 2022
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
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Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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Capital Gain Distributions | $24,097,963 |
Dividends Received Deduction Percentage | 15% |
Qualified Dividend Income Percentage | 56% |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
Janus Henderson Global Real Estate 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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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)
| | | | | | |
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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
Janus Henderson Global Real Estate 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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
Janus Henderson Global Real Estate 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 F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
Janus Henderson Global Real Estate 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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
Janus Henderson Global Real Estate 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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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)
| | | | |
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. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
* 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)
| | | | |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US 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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93044 11-22 |
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| | | |
| | | ANNUAL REPORT September 30, 2022 |
| | |
| | Janus Henderson Global Research Fund |
| | |
| | Janus Investment Fund |
| |
| | | 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 By investing in the best ideas from each global research sector team, this global large-cap growth fund seeks long-term growth of capital. Our analysts scour the globe to identify industry-leading companies with brand power, enduring business models, and strong competitive positioning. | | | | | Team-Based Approach Led by Matthew Peron, Director of Centralized Equity Research |
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PERFORMANCE
The Janus Henderson Global Research Fund Class I Shares returned -23.33% for the 12-month period ended September 30, 2022, while its primary benchmark, the MSCI World IndexSM, returned -19.63%, and its secondary benchmark, the MSCI All Country World IndexSM, returned -20.66%.
INVESTMENT ENVIRONMENT
Global equity markets posted negative returns for the 12-month period, falling amid soaring inflation, monetary and fiscal tightening, and concerns of an economic recession. Although stocks gained early in the period, market volatility increased in 2022 as persistent supply chain disruptions, Russia’s invasion of Ukraine, and surging commodities prices contributed to an increasingly challenging backdrop for equities. As prospects for economic growth dimmed, many investors turned to defensive stocks, while valuation multiples for faster-growing companies compressed. In an effort to curb inflation, the U.S. Federal Reserve (Fed) hiked interest rates five times between March and September and the European Central Bank raised rates twice, its first hikes in 11 years. Other central banks joined the fight against inflation as prices continued to rise. In Europe, a looming energy crisis added to negative sentiment.
PERFORMANCE DISCUSSION
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. Despite this approach, the Fund underperformed both benchmarks for the reporting period.
On an individual stock basis, top relative detractors included semiconductor company ASML Holding. ASML’s stock declined along with the broader semiconductor industry as recession fears sparked a rotation out of faster-growing companies into more defensive stocks. We believe this is a high-quality business with durable growth drivers, a strong management team, robust margins, and free-cash-flow generation. Our long-term conviction in the company is high, as the company continued to see robust demand for its products during the period.
Concerns about a downturn in the global economy and perceptions that many gaming stocks had become overvalued caused the sector to fall out of favor during the quarter. Despite continued strong fundamentals, UK-based Entain declined with the broad sector. Worries over potentially tighter gambling regulations in the UK also weighed on the stock. We think this could be a clearing event for the sector but are confident that Entain will overcome these headwinds. During the period, the company continued to demonstrate an ability to consistently drive strong cash flows and gain market share.
Industrials holding Alstom also delivered disappointing results. Despite seeing an improvement in sales and healthy order intake levels, management recently cautioned that component shortages and inflation could weigh on profitability in its 2023 fiscal year. We maintained our position in Alstom, which is a leading maker of rail equipment in Europe, as we believe its profitability and cash flow will inflect positively over the next several years as its works through its lower-margin Bombardier legacy contracts. We’re also optimistic that orders can remain robust as a result of the company harvesting the higher-margin contracts in its backlog.
Conversely, Fund performance was buoyed by select energy holdings. ConocoPhillips and Marathon Petroleum both benefited from persistently high oil prices. Adding to share strength for oil producer ConocoPhillips was the hope that its diversified asset base could make it more resilient against inflationary pressures in the supply chain.
Janus Henderson Global Research Fund (unaudited)
Other positives included better-than-expected earnings and revenue, as well as a planned $5 billion increase in expected 2022 returns of capital to shareholders, bringing the projected total cash return to $15 billion. Oil refiner Marathon Petroleum also exceeded profit and revenue expectations, benefiting from tight refining capacity and strong demand for oil products. Similar to ConocoPhillips, Marathon Petroleum continued to demonstrate a strong commitment to enhancing shareholder value through its share repurchase program. In August, the company authorized another $5 billion buyback. Its total planned buyback for 2022 is $15 billion.
U.S.-focused beverage and alcohol company Constellation Brands also contributed materially to the Fund’s relative performance. The company saw an improvement in beer sales and operating profit following a COVID-related slowdown. Management’s announcement of a planned share repurchase of up to $500 million further boosted sentiment for the stock.
OUTLOOK
Despite a synchronized shift in monetary and fiscal tightening, inflation remains stubbornly high. As a result, we have adopted a more cautious outlook for the global economy. Meanwhile, on a relative basis, the U.S. economy has remained somewhat resilient, with a strong labor market giving investors hope that a downturn in the U.S. may not be as severe as in other parts of the world and that the U.S. may therefore bolster the global economy. The loosening of China’s zero-tolerance COVID-19 policy could also have positive implications for the global economy.
Turning to the Fund, our strategy is to invest in quality businesses able to demonstrate future earnings growth by providing innovative products and services, while also focusing on the price we pay for that growth. Our investment universe has expanded with the market sell-off as we continue to find good companies supporting our investment themes in e-commerce, cloud computing, digital payments, and healthcare innovation. Nonetheless, macroeconomic headwinds have prompted us to take additional measures to manage the Fund’s risk. To that end, we are being vigilant in our evaluation of stock-specific risk, including stress-testing each company’s free cash flow to assess any potential impact from the current economic environment. We’ve also shortened the Fund’s equity duration with the goal of further reducing its sensitivity to rising interest rates. We believe these measures, in combination with our focus on companies participating in secular growth trends, will enable us to pursue our goal of long-term growth of capital.
Thank you for your investment in Janus Henderson Global Research Fund.
Janus Henderson Global Research Fund (unaudited)
Fund At A Glance
September 30, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Marathon Petroleum Corp | 1.01% | | 0.53% | | ASML Holding NV | 2.53% | | -0.54% |
| Constellation Brands Inc | 2.12% | | 0.52% | | Entain PLC | 1.01% | | -0.52% |
| ConocoPhillips | 1.08% | | 0.45% | | Alstom SA | 0.93% | | -0.35% |
| Canadian Natural Resources Ltd | 1.25% | | 0.43% | | Sea Ltd (ADR) | 0.39% | | -0.34% |
| Teck Resources Ltd | 1.01% | | 0.39% | | MercadoLibre Inc | 0.68% | | -0.34% |
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| 3 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | 0.99% | | 7.22% | 7.20% |
| Healthcare | | 0.18% | | 13.40% | 13.06% |
| Other** | | 0.05% | | 0.18% | 0.04% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Industrials | | -1.26% | | 16.88% | 17.02% |
| Communications | | -1.08% | | 9.13% | 9.43% |
| Consumer | | -0.99% | | 15.81% | 15.78% |
| Technology | | -0.75% | | 19.11% | 19.23% |
| Financials | | -0.51% | | 18.27% | 18.23% |
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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, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 4.9% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 4.6% |
Alphabet Inc - Class C | |
Interactive Media & Services | 3.2% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 3.0% |
Constellation Brands Inc | |
Beverages | 2.4% |
| | 18.1% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.1% | |
Preferred Stocks | | 0.7% | |
Investment Companies | | 0.3% | |
Private Placements | | 0.2% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.1% | |
Other | | (0.4)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
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, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -23.60% | 5.02% | 7.80% | 7.74% | | | 1.17% |
Class A Shares at MOP | | -27.99% | 3.78% | 7.16% | 7.38% | | | |
Class C Shares at NAV | | -24.09% | 4.34% | 7.05% | 6.96% | | | 1.86% |
Class C Shares at CDSC | | -24.77% | 4.34% | 7.05% | 6.96% | | | |
Class D Shares | | -23.37% | 5.35% | 8.08% | 7.93% | | | 0.86% |
Class I Shares | | -23.33% | 5.43% | 8.17% | 8.00% | | | 0.79% |
Class N Shares | | -23.28% | 5.49% | 8.12% | 7.94% | | | 0.73% |
Class R Shares | | -23.87% | 4.67% | 7.43% | 7.36% | | | 1.50% |
Class S Shares | | -23.66% | 4.97% | 7.71% | 7.58% | | | 1.22% |
Class T Shares | | -23.45% | 5.25% | 7.99% | 7.87% | | | 0.97% |
MSCI World Index | | -19.63% | 5.30% | 8.11% | 6.13% | | | |
MSCI All Country World Index | | -20.66% | 4.44% | 7.28% | 5.89% | | | |
Morningstar Quartile - Class T Shares | | 1st | 2nd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | 63/370 | 140/299 | 133/245 | 38/155 | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Janus Henderson Global Research Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, 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.
© 2022 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $780.50 | $4.33 | | $1,000.00 | $1,020.21 | $4.91 | 0.97% |
Class C Shares | $1,000.00 | $778.00 | $7.18 | | $1,000.00 | $1,017.00 | $8.14 | 1.61% |
Class D Shares | $1,000.00 | $781.60 | $3.08 | | $1,000.00 | $1,021.61 | $3.50 | 0.69% |
Class I Shares | $1,000.00 | $781.90 | $2.72 | | $1,000.00 | $1,022.01 | $3.09 | 0.61% |
Class N Shares | $1,000.00 | $782.10 | $2.46 | | $1,000.00 | $1,022.31 | $2.79 | 0.55% |
Class R Shares | $1,000.00 | $779.00 | $5.93 | | $1,000.00 | $1,018.40 | $6.73 | 1.33% |
Class S Shares | $1,000.00 | $780.20 | $4.73 | | $1,000.00 | $1,019.75 | $5.37 | 1.06% |
Class T Shares | $1,000.00 | $781.20 | $3.48 | | $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 Global Research Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 99.1% | | | |
Aerospace & Defense – 1.8% | | | |
| | Airbus SE | | 311,212 | | | $26,882,256 | |
| | General Dynamics Corp | | 84,305 | | | 17,886,992 | |
| | | 44,769,248 | |
Air Freight & Logistics – 1.8% | | | |
| | United Parcel Service Inc | | 280,786 | | | 45,358,170 | |
Airlines – 0.4% | | | |
| | Ryanair Holdings PLC (ADR)* | | 152,810 | | | 8,927,160 | |
Automobiles – 0.9% | | | |
| | Tesla Inc* | | 86,718 | | | 23,001,950 | |
Banks – 4.9% | | | |
| | Bank of America Corp | | 859,577 | | | 25,959,225 | |
| | BNP Paribas SA | | 405,524 | | | 17,117,565 | |
| | HDFC Bank Ltd | | 512,908 | | | 8,888,181 | |
| | JPMorgan Chase & Co | | 478,981 | | | 50,053,514 | |
| | Toronto-Dominion Bank/The | | 363,884 | | | 22,319,905 | |
| | | 124,338,390 | |
Beverages – 4.3% | | | |
| | Constellation Brands Inc | | 262,991 | | | 60,403,773 | |
| | Pernod Ricard SA | | 265,247 | | | 48,475,325 | |
| | | 108,879,098 | |
Biotechnology – 3.0% | | | |
| | AbbVie Inc | | 255,290 | | | 34,262,471 | |
| | Ascendis Pharma A/S (ADR)*,# | | 61,740 | | | 6,375,272 | |
| | Sarepta Therapeutics Inc* | | 103,442 | | | 11,434,479 | |
| | Vertex Pharmaceuticals Inc* | | 79,386 | | | 22,985,422 | |
| | | 75,057,644 | |
Capital Markets – 4.3% | | | |
| | Blackstone Group Inc | | 214,754 | | | 17,974,910 | |
| | Charles Schwab Corp | | 370,519 | | | 26,629,201 | |
| | London Stock Exchange Group PLC | | 104,515 | | | 8,811,063 | |
| | LPL Financial Holdings Inc | | 87,505 | | | 19,118,092 | |
| | Morgan Stanley | | 330,909 | | | 26,145,120 | |
| | State Street Corp | | 158,761 | | | 9,654,256 | |
| | | 108,332,642 | |
Chemicals – 1.7% | | | |
| | Linde PLC | | 154,409 | | | 41,627,122 | |
Consumer Finance – 0.9% | | | |
| | Capital One Financial Corp | | 165,268 | | | 15,232,752 | |
| | OneMain Holdings Inc | | 235,056 | | | 6,938,853 | |
| | | 22,171,605 | |
Diversified Financial Services – 0.6% | | | |
| | Apollo Global Management Inc | | 330,737 | | | 15,379,271 | |
Electric Utilities – 0.3% | | | |
| | NextEra Energy Inc | | 79,014 | | | 6,195,488 | |
Electronic Equipment, Instruments & Components – 1.1% | | | |
| | Hexagon AB - Class B | | 3,061,509 | | | 28,398,793 | |
Entertainment – 2.0% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 519,969 | | | 30,418,186 | |
| | Nintendo Co Ltd | | 515,000 | | | 20,856,606 | |
| | | 51,274,792 | |
Equity Real Estate Investment Trusts (REITs) – 1.1% | | | |
| | American Tower Corp | | 128,865 | | | 27,667,315 | |
Health Care Equipment & Supplies – 2.0% | | | |
| | Abbott Laboratories | | 97,996 | | | 9,482,093 | |
| | Boston Scientific Corp* | | 372,682 | | | 14,433,974 | |
| | Danaher Corp | | 49,873 | | | 12,881,697 | |
| | Dentsply Sirona Inc | | 197,822 | | | 5,608,254 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Global Research Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Health Care Equipment & Supplies– (continued) | | | |
| | Edwards Lifesciences Corp* | | 105,286 | | | $8,699,782 | |
| | | 51,105,800 | |
Health Care Providers & Services – 1.9% | | | |
| | Centene Corp* | | 228,070 | | | 17,746,127 | |
| | Humana Inc | | 42,727 | | | 20,730,713 | |
| | UnitedHealth Group Inc | | 19,534 | | | 9,865,451 | |
| | | 48,342,291 | |
Hotels, Restaurants & Leisure – 2.2% | | | |
| | Entain PLC | | 1,300,770 | | | 15,617,009 | |
| | McDonald's Corp | | 175,277 | | | 40,443,415 | |
| | | 56,060,424 | |
Independent Power and Renewable Electricity Producers – 1.6% | | | |
| | NRG Energy Inc | | 607,046 | | | 23,231,650 | |
| | Vistra Energy Corp | | 818,039 | | | 17,178,819 | |
| | | 40,410,469 | |
Information Technology Services – 4.4% | | | |
| | Fidelity National Information Services Inc | | 188,265 | | | 14,227,186 | |
| | Global Payments Inc | | 131,704 | | | 14,230,617 | |
| | Mastercard Inc | | 148,240 | | | 42,150,562 | |
| | Visa Inc | | 224,515 | | | 39,885,090 | |
| | | 110,493,455 | |
Insurance – 2.9% | | | |
| | AIA Group Ltd | | 1,878,100 | | | 15,593,529 | |
| | Aon PLC - Class A | | 63,362 | | | 16,972,779 | |
| | Beazley PLC | | 1,057,327 | | | 6,557,760 | |
| | Intact Financial Corp | | 61,336 | | | 8,681,273 | |
| | Progressive Corp/The | | 220,416 | | | 25,614,543 | |
| | | 73,419,884 | |
Interactive Media & Services – 3.5% | | | |
| | Alphabet Inc - Class C* | | 824,575 | | | 79,282,886 | |
| | Tencent Holdings Ltd | | 242,200 | | | 8,179,839 | |
| | | 87,462,725 | |
Internet & Direct Marketing Retail – 5.0% | | | |
| | Amazon.com Inc* | | 678,510 | | | 76,671,630 | |
| | Booking Holdings Inc* | | 13,710 | | | 22,528,409 | |
| | JD.Com Inc - Class A | | 742,478 | | | 18,749,137 | |
| | MercadoLibre Inc* | | 9,869 | | | 8,169,361 | |
| | | 126,118,537 | |
Life Sciences Tools & Services – 0.8% | | | |
| | Thermo Fisher Scientific Inc | | 41,701 | | | 21,150,330 | |
Machinery – 4.0% | | | |
| | Alstom SA | | 1,030,169 | | | 16,562,833 | |
| | Atlas Copco AB - Class A | | 2,963,249 | | | 27,454,476 | |
| | Deere & Co | | 93,177 | | | 31,110,869 | |
| | Parker-Hannifin Corp | | 103,710 | | | 25,129,970 | |
| | | 100,258,148 | |
Metals & Mining – 2.3% | | | |
| | Freeport-McMoRan Inc | | 583,397 | | | 15,944,240 | |
| | Rio Tinto PLC | | 289,278 | | | 15,664,747 | |
| | Teck Resources Ltd | | 862,024 | | | 26,218,961 | |
| | | 57,827,948 | |
Multi-Utilities – 0.3% | | | |
| | RWE AG | | 177,358 | | | 6,524,861 | |
Oil, Gas & Consumable Fuels – 6.4% | | | |
| | Canadian Natural Resources Ltd | | 690,249 | | | 32,133,660 | |
| | Cheniere Energy Inc | | 73,037 | | | 12,117,569 | |
| | ConocoPhillips | | 336,133 | | | 34,399,851 | |
| | EOG Resources Inc | | 177,679 | | | 19,852,075 | |
| | |
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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Oil, Gas & Consumable Fuels– (continued) | | | |
| | Marathon Petroleum Corp | | 359,024 | | | $35,661,854 | |
| | Suncor Energy Inc# | | 762,401 | | | 21,472,197 | |
| | Total SE | | 102,081 | | | 4,804,219 | |
| | | 160,441,425 | |
Personal Products – 1.5% | | | |
| | Unilever PLC | | 862,573 | | | 38,036,862 | |
Pharmaceuticals – 6.3% | | | |
| | AstraZeneca PLC | | 329,555 | | | 36,232,930 | |
| | Catalent Inc* | | 123,367 | | | 8,926,836 | |
| | Eli Lilly & Co | | 36,623 | | | 11,842,047 | |
| | Horizon Therapeutics PLC* | | 141,824 | | | 8,777,487 | |
| | Merck & Co Inc | | 304,455 | | | 26,219,665 | |
| | Novartis AG | | 303,227 | | | 23,120,665 | |
| | Organon & Co | | 244,701 | | | 5,726,003 | |
| | Roche Holding AG | | 71,829 | | | 23,425,243 | |
| | Sanofi | | 187,842 | | | 14,333,991 | |
| | | 158,604,867 | |
Road & Rail – 0.7% | | | |
| | Uber Technologies Inc* | | 629,839 | | | 16,690,734 | |
Semiconductor & Semiconductor Equipment – 5.6% | | | |
| | Advanced Micro Devices Inc* | | 203,414 | | | 12,888,311 | |
| | ASML Holding NV | | 126,279 | | | 52,371,526 | |
| | Lam Research Corp | | 28,434 | | | 10,406,844 | |
| | Marvell Technology Inc | | 291,301 | | | 12,499,726 | |
| | NVIDIA Corp | | 182,561 | | | 22,161,080 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 1,721,000 | | | 22,622,740 | |
| | Texas Instruments Inc | | 46,812 | | | 7,245,561 | |
| | | 140,195,788 | |
Software – 7.5% | | | |
| | Atlassian Corp PLC - Class A* | | 28,215 | | | 5,941,797 | |
| | Autodesk Inc* | | 47,428 | | | 8,859,550 | |
| | Constellation Software Inc/Canada | | 2,960 | | | 4,119,162 | |
| | Microsoft Corp | | 532,222 | | | 123,954,504 | |
| | ServiceNow Inc* | | 16,655 | | | 6,289,095 | |
| | Synopsys Inc* | | 70,661 | | | 21,587,642 | |
| | Workday Inc - Class A* | | 116,352 | | | 17,711,101 | |
| | | 188,462,851 | |
Specialty Retail – 1.1% | | | |
| | O'Reilly Automotive Inc* | | 39,722 | | | 27,938,469 | |
Technology Hardware, Storage & Peripherals – 4.6% | | | |
| | Apple Inc | | 832,305 | | | 115,024,551 | |
Textiles, Apparel & Luxury Goods – 1.7% | | | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 21,772 | | | 12,796,413 | |
| | Moncler SpA | | 199,869 | | | 8,205,333 | |
| | NIKE Inc - Class B | | 251,581 | | | 20,911,413 | |
| | | 41,913,159 | |
Trading Companies & Distributors – 2.1% | | | |
| | Ferguson PLC | | 516,823 | | | 53,803,335 | |
Wireless Telecommunication Services – 1.6% | | | |
| | T-Mobile US Inc* | | 302,807 | | | 40,627,615 | |
Total Common Stocks (cost $2,069,792,837) | | 2,492,293,216 | |
Preferred Stocks– 0.7% | | | |
Automobiles – 0.7% | | | |
| | Dr Ing hc F Porsche AG((cost $18,565,450) | | 231,048 | | | 18,678,367 | |
Private Placements– 0.2% | | | |
Health Care Providers & Services – 0.2% | | | |
| | API Holdings Private Ltd*,¢,§((cost $9,401,252) | | 12,941,830 | | | 4,827,441 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Global Research Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Investment Companies– 0.3% | | | |
Money Markets – 0.3% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $8,553,298) | | 8,552,442 | | | $8,553,298 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.1% | | | |
Investment Companies – 0.1% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 977,540 | | | 977,540 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $244,385 | | | 244,385 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $1,221,925) | | 1,221,925 | |
Total Investments (total cost $2,107,534,762) – 100.4% | | 2,525,574,247 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.4)% | | (10,939,649) | |
Net Assets – 100% | | $2,514,634,598 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $1,789,798,667 | | 70.9 | % |
France | | 140,972,602 | | 5.6 | |
United Kingdom | | 124,510,631 | | 4.9 | |
Canada | | 114,945,158 | | 4.6 | |
Netherlands | | 90,408,388 | | 3.6 | |
Sweden | | 55,853,269 | | 2.2 | |
Switzerland | | 46,545,908 | | 1.8 | |
China | | 26,928,976 | | 1.1 | |
Germany | | 25,203,228 | | 1.0 | |
Taiwan | | 22,622,740 | | 0.9 | |
Japan | | 20,856,606 | | 0.8 | |
Hong Kong | | 15,593,529 | | 0.6 | |
India | | 13,715,622 | | 0.5 | |
Ireland | | 8,927,160 | | 0.4 | |
Italy | | 8,205,333 | | 0.3 | |
Argentina | | 8,169,361 | | 0.3 | |
Denmark | | 6,375,272 | | 0.3 | |
Australia | | 5,941,797 | | 0.2 | |
| | | | | | |
| | | | | | |
Total | | $2,525,574,247 | | 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, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 22,910 | $ | 174 | $ | - | $ | 8,553,298 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 40,633∆ | | - | | - | | 977,540 |
Total Affiliated Investments - 0.4% | $ | 63,543 | $ | 174 | $ | - | $ | 9,530,838 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | - | | 219,656,802 | | (211,103,678) | | 8,553,298 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 8,814,292 | | 243,508,874 | | (251,345,626) | | 977,540 |
| | | | | | | | | | |
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 | $ | 1,161,284 | $ | — | $ | (1,161,284) | $ | — |
| | | | | | | | | |
(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. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
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 |
PLC | Public Limited Company |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2022 is $4,827,441, 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. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
API Holdings Private Ltd | 9/27/21 | $ | 9,401,252 | $ | 4,827,441 | | 0.2 | % |
| | | | | | | | | |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2022. 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, 2022. 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 | $ | 17,886,992 | $ | 26,882,256 | $ | - |
Banks | | 98,332,644 | | 26,005,746 | | - |
Beverages | | 60,403,773 | | 48,475,325 | | - |
Capital Markets | | 99,521,579 | | 8,811,063 | | - |
Electronic Equipment, Instruments & Components | | - | | 28,398,793 | | - |
Entertainment | | 30,418,186 | | 20,856,606 | | - |
Hotels, Restaurants & Leisure | | 40,443,415 | | 15,617,009 | | - |
Insurance | | 51,268,595 | | 22,151,289 | | - |
Interactive Media & Services | | 79,282,886 | | 8,179,839 | | - |
Internet & Direct Marketing Retail | | 107,369,400 | | 18,749,137 | | - |
Machinery | | 56,240,839 | | 44,017,309 | | - |
Metals & Mining | | 42,163,201 | | 15,664,747 | | - |
Multi-Utilities | | - | | 6,524,861 | | - |
Oil, Gas & Consumable Fuels | | 155,637,206 | | 4,804,219 | | - |
Personal Products | | - | | 38,036,862 | | - |
Pharmaceuticals | | 61,492,038 | | 97,112,829 | | - |
Semiconductor & Semiconductor Equipment | | 65,201,522 | | 74,994,266 | | - |
Textiles, Apparel & Luxury Goods | | 20,911,413 | | 21,001,746 | | - |
Trading Companies & Distributors | | - | | 53,803,335 | | - |
All Other | | 925,632,290 | | - | | - |
Preferred Stocks | | 18,678,367 | | - | | - |
Private Placements | | - | | - | | 4,827,441 |
Investment Companies | | - | | 8,553,298 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 1,221,925 | | - |
Total Assets | $ | 1,930,884,346 | $ | 589,862,460 | $ | 4,827,441 |
| | | | | | | |
Janus Henderson Global Research Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $2,098,003,924)(1) | | $ | 2,516,043,409 | |
| Affiliated investments, at value (cost $9,530,838) | | | 9,530,838 | |
| Cash denominated in foreign currency (cost $39,343) | | | 37,497 | |
| Trustees' deferred compensation | | | 75,680 | |
| Receivables: | | | | |
| | Investments sold | | | 8,196,591 | |
| | Fund shares sold | | | 5,261,947 | |
| | Dividends | | | 1,843,147 | |
| | Foreign tax reclaims | | | 1,463,387 | |
| | Dividends from affiliates | | | 1,985 | |
| Other assets | | | 13,844 | |
Total Assets | | | 2,542,468,325 | |
Liabilities: | | | | |
| Due to custodian | | | 5,674 | |
| Collateral for securities loaned (Note 2) | | | 1,221,925 | |
| Payables: | | | — | |
| | Investments purchased | | | 18,565,451 | |
| | Fund shares repurchased | | | 5,856,261 | |
| | Advisory fees | | | 1,232,111 | |
| | Transfer agent fees and expenses | | | 448,946 | |
| | Trustees' deferred compensation fees | | | 75,680 | |
| | Professional fees | | | 53,949 | |
| | Custodian fees | | | 19,239 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 14,110 | |
| | Trustees' fees and expenses | | | 13,334 | |
| | Affiliated fund administration fees payable | | | 5,948 | |
| | Foreign tax liability | | | 2,934 | |
| | Accrued expenses and other payables | | | 318,165 | |
Total Liabilities | | | 27,833,727 | |
Net Assets | | $ | 2,514,634,598 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Research Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,981,631,291 | |
| Total distributable earnings (loss) (includes $2,934 of foreign capital gains tax) | | | 533,003,307 | |
Total Net Assets | | $ | 2,514,634,598 | |
Net Assets - Class A Shares | | $ | 17,174,875 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 227,786 | |
Net Asset Value Per Share(2) | | $ | 75.40 | |
Maximum Offering Price Per Share(3) | | $ | 80.00 | |
Net Assets - Class C Shares | | $ | 2,971,097 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 41,108 | |
Net Asset Value Per Share(2) | | $ | 72.28 | |
Net Assets - Class D Shares | | $ | 1,424,181,485 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 19,114,798 | |
Net Asset Value Per Share | | $ | 74.51 | |
Net Assets - Class I Shares | | $ | 100,359,330 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,321,707 | |
Net Asset Value Per Share | | $ | 75.93 | |
Net Assets - Class N Shares | | $ | 30,830,791 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 414,266 | |
Net Asset Value Per Share | | $ | 74.42 | |
Net Assets - Class R Shares | | $ | 8,122,825 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 109,603 | |
Net Asset Value Per Share | | $ | 74.11 | |
Net Assets - Class S Shares | | $ | 14,034,018 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 185,696 | |
Net Asset Value Per Share | | $ | 75.58 | |
Net Assets - Class T Shares | | $ | 916,960,177 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,333,307 | |
Net Asset Value Per Share | | $ | 74.35 | |
| |
(1) Includes $1,161,284 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, 2022 |
Janus Henderson Global Research Fund
Statement of Operations
For the period ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 48,847,038 | |
| Affiliated securities lending income, net | | 40,633 | |
| Dividends from affiliates | | 22,910 | |
| Unaffiliated securities lending income, net | | 8,416 | |
| Other income | | 25,473 | |
| Foreign tax withheld | | (2,278,986) | |
Total Investment Income | | 46,665,484 | |
Expenses: | | | |
| Advisory fees | | 18,553,248 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 54,958 | |
| | Class C Shares | | 37,064 | |
| | Class R Shares | | 47,714 | |
| | Class S Shares | | 47,334 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,058,243 | |
| | Class R Shares | | 23,879 | |
| | Class S Shares | | 47,454 | |
| | Class T Shares | | 2,946,379 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 34,645 | |
| | Class C Shares | | 3,066 | |
| | Class I Shares | | 84,275 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 1,399 | |
| | Class C Shares | | 215 | |
| | Class D Shares | | 290,449 | |
| | Class I Shares | | 5,836 | |
| | Class N Shares | | 1,374 | |
| | Class R Shares | | 133 | |
| | Class S Shares | | 331 | |
| | Class T Shares | | 13,280 | |
| Shareholder reports expense | | 232,133 | |
| Registration fees | | 131,519 | |
| Custodian fees | | 126,178 | |
| Affiliated fund administration fees | | 80,124 | |
| Professional fees | | 74,297 | |
| Trustees’ fees and expenses | | 67,196 | |
| Other expenses | | 242,418 | |
Total Expenses | | 25,205,141 | |
Less: Excess Expense Reimbursement and Waivers | | (171,393) | |
Net Expenses | | 25,033,748 | |
Net Investment Income/(Loss) | | 21,631,736 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Research Fund
Statement of Operations
For the period ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 109,214,984 | |
| Investments in affiliates | | 174 | |
Total Net Realized Gain/(Loss) on Investments | | 109,215,158 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation (net of decrease in deferred foreign taxes of $484,984) | | (907,116,204) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (907,116,204) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (776,269,310) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2022 |
Janus Henderson Global Research Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 21,631,736 | | $ | 16,954,198 | |
| Net realized gain/(loss) on investments | | 109,215,158 | | | 366,009,950 | |
| Change in unrealized net appreciation/depreciation | | (907,116,204) | | | 411,833,902 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (776,269,310) | | | 794,798,050 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (2,432,950) | | | (837,329) | |
| | Class C Shares | | (478,940) | | | (183,533) | |
| | Class D Shares | | (212,599,273) | | | (65,556,809) | |
| | Class I Shares | | (15,452,023) | | | (5,229,791) | |
| | Class N Shares | | (4,330,870) | | | (1,659,352) | |
| | Class R Shares | | (1,035,016) | | | (268,840) | |
| | Class S Shares | | (2,106,969) | | | (752,697) | |
| | Class T Shares | | (139,551,040) | | | (43,456,205) | |
Net Decrease from Dividends and Distributions to Shareholders | | (377,987,081) | | | (117,944,556) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 678,202 | | | (4,020,585) | |
| | Class C Shares | | (32,373) | | | (1,534,613) | |
| | Class D Shares | | 116,945,555 | | | (21,083,449) | |
| | Class I Shares | | 770,181 | | | (19,497,565) | |
| | Class N Shares | | 348,344 | | | (6,237,164) | |
| | Class R Shares | | 1,920,902 | | | 228,904 | |
| | Class S Shares | | (3,708,048) | | | (111,942,696) | |
| | Class T Shares | | 33,302,471 | | | (2,733,097) | |
Net Increase/(Decrease) from Capital Share Transactions | | 150,225,234 | | | (166,820,265) | |
Net Increase/(Decrease) in Net Assets | | (1,004,031,157) | | | 510,033,229 | |
Net Assets: | | | | | | |
| Beginning of period | | 3,518,665,755 | | | 3,008,632,526 | |
| End of period | $ | 2,514,634,598 | | $ | 3,518,665,755 | |
| | | | | | | | |
| | |
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 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $110.18 | | | $89.60 | | | $81.67 | | | $85.80 | | | $76.26 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.41 | | | 0.23 | | | 0.31 | | | 0.65 | | | 0.57 | |
| | Net realized and unrealized gain/(loss) | | (23.60) | | | 23.77 | | | 11.47 | | | (0.20) | | | 9.25 | |
| Total from Investment Operations | | (23.19) | | | 24.00 | | | 11.78 | | | 0.45 | | | 9.82 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.16) | | | (0.16) | | | (0.61) | | | (0.46) | | | (0.28) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | |
| Total Dividends and Distributions | | (11.59) | | | (3.42) | | | (3.85) | | | (4.58) | | | (0.28) | |
| Net Asset Value, End of Period | | $75.40 | | | $110.18 | | | $89.60 | | | $81.67 | | | $85.80 | |
| Total Return* | | (23.60)% | | | 27.28% | | | 14.71% | | | 1.43% | | | 12.90% | |
| Net Assets, End of Period (in thousands) | | $17,175 | | | $24,310 | | | $23,470 | | | $18,247 | | | $16,478 | |
| Average Net Assets for the Period (in thousands) | | $21,901 | | | $24,438 | | | $19,926 | | | $17,274 | | | $15,685 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.03% | | | 1.17% | | | 1.21% | | | 1.32% | | | 1.14% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.03% | | | 1.17% | | | 1.20% | | | 1.16% | | | 1.00% | |
| | Ratio of Net Investment Income/(Loss) | | 0.43% | | | 0.23% | | | 0.37% | | | 0.83% | | | 0.70% | |
| Portfolio Turnover Rate | | 33% | | | 25% | | | 34% | | | 35% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2022 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $106.56 | | | $87.19 | | | $79.50 | | | $83.65 | | | $74.57 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.21) | | | (0.45) | | | (0.22) | | | 0.13 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | (22.64) | | | 23.08 | | | 11.15 | | | (0.16) | | | 9.04 | |
| Total from Investment Operations | | (22.85) | | | 22.63 | | | 10.93 | | | (0.03) | | | 9.08 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | |
| Total Dividends and Distributions | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | |
| Net Asset Value, End of Period | | $72.28 | | | $106.56 | | | $87.19 | | | $79.50 | | | $83.65 | |
| Total Return* | | (24.09)% | | | 26.42% | | | 13.98% | | | 0.78% | | | 12.18% | |
| Net Assets, End of Period (in thousands) | | $2,971 | | | $4,491 | | | $5,005 | | | $5,564 | | | $7,746 | |
| Average Net Assets for the Period (in thousands) | | $4,022 | | | $4,880 | | | $5,323 | | | $6,303 | | | $8,343 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.68% | | | 1.85% | | | 1.84% | | | 1.80% | | | 1.64% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.68% | | | 1.85% | | | 1.84% | | | 1.80% | | | 1.64% | |
| | Ratio of Net Investment Income/(Loss) | | (0.23)% | | | (0.45)% | | | (0.27)% | | | 0.17% | | | 0.05% | |
| Portfolio Turnover Rate | | 33% | | | 25% | | | 34% | | | 35% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $109.10 | | | $88.69 | | | $80.85 | | | $84.93 | | | $75.50 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.68 | | | 0.56 | | | 0.55 | | | 0.88 | | | 0.82 | |
| | Net realized and unrealized gain/(loss) | | (23.29) | | | 23.50 | | | 11.36 | | | (0.21) | | | 9.14 | |
| Total from Investment Operations | | (22.61) | | | 24.06 | | | 11.91 | | | 0.67 | | | 9.96 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.55) | | | (0.39) | | | (0.83) | | | (0.63) | | | (0.53) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | |
| Total Dividends and Distributions | | (11.98) | | | (3.65) | | | (4.07) | | | (4.75) | | | (0.53) | |
| Net Asset Value, End of Period | | $74.51 | | | $109.10 | | | $88.69 | | | $80.85 | | | $84.93 | |
| Total Return* | | (23.37)% | | | 27.68% | | | 15.06% | | | 1.76% | | | 13.25% | |
| Net Assets, End of Period (in thousands) | | $1,424,181 | | | $1,959,177 | | | $1,607,701 | | | $1,493,928 | | | $1,564,083 | |
| Average Net Assets for the Period (in thousands) | | $1,797,317 | | | $1,873,058 | | | $1,511,011 | | | $1,463,525 | | | $1,527,522 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.75% | | | 0.86% | | | 0.89% | | | 0.83% | | | 0.69% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.75% | | | 0.86% | | | 0.89% | | | 0.83% | | | 0.69% | |
| | Ratio of Net Investment Income/(Loss) | | 0.72% | | | 0.54% | | | 0.68% | | | 1.13% | | | 1.02% | |
| Portfolio Turnover Rate | | 33% | | | 25% | | | 34% | | | 35% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $110.96 | | | $90.13 | | | $82.10 | | | $86.16 | | | $76.57 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.75 | | | 0.64 | | | 0.63 | | | 0.95 | | | 0.91 | |
| | Net realized and unrealized gain/(loss) | | (23.73) | | | 23.90 | | | 11.54 | | | (0.20) | | | 9.27 | |
| Total from Investment Operations | | (22.98) | | | 24.54 | | | 12.17 | | | 0.75 | | | 10.18 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.62) | | | (0.45) | | | (0.90) | | | (0.69) | | | (0.59) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | |
| Total Dividends and Distributions | | (12.05) | | | (3.71) | | | (4.14) | | | (4.81) | | | (0.59) | |
| Net Asset Value, End of Period | | $75.93 | | | $110.96 | | | $90.13 | | | $82.10 | | | $86.16 | |
| Total Return* | | (23.33)% | | | 27.78% | | | 15.15% | | | 1.85% | | | 13.36% | |
| Net Assets, End of Period (in thousands) | | $100,359 | | | $145,610 | | | $135,394 | | | $139,584 | | | $179,093 | |
| Average Net Assets for the Period (in thousands) | | $128,292 | | | $145,201 | | | $132,597 | | | $146,672 | | | $167,007 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.68% | | | 0.79% | | | 0.81% | | | 0.74% | | | 0.60% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.68% | | | 0.79% | | | 0.81% | | | 0.74% | | | 0.60% | |
| | Ratio of Net Investment Income/(Loss) | | 0.78% | | | 0.61% | | | 0.76% | | | 1.21% | | | 1.11% | |
| Portfolio Turnover Rate | | 33% | | | 25% | | | 34% | | | 35% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $109.00 | | | $88.60 | | | $80.77 | | | $84.85 | | | $75.44 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.80 | | | 0.69 | | | 0.66 | | | 1.02 | | | 0.96 | |
| | Net realized and unrealized gain/(loss) | | (23.27) | | | 23.48 | | | 11.36 | | | (0.25) | | | 9.11 | |
| Total from Investment Operations | | (22.47) | | | 24.17 | | | 12.02 | | | 0.77 | | | 10.07 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.68) | | | (0.51) | | | (0.95) | | | (0.73) | | | (0.66) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | |
| Total Dividends and Distributions | | (12.11) | | | (3.77) | | | (4.19) | | | (4.85) | | | (0.66) | |
| Net Asset Value, End of Period | | $74.42 | | | $109.00 | | | $88.60 | | | $80.77 | | | $84.85 | |
| Total Return* | | (23.28)% | | | 27.85% | | | 15.23% | | | 1.91% | | | 13.42% | |
| Net Assets, End of Period (in thousands) | | $30,831 | | | $43,521 | | | $40,607 | | | $31,393 | | | $38,195 | |
| Average Net Assets for the Period (in thousands) | | $37,593 | | | $44,557 | | | $30,617 | | | $37,778 | | | $36,802 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.62% | | | 0.73% | | | 0.76% | | | 0.68% | | | 0.54% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.62% | | | 0.73% | | | 0.76% | | | 0.68% | | | 0.54% | |
| | Ratio of Net Investment Income/(Loss) | | 0.85% | | | 0.67% | | | 0.81% | | | 1.32% | | | 1.19% | |
| Portfolio Turnover Rate | | 33% | | | 25% | | | 34% | | | 35% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2022 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $108.69 | | | $88.57 | | | $80.78 | | | $84.95 | | | $75.55 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.08 | | | (0.10) | | | 0.02 | | | 0.39 | | | 0.32 | |
| | Net realized and unrealized gain/(loss) | | (23.23) | | | 23.48 | | | 11.34 | | | (0.18) | | | 9.15 | |
| Total from Investment Operations | | (23.15) | | | 23.38 | | | 11.36 | | | 0.21 | | | 9.47 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.33) | | | (0.26) | | | (0.07) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | |
| Total Dividends and Distributions | | (11.43) | | | (3.26) | | | (3.57) | | | (4.38) | | | (0.07) | |
| Net Asset Value, End of Period | | $74.11 | | | $108.69 | | | $88.57 | | | $80.78 | | | $84.95 | |
| Total Return* | | (23.87)% | | | 26.87% | | | 14.33% | | | 1.11% | | | 12.55% | |
| Net Assets, End of Period (in thousands) | | $8,123 | | | $9,736 | | | $7,802 | | | $6,574 | | | $6,417 | |
| Average Net Assets for the Period (in thousands) | | $9,507 | | | $8,777 | | | $6,410 | | | $6,232 | | | $6,245 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.39% | | | 1.50% | | | 1.54% | | | 1.47% | | | 1.31% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.39% | | | 1.50% | | | 1.54% | | | 1.47% | | | 1.31% | |
| | Ratio of Net Investment Income/(Loss) | | 0.09% | | | (0.10)% | | | 0.03% | | | 0.50% | | | 0.40% | |
| Portfolio Turnover Rate | | 33% | | | 25% | | | 34% | | | 35% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
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See Notes to Financial Statements. |
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Janus Investment Fund | 25 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $110.34 | | | $89.62 | | | $81.85 | | | $85.96 | | | $76.40 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.32 | | | 0.28 | | | 0.27 | | | 0.61 | | | 0.51 | |
| | Net realized and unrealized gain/(loss) | | (23.65) | | | 23.70 | | | 11.48 | | | (0.18) | | | 9.30 | |
| Total from Investment Operations | | (23.33) | | | 23.98 | | | 11.75 | | | 0.43 | | | 9.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.74) | | | (0.42) | | | (0.25) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | |
| Total Dividends and Distributions | | (11.43) | | | (3.26) | | | (3.98) | | | (4.54) | | | (0.25) | |
| Net Asset Value, End of Period | | $75.58 | | | $110.34 | | | $89.62 | | | $81.85 | | | $85.96 | |
| Total Return* | | (23.66)% | | | 27.23% | | | 14.66% | | | 1.40% | | | 12.86% | |
| Net Assets, End of Period (in thousands) | | $14,034 | | | $24,088 | | | $131,161 | | | $109,878 | | | $62,331 | |
| Average Net Assets for the Period (in thousands) | | $18,904 | | | $25,744 | | | $128,108 | | | $64,355 | | | $67,144 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.13% | | | 1.21% | | | 1.24% | | | 1.18% | | | 1.04% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.21% | | | 1.24% | | | 1.18% | | | 1.04% | |
| | Ratio of Net Investment Income/(Loss) | | 0.33% | | | 0.27% | | | 0.33% | | | 0.77% | | | 0.63% | |
| Portfolio Turnover Rate | | 33% | | | 25% | | | 34% | | | 35% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
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See Notes to Financial Statements. |
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26 | SEPTEMBER 30, 2022 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $108.88 | | | $88.54 | | | $80.73 | | | $84.82 | | | $75.41 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.58 | | | 0.45 | | | 0.48 | | | 0.82 | | | 0.75 | |
| | Net realized and unrealized gain/(loss) | | (23.25) | | | 23.47 | | | 11.34 | | | (0.21) | | | 9.13 | |
| Total from Investment Operations | | (22.67) | | | 23.92 | | | 11.82 | | | 0.61 | | | 9.88 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.43) | | | (0.32) | | | (0.77) | | | (0.58) | | | (0.47) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | |
| Total Dividends and Distributions | | (11.86) | | | (3.58) | | | (4.01) | | | (4.70) | | | (0.47) | |
| Net Asset Value, End of Period | | $74.35 | | | $108.88 | | | $88.54 | | | $80.73 | | | $84.82 | |
| Total Return* | | (23.45)% | | | 27.55% | | | 14.96% | | | 1.67% | | | 13.16% | |
| Net Assets, End of Period (in thousands) | | $916,960 | | | $1,307,732 | | | $1,057,492 | | | $1,014,552 | | | $1,054,640 | |
| Average Net Assets for the Period (in thousands) | | $1,173,459 | | | $1,262,884 | | | $1,009,337 | | | $988,429 | | | $1,033,780 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.86% | | | 0.97% | | | 0.99% | | | 0.93% | | | 0.79% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.84% | | | 0.96% | | | 0.99% | | | 0.92% | | | 0.78% | |
| | Ratio of Net Investment Income/(Loss) | | 0.62% | | | 0.44% | | | 0.59% | | | 1.05% | | | 0.93% | |
| Portfolio Turnover Rate | | 33% | | | 25% | | | 34% | | | 35% | | | 32% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
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See Notes to Financial Statements. |
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Janus Investment Fund | 27 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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 Research 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, 2022 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, 2022.
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 Research 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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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
Janus Henderson Global Research Fund
Notes to Financial Statements
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 the Adviser 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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.
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.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Janus Henderson Global Research 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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser 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 the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $1,161,284. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $1,221,925, resulting in the net amount due to the counterparty of $60,641.
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 Offsetting Assets and Liabilities table located in the Schedule of Investments 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
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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 the Adviser 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 the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’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 period ended September 30, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.58%.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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
Janus Henderson Global Research Fund
Notes to Financial Statements
Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent 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.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, of up to 0.50% of the Class R Shares' average daily net assets, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor for remittance to retirement plan service providers, broker-dealers, bank
Janus Henderson Global Research 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the period ended September 30, 2022, the Distributor retained upfront sales charges of $283.
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 the Distributor during the period ended September 30, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended September 30, 2022, redeeming shareholders of Class C Shares paid CDSCs of $960.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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 period ended September 30, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the period ended September 30, 2022.
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”). The Adviser 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 period ended September 30, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser 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
Janus Henderson Global Research Fund
Notes to Financial Statements
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 period ended September 30, 2022, the Fund engaged in cross trades amounting to $3,230,233 in purchases and $1,029,750 in sales, resulting in a net realized loss of $530,250. The net realized loss is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
As of September 30, 2022, shares of the Fund were owned by affiliates of the Adviser, and/or other funds advised by the Adviser, 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 | 45 | | 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).
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) | |
$ 25,733,358 | $ 92,412,197 | $ - | $ - | $ - | $(216,972) | $ 415,074,724 | |
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, 2022 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) |
$ 2,110,496,589 | $639,398,660 | $(224,321,002) | $ 415,077,658 |
Janus Henderson Global Research 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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 39,151,197 | $ 338,835,884 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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 |
$ - | $ 4,113,713 | $ (4,113,713) |
Janus Henderson Global Research Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 53,979 | $ 5,198,977 | | 47,006 | $ 4,813,707 |
Reinvested dividends and distributions | 18,870 | 1,879,233 | | 5,588 | 545,222 |
Shares repurchased | (65,698) | (6,400,008) | | (93,896) | (9,379,514) |
Net Increase/(Decrease) | 7,151 | $ 678,202 | | (41,302) | $ (4,020,585) |
Class C Shares: | | | | | |
Shares sold | 4,028 | $ 377,090 | | 5,609 | $ 557,392 |
Reinvested dividends and distributions | 4,695 | 450,451 | | 1,836 | 174,183 |
Shares repurchased | (9,756) | (859,914) | | (22,710) | (2,266,188) |
Net Increase/(Decrease) | (1,033) | $ (32,373) | | (15,265) | $ (1,534,613) |
Class D Shares: | | | | | |
Shares sold | 304,275 | $ 28,952,846 | | 390,481 | $ 39,919,687 |
Reinvested dividends and distributions | 2,058,031 | 202,078,044 | | 647,933 | 62,447,782 |
Shares repurchased | (1,204,742) | (114,085,335) | | (1,208,431) | (123,450,918) |
Net Increase/(Decrease) | 1,157,564 | $116,945,555 | | (170,017) | $ (21,083,449) |
Class I Shares: | | | | | |
Shares sold | 235,153 | $ 23,460,934 | | 261,600 | $ 27,657,572 |
Reinvested dividends and distributions | 146,533 | 14,654,763 | | 42,943 | 4,206,664 |
Shares repurchased | (372,248) | (37,345,516) | | (494,413) | (51,361,801) |
Net Increase/(Decrease) | 9,438 | $ 770,181 | | (189,870) | $ (19,497,565) |
Class N Shares: | | | | | |
Shares sold | 78,556 | $ 7,013,474 | | 70,228 | $ 7,347,983 |
Reinvested dividends and distributions | 42,847 | 4,197,755 | | 16,998 | 1,634,877 |
Shares repurchased | (106,433) | (10,862,885) | | (146,269) | (15,220,024) |
Net Increase/(Decrease) | 14,970 | $ 348,344 | | (59,043) | $ (6,237,164) |
Class R Shares: | | | | | |
Shares sold | 30,052 | $ 2,853,871 | | 23,033 | $ 2,418,306 |
Reinvested dividends and distributions | 10,544 | 1,035,016 | | 2,767 | 266,998 |
Shares repurchased | (20,573) | (1,967,985) | | (24,314) | (2,456,400) |
Net Increase/(Decrease) | 20,023 | $ 1,920,902 | | 1,486 | $ 228,904 |
Class S Shares: | | | | | |
Shares sold | 35,285 | $ 3,371,394 | | 38,545 | $ 3,945,043 |
Reinvested dividends and distributions | 21,077 | 2,105,395 | | 7,697 | 752,260 |
Shares repurchased | (88,978) | (9,184,837) | | (1,291,417) | (116,639,999) |
Net Increase/(Decrease) | (32,616) | $ (3,708,048) | | (1,245,175) | $(111,942,696) |
Class T Shares: | | | | | |
Shares sold | 588,800 | $ 55,748,125 | | 2,228,564 | $ 213,989,572 |
Reinvested dividends and distributions | 1,390,985 | 136,386,095 | | 441,931 | 42,540,264 |
Shares repurchased | (1,657,212) | (158,831,749) | | (2,603,434) | (259,262,933) |
Net Increase/(Decrease) | 322,573 | $ 33,302,471 | | 67,061 | $ (2,733,097) |
6. Purchases and Sales of Investment Securities
For the period ended September 30, 2022, 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 |
$1,031,284,330 | $1,246,608,306 | $ - | $ - |
Janus Henderson Global Research Fund
Notes to Financial Statements
7. Recent Accounting Pronouncements
The FASB issued Accounting Standards Update 2022-03: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”) in June 2022. The new guidance in the ASU clarifies existing guidance in ASC 820 related to the fair value measurement of an equity security subject to contractual sale restrictions with the intent to reduce diversity in interpretation. Under the guidance, a contractual restriction on the sale of an equity security would not be considered when measuring fair value as such restriction is not treated as part of the equity security’s unit of account. The amendments would be applied prospectively on or after adoption date to equity securities with a contract containing a sale restriction that is executed or modified after such date. The effective date set by the FASB is December 15, 2023, with early adoption permitted. The Adviser is currently evaluating whether to early adopt and does not anticipate it to have a material impact on the Fund.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Research Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Research Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Research Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Research Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Global Research Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Research Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Global Research Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Global Research Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Global Research Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Research Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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 period ended September 30, 2022:
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Capital Gain Distributions | $338,835,884 |
Dividends Received Deduction Percentage | 93% |
Qualified Dividend Income Percentage | 85% |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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)
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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 |
Matthew Peron
151 Detroit Street
Denver, CO 80206
DOB: 1968 | Executive Vice President
Janus Henderson Global Research Fund | 4/20-Present | Director of Research of the Adviser and Portfolio Manager for other Janus Henderson accounts. Formerly, Chief Investment Officer for City National Rochdale (2018-2020), Executive Vice President and Managing Director of Global Equity at Northern Trust (2005-2018). |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US LLC (2009-2017). |
* 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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Janus Henderson Global 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 |
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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Global 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93045 11-22 |
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| | | ANNUAL REPORT September 30, 2022 |
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| | Janus Henderson Global Select 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 Select Fund
Janus Henderson Global Select Fund (unaudited)
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FUND SNAPSHOT Janus Henderson Global Select Fund is a global equity fund seeking to grow capital by investing with conviction in companies worldwide where the portfolio managers believe the market underestimates free-cash-flow growth. The Fund considers both growth and value criteria as it seeks to deliver strong, risk-adjusted returns over the long term, irrespective of prevailing market conditions. | | | | 
Julian McManus co-portfolio manager | 
George Maris co-portfolio manager |
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PERFORMANCE OVERVIEW
The Janus Henderson Global Select Fund Class I Shares returned -18.23% for the 12-month period ended September 30, 2022. The Fund’s benchmark, the MSCI All Country World IndexSM, returned -20.66%.
INVESTMENT ENVIRONMENT
Global equity markets declined over the 12-month period as high levels of inflation in many of the world’s key developed economies prompted aggressive monetary and fiscal tightening, triggering fears of global recession. Equities began the period with positive, if volatile, performance in the fourth quarter of 2021, as investors focused on strong corporate earnings. However, global stock markets sold off in February following Russia’s invasion of Ukraine. Geopolitical turmoil and ongoing supply chain issues drove prices higher, with particularly sharp increases in commodities. Steep inflation prompted several central banks to raise interest rates, causing a rotation from long-duration growth stocks to more cyclical companies. The U.S. Federal Reserve raised rates by 0.25% in March, but then moved more aggressively with a 0.50% increase in May and consecutive 0.75% hikes in June, July, and September. Persistently rising prices caused central banks around the world to join the fight against inflation. Adding to investors’ concerns in Europe was a looming energy crisis as Russia substantially reduced gas supplies to several European countries. Meanwhile circumstances in China weighed upon markets as the country reinstituted COVID-19 restrictions, suffered continued property market declines, and faced a sharp slowdown in gross domestic product (GDP) growth. Unlike most central banks, the Bank of Japan continued its yield curve control policy, suppressing both short- and long-term interest rates. This resulted in the Yen weakening significantly versus the U.S. dollar due to widening interest rate differentials. China witnessed a similar weakening of its currency relative to the U.S. dollar.
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. Our approach enabled us to outperform our benchmark for the period.
Individual contributors to the Fund’s relative performance included energy holdings, which gained amid a recovery in oil prices as a result of improved demand from a recovery in travel and economic activity, as well as tighter supplies of crude and natural gas driven by geopolitical strife and regulatory policies. Standout performers included oil and natural gas producer Canadian Natural Resources, which also benefited from strong execution across its operations, increased production of natural gas, and substantial free cash flow. The company’s commitment to maximizing value for shareholders through thoughtful capital allocation also supported strength in its shares. During the period, management continued to allocate excess cash to stock buybacks and debt reduction. Another energy holding that contributed materially to our results was Marathon Petroleum. Robust demand for refined products and healthy refining margins supported gains for the oil refiner. Similar to Canadian Natural Resources, Marathon continued to demonstrate a commitment to enhancing shareholder value through its share repurchase program, which it was able to fund from operations and the proceeds from the sale of its Speedway business.
Another notable contributor was Teck Resources, a Canada-based miner of steelmaking coal, copper, and zinc. The company benefited from rising commodity prices and Teck’s progress in building out Quebrada Blanca Phase 2 (QB2), a low-cost, long-life copper project in northern Chile. QB2 is expected to allow Teck to double its copper production in 2023. Teck is also exploring
Janus Henderson Global Select Fund (unaudited)
portfolio optimization, particularly within its oil sands business. A sale of this business would bolster the company’s environmental, social, and governance (ESG) position. We think asset sales, along with the tapering of capital expenditures associated with QB2, should allow Teck to return significant capital to shareholders.
Conversely, select holdings detracted from relative results, including U.S.-based performance apparel and footwear company Under Armour. After tightening inventory amid global supply chain issues, the company was challenged to meet demand, resulting in weaker-than-expected quarterly sales. Expectations of slower economic growth, worries around consumer spending, and an unexpected CEO resignation added to share weakness. We maintained our position in Under Armour, which continued to improve brand strength, contain costs, and introduce new products. We also believe the stock is undervalued, potentially making it an attractive acquisition target.
Concerns about a downturn in the global economy and perceptions that many gaming stocks were overvalued pressured gaming stocks. Despite continued strong fundamentals, U.S.-based Caesars Entertainment and UK-based Entain declined with the broad sector. An earnings miss, weakness in its digital gaming segment, and lower occupancy rates pressured Caesars’ shares. Another overhang for the company was stalled progress on the sale of its properties. Further pressuring online gaming company Entain’s stock were political delays around a white paper published by the UK government that is expected to shape future gambling regulation. We think, with improved political stability in the UK, this could eventually be a clearing event for the sector. We are confident strong fundamentals will enable Entain to overcome the current headwinds. During the period, Entain continued to demonstrate an ability to consistently drive strong cash flows and grow market share.
OUTLOOK
We think the backdrop for equity markets will remain challenging in the near term as persistent inflation, rising interest rates, and a weakening global economy threaten corporate profit growth. Although we witnessed a remarkable shift in global monetary policy during the period, we believe central banks were slow to tackle inflation and will likely continue to raise interest rates and reverse quantitative easing. Adding to economic challenges in Europe is a deepening energy crisis caused by Russia’s dramatic reduction in natural gas supplies to the region. In China, the government’s zero-COVID policy represents a continued drag on its economy, and we think U.S. restrictions on semiconductor technology exports to Chinese entities could further hamper the country’s attempts to move up the value-add curve.
In response to these macroeconomic challenges, the Fund increased its focus on businesses that our analysis suggests have the potential for superior free cash flow visibility and are trading at attractive valuations. More of these opportunities became evident recently within the pharmaceutical and consumer staples sectors. The Fund also increased exposure to European banks, which are over-provisioned for credit losses stemming from a recession and yet do not price in the benefits of higher interest rates. As a result of these modifications, we think the Fund is positioned to weather continued market and economic volatility, which we will be using to look for future opportunities.
Thank you for your continued investment in Janus Henderson Global Select Fund.
Janus Henderson Global Select Fund (unaudited)
Fund At A Glance
September 30, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Marathon Petroleum Corp | 3.14% | | 1.87% | | Under Armour Inc | 2.88% | | -1.79% |
| Teck Resources Ltd | 3.91% | | 1.65% | | Caesars Entertainment Inc | 1.84% | | -1.45% |
| Canadian Natural Resources Ltd | 2.47% | | 1.21% | | Entain PLC | 1.98% | | -1.00% |
| NRG Energy Inc | 5.20% | | 0.96% | | Citigroup Inc | 2.69% | | -0.62% |
| Humana Inc | 1.80% | | 0.68% | | Prudential PLC | 0.86% | | -0.30% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | 1.83% | | 5.61% | 4.39% |
| Communication Services | | 1.76% | | 8.35% | 8.20% |
| Materials | | 1.54% | | 6.66% | 4.80% |
| Health Care | | 0.96% | | 11.42% | 11.97% |
| Utilities | | 0.54% | | 5.20% | 2.91% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | -3.71% | | 14.58% | 11.81% |
| Information Technology | | -0.30% | | 14.54% | 22.07% |
| Consumer Staples | | -0.26% | | 3.45% | 7.11% |
| Financials | | -0.02% | | 16.81% | 14.48% |
| Real Estate | | 0.05% | | 0.00% | 2.71% |
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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 Global Select Fund (unaudited)
Fund At A Glance
September 30, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
NRG Energy Inc | |
Independent Power and Renewable Electricity Producers | 5.7% |
Microsoft Corp | |
Software | 4.8% |
Marathon Petroleum Corp | |
Oil, Gas & Consumable Fuels | 3.7% |
Teck Resources Ltd | |
Metals & Mining | 3.2% |
Humana Inc | |
Health Care Providers & Services | 3.0% |
| | 20.4% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.9% | |
Investment Companies | | 1.5% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.8% | |
Preferred Stocks | | 0.8% | |
Private Placements | | 0.0% | |
Other | | (1.0)% |
| | | 100.0% |
Emerging markets comprised 7.3% of total net assets.
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson Global Select 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, 2022 | | | 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 | | -18.45% | 5.03% | 8.51% | 3.63% | | | 1.03% | 1.03% |
Class A Shares at MOP | | -23.13% | 3.79% | 7.87% | 3.35% | | | | |
Class C Shares at NAV | | -19.14% | 4.16% | 7.61% | 2.81% | | | 2.20% | 1.94% |
Class C Shares at CDSC | | -19.85% | 4.16% | 7.61% | 2.81% | | | | |
Class D Shares | | -18.25% | 5.27% | 8.71% | 3.76% | | | 0.82% | 0.82% |
Class I Shares | | -18.23% | 5.31% | 8.82% | 3.82% | | | 0.77% | 0.77% |
Class N Shares | | -18.15% | 5.42% | 8.77% | 3.78% | | | 0.68% | 0.68% |
Class R Shares | | -18.89% | 4.44% | 7.98% | 3.16% | | | 3.97% | 1.64% |
Class S Shares | | -18.75% | 4.72% | 8.26% | 3.44% | | | 2.76% | 1.38% |
Class T Shares | | -18.36% | 5.18% | 8.64% | 3.72% | | | 0.92% | 0.92% |
MSCI All Country World Index | | -20.66% | 4.44% | 7.28% | 4.30% | | | | |
Morningstar Quartile - Class T Shares | | 2nd | 1st | 1st | 4th | | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | 111/346 | 66/303 | 20/226 | 65/79 | | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
Janus Henderson Global Select Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class 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
© 2022 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 30, 2000
‡ As stated in the prospectus. Net expense ratios reflect the expense waivers, if any, contractually agreed to for at least a one-year period commencing on January 28, 2022. 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $799.70 | $4.69 | | $1,000.00 | $1,019.85 | $5.27 | 1.04% |
Class C Shares | $1,000.00 | $796.40 | $8.29 | | $1,000.00 | $1,015.84 | $9.30 | 1.84% |
Class D Shares | $1,000.00 | $800.60 | $3.75 | | $1,000.00 | $1,020.91 | $4.20 | 0.83% |
Class I Shares | $1,000.00 | $800.80 | $3.52 | | $1,000.00 | $1,021.16 | $3.95 | 0.78% |
Class N Shares | $1,000.00 | $801.40 | $3.12 | | $1,000.00 | $1,021.61 | $3.50 | 0.69% |
Class R Shares | $1,000.00 | $797.20 | $7.39 | | $1,000.00 | $1,016.85 | $8.29 | 1.64% |
Class S Shares | $1,000.00 | $798.30 | $6.31 | | $1,000.00 | $1,018.05 | $7.08 | 1.40% |
Class T Shares | $1,000.00 | $799.90 | $4.11 | | $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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 97.9% | | | |
Aerospace & Defense – 3.3% | | | |
| | Airbus SE | | 346,153 | | | $29,900,434 | |
| | L3Harris Technologies Inc | | 154,122 | | | 32,031,175 | |
| | Safran SA | | 32,243 | | | 2,931,239 | |
| | | 64,862,848 | |
Air Freight & Logistics – 2.0% | | | |
| | United Parcel Service Inc | | 242,320 | | | 39,144,373 | |
Banks – 5.2% | | | |
| | Bank of China Ltd | | 85,804,000 | | | 28,008,467 | |
| | BNP Paribas SA | | 411,508 | | | 17,370,155 | |
| | Citigroup Inc | | 764,866 | | | 31,871,966 | |
| | Natwest Group PLC | | 6,519,117 | | | 16,265,670 | |
| | Permanent TSB Group Holdings PLC* | | 5,290,709 | | | 8,135,859 | |
| | | 101,652,117 | |
Beverages – 3.8% | | | |
| | Heineken NV | | 350,328 | | | 30,707,398 | |
| | Monster Beverage Corp* | | 513,460 | | | 44,650,482 | |
| | | 75,357,880 | |
Biotechnology – 1.9% | | | |
| | Ascendis Pharma A/S (ADR)* | | 81,386 | | | 8,403,918 | |
| | Neurocrine Biosciences Inc* | | 271,920 | | | 28,880,623 | |
| | | 37,284,541 | |
Capital Markets – 2.7% | | | |
| | Morgan Stanley | | 666,371 | | | 52,649,973 | |
Containers & Packaging – 2.1% | | | |
| | Crown Holdings Inc | | 506,035 | | | 41,004,016 | |
Diversified Telecommunication Services – 1.5% | | | |
| | Deutsche Telekom AG | | 1,698,406 | | | 29,109,812 | |
Electronic Equipment, Instruments & Components – 2.8% | | | |
| | E Ink Holdings Inc | | 2,289,000 | | | 15,124,443 | |
| | Hexagon AB - Class B | | 1,152,232 | | | 10,688,193 | |
| | Keyence Corp | | 88,300 | | | 29,319,914 | |
| | | 55,132,550 | |
Entertainment – 3.4% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 810,667 | | | 47,424,020 | |
| | Nintendo Co Ltd | | 457,000 | | | 18,507,707 | |
| | | 65,931,727 | |
Health Care Providers & Services – 3.0% | | | |
| | Humana Inc | | 121,191 | | | 58,800,661 | |
Hotels, Restaurants & Leisure – 2.8% | | | |
| | Caesars Entertainment Inc* | | 709,741 | | | 22,896,245 | |
| | Entain PLC | | 2,664,372 | | | 31,988,377 | |
| | | 54,884,622 | |
Household Durables – 2.1% | | | |
| | PulteGroup Inc | | 1,087,174 | | | 40,769,025 | |
Independent Power and Renewable Electricity Producers – 5.7% | | | |
| | NRG Energy Inc | | 2,908,675 | | | 111,314,992 | |
Information Technology Services – 1.5% | | | |
| | Fidelity National Information Services Inc | | 394,655 | | | 29,824,078 | |
Insurance – 7.1% | | | |
| | AIA Group Ltd | | 3,544,200 | | | 29,426,859 | |
| | Beazley PLC | | 4,371,108 | | | 27,110,511 | |
| | NN Group NV | | 636,788 | | | 24,780,609 | |
| | WR Berkley Corp | | 899,293 | | | 58,076,342 | |
| | | 139,394,321 | |
Interactive Media & Services – 1.0% | | | |
| | Alphabet Inc - Class A* | | 203,257 | | | 19,441,532 | |
Internet & Direct Marketing Retail – 2.3% | | | |
| | JD.Com Inc - Class A | | 1,746,226 | | | 44,095,893 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Global Select Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Machinery – 3.4% | | | |
| | Deere & Co | | 106,069 | | | $35,415,378 | |
| | Wabtec Corp | | 394,288 | | | 32,075,329 | |
| | | 67,490,707 | |
Metals & Mining – 3.2% | | | |
| | Teck Resources Ltd | | 2,063,901 | | | 62,774,747 | |
Oil, Gas & Consumable Fuels – 5.7% | | | |
| | Canadian Natural Resources Ltd# | | 852,623 | | | 39,706,653 | |
| | Marathon Petroleum Corp | | 726,750 | | | 72,188,077 | |
| | | 111,894,730 | |
Personal Products – 2.1% | | | |
| | Unilever PLC | | 949,646 | | | 41,774,767 | |
Pharmaceuticals – 8.3% | | | |
| | AstraZeneca PLC | | 516,583 | | | 56,795,726 | |
| | Bayer AG | | 468,448 | | | 21,614,642 | |
| | Merck & Co Inc | | 558,461 | | | 48,094,661 | |
| | Organon & Co | | 1,570,224 | | | 36,743,242 | |
| | | 163,248,271 | |
Road & Rail – 1.7% | | | |
| | Full Truck Alliance Co (ADR)* | | 2,441,097 | | | 15,989,185 | |
| | Uber Technologies Inc* | | 617,406 | | | 16,361,259 | |
| | | 32,350,444 | |
Semiconductor & Semiconductor Equipment – 3.5% | | | |
| | ASML Holding NV | | 68,922 | | | 28,583,932 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 3,098,000 | | | 40,723,561 | |
| | | 69,307,493 | |
Software – 6.3% | | | |
| | Microsoft Corp | | 400,660 | | | 93,313,714 | |
| | Workday Inc - Class A* | | 196,988 | | | 29,985,513 | |
| | | 123,299,227 | |
Specialty Retail – 0.8% | | | |
| | TJX Cos Inc | | 266,181 | | | 16,535,164 | |
Textiles, Apparel & Luxury Goods – 4.9% | | | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 44,206 | | | 25,981,915 | |
| | Samsonite International SA (144A)* | | 14,571,300 | | | 34,975,513 | |
| | Under Armour Inc* | | 6,015,561 | | | 35,852,744 | |
| | | 96,810,172 | |
Thrifts & Mortgage Finance – 0.5% | | | |
| | MGIC Investment Corp | | 746,987 | | | 9,576,373 | |
Trading Companies & Distributors – 1.5% | | | |
| | Ferguson PLC | | 286,930 | | | 29,870,557 | |
Wireless Telecommunication Services – 1.8% | | | |
| | T-Mobile US Inc* | | 260,036 | | | 34,889,030 | |
Total Common Stocks (cost $1,661,416,178) | | 1,920,476,643 | |
Preferred Stocks– 0.8% | | | |
Automobiles – 0.8% | | | |
| | Dr Ing hc F Porsche AG((cost $16,333,027) | | 203,365 | | | 16,440,420 | |
Private Placements– 0% | | | |
Software – 0% | | | |
| | Magic Leap Inc - Class A private equity common shares*,¢,§((cost $9,254,547) | | 19,041 | | | 0 | |
Investment Companies– 1.5% | | | |
Money Markets – 1.5% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $28,295,191) | | 28,295,191 | | | 28,298,020 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.8% | | | |
Investment Companies – 0.7% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 13,167,540 | | | 13,167,540 | |
| | |
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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Investments Purchased with Cash Collateral from Securities Lending– (continued) | | | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $3,291,885 | | | $3,291,885 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $16,459,425) | | 16,459,425 | |
Total Investments (total cost $1,731,758,368) – 101.0% | | 1,981,674,508 | |
Liabilities, net of Cash, Receivables and Other Assets – (1.0)% | | (19,856,594) | |
Net Assets – 100% | | $1,961,817,914 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $1,194,437,989 | | 60.3 | % |
United Kingdom | | 173,935,051 | | 8.8 | |
Canada | | 102,481,400 | | 5.2 | |
China | | 88,093,545 | | 4.5 | |
Netherlands | | 84,071,939 | | 4.2 | |
France | | 76,183,743 | | 3.8 | |
Germany | | 67,164,874 | | 3.4 | |
Hong Kong | | 64,402,372 | | 3.3 | |
Taiwan | | 55,848,004 | | 2.8 | |
Japan | | 47,827,621 | | 2.4 | |
Sweden | | 10,688,193 | | 0.5 | |
Denmark | | 8,403,918 | | 0.4 | |
Ireland | | 8,135,859 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $1,981,674,508 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Global Select Fund
Schedule of Investments
September 30, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - 1.5% |
Money Markets - 1.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 191,060 | $ | (3,445) | $ | 2,829 | $ | 28,298,020 |
Investments Purchased with Cash Collateral from Securities Lending - 0.7% |
Investment Companies - 0.7% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 218,236∆ | | - | | - | | 13,167,540 |
Total Affiliated Investments - 2.2% | $ | 409,296 | $ | (3,445) | $ | 2,829 | $ | 41,465,560 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - 1.5% |
Money Markets - 1.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 30,836,984 | | 350,005,977 | | (352,544,325) | | 28,298,020 |
Investments Purchased with Cash Collateral from Securities Lending - 0.7% |
Investment Companies - 0.7% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | - | | 247,947,013 | | (234,779,473) | | 13,167,540 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Select Fund
Schedule of Investments
September 30, 2022
| | | | | | | | | | |
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 | $ | 16,052,679 | $ | — | $ | (16,052,679) | $ | — |
| | | | | | | | | |
(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. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
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 |
| | |
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, 2022 is $34,975,513, which represents 1.8% of net assets. |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2022 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, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Magic Leap Inc - Class A private equity common shares | 10/5/17 | $ | 9,254,547 | $ | 0 | | 0.0 | % |
| | | | | | | | | |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2022. 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, 2022. 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 | $ | 32,031,175 | $ | 32,831,673 | $ | - |
Banks | | 31,871,966 | | 69,780,151 | | - |
Beverages | | 44,650,482 | | 30,707,398 | | - |
Diversified Telecommunication Services | | - | | 29,109,812 | | - |
Electronic Equipment, Instruments & Components | | - | | 55,132,550 | | - |
Entertainment | | 47,424,020 | | 18,507,707 | | - |
Hotels, Restaurants & Leisure | | 22,896,245 | | 31,988,377 | | - |
Insurance | | 58,076,342 | | 81,317,979 | | - |
Internet & Direct Marketing Retail | | - | | 44,095,893 | | - |
Personal Products | | - | | 41,774,767 | | - |
Pharmaceuticals | | 84,837,903 | | 78,410,368 | | - |
Semiconductor & Semiconductor Equipment | | - | | 69,307,493 | | - |
Textiles, Apparel & Luxury Goods | | 35,852,744 | | 60,957,428 | | - |
Trading Companies & Distributors | | - | | 29,870,557 | | - |
All Other | | 889,043,613 | | - | | - |
Preferred Stocks | | 16,440,420 | | - | | - |
Private Placements | | - | | - | | 0 |
Investment Companies | | - | | 28,298,020 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 16,459,425 | | - |
Total Assets | $ | 1,263,124,910 | $ | 718,549,598 | $ | 0 |
| | | | | | | |
Janus Henderson Global Select Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $1,690,295,637)(1) | | $ | 1,940,208,948 | |
| Affiliated investments, at value (cost $41,462,731) | | | 41,465,560 | |
| Cash denominated in foreign currency (cost $87,373) | | | 87,691 | |
| Trustees' deferred compensation | | | 59,042 | |
| Receivables: | | | | |
| | Investments sold | | | 16,263,188 | |
| | Dividends | | | 1,701,040 | |
| | Fund shares sold | | | 943,914 | |
| | Foreign tax reclaims | | | 334,802 | |
| | Dividends from affiliates | | | 80,521 | |
| Other assets | | | 13,278 | |
Total Assets | | | 2,001,157,984 | |
Liabilities: | | | | |
| Due to custodian | | | 128 | |
| Collateral for securities loaned (Note 3) | | | 16,459,425 | |
| Payables: | | | — | |
| | Investments purchased | | | 19,553,089 | |
| | Fund shares repurchased | | | 1,324,639 | |
| | Advisory fees | | | 1,188,091 | |
| | Transfer agent fees and expenses | | | 346,911 | |
| | Professional fees | | | 66,318 | |
| | Trustees' deferred compensation fees | | | 59,042 | |
| | Trustees' fees and expenses | | | 10,361 | |
| | Affiliated fund administration fees payable | | | 4,643 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 1,925 | |
| | Custodian fees | | | 231 | |
| | Accrued expenses and other payables | | | 325,267 | |
Total Liabilities | | | 39,340,070 | |
Net Assets | | $ | 1,961,817,914 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Select Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,659,785,625 | |
| Total distributable earnings (loss) | | | 302,032,289 | |
Total Net Assets | | $ | 1,961,817,914 | |
Net Assets - Class A Shares | | $ | 5,581,964 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 393,862 | |
Net Asset Value Per Share(2) | | $ | 14.17 | |
Maximum Offering Price Per Share(3) | | $ | 15.03 | |
Net Assets - Class C Shares | | $ | 563,698 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 42,001 | |
Net Asset Value Per Share(2) | | $ | 13.42 | |
Net Assets - Class D Shares | | $ | 1,459,358,417 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 103,598,144 | |
Net Asset Value Per Share | | $ | 14.09 | |
Net Assets - Class I Shares | | $ | 24,003,789 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,696,698 | |
Net Asset Value Per Share | | $ | 14.15 | |
Net Assets - Class N Shares | | $ | 21,394,623 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,515,746 | |
Net Asset Value Per Share | | $ | 14.11 | |
Net Assets - Class R Shares | | $ | 120,453 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 8,681 | |
Net Asset Value Per Share | | $ | 13.88 | |
Net Assets - Class S Shares | | $ | 82,460 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,802 | |
Net Asset Value Per Share | | $ | 14.21 | |
Net Assets - Class T Shares | | $ | 450,712,510 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 31,940,390 | |
Net Asset Value Per Share | | $ | 14.11 | |
| |
(1) Includes $16,052,679 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. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Global Select Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 46,134,739 | |
| Affiliated securities lending income, net | | 218,236 | |
| Dividends from affiliates | | 191,060 | |
| Unaffiliated securities lending income, net | | 8,017 | |
| Other income | | 42,572 | |
| Foreign tax withheld | | (1,934,398) | |
Total Investment Income | | 44,660,226 | |
Expenses: | | | |
| Advisory fees | | 15,410,151 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 16,974 | |
| | Class C Shares | | 5,571 | |
| | Class R Shares | | 667 | |
| | Class S Shares | | 271 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,048,754 | |
| | Class R Shares | | 339 | |
| | Class S Shares | | 272 | |
| | Class T Shares | | 1,391,377 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 4,323 | |
| | Class C Shares | | 417 | |
| | Class I Shares | | 19,617 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 467 | |
| | Class C Shares | | 48 | |
| | Class D Shares | | 406,871 | |
| | Class I Shares | | 1,113 | |
| | Class N Shares | | 955 | |
| | Class R Shares | | 24 | |
| | Class S Shares | | 16 | |
| | Class T Shares | | 8,116 | |
| Shareholder reports expense | | 278,908 | |
| Registration fees | | 127,038 | |
| Custodian fees | | 106,253 | |
| Professional fees | | 74,964 | |
| Affiliated fund administration fees | | 60,197 | |
| Trustees’ fees and expenses | | 50,779 | |
| Other expenses | | 194,816 | |
Total Expenses | | 20,209,298 | |
Less: Excess Expense Reimbursement and Waivers | | (103,410) | |
Net Expenses | | 20,105,888 | |
Net Investment Income/(Loss) | | 24,554,338 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Select Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (net of foreign taxes of $8) | $ | 47,143,996 | |
| Investments in affiliates | | (3,445) | |
Total Net Realized Gain/(Loss) on Investments | | 47,140,551 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (513,010,729) | |
| Investments in affiliates | | 2,829 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (513,007,900) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (441,313,011) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2022 |
Janus Henderson Global Select Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 24,554,338 | | $ | 18,127,933 | |
| Net realized gain/(loss) on investments | | 47,140,551 | | | 270,669,430 | |
| Change in unrealized net appreciation/depreciation | | (513,007,900) | | | 363,289,877 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (441,313,011) | | | 652,087,240 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (826,160) | | | (314,417) | |
| | Class C Shares | | (68,065) | | | (33,972) | |
| | Class D Shares | | (220,714,191) | | | (84,743,417) | |
| | Class I Shares | | (2,697,365) | | | (862,095) | |
| | Class N Shares | | (3,114,836) | | | (1,453,322) | |
| | Class R Shares | | (16,669) | | | (4,979) | |
| | Class S Shares | | (15,445) | | | (12,027) | |
| | Class T Shares | | (68,619,381) | | | (26,126,702) | |
Net Decrease from Dividends and Distributions to Shareholders | | (296,072,112) | | | (113,550,931) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 637,559 | | | (246,769) | |
| | Class C Shares | | 170,165 | | | (251,299) | |
| | Class D Shares | | 131,997,273 | | | (19,243,397) | |
| | Class I Shares | | 9,202,478 | | | 3,345,265 | |
| | Class N Shares | | 2,920,908 | | | (4,477,743) | |
| | Class R Shares | | 41,900 | | | (10,727) | |
| | Class S Shares | | (23,685) | | | (141,920) | |
| | Class T Shares | | 34,360,785 | | | (2,542,605) | |
Net Increase/(Decrease) from Capital Share Transactions | | 179,307,383 | | | (23,569,195) | |
Net Increase/(Decrease) in Net Assets | | (558,077,740) | | | 514,967,114 | |
Net Assets: | | | | | | |
| Beginning of period | | 2,519,895,654 | | | 2,004,928,540 | |
| End of period | $ | 1,961,817,914 | | $ | 2,519,895,654 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $19.70 | | | $15.56 | | | $15.01 | | | $17.64 | | | $16.16 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.14 | | | 0.10 | | | 0.10 | | | 0.14 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | (3.38) | | | 4.91 | | | 1.10 | | | (0.58) | | | 1.52 | |
| Total from Investment Operations | | (3.24) | | | 5.01 | | | 1.20 | | | (0.44) | | | 1.61 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.10) | | | (0.12) | | | (0.13) | | | (0.06) | | | (0.13) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | |
| Total Dividends and Distributions | | (2.29) | | | (0.87) | | | (0.65) | | | (2.19) | | | (0.13) | |
| Net Asset Value, End of Period | | $14.17 | | | $19.70 | | | $15.56 | | | $15.01 | | | $17.64 | |
| Total Return* | | (18.45)% | | | 32.96% | | | 7.96% | | | (0.72)% | | | 9.99% | |
| Net Assets, End of Period (in thousands) | | $5,582 | | | $7,039 | | | $5,788 | | | $5,380 | | | $4,666 | |
| Average Net Assets for the Period (in thousands) | | $6,759 | | | $6,717 | | | $5,354 | | | $4,885 | | | $4,885 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.04% | | | 1.03% | | | 1.06% | | | 1.08% | | | 1.03% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.04% | | | 1.03% | | | 1.06% | | | 1.08% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | 0.83% | | | 0.56% | | | 0.70% | | | 0.97% | | | 0.54% | |
| Portfolio Turnover Rate | | 56% | | | 37% | | | 31% | | | 30% | | | 41% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $18.82 | | | $14.92 | | | $14.42 | | | $17.10 | | | $15.69 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | —(2) | | | (0.06) | | | (0.04) | | | —(2) | | | (0.05) | |
| | Net realized and unrealized gain/(loss) | | (3.21) | | | 4.71 | | | 1.06 | | | (0.55) | | | 1.49 | |
| Total from Investment Operations | | (3.21) | | | 4.65 | | | 1.02 | | | (0.55) | | | 1.44 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | (0.03) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | |
| Total Dividends and Distributions | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | (0.03) | |
| Net Asset Value, End of Period | | $13.42 | | | $18.82 | | | $14.92 | | | $14.42 | | | $17.10 | |
| Total Return* | | (19.14)% | | | 31.84% | | | 7.00% | | | (1.55)% | | | 9.15% | |
| Net Assets, End of Period (in thousands) | | $564 | | | $586 | | | $676 | | | $1,197 | | | $2,229 | |
| Average Net Assets for the Period (in thousands) | | $609 | | | $650 | | | $1,005 | | | $1,534 | | | $2,591 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.16% | | | 2.14% | | | 2.01% | | | 1.94% | | | 1.84% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.87% | | | 1.88% | | | 1.91% | | | 1.94% | | | 1.84% | |
| | Ratio of Net Investment Income/(Loss) | | 0.02% | | | (0.33)% | | | (0.26)% | | | (0.01)% | | | (0.27)% | |
| Portfolio Turnover Rate | | 56% | | | 37% | | | 31% | | | 30% | | | 41% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $19.60 | | | $15.47 | | | $14.93 | | | $17.55 | | | $16.06 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.14 | | | 0.13 | | | 0.17 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | (3.36) | | | 4.88 | | | 1.10 | | | (0.57) | | | 1.51 | |
| Total from Investment Operations | | (3.18) | | | 5.02 | | | 1.23 | | | (0.40) | | | 1.64 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.14) | | | (0.17) | | | (0.09) | | | (0.15) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | |
| Total Dividends and Distributions | | (2.33) | | | (0.89) | | | (0.69) | | | (2.22) | | | (0.15) | |
| Net Asset Value, End of Period | | $14.09 | | | $19.60 | | | $15.47 | | | $14.93 | | | $17.55 | |
| Total Return* | | (18.25)% | | | 33.28% | | | 8.18% | | | (0.51)% | | | 10.22% | |
| Net Assets, End of Period (in thousands) | | $1,459,358 | | | $1,876,374 | | | $1,494,051 | | | $1,493,415 | | | $1,615,089 | |
| Average Net Assets for the Period (in thousands) | | $1,787,127 | | | $1,803,402 | | | $1,455,934 | | | $1,479,323 | | | $1,629,405 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.82% | | | 0.82% | | | 0.84% | | | 0.85% | | | 0.84% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.82% | | | 0.82% | | | 0.84% | | | 0.85% | | | 0.84% | |
| | Ratio of Net Investment Income/(Loss) | | 1.04% | | | 0.77% | | | 0.91% | | | 1.15% | | | 0.75% | |
| Portfolio Turnover Rate | | 56% | | | 37% | | | 31% | | | 30% | | | 41% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $19.68 | | | $15.53 | | | $14.99 | | | $17.61 | | | $16.12 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.19 | | | 0.16 | | | 0.14 | | | 0.19 | | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | (3.38) | | | 4.89 | | | 1.10 | | | (0.58) | | | 1.49 | |
| Total from Investment Operations | | (3.19) | | | 5.05 | | | 1.24 | | | (0.39) | | | 1.64 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.15) | | | (0.15) | | | (0.18) | | | (0.10) | | | (0.15) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | |
| Total Dividends and Distributions | | (2.34) | | | (0.90) | | | (0.70) | | | (2.23) | | | (0.15) | |
| Net Asset Value, End of Period | | $14.15 | | | $19.68 | | | $15.53 | | | $14.99 | | | $17.61 | |
| Total Return* | | (18.23)% | | | 33.31% | | | 8.25% | | | (0.39)% | | | 10.22% | |
| Net Assets, End of Period (in thousands) | | $24,004 | | | $22,347 | | | $14,853 | | | $17,024 | | | $17,043 | |
| Average Net Assets for the Period (in thousands) | | $22,980 | | | $19,681 | | | $16,194 | | | $16,875 | | | $15,444 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.77% | | | 0.77% | | | 0.78% | | | 0.80% | | | 0.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.77% | | | 0.77% | | | 0.78% | | | 0.80% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | 1.12% | | | 0.83% | | | 0.91% | | | 1.27% | | | 0.86% | |
| Portfolio Turnover Rate | | 56% | | | 37% | | | 31% | | | 30% | | | 41% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $19.64 | | | $15.50 | | | $14.96 | | | $17.58 | | | $16.09 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.20 | | | 0.17 | | | 0.14 | | | 0.19 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | (3.37) | | | 4.88 | | | 1.12 | | | (0.56) | | | 1.50 | |
| Total from Investment Operations | | (3.17) | | | 5.05 | | | 1.26 | | | (0.37) | | | 1.66 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.17) | | | (0.16) | | | (0.20) | | | (0.12) | | | (0.17) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | |
| Total Dividends and Distributions | | (2.36) | | | (0.91) | | | (0.72) | | | (2.25) | | | (0.17) | |
| Net Asset Value, End of Period | | $14.11 | | | $19.64 | | | $15.50 | | | $14.96 | | | $17.58 | |
| Total Return* | | (18.21)% | | | 33.41% | | | 8.38% | | | (0.28)% | | | 10.34% | |
| Net Assets, End of Period (in thousands) | | $21,395 | | | $26,130 | | | $24,271 | | | $37,810 | | | $33,278 | |
| Average Net Assets for the Period (in thousands) | | $25,204 | | | $27,543 | | | $29,294 | | | $31,647 | | | $33,126 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.69% | | | 0.68% | | | 0.68% | | | 0.69% | | | 0.68% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.69% | | | 0.68% | | | 0.68% | | | 0.69% | | | 0.68% | |
| | Ratio of Net Investment Income/(Loss) | | 1.18% | | | 0.90% | | | 0.97% | | | 1.32% | | | 0.92% | |
| Portfolio Turnover Rate | | 56% | | | 37% | | | 31% | | | 30% | | | 41% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $19.36 | | | $15.29 | | | $14.76 | | | $17.39 | | | $15.99 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | —(2) | | | 0.01 | | | 0.05 | | | —(2) | |
| | Net realized and unrealized gain/(loss) | | (3.31) | | | 4.82 | | | 1.08 | | | (0.55) | | | 1.49 | |
| Total from Investment Operations | | (3.26) | | | 4.82 | | | 1.09 | | | (0.50) | | | 1.49 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | — | | | (0.04) | | | — | | | (0.09) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | |
| Total Dividends and Distributions | | (2.22) | | | (0.75) | | | (0.56) | | | (2.13) | | | (0.09) | |
| Net Asset Value, End of Period | | $13.88 | | | $19.36 | | | $15.29 | | | $14.76 | | | $17.39 | |
| Total Return* | | (18.89)% | | | 32.19% | | | 7.29% | | | (1.21)% | | | 9.32% | |
| Net Assets, End of Period (in thousands) | | $120 | | | $123 | | | $107 | | | $188 | | | $230 | |
| Average Net Assets for the Period (in thousands) | | $135 | | | $118 | | | $170 | | | $198 | | | $459 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 3.67% | | | 3.94% | | | 3.20% | | | 2.95% | | | 1.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.62% | | | 1.60% | | | 1.63% | | | 1.63% | | | 1.56% | |
| | Ratio of Net Investment Income/(Loss) | | 0.27% | | | (0.02)% | | | 0.05% | | | 0.37% | | | 0.01% | |
| Portfolio Turnover Rate | | 56% | | | 37% | | | 31% | | | 30% | | | 41% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | 25 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $19.71 | | | $15.57 | | | $15.02 | | | $17.74 | | | $16.24 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.08 | | | 0.03 | | | 0.06 | | | 0.10 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | (3.39) | | | 4.93 | | | 1.09 | | | (0.58) | | | 1.53 | |
| Total from Investment Operations | | (3.31) | | | 4.96 | | | 1.15 | | | (0.48) | | | 1.57 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.07) | | | (0.08) | | | (0.11) | | | (0.07) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | |
| Total Dividends and Distributions | | (2.19) | | | (0.82) | | | (0.60) | | | (2.24) | | | (0.07) | |
| Net Asset Value, End of Period | | $14.21 | | | $19.71 | | | $15.57 | | | $15.02 | | | $17.74 | |
| Total Return* | | (18.75)% | | | 32.57% | | | 7.61% | | | (0.97)% | | | 9.69% | |
| Net Assets, End of Period (in thousands) | | $82 | | | $139 | | | $227 | | | $248 | | | $251 | |
| Average Net Assets for the Period (in thousands) | | $108 | | | $189 | | | $231 | | | $234 | | | $259 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 3.97% | | | 2.76% | | | 2.48% | | | 2.47% | | | 1.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.37% | | | 1.36% | | | 1.37% | | | 1.36% | | | 1.29% | |
| | Ratio of Net Investment Income/(Loss) | | 0.42% | | | 0.16% | | | 0.38% | | | 0.66% | | | 0.25% | |
| Portfolio Turnover Rate | | 56% | | | 37% | | | 31% | | | 30% | | | 41% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $19.63 | | | $15.50 | | | $14.96 | | | $17.57 | | | $16.08 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.17 | | | 0.13 | | | 0.12 | | | 0.16 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | (3.37) | | | 4.88 | | | 1.10 | | | (0.57) | | | 1.51 | |
| Total from Investment Operations | | (3.20) | | | 5.01 | | | 1.22 | | | (0.41) | | | 1.63 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.13) | | | (0.16) | | | (0.07) | | | (0.14) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | |
| Total Dividends and Distributions | | (2.32) | | | (0.88) | | | (0.68) | | | (2.20) | | | (0.14) | |
| Net Asset Value, End of Period | | $14.11 | | | $19.63 | | | $15.50 | | | $14.96 | | | $17.57 | |
| Total Return* | | (18.36)% | | | 33.15% | | | 8.08% | | | (0.54)% | | | 10.17% | |
| Net Assets, End of Period (in thousands) | | $450,713 | | | $587,159 | | | $464,956 | | | $484,175 | | | $533,974 | |
| Average Net Assets for the Period (in thousands) | | $554,055 | | | $561,617 | | | $464,019 | | | $481,731 | | | $539,796 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.92% | | | 0.92% | | | 0.93% | | | 0.92% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.91% | | | 0.91% | | | 0.91% | | | 0.92% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | 0.96% | | | 0.68% | | | 0.83% | | | 1.08% | | | 0.68% | |
| Portfolio Turnover Rate | | 56% | | | 37% | | | 31% | | | 30% | | | 41% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | 27 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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 Select 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, 2022 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, 2022.
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
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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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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
Janus Henderson Global Select Fund
Notes to Financial Statements
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 the Adviser 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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. Emerging market countries in which the Fund may invest include frontier market countries, the economies of which are less developed than other emerging market countries. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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
Janus Henderson Global Select Fund
Notes to Financial Statements
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 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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
Janus Henderson Global Select Fund
Notes to Financial Statements
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $16,052,679. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $16,459,425, resulting in the net amount due to the counterparty of $406,746.
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 Offsetting Assets and Liabilities table located in the Schedule of Investments 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.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least one-year period ending January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder
Janus Henderson Global Select Fund
Notes to Financial Statements
services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent 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.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, of up to 0.50% of the Class R Shares' average daily net assets, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $1,105.
Janus Henderson Global Select 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 the Distributor during the year ended September 30, 2022.
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, 2022.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser 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, 2022, the Fund engaged in cross trades amounting to $1,029,750 in purchases.
Janus Henderson Global Select Fund
Notes to Financial Statements
As of September 30, 2022, shares of the Fund were owned by affiliates of the Adviser, and/or other funds advised by the Adviser, 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 | - | | - | | |
| | | | | | |
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) | |
$ 19,917,902 | $ 35,215,037 | $ - | $ - | $ - | $ (196,202) | $247,095,552 | |
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, 2022 are noted below. The primary difference between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 1,734,578,956 | $375,821,367 | $(128,725,815) | $ 247,095,552 |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 35,803,205 | $ 260,268,907 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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 |
$ 1,125,174 | $ (4,632,625) | $ 3,507,451 |
Capital has been adjusted by $1,125,182, including $717,834 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Global Select Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 45,159 | $ 797,321 | | 26,042 | $ 483,191 |
Reinvested dividends and distributions | 43,875 | 750,710 | | 16,436 | 285,002 |
Shares repurchased | (52,420) | (910,472) | | (57,117) | (1,014,962) |
Net Increase/(Decrease) | 36,614 | $ 637,559 | | (14,639) | $ (246,769) |
Class C Shares: | | | | | |
Shares sold | 12,911 | $ 201,178 | | 3,454 | $ 64,583 |
Reinvested dividends and distributions | 4,173 | 68,065 | | 2,038 | 33,972 |
Shares repurchased | (6,217) | (99,078) | | (19,642) | (349,854) |
Net Increase/(Decrease) | 10,867 | $ 170,165 | | (14,150) | $ (251,299) |
Class D Shares: | | | | | |
Shares sold | 1,789,338 | $ 30,973,256 | | 2,203,328 | $ 41,284,931 |
Reinvested dividends and distributions | 12,616,979 | 214,236,297 | | 4,780,532 | 82,320,764 |
Shares repurchased | (6,550,382) | (113,212,280) | | (7,797,820) | (142,849,092) |
Net Increase/(Decrease) | 7,855,935 | $ 131,997,273 | | (813,960) | $(19,243,397) |
Class I Shares: | | | | | |
Shares sold | 700,589 | $ 11,575,199 | | 273,675 | $ 5,140,916 |
Reinvested dividends and distributions | 151,400 | 2,581,372 | | 47,200 | 815,610 |
Shares repurchased | (291,023) | (4,954,093) | | (141,642) | (2,611,261) |
Net Increase/(Decrease) | 560,966 | $ 9,202,478 | | 179,233 | $ 3,345,265 |
Class N Shares: | | | | | |
Shares sold | 217,485 | $ 3,531,454 | | 193,821 | $ 3,594,074 |
Reinvested dividends and distributions | 183,226 | 3,114,836 | | 84,348 | 1,453,322 |
Shares repurchased | (215,725) | (3,725,382) | | (513,747) | (9,525,139) |
Net Increase/(Decrease) | 184,986 | $ 2,920,908 | | (235,578) | $ (4,477,743) |
Class R Shares: | | | | | |
Shares sold | 1,868 | $ 33,827 | | 255 | $ 4,687 |
Reinvested dividends and distributions | 977 | 16,461 | | 287 | 4,911 |
Shares repurchased | (510) | (8,388) | | (1,204) | (20,325) |
Net Increase/(Decrease) | 2,335 | $ 41,900 | | (662) | $ (10,727) |
Class S Shares: | | | | | |
Shares sold | 187 | $ 3,213 | | 248 | $ 4,464 |
Reinvested dividends and distributions | 897 | 15,445 | | 692 | 12,027 |
Shares repurchased | (2,324) | (42,343) | | (8,458) | (158,411) |
Net Increase/(Decrease) | (1,240) | $ (23,685) | | (7,518) | $ (141,920) |
Class T Shares: | | | | | |
Shares sold | 2,015,918 | $ 35,089,015 | | 1,900,455 | $ 35,428,430 |
Reinvested dividends and distributions | 3,930,772 | 66,901,743 | | 1,481,771 | 25,560,543 |
Shares repurchased | (3,922,873) | (67,629,973) | | (3,460,887) | (63,531,578) |
Net Increase/(Decrease) | 2,023,817 | $ 34,360,785 | | (78,661) | $ (2,542,605) |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$1,312,265,927 | $1,402,180,226 | $ - | $ - |
Janus Henderson Global Select Fund
Notes to Financial Statements
7. Recent Accounting Pronouncements
The FASB issued Accounting Standards Update 2022-03: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”) in June 2022. The new guidance in the ASU clarifies existing guidance in ASC 820 related to the fair value measurement of an equity security subject to contractual sale restrictions with the intent to reduce diversity in interpretation. Under the guidance, a contractual restriction on the sale of an equity security would not be considered when measuring fair value as such restriction is not treated as part of the equity security’s unit of account. The amendments would be applied prospectively on or after adoption date to equity securities with a contract containing a sale restriction that is executed or modified after such date. The effective date set by the FASB is December 15, 2023, with early adoption permitted. The Adviser is currently evaluating whether to early adopt and does not anticipate it to have a material impact on the Fund.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Select Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Select Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Select Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Select Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Global Select Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Select Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Global Select Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Global Select Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Global Select Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Select Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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.
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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, 2022:
| | |
| | |
Capital Gain Distributions | $260,986,739 |
Dividends Received Deduction Percentage | 97% |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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 the Adviser. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US LLC (2009-2017). |
* 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
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 |
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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Global Select Fund
Notes
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Janus Henderson Global Select Fund
Notes
NotesPage2
Janus Henderson Global Select 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93046 11-22 |
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| | | |
| | | ANNUAL REPORT September 30, 2022 |
| | |
| | Janus Henderson Global Sustainable Equity Fund |
| | |
| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Sustainable Equity Fund
Janus Henderson Global Sustainable Equity Fund (unaudited)
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FUND SNAPSHOT We believe there is a strong link between sustainable development, innovation, and long-term compounding growth. Our investment framework seeks to invest in companies whose products and services are considered to 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 |
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PERFORMANCE
The Janus Henderson Global Sustainable Equity Fund Class I Shares returned -25.97% for the 12-month period ended September 30, 2022, underperforming its benchmark, the MSCI World IndexSM, which returned -19.63%.
INVESTMENT ENVIRONMENT
Volatility was the overarching feature of global stock markets over the 12 months, as higher inflation, tightening monetary policy, and slowing global growth caused dislocations in markets.
The period started strongly; investors put aside uncertainty around higher inflation, hawkish central banks, and worries about the Omicron variant of COVID-19, with global stock markets ending the fourth quarter of 2021 positively. However, positive investor sentiment waned in 2022 as the U.S. raised rates for the first time in over three years and increased expectations of further tightening.
War in Europe also shocked markets, with Russia’s invasion of Ukraine having devasting effects on Ukraine and energy supplies more broadly. Given that Russia supplies much of the world’s energy, its threat to restrict supply spurred a rise in oil and gas prices, adding to inflationary pressures. On the plus side, this move also served as an incentive for Western countries to become more self-sufficient in energy generation. In China, the re-emergence of COVID-19 and the resulting lockdowns, combined with uncertainty following the Chinese government’s attempts to control housing market speculation, added to the risk-off environment, with weakness in Chinese markets spreading to other parts of Asia.
Market sentiment weakened further in the second half as ongoing supply chain issues, surging energy costs, and higher food prices pushed inflation to multi-decade highs in major economies. Developed market central banks responded by increasing the pace of rate hikes, forcing equity markets lower. In this environment, investors moved away from companies that rely on global supply chains, prompting many to look at reshoring and seeking ways to reduce dependence on external suppliers. More generally, equity valuations contracted, and many markets entered “bear market” territory.
Alongside economic volatility, extreme weather continued to feature as a major global issue. The effects of climate change appeared unrelentingly, with droughts and wildfires around the globe and severe flooding across the U.S., Brazil, China, and Pakistan. A combination of flooding and infrastructure failure led to a drinking water crisis in Jackson, Mississippi, providing yet another acute example of the detrimental social impact of extreme weather. As we look at these events, we remain as convinced as ever in the need for countries to invest in the areas that we regard as crucial for the next decade: energy security, economic resilience, and supply chain re-localization.
Global events meant that governments around the world started to focus on the aforementioned secular trends and move toward achieving the goals set out in the delayed 2021 United Nations Climate Change Conference (COP26), which took place at the end of 2021. We see evidence of this in many places, and the passing of the Inflation Reduction Act by the U.S. Congress in August was a step in this direction. The legislation aims to control inflation, develop the country’s infrastructure, and promote cleaner energy by investing in domestic generation. This will put the U.S. economy on a pathway to net zero and we think it is likely to be an essential factor in driving investment and creating jobs for the economy. The bill also incentivizes homeowners to improve energy efficiency and offers tax credits on electric vehicles manufactured using solely a North American supply chain.
Janus Henderson Global Sustainable Equity Fund (unaudited)
Similarly, the EU passed a crucial milestone in its “Fit for 55” plan, boosting its renewable energy target, increasing energy efficiency, and setting a pathway to reducing net greenhouse gases.
PERFORMANCE DISCUSSION
The best-performing sectors in the index were energy, utilities, and consumer staples, with energy being the only sector to post a positive return in the past 12 months. Among the worst performers were communication services, consumer discretionary, and information technology, all of which posted double-digit losses.
Information technology presented the most pain for the Fund over the period, with both an overweight to the sector and unfavorable stock selection detracting from relative performance. The biggest drag on performance was the Fund’s lack of an investment in Apple, while within the Fund, our software and semiconductor names underperformed on concerns of future growth. Strong returns from energy stocks, driven by events in Ukraine, also detracted significantly from performance given the Fund’s exclusion of fossil fuels. Elsewhere, a beneficial underweight to the consumer discretionary sector was offset by stock selection as our holdings in Adidas, Aptiv, and others all fell on stock-specific news. The Fund’s investment policy excludes some luxury brands, fast food restaurants, and casinos, which were among the leading performers. An underweight allocation and stock selection in healthcare also hurt relative performance. This was partly a result of avoiding companies involved in animal testing, although pharmaceuticals held up relatively well. Weakness in the European economy weighed on our stock selection in the industrials sector, where Knorr-Bremse and other holdings dragged on relative performance. This was offset to some extent by our U.S. holdings, particularly our water names.
Good stock selection in financials made this the best-performing sector for the Fund relative to the index. Insurers such as Progressive and Intact Financial held up well compared with banks, which recorded double-digit losses. Another positive contributor was communication services, where our underweight allocation contributed positively to relative returns, as this was the weakest sector in the index. Stock selection also contributed favorably. Our overweight allocation to utilities, primarily through our renewable energy names such as Boralex and others, also helped support relative performance.
The leading performers in the portfolio were health insurance company Humana; property and casualty insurance provider Progressive; and Intact Financial, a Canadian property and casualty insurer.
Humana is a pioneer in integrated care in the U.S. and has developed a niche in tailoring its offering towards government-sponsored programs. The company aims to reduce costs for its members through better prevention of health problems and programs to encourage healthier lifestyles. Humana is a beneficiary of the aging population trend, and we like its ability to drive better health outcomes. The company’s share price has benefited from its exposure to the defensive characteristics of the healthcare and insurance sectors and was further boosted by a series of above-expectations earnings and raised guidance. Management envisages further membership growth and increased profits in 2023. In May, Humana announced a joint venture to develop additional primary care clinics, further cementing its position as one of the largest senior-focused primary care providers in the U.S.
Progressive is one of the largest automotive insurance companies in the U.S. and considers itself a data science company focused on the insurance industry. It uses analytics, such as tracking driving habits, to identify and attract lower-risk drivers. This encourages safer driving practices among its policy holders and allows it to offer lower insurance rates, creating a competitive advantage. Management indicated that the company has completed much of its repricing, while many competitors continue to seek higher premiums, and this could propel growth in 2023 when competitor pricing begins to look relatively unfavorable. We also saw positive trends from Progressive as it looks to build its home insurance client book after acquiring its joint venture home insurance partner. The company will only offer home insurance to customers who bundle it with auto cover, and this should be those who are lower risk. Progressive has been a consistent performer for the strategy, and we consider its ability to create a safer environment for its customers to be a huge benefit to society.
Intact Financial has demonstrated continued growth in earnings driven by better-than-expected margins across all segments in which it operates, growth in its financial reserves, and strong investment income. Similar to Progressive, our long-term thesis for Intact is based on the company’s use of digital technology and data analytics to attract lower-risk customers by rewarding safer driving habits or the adoption of other loss prevention measures. The company has competitive advantages including scale, pricing, and in-house data analytics. Its 2021 acquisition of network security company RSA boosted its market
Janus Henderson Global Sustainable Equity Fund (unaudited)
share in Canada, making it double the size of its nearest local competitor.
The biggest detractors for the period were Avalara, a tax and compliance software provider; Knorr-Bremse, which provides technology for the rail and truck industries; and software provider Adobe.
Avalara fell despite solid results. The company was a victim of the shift in investor style from value stocks to growth stocks as the market environment weakened. Although we like its exposure to increased levels of e-commerce and cloud computing, we sold the position after a deal was announced to take the company private.
Knorr-Bremse is a global leader in providing critical components and systems for the rail and commercial vehicle industries. The company suffered a big fall in value after the death of its long-standing CEO and chairman, who was also the majority owner. The share price was also hit by a series of governance issues, including high levels of turnover among management and the supervisory board, a lack of clarity around the family’s shareholding and a failed merger. There were also operational issues, including the fact that the company had a large amount of its business in China and Russia. We value Knorr-Bremse’s exposure to themes such as electrification, urbanization, investment in public transport systems, and regulation regarding safety and efficiency.
Adobe suffered a sharp share price fall after posting fourth quarter 2021 results were below expectations, together with lower guidance. There were further falls when the company was caught up in general weakness in the sector, and again after it announced the acquisition of Figma, a smaller competitor. The acquisition conflicted with our view of Adobe as an innovator and cast doubt over the potential for share price rises, and so we sold the stock.
In terms of trading activity, we sold our holding in a large automotive and clean energy company after a sharp rise took the company’s valuation past the $1 trillion market cap threshold, which appeared to limit future growth prospects. In addition to Adobe, we also exited positions in companies involved in packaging materials, telecom services, and personalized healthcare, as we felt there were better prospects elsewhere. Toward period end we sold the holding in Avalara and our holding in a Software as a Service (SaaS) products provider after both received offers from private equity companies. We trimmed our positions in several holdings, including a multinational semiconductor company, an insurance brokerage firm, and a Japanese multinational video game company.
We initiated new positions in a major global communication services company and a leader in 5G investment in the U.S.; and a provider of next-generation cloud-based enterprise resource planning (ERP) software solutions. We also added to some of our holdings in healthcare and information technology.
OUTLOOK
The global economy is facing many challenges right now. Central banks are adopting aggressive monetary policies to address high levels of inflation, and higher interest rates are having a consequential impact on consumer and business confidence, global foreign exchange rates and asset valuations. Meanwhile, we must also contend with the ramifications of geopolitical instability, energy market instability, and weather and climate instability. This presents a highly volatile backdrop for corporate earnings, and the current result has been weak equity markets and plenty of cause for investor concern.
Yet we see many reasons for investors to look through these challenges, and to consider the opportunities. The current situation has reinforced our long-term conviction in the secular trends of energy security, economic resilience, supply chain re-localization, and the overall migration to a more sustainable global economy.
We continually look to invest in companies that benefit from these secular sustainability themes, such as companies that develop energy efficiency products that we believe could benefit as reducing energy demand becomes a core element of government policy; and renewable energy developers that will help economies move away from fossil fuels and help tackle energy security more broadly. The current market environment may not necessarily reward these companies’ equity valuations in the near term, but they continue to deliver robust operational performance with strong revenue, earnings, and free cash flow growth. As we assess the current market environment, we firmly believe the current weakness offers an opportunity to invest in many of these companies at lower valuation levels.
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, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Progressive Corp/The | 1.96% | | 0.69% | | Avalara Inc | 1.31% | | -0.72% |
| Humana Inc | 2.19% | | 0.67% | | Knorr-Bremse AG | 1.25% | | -0.61% |
| Intact Financial Corp | 2.60% | | 0.63% | | Adobe Inc | 1.96% | | -0.59% |
| Boralex Inc - Class A | 1.78% | | 0.51% | | adidas AG | 1.07% | | -0.55% |
| Cadence Design Systems Inc | 1.61% | | 0.36% | | Aptiv PLC | 1.82% | | -0.54% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | 1.87% | | 13.81% | 13.64% |
| Communication Services | | 1.84% | | 2.45% | 7.91% |
| Other** | | 0.78% | | 3.52% | 0.00% |
| Utilities | | 0.23% | | 5.05% | 2.94% |
| Real Estate | | 0.03% | | 4.07% | 2.80% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | -4.66% | | 40.87% | 22.24% |
| Energy | | -1.49% | | 0.00% | 4.27% |
| Health Care | | -1.29% | | 6.23% | 12.99% |
| Consumer Discretionary | | -0.97% | | 6.51% | 11.58% |
| Consumer Staples | | -0.74% | | 0.48% | 7.26% |
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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 Sustainable Equity Fund (unaudited)
Fund At A Glance
September 30, 2022
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5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 6.0% |
Autodesk Inc | |
Software | 3.5% |
Intact Financial Corp | |
Insurance | 3.0% |
Aon PLC - Class A | |
Insurance | 3.0% |
Humana Inc | |
Health Care Providers & Services | 3.0% |
| | 18.5% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 95.8% | |
Investment Companies | | 4.6% | |
Other | | (0.4)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson Global Sustainable Equity Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | |
| | | | | | | |
| | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -26.05% | 2.19% | | | 4.53% | 1.16% |
Class A Shares at MOP | | -30.28% | -0.44% | | | | |
Class C Shares at NAV | | -25.79% | 2.22% | | | 7.33% | 1.87% |
Class C Shares at CDSC | | -26.53% | 2.22% | | | | |
Class D Shares | | -26.02% | 2.24% | | | 1.97% | 1.00% |
Class I Shares | | -25.97% | 2.35% | | | 1.86% | 0.87% |
Class N Shares | | -25.93% | 2.39% | | | 2.14% | 0.86% |
Class R Shares | | -25.72% | 2.13% | | | 8.11% | 1.61% |
Class S Shares | | -25.98% | 2.19% | | | 6.82% | 1.37% |
Class T Shares | | -26.12% | 2.14% | | | 2.82% | 1.11% |
MSCI World Index | | -19.63% | 5.21% | | | | |
Morningstar Quartile - Class I Shares | | 2nd | 1st | | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | 105/370 | 83/350 | | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
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), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class 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.
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.
© 2022 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. Net expense ratios reflect the expense waivers, if any, contractually agreed to for at least a one-year period commencing on January 28, 2022. 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $770.40 | $4.84 | | $1,000.00 | $1,019.60 | $5.52 | 1.09% |
Class C Shares | $1,000.00 | $771.30 | $2.98 | | $1,000.00 | $1,021.71 | $3.40 | 0.67% |
Class D Shares | $1,000.00 | $770.90 | $4.48 | | $1,000.00 | $1,020.00 | $5.11 | 1.01% |
Class I Shares | $1,000.00 | $770.80 | $4.35 | | $1,000.00 | $1,020.16 | $4.96 | 0.98% |
Class N Shares | $1,000.00 | $770.90 | $3.86 | | $1,000.00 | $1,020.71 | $4.41 | 0.87% |
Class R Shares | $1,000.00 | $771.50 | $3.51 | | $1,000.00 | $1,021.11 | $4.00 | 0.79% |
Class S Shares | $1,000.00 | $770.40 | $3.95 | | $1,000.00 | $1,020.61 | $4.51 | 0.89% |
Class T Shares | $1,000.00 | $770.00 | $4.88 | | $1,000.00 | $1,019.55 | $5.57 | 1.10% |
† | 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, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 95.8% | | | |
Auto Components – 1.6% | | | |
| | Aptiv PLC* | | 5,420 | | | $423,898 | |
Building Products – 1.4% | | | |
| | Advanced Drainage Systems Inc | | 2,909 | | | 361,792 | |
Containers & Packaging – 1.0% | | | |
| | DS Smith PLC | | 94,385 | | | 267,939 | |
Diversified Financial Services – 0.2% | | | |
| | Linklogis Inc - Class B (144A)* | | 133,492 | | | 55,247 | |
Electric Utilities – 1.6% | | | |
| | SSE PLC | | 25,349 | | | 429,696 | |
Electrical Equipment – 5.5% | | | |
| | Legrand SA | | 8,636 | | | 557,878 | |
| | Nidec Corp | | 6,300 | | | 354,941 | |
| | Schneider Electric SE | | 5,037 | | | 565,020 | |
| | | 1,477,839 | |
Electronic Equipment, Instruments & Components – 6.9% | | | |
| | IPG Photonics Corp* | | 4,676 | | | 394,421 | |
| | Murata Manufacturing Co Ltd | | 7,900 | | | 362,936 | |
| | Shimadzu Corp | | 16,100 | | | 419,139 | |
| | TE Connectivity Ltd | | 5,986 | | | 660,615 | |
| | | 1,837,111 | |
Entertainment – 2.3% | | | |
| | Nintendo Co Ltd | | 15,000 | | | 607,474 | |
Equity Real Estate Investment Trusts (REITs) – 3.9% | | | |
| | Crown Castle International Corp | | 2,562 | | | 370,337 | |
| | Equinix Inc | | 652 | | | 370,884 | |
| | Prologis Inc | | 3,098 | | | 314,757 | |
| | | 1,055,978 | |
Food Products – 0.5% | | | |
| | McCormick & Co Inc/MD | | 1,718 | | | 122,442 | |
Health Care Equipment & Supplies – 0.2% | | | |
| | Nanosonics Ltd* | | 30,100 | | | 65,810 | |
Health Care Providers & Services – 5.0% | | | |
| | Encompass Health Corp | | 10,187 | | | 460,758 | |
| | Enhabit Inc* | | 5,095 | | | 71,534 | |
| | Humana Inc | | 1,649 | | | 800,078 | |
| | | 1,332,370 | |
Independent Power and Renewable Electricity Producers – 4.1% | | | |
| | Boralex Inc - Class A | | 19,656 | | | 624,318 | |
| | Innergex Renewable Energy Inc | | 37,944 | | | 477,734 | |
| | | 1,102,052 | |
Information Technology Services – 2.2% | | | |
| | Mastercard Inc | | 2,041 | | | 580,338 | |
Insurance – 12.9% | | | |
| | AIA Group Ltd | | 59,000 | | | 489,866 | |
| | Aon PLC - Class A | | 3,014 | | | 807,360 | |
| | Intact Financial Corp | | 5,710 | | | 808,173 | |
| | Marsh & McLennan Cos Inc | | 4,249 | | | 634,333 | |
| | Progressive Corp/The | | 6,066 | | | 704,930 | |
| | | 3,444,662 | |
Leisure Products – 1.9% | | | |
| | Shimano Inc | | 3,200 | | | 504,396 | |
Life Sciences Tools & Services – 1.8% | | | |
| | ICON PLC* | | 2,683 | | | 493,082 | |
Machinery – 7.8% | | | |
| | Evoqua Water Technologies Corp* | | 18,257 | | | 603,759 | |
| | Knorr-Bremse AG | | 5,251 | | | 227,628 | |
| | Wabtec Corp | | 9,237 | | | 751,430 | |
| | Xylem Inc/NY | | 5,758 | | | 503,019 | |
| | | 2,085,836 | |
| | |
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, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Professional Services – 1.7% | | | |
| | Wolters Kluwer NV | | 4,650 | | | $452,661 | |
Semiconductor & Semiconductor Equipment – 12.2% | | | |
| | ASML Holding NV | | 904 | | | 374,915 | |
| | Lam Research Corp | | 1,330 | | | 486,780 | |
| | Microchip Technology Inc | | 11,331 | | | 691,531 | |
| | NVIDIA Corp | | 4,928 | | | 598,210 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 34,000 | | | 446,934 | |
| | Texas Instruments Inc | | 4,374 | | | 677,008 | |
| | | 3,275,378 | |
Software – 15.3% | | | |
| | Atlassian Corp PLC - Class A* | | 2,461 | | | 518,262 | |
| | Autodesk Inc* | | 4,955 | | | 925,594 | |
| | Bill.com Holdings Inc* | | 1,448 | | | 191,672 | |
| | Cadence Design Systems Inc* | | 3,238 | | | 529,186 | |
| | Microsoft Corp | | 6,923 | | | 1,612,367 | |
| | Workday Inc - Class A* | | 2,129 | | | 324,076 | |
| | | 4,101,157 | |
Specialty Retail – 1.2% | | | |
| | Home Depot Inc | | 1,174 | | | 323,954 | |
Textiles, Apparel & Luxury Goods – 1.4% | | | |
| | adidas AG | | 1,556 | | | 180,547 | |
| | NIKE Inc - Class B | | 2,400 | | | 199,488 | |
| | | 380,035 | |
Thrifts & Mortgage Finance – 1.8% | | | |
| | Walker & Dunlop Inc | | 5,915 | | | 495,263 | |
Wireless Telecommunication Services – 1.4% | | | |
| | T-Mobile US Inc* | | 2,766 | | | 371,114 | |
Total Common Stocks (cost $28,830,217) | | 25,647,524 | |
Investment Companies– 4.6% | | | |
Money Markets – 4.6% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $1,228,256) | | 1,228,155 | | | 1,228,278 | |
Total Investments (total cost $30,058,473) – 100.4% | | 26,875,802 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.4)% | | (95,754) | |
Net Assets – 100% | | $26,780,048 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $17,591,206 | | 65.4 | % |
Japan | | 2,248,886 | | 8.4 | |
Canada | | 1,910,225 | | 7.1 | |
France | | 1,122,898 | | 4.2 | |
Netherlands | | 827,576 | | 3.1 | |
United Kingdom | | 697,635 | | 2.6 | |
Australia | | 584,072 | | 2.2 | |
Ireland | | 493,082 | | 1.8 | |
Hong Kong | | 489,866 | | 1.8 | |
Taiwan | | 446,934 | | 1.7 | |
Germany | | 408,175 | | 1.5 | |
China | | 55,247 | | 0.2 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Global Sustainable Equity Fund
Schedule of Investments
September 30, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - 4.6% |
Money Markets - 4.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 9,215 | $ | 30 | $ | (16) | $ | 1,228,278 |
| |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - 4.6% |
Money Markets - 4.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 1,726,214 | | 10,979,720 | | (11,477,670) | | 1,228,278 |
| | |
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, 2022 is $55,247, which represents 0.2% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
£ | 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, 2022. 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 | $ | - | $ | 267,939 | $ | - |
Diversified Financial Services | | - | | 55,247 | | - |
Electric Utilities | | - | | 429,696 | | - |
Electrical Equipment | | - | | 1,477,839 | | - |
Electronic Equipment, Instruments & Components | | 1,055,036 | | 782,075 | | - |
Entertainment | | - | | 607,474 | | - |
Health Care Equipment & Supplies | | - | | 65,810 | | - |
Insurance | | 2,954,796 | | 489,866 | | - |
Leisure Products | | - | | 504,396 | | - |
Machinery | | 1,858,208 | | 227,628 | | - |
Professional Services | | - | | 452,661 | | - |
Semiconductor & Semiconductor Equipment | | 2,453,529 | | 821,849 | | - |
Textiles, Apparel & Luxury Goods | | 199,488 | | 180,547 | | - |
All Other | | 10,763,440 | | - | | - |
Investment Companies | | - | | 1,228,278 | | - |
Total Assets | $ | 19,284,497 | $ | 7,591,305 | $ | - |
| | | | | | | |
Janus Henderson Global Sustainable Equity Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $28,830,217) | | $ | 25,647,524 | |
| Affiliated investments, at value (cost $1,228,256) | | | 1,228,278 | |
| Cash denominated in foreign currency (cost $6,716) | | | 6,543 | |
| Trustees' deferred compensation | | | 806 | |
| Receivables: | | | | |
| | Dividends | | | 24,980 | |
| | Foreign tax reclaims | | | 8,214 | |
| | Fund shares sold | | | 6,627 | |
| | Dividends from affiliates | | | 2,617 | |
| Other assets | | | 684 | |
Total Assets | | | 26,926,273 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Professional fees | | | 50,846 | |
| | Advisory fees | | | 30,187 | |
| | Fund shares repurchased | | | 8,725 | |
| | Transfer agent fees and expenses | | | 4,415 | |
| | Custodian fees | | | 2,970 | |
| | Trustees' deferred compensation fees | | | 806 | |
| | Trustees' fees and expenses | | | 136 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 131 | |
| | Affiliated fund administration fees payable | | | 63 | |
| | Accrued expenses and other payables | | | 47,946 | |
Total Liabilities | | | 146,225 | |
Net Assets | | $ | 26,780,048 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Sustainable Equity Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 31,721,557 | |
| Total distributable earnings (loss) | | | (4,941,509) | |
Total Net Assets | | $ | 26,780,048 | |
Net Assets - Class A Shares | | $ | 181,609 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 17,515 | |
Net Asset Value Per Share(1) | | $ | 10.37 | |
Maximum Offering Price Per Share(2) | | $ | 11.00 | |
Net Assets - Class C Shares | | $ | 60,776 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,848 | |
Net Asset Value Per Share(1) | | $ | 10.39 | |
Net Assets - Class D Shares | | $ | 20,663,764 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,987,628 | |
Net Asset Value Per Share | | $ | 10.40 | |
Net Assets - Class I Shares | | $ | 3,990,912 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 384,182 | |
Net Asset Value Per Share | | $ | 10.39 | |
Net Assets - Class N Shares | | $ | 1,250,011 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 119,859 | |
Net Asset Value Per Share | | $ | 10.43 | |
Net Assets - Class R Shares | | $ | 40,464 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,890 | |
Net Asset Value Per Share | | $ | 10.40 | |
Net Assets - Class S Shares | | $ | 52,543 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,065 | |
Net Asset Value Per Share | | $ | 10.37 | |
Net Assets - Class T Shares | | $ | 539,969 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 52,015 | |
Net Asset Value Per Share | | $ | 10.38 | |
| |
(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, 2022 |
Janus Henderson Global Sustainable Equity Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 403,724 | |
| Dividends from affiliates | | 9,215 | |
| Other income | | 254 | |
| Foreign tax withheld | | (24,559) | |
Total Investment Income | | 388,634 | |
Expenses: | | | |
| Advisory fees | | 258,185 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 246 | |
| | Class C Shares | | — | |
| | Class R Shares | | — | |
| | Class S Shares | | — | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 28,143 | |
| | Class R Shares | | 127 | |
| | Class S Shares | | 165 | |
| | Class T Shares | | 1,588 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 127 | |
| | Class C Shares | | 18 | |
| | Class I Shares | | 4,108 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 26 | |
| | Class C Shares | | 9 | |
| | Class D Shares | | 8,690 | |
| | Class I Shares | | 519 | |
| | Class N Shares | | 93 | |
| | Class R Shares | | 6 | |
| | Class S Shares | | 4 | |
| | Class T Shares | | 37 | |
| Registration fees | | 140,730 | |
| Non-affiliated fund administration fees | | 69,688 | |
| Professional fees | | 48,057 | |
| Shareholder reports expense | | 12,603 | |
| Custodian fees | | 8,920 | |
| Affiliated fund administration fees | | 861 | |
| Trustees’ fees and expenses | | 799 | |
| Other expenses | | 6,556 | |
Total Expenses | | 590,305 | |
Less: Excess Expense Reimbursement and Waivers | | (254,570) | |
Net Expenses | | 335,735 | |
Net Investment Income/(Loss) | | 52,899 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Sustainable Equity Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | (1,658,837) | |
| Investments in affiliates | | 30 | |
Total Net Realized Gain/(Loss) on Investments | | (1,658,807) | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (8,339,891) | |
| Investments in affiliates | | (16) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (8,339,907) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (9,945,815) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Global Sustainable Equity Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021(1) | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 52,899 | | $ | 55,853 | |
| Net realized gain/(loss) on investments | | (1,658,807) | | | 234,173 | |
| Change in unrealized net appreciation/depreciation | | (8,339,907) | | | 4,375,106 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (9,945,815) | | | 4,665,132 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (1,797) | | | (237) | |
| | Class C Shares | | (778) | | | (149) | |
| | Class D Shares | | (270,032) | | | (12,247) | |
| | Class I Shares | | (131,214) | | | (21,225) | |
| | Class N Shares | | (16,196) | | | (466) | |
| | Class R Shares | | (510) | | | — | |
| | Class S Shares | | (721) | | | (186) | |
| | Class T Shares | | (6,829) | | | (251) | |
Net Decrease from Dividends and Distributions to Shareholders | | (428,077) | | | (34,761) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 68,834 | | | 91,700 | |
| | Class C Shares | | 5,715 | | | 6,149 | |
| | Class D Shares | | 4,293,945 | | | 15,901,862 | |
| | Class I Shares | | (5,268,172) | | | 4,421,540 | |
| | Class N Shares | | 222,331 | | | 1,137,369 | |
| | Class R Shares | | 510 | | | 50,000 | |
| | Class S Shares | | 721 | | | 186 | |
| | Class T Shares | | 27,879 | | | 550,080 | |
Net Increase/(Decrease) from Capital Share Transactions | | (648,237) | | | 22,158,886 | |
Net Increase/(Decrease) in Net Assets | | (11,022,129) | | | 26,789,257 | |
Net Assets: | | | | | | |
| Beginning of period | | 37,802,177 | | | 11,012,920 | |
| End of period | $ | 26,780,048 | | $ | 37,802,177 | |
| | | | | | | | |
| |
(1) Period from January 28, 2021 (inception date) through September 30, 2021 for Class R Shares. |
| | |
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 | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.16 | | | $11.18 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.02 | | | 0.02 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | (3.67) | | | 3.00 | | | 1.17 | |
| Total from Investment Operations | | (3.65) | | | 3.02 | | | 1.18 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | (0.01) | | | (0.03) | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.14) | | | (0.04) | | | — | |
| Net Asset Value, End of Period | | $10.37 | | | $14.16 | | | $11.18 | |
| Total Return* | | (26.05)% | | | 27.05% | | | 11.80% | |
| Net Assets, End of Period (in thousands) | | $182 | | | $181 | | | $67 | |
| Average Net Assets for the Period (in thousands) | | $208 | | | $123 | | | $63 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 3.18% | | | 4.43% | | | 15.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.05% | | | 1.06% | | | 1.13% | |
| | Ratio of Net Investment Income/(Loss) | | 0.15% | | | 0.12% | | | 0.27% | |
| Portfolio Turnover Rate | | 33% | | | 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, 2022 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | |
Class C Shares | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.13 | | | $11.16 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.07 | | | (0.01) | | | (0.01) | |
| | Net realized and unrealized gain/(loss) | | (3.68) | | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | (3.61) | | | 3.00 | | | 1.16 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | —(3) | | | (0.02) | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.13) | | | (0.03) | | | — | |
| Net Asset Value, End of Period | | $10.39 | | | $14.13 | | | $11.16 | |
| Total Return* | | (25.79)% | | | 26.91% | | | 11.60% | |
| Net Assets, End of Period (in thousands) | | $61 | | | $77 | | | $56 | |
| Average Net Assets for the Period (in thousands) | | $74 | | | $67 | | | $54 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 5.34% | | | 6.64% | | | 17.28% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.59% | | | 1.19% | | | 1.87% | |
| | Ratio of Net Investment Income/(Loss) | | 0.57% | | | (0.04)% | | | (0.46)% | |
| Portfolio Turnover Rate | | 33% | | | 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 | 19 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | |
Class D Shares | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.20 | | | $11.18 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.02 | | | 0.02 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | (3.68) | | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | (3.66) | | | 3.03 | | | 1.18 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | (0.01) | | | — | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.14) | | | (0.01) | | | — | |
| Net Asset Value, End of Period | | $10.40 | | | $14.20 | | | $11.18 | |
| Total Return* | | (26.02)% | | | 27.15% | | | 11.80% | |
| Net Assets, End of Period (in thousands) | | $20,664 | | | $23,921 | | | $5,226 | |
| Average Net Assets for the Period (in thousands) | | $24,549 | | | $16,804 | | | $2,485 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.71% | | | 1.97% | | | 10.52% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.00% | | | 1.00% | | | 0.98% | |
| | Ratio of Net Investment Income/(Loss) | | 0.16% | | | 0.18% | | | 0.50% | |
| Portfolio Turnover Rate | | 33% | | | 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. |
| |
20 | SEPTEMBER 30, 2022 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | |
Class I Shares | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.19 | | | $11.19 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.02 | | | 0.04 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | (3.66) | | | 3.00 | | | 1.17 | |
| Total from Investment Operations | | (3.64) | | | 3.04 | | | 1.19 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | (0.03) | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.16) | | | (0.04) | | | — | |
| Net Asset Value, End of Period | | $10.39 | | | $14.19 | | | $11.19 | |
| Total Return* | | (25.97)% | | | 27.25% | | | 11.90% | |
| Net Assets, End of Period (in thousands) | | $3,991 | | | $11,353 | | | $5,317 | |
| Average Net Assets for the Period (in thousands) | | $7,265 | | | $7,780 | | | $5,071 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.57% | | | 1.86% | | | 10.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.92% | | | 0.87% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 0.11% | | | 0.29% | | | 0.55% | |
| Portfolio Turnover Rate | | 33% | | | 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 | 21 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | |
Class N Shares | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.23 | | | $11.19 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.04 | | | 0.05 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | (3.69) | | | 3.00 | | | 1.17 | |
| Total from Investment Operations | | (3.65) | | | 3.05 | | | 1.19 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | (0.02) | | | — | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.15) | | | (0.01) | | | — | |
| Net Asset Value, End of Period | | $10.43 | | | $14.23 | | | $11.19 | |
| Total Return* | | (25.93)% | | | 27.30% | | | 11.90% | |
| Net Assets, End of Period (in thousands) | | $1,250 | | | $1,449 | | | $192 | |
| Average Net Assets for the Period (in thousands) | | $1,432 | | | $831 | | | $83 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.73% | | | 2.14% | | | 14.24% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.86% | | | 0.86% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 0.31% | | | 0.33% | | | 0.73% | |
| Portfolio Turnover Rate | | 33% | | | 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. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | |
Class R Shares | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2022 | | | 2021(1) | |
| Net Asset Value, Beginning of Period | | $14.13 | | | $13.08 | |
| Income/(Loss) from Investment Operations: | | | | | | |
| | Net investment income/(loss)(2) | | 0.08 | | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | (3.68) | | | 1.08 | |
| Total from Investment Operations | | (3.60) | | | 1.05 | |
| Less Dividends and Distributions: | | | | | | |
| | Dividends (from net investment income) | | — | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | — | |
| Total Dividends and Distributions | | (0.13) | | | — | |
| Net Asset Value, End of Period | | $10.40 | | | $14.13 | |
| Total Return* | | (25.72)% | | | 8.03% | |
| Net Assets, End of Period (in thousands) | | $40 | | | $54 | |
| Average Net Assets for the Period (in thousands) | | $51 | | | $53 | |
| Ratios to Average Net Assets**: | | | | | | |
| | Ratio of Gross Expenses | | 7.35% | | | 7.99% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.57% | | | 1.46% | |
| | Ratio of Net Investment Income/(Loss) | | 0.59% | | | (0.27)% | |
| Portfolio Turnover Rate | | 33% | | | 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 January 28, 2021 (inception date) through September 30, 2021. (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 Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | |
Class S Shares | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.15 | | | $11.17 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.04 | | | —(3) | | | —(3) | |
| | Net realized and unrealized gain/(loss) | | (3.68) | | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | (3.64) | | | 3.01 | | | 1.17 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | (0.01) | | | (0.02) | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.14) | | | (0.03) | | | — | |
| Net Asset Value, End of Period | | $10.37 | | | $14.15 | | | $11.17 | |
| Total Return* | | (25.98)% | | | 27.05% | | | 11.70% | |
| Net Assets, End of Period (in thousands) | | $53 | | | $71 | | | $56 | |
| Average Net Assets for the Period (in thousands) | | $66 | | | $67 | | | $54 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 6.24% | | | 6.65% | | | 16.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.83% | | | 1.11% | | | 1.37% | |
| | Ratio of Net Investment Income/(Loss) | | 0.32% | | | 0.03% | | | 0.04% | |
| Portfolio Turnover Rate | | 33% | | | 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. |
| |
24 | SEPTEMBER 30, 2022 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | |
Class T Shares | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.18 | | | $11.18 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.01 | | | 0.01 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | (3.68) | | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | (3.67) | | | 3.02 | | | 1.18 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | —(3) | | | (0.01) | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.13) | | | (0.02) | | | — | |
| Net Asset Value, End of Period | | $10.38 | | | $14.18 | | | $11.18 | |
| Total Return* | | (26.12)% | | | 27.02% | | | 11.80% | |
| Net Assets, End of Period (in thousands) | | $540 | | | $697 | | | $99 | |
| Average Net Assets for the Period (in thousands) | | $633 | | | $387 | | | $77 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.25% | | | 2.82% | | | 14.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.09% | | | 1.09% | | | 1.11% | |
| | Ratio of Net Investment Income/(Loss) | | 0.05% | | | 0.10% | | | 0.33% | |
| Portfolio Turnover Rate | | 33% | | | 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 | 25 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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 Sustainable Equity 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 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, 2022 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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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 the Adviser 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 Sustainable Equity 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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 the Adviser 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.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser 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, the Adviser 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, 2022, the Adviser reimbursed the Fund $254,288 of fees and expense that are eligible for recoupment. As of September 30, 2022, the aggregate amount of recoupment that may potentially be made to the Adviser is $736,846. The recoupment of such reimbursements expires at the latest June 25, 2023.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $542.
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 the Distributor during the year ended September 30, 2022.
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, 2022.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
As of September 30, 2022, shares of the Fund were owned by affiliates of the Adviser, and/or other funds advised by the Adviser, as indicated in the table below:
| | | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | 29 | % | - | %* | |
Class C Shares | 87 | | -* | | |
Class D Shares | -* | | -* | | |
Class I Shares | - | | - | | |
Class N Shares | 4 | | -* | | |
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) | |
$ 31,237 | $ - | $ - | $ - | $ (1,371,819) | $ (2,564) | $ (3,598,363) | |
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, 2022 are noted below. The primary difference between book and tax appreciation or depreciation of investments is wash sale loss deferrals.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$30,474,165 | $1,297,731 | $ (4,896,094) | $ (3,598,363) |
Janus Henderson Global Sustainable Equity 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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 303,378 | $ 124,699 | $ - | $ - | |
| | | | | |
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 |
$ - | $ (21,526) | $ 21,526 |
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021(1) |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 5,969 | $ 85,061 | | 6,778 | $ 91,463 |
Reinvested dividends and distributions | 125 | 1,797 | | 18 | 237 |
Shares repurchased | (1,356) | (18,024) | | - | - |
Net Increase/(Decrease) | 4,738 | $ 68,834 | | 6,796 | $ 91,700 |
Class C Shares: | | | | | |
Shares sold | 744 | $ 10,463 | | 409 | $ 6,000 |
Reinvested dividends and distributions | 54 | 778 | | 12 | 149 |
Shares repurchased | (371) | (5,526) | | - | - |
Net Increase/(Decrease) | 427 | $ 5,715 | | 421 | $ 6,149 |
Class D Shares: | | | | | |
Shares sold | 561,140 | $ 7,587,026 | | 1,554,605 | $ 20,408,231 |
Reinvested dividends and distributions | 18,393 | 265,600 | | 932 | 11,975 |
Shares repurchased | (276,713) | (3,558,681) | | (338,219) | (4,518,344) |
Net Increase/(Decrease) | 302,820 | $ 4,293,945 | | 1,217,318 | $ 15,901,862 |
Class I Shares: | | | | | |
Shares sold | 212,724 | $ 2,770,878 | | 329,386 | $ 4,483,536 |
Reinvested dividends and distributions | 9,099 | 131,214 | | 1,654 | 21,224 |
Shares repurchased | (637,758) | (8,170,264) | | (6,170) | (83,220) |
Net Increase/(Decrease) | (415,935) | $(5,268,172) | | 324,870 | $ 4,421,540 |
Class N Shares: | | | | | |
Shares sold | 27,058 | $ 350,626 | | 92,900 | $ 1,247,113 |
Reinvested dividends and distributions | 1,119 | 16,196 | | 36 | 466 |
Shares repurchased | (10,132) | (144,491) | | (8,291) | (110,210) |
Net Increase/(Decrease) | 18,045 | $ 222,331 | | 84,645 | $ 1,137,369 |
Class R Shares: | | | | | |
Shares sold | - | $ - | | 3,855 | $ 50,000 |
Reinvested dividends and distributions | 35 | 510 | | - | - |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 35 | $ 510 | | 3,855 | $ 50,000 |
Class S Shares: | | | | | |
Shares sold | - | $ - | | - | $ - |
Reinvested dividends and distributions | 51 | 721 | | 14 | 186 |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 51 | $ 721 | | 14 | $ 186 |
Class T Shares: | | | | | |
Shares sold | 11,608 | $ 142,737 | | 51,435 | $ 699,859 |
Reinvested dividends and distributions | 473 | 6,829 | | 19 | 250 |
Shares repurchased | (9,202) | (121,687) | | (11,190) | (150,029) |
Net Increase/(Decrease) | 2,879 | $ 27,879 | | 40,264 | $ 550,080 |
(1) | Period from January 28, 2021 (inception date) through September 30, 2021 for Class R Shares. |
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$ 10,679,044 | $ 11,748,305 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, 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, 2022, 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, 2022 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, 2022 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
November 28, 2022
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
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
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, 2022. 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 the Adviser 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, 2022:
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Capital Gain Distributions | $124,699 |
Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income Percentage | 100% |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
Janus Henderson Global Sustainable Equity 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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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)
| | | | |
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. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US LLC (2009-2017). |
* 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 Sustainable Equity 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 |
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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Global Sustainable Equity Fund
Notes
NotesPage1
Janus Henderson Global Sustainable Equity Fund
Notes
NotesPage2
Janus Henderson Global Sustainable Equity Fund
Notes
NotesPage3
| | | | | | | | |
| | | | | |
| | | | |
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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93086 11-22 |
| | | | |
| | | |
| | | ANNUAL REPORT September 30, 2022 |
| | |
| | Janus Henderson Global Technology and Innovation Fund |
| | |
| | Janus Investment Fund |
| |
| | | 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)
| | | | | | |
FUND SNAPSHOT This global growth fund invests in securities of companies that the portfolio managers believe will benefit significantly from advances or improvements 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 long-term growth of capital. | | | | 
Jonathan Cofsky co-portfolio manager | 
Denny Fish co-portfolio manager |
| | | |
PERFORMANCE OVERVIEW
For the 12 months ended September 30, 2022, the Janus Henderson Global Technology and Innovation Fund Class I Shares returned -37.35%. By comparison, the Fund’s primary benchmark, the S&P 500® Index, returned -15.47%, while the Fund’s secondary benchmark, the MSCI All Country World Information Technology IndexSM, returned -26.63%.
INVESTMENT ENVIRONMENT
After continuing their post-pandemic rally over the first three months of the period, global tech stocks – along with broader equities – lost ground over the remainder of the fiscal year. A key force in the market’s downturn was the abrupt rise in interest rates as central banks tried to make up lost ground in the wake of surging inflation. Monetary tightening pushed up the discount rates used to value equities, with the end result being a lower present value of a company’s expected cash flows. Given the secular growth profile of many mega-cap tech companies, the sector was acutely impacted by this discounting mechanism.
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’s leading individual detractor was Apple. The iPhone maker and (increasingly) services company outperformed the broader tech sector, which meant our underweight relative to the benchmark negatively impacted performance. We appreciate the power of the network effects created by Apple’s ecosystem, especially as the company pushed deeper into services, but believe our underweight is merited from a risk-management standpoint given the massive position Apple commands in the benchmark.
Another detractor was social media operator Snap. The company’s stock suffered early in the period as it reported disappointing quarterly results, including a drop in average revenue per user (ARPU). Snap has also had a more difficult time than expected gaining market share amid a weakening environment for advertising revenue. Another headwind has been more stringent privacy guardrails for apps running on Apple platforms as this impacts a company’s ability to target advertising. Given these headwinds, we exited our position in Snap.
A leading contributor was chipmaker Nvidia. The company’s stock jumped early in the period following an announcement by social media giant Facebook saying it would significantly increase its capital spending plans for 2022 as it bolsters its data center network and infrastructure. As a leading producer of graphics processing units used in data centers, Nvidia was expected to benefit.
Also contributing was real estate information and analytics provider CoStar. The stock had been pressured by investor trepidation toward the company’s initiative into the residential space. Consensus has since grown more comfortable with management’s ability to develop this business. Meanwhile, CoStar’s core commercial platform continued to deliver steady results, owing in part to what we consider to be a durable competitive advantage within the space.
Janus Henderson Global Technology and Innovation Fund (unaudited)
OUTLOOK
Despite the darkening economic mood, we believe that the current environment is favorable for active stock pickers focused on identifying companies with durable business models. Volatility and the subsequent valuation compression has enabled us to overweight some of our highest-conviction ideas. The most resilient companies, in our view, should not only weather a weakening economy better than their more fragile peers, but also come out the other side in an even strong competitive position.
Dimming economic prospects could lead to additional earnings downgrades for semiconductor companies (semis), but is not an indictment of the health of the industry. The chip market has undergone considerable rationalization and future economic growth will only create more powerful tailwinds for the industry as semi content becomes more ubiquitous. The industry has also tended to bottom months ahead of the economic cycle, meaning lost ground could be quickly recovered should the current slowdown be short-lived.
We think cloud and other software companies should fare better than semis during a downturn thanks to the resilience of their subscription-based business models. Furthermore, as corporate customers face revenue pressure, they are likely to depend even more on productivity-enhancing software to defend margins.
We are more cautious on companies leveraged to digital advertising as these face both cyclical pressure and a more stringent privacy framework. Also at risk are companies that overextended their businesses during the pandemic, mistaking that outlier period for a new status quo.
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, 2022
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| NVIDIA Corp | 3.18% | | 0.53% | | Apple Inc | 6.92% | | -2.20% |
| Cadence Design Systems Inc | 2.00% | | 0.45% | | Sea Ltd (ADR) | 0.94% | | -1.05% |
| CoStar Group Inc | 2.17% | | 0.37% | | Snap Inc | 0.73% | | -0.99% |
| KLA Corp | 2.24% | | 0.24% | | Twilio Inc | 1.03% | | -0.80% |
| Mastercard Inc | 4.77% | | 0.17% | | ASML Holding NV | 5.94% | | -0.65% |
| | | | | | | |
| 2 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Information Technology Index |
| | | Contribution | | Average Weight | Average Weight |
| Other** | | 0.37% | | 0.94% | 0.00% |
| Industrials | | -0.04% | | 3.71% | 0.00% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Information Technology Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | -4.68% | | 77.56% | 100.00% |
| Communication Services | | -3.62% | | 8.30% | 0.00% |
| Consumer Discretionary | | -2.09% | | 8.05% | 0.00% |
| Financials | | -0.21% | | 0.47% | 0.00% |
| Real Estate | | -0.21% | | 0.98% | 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, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 12.8% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 6.0% |
ASML Holding NV | |
Semiconductor & Semiconductor Equipment | 5.8% |
Mastercard Inc | |
Information Technology Services | 4.8% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 4.8% |
| | 34.2% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 93.4% | |
Investment Companies | | 4.9% | |
Private Placements | | 1.0% | |
Private Investment in Public Equity (PIPES) | | 0.4% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.0% | |
Warrants | | 0.0% | |
Other | | 0.3% |
| | | 100.0% |
Emerging markets comprised 5.8% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
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, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -37.51% | 10.85% | 14.85% | 8.83% | | | 0.98% |
Class A Shares at MOP | | -41.10% | 9.54% | 14.17% | 8.56% | | | |
Class C Shares at NAV | | -37.89% | 10.10% | 14.08% | 8.07% | | | 1.74% |
Class C Shares at CDSC | | -38.41% | 10.10% | 14.08% | 8.07% | | | |
Class D Shares | | -37.39% | 11.05% | 15.08% | 9.01% | | | 0.79% |
Class I Shares | | -37.35% | 11.12% | 15.16% | 9.06% | | | 0.75% |
Class N Shares | | -37.31% | 11.20% | 15.14% | 9.03% | | | 0.67% |
Class S Shares | | -37.62% | 10.63% | 14.68% | 8.68% | | | 1.17% |
Class T Shares | | -37.45% | 10.94% | 14.98% | 8.97% | | | 0.91% |
S&P 500 Index | | -15.47% | 9.24% | 11.70% | 6.59% | | | |
MSCI All Country World Information Technology Index | | -26.63% | 12.57% | 14.62% | 6.59% | | | |
Morningstar Quartile - Class T Shares | | 3rd | 2nd | 2nd | 2nd | | | |
Morningstar Ranking - based on total returns for Technology Funds | | 178/260 | 88/195 | 74/178 | 36/95 | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
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 Technology and Innovation Fund (unaudited)
Performance
Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, 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.
© 2022 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, 2022, Jonathan Cofsky and Denny Fish are Co-Portfolio Managers of the Fund.
*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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $705.80 | $4.28 | | $1,000.00 | $1,020.05 | $5.06 | 1.00% |
Class C Shares | $1,000.00 | $703.60 | $6.92 | | $1,000.00 | $1,016.95 | $8.19 | 1.62% |
Class D Shares | $1,000.00 | $706.50 | $3.47 | | $1,000.00 | $1,021.01 | $4.10 | 0.81% |
Class I Shares | $1,000.00 | $706.70 | $3.21 | | $1,000.00 | $1,021.31 | $3.80 | 0.75% |
Class N Shares | $1,000.00 | $706.90 | $2.87 | | $1,000.00 | $1,021.71 | $3.40 | 0.67% |
Class S Shares | $1,000.00 | $705.20 | $5.04 | | $1,000.00 | $1,019.15 | $5.97 | 1.18% |
Class T Shares | $1,000.00 | $706.10 | $3.89 | | $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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 93.4% | | | |
Aerospace & Defense – 0.9% | | | |
| | Axon Enterprise Inc* | | 291,197 | | | $33,706,053 | |
Entertainment – 0.5% | | | |
| | Sea Ltd (ADR)* | | 366,765 | | | 20,557,178 | |
Equity Real Estate Investment Trusts (REITs) – 0.2% | | | |
| | Equinix Inc | | 10,683 | | | 6,076,918 | |
Information Technology Services – 9.2% | | | |
| | Adyen NV (144A)* | | 17,360 | | | 21,593,420 | |
| | Marqeta Inc - Class A* | | 2,466,816 | | | 17,563,730 | |
| | Mastercard Inc | | 655,658 | | | 186,429,796 | |
| | MongoDB Inc* | | 70,204 | | | 13,939,706 | |
| | Okta Inc* | | 369,146 | | | 20,993,333 | |
| | Snowflake Inc - Class A* | | 294,412 | | | 50,038,264 | |
| | Square Inc* | | 269,914 | | | 14,842,571 | |
| | Wix.com Ltd* | | 367,894 | | | 28,780,348 | |
| | | 354,181,168 | |
Interactive Media & Services – 4.1% | | | |
| | Alphabet Inc - Class C* | | 1,453,140 | | | 139,719,411 | |
| | Match Group Inc* | | 402,560 | | | 19,222,240 | |
| | | 158,941,651 | |
Internet & Direct Marketing Retail – 6.6% | | | |
| | Amazon.com Inc* | | 1,637,793 | | | 185,070,609 | |
| | Farfetch Ltd - Class A*,# | | 1,340,502 | | | 9,986,740 | |
| | MercadoLibre Inc* | | 72,374 | | | 59,909,750 | |
| | | 254,967,099 | |
Professional Services – 3.4% | | | |
| | CoStar Group Inc* | | 1,899,122 | | | 132,273,847 | |
Road & Rail – 0.1% | | | |
| | Uber Technologies Inc* | | 193,289 | | | 5,122,158 | |
Semiconductor & Semiconductor Equipment – 25.6% | | | |
| | Advanced Micro Devices Inc* | | 1,132,370 | | | 71,746,963 | |
| | Analog Devices Inc | | 612,642 | | | 85,365,536 | |
| | Applied Materials Inc | | 507,213 | | | 41,555,961 | |
| | ASML Holding NV | | 537,246 | | | 222,811,339 | |
| | KLA Corp | | 344,228 | | | 104,173,720 | |
| | Lam Research Corp | | 290,188 | | | 106,208,808 | |
| | Marvell Technology Inc | | 1,495,597 | | | 64,176,067 | |
| | NVIDIA Corp | | 367,871 | | | 44,655,861 | |
| | NXP Semiconductors NV | | 201,866 | | | 29,777,254 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 10,883,000 | | | 143,058,267 | |
| | Texas Instruments Inc | | 454,276 | | | 70,312,839 | |
| | | 983,842,615 | |
Software – 35.4% | | | |
| | Atlassian Corp PLC - Class A* | | 626,157 | | | 131,862,403 | |
| | Autodesk Inc* | | 22,945 | | | 4,286,126 | |
| | Cadence Design Systems Inc* | | 603,996 | | | 98,711,066 | |
| | CCC Intelligent Solutions Holdings Inc* | | 4,395,954 | | | 40,003,181 | |
| | Ceridian HCM Holding Inc* | | 651,973 | | | 36,432,251 | |
| | Constellation Software Inc/Canada | | 35,393 | | | 49,253,208 | |
| | Coupa Software Inc* | | 252,707 | | | 14,859,172 | |
| | Dynatrace Inc* | | 1,123,464 | | | 39,107,782 | |
| | Microsoft Corp | | 2,115,733 | | | 492,754,216 | |
| | Nice Ltd (ADR)* | | 190,077 | | | 35,780,094 | |
| | Olo Inc - Class A* | | 1,425,695 | | | 11,262,990 | |
| | Pagerduty Inc* | | 573,402 | | | 13,228,384 | |
| | Paylocity Holding Corp* | | 112,052 | | | 27,069,522 | |
| | Procore Technologies Inc* | | 766,006 | | | 37,901,977 | |
| | ServiceNow Inc* | | 165,977 | | | 62,674,575 | |
| | Synopsys Inc* | | 155,300 | | | 47,445,703 | |
| | Tyler Technologies Inc* | | 198,519 | | | 68,985,352 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Global Technology and Innovation Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Software– (continued) | | | |
| | Workday Inc - Class A* | | 1,004,996 | | | $152,980,491 | |
| | | 1,364,598,493 | |
Technology Hardware, Storage & Peripherals – 6.0% | | | |
| | Apple Inc | | 1,663,777 | | | 229,933,981 | |
Wireless Telecommunication Services – 1.4% | | | |
| | T-Mobile US Inc* | | 386,979 | | | 51,920,972 | |
Total Common Stocks (cost $3,061,894,768) | | 3,596,122,133 | |
Private Investment in Public Equity (PIPES)– 0.4% | | | |
Diversified Financial Services – 0.4% | | | |
| | Altimeter Growth Corp*,§ | | 3,269,751 | | | 8,599,445 | |
| | CCC Intelligent Solutions Holdings Inc*,§ | | 887,637 | | | 8,077,497 | |
Total Private Investment in Public Equity (PIPES) (cost $41,573,880) | | 16,676,942 | |
Private Placements– 1.0% | | | |
Professional Services – 0.3% | | | |
| | Apartment List Inc*,¢,§ | | 3,783,673 | | | 10,745,631 | |
Software – 0.7% | | | |
| | Magic Leap Inc - Class A private equity common shares*,¢,§ | | 18,847 | | | 0 | |
| | Via Transportation Inc - Preferred shares*,¢,§ | | 657,989 | | | 22,838,799 | |
| | Via Transportation Inc - private equity common shares*,¢,§ | | 78,470 | | | 2,723,694 | |
| | | 25,562,493 | |
Total Private Placements (cost $56,069,482) | | 36,308,124 | |
Warrants– 0% | | | |
Internet & Direct Marketing Retail – 0% | | | |
| | Grab Holdings Ltd, expires 12/1/26*((cost $986,182) | | 333,275 | | | 166,638 | |
Investment Companies– 4.9% | | | |
Money Markets – 4.9% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $189,241,342) | | 189,222,420 | | | 189,241,342 | |
Investments Purchased with Cash Collateral from Securities Lending– 0% | | | |
Investment Companies – 0% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 219,182 | | | 219,182 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $54,796 | | | 54,796 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $273,978) | | 273,978 | |
Total Investments (total cost $3,350,039,632) – 99.7% | | 3,838,789,157 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.3% | | 12,103,805 | |
Net Assets – 100% | | $3,850,892,962 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $3,115,029,772 | | 81.1 | % |
Netherlands | | 244,404,759 | | 6.4 | |
Taiwan | | 163,615,445 | | 4.3 | |
Australia | | 131,862,403 | | 3.4 | |
Israel | | 64,560,442 | | 1.7 | |
Argentina | | 59,909,750 | | 1.6 | |
Canada | | 49,253,208 | | 1.3 | |
United Kingdom | | 9,986,740 | | 0.2 | |
Singapore | | 166,638 | | 0.0 | |
| | | | | | |
| | | | | | |
Total | | $3,838,789,157 | | 100.0 | % |
| | |
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, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - 4.9% |
Money Markets - 4.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 529,801 | $ | (459) | $ | (729) | $ | 189,241,342 |
Investments Purchased with Cash Collateral from Securities Lending - 0.0% |
Investment Companies - 0.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 477,384∆ | | - | | - | | 219,182 |
Total Affiliated Investments - 4.9% | $ | 1,007,185 | $ | (459) | $ | (729) | $ | 189,460,524 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - 4.9% |
Money Markets - 4.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 161,740,558 | | 943,153,805 | | (915,651,833) | | 189,241,342 |
Investments Purchased with Cash Collateral from Securities Lending - 0.0% |
Investment Companies - 0.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 36,541,524 | | 406,391,360 | | (442,713,702) | | 219,182 |
| | | | | | | | | | |
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 | $ | 263,372 | $ | — | $ | (263,372) | $ | — |
| | | | | | | | | |
(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. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
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 |
| | |
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, 2022 is $21,593,420, which represents 0.5% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2022 is $36,308,124, which represents 0.9% 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, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Altimeter Growth Corp | 4/14/21 | $ | 32,697,510 | $ | 8,599,445 | | 0.2 | % |
Apartment List Inc | 11/2/20 | | 13,821,758 | | 10,745,631 | | 0.3 | |
CCC Intelligent Solutions Holdings Inc | 2/3/21 | | 8,876,370 | | 8,077,497 | | 0.2 | |
Magic Leap Inc - Class A private equity common shares | 10/5/17 | | 9,160,263 | | 0 | | 0.0 | |
Via Transportation Inc - Preferred shares | 11/4/21 | | 29,692,444 | | 22,838,799 | | 0.6 | |
Via Transportation Inc - private equity common shares | 12/2/21 | | 3,395,017 | | 2,723,694 | | 0.1 | |
Total | | $ | 97,643,362 | $ | 52,985,066 | | 1.4 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2022. 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, 2022. 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 | $ | 332,587,748 | $ | 21,593,420 | $ | - |
Semiconductor & Semiconductor Equipment | | 617,973,009 | | 365,869,606 | | - |
All Other | | 2,258,098,350 | | - | | - |
Private Investment in Public Equity (PIPES) | | 16,676,942 | | - | | - |
Private Placements | | - | | - | | 36,308,124 |
Warrants | | 166,638 | | - | | - |
Investment Companies | | - | | 189,241,342 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 273,978 | | - |
Total Assets | $ | 3,225,502,687 | $ | 576,978,346 | $ | 36,308,124 |
| | | | | | | |
Janus Henderson Global Technology and Innovation Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,160,579,108)(1) | | $ | 3,649,328,633 | |
| Affiliated investments, at value (cost $189,460,524) | | | 189,460,524 | |
| Trustees' deferred compensation | | | 115,970 | |
| Receivables: | | | | |
| | Investments sold | | | 17,887,852 | |
| | Fund shares sold | | | 8,321,167 | |
| | Dividends | | | 1,434,174 | |
| | Dividends from affiliates | | | 366,397 | |
| | Foreign tax reclaims | | | 4,834 | |
| Other assets | | | 9,152 | |
Total Assets | | | 3,866,928,703 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 273,978 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 12,161,996 | |
| | Advisory fees | | | 2,345,947 | |
| | Transfer agent fees and expenses | | | 640,398 | |
| | Trustees' deferred compensation fees | | | 115,970 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 96,194 | |
| | Professional fees | | | 64,073 | |
| | Custodian fees | | | 40,236 | |
| | Trustees' fees and expenses | | | 21,314 | |
| | Affiliated fund administration fees payable | | | 9,164 | |
| | Accrued expenses and other payables | | | 266,471 | |
Total Liabilities | | | 16,035,741 | |
Net Assets | | $ | 3,850,892,962 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Technology and Innovation Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,412,246,617 | |
| Total distributable earnings (loss) | | | 438,646,345 | |
Total Net Assets | | $ | 3,850,892,962 | |
Net Assets - Class A Shares | | $ | 182,141,050 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,768,293 | |
Net Asset Value Per Share(2) | | $ | 31.58 | |
Maximum Offering Price Per Share(3) | | $ | 33.51 | |
Net Assets - Class C Shares | | $ | 50,614,387 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,891,742 | |
Net Asset Value Per Share(2) | | $ | 26.76 | |
Net Assets - Class D Shares | | $ | 1,794,751,604 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 54,666,488 | |
Net Asset Value Per Share | | $ | 32.83 | |
Net Assets - Class I Shares | | $ | 644,388,088 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 19,379,223 | |
Net Asset Value Per Share | | $ | 33.25 | |
Net Assets - Class N Shares | | $ | 115,297,407 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,512,333 | |
Net Asset Value Per Share | | $ | 32.83 | |
Net Assets - Class S Shares | | $ | 17,984,975 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 587,862 | |
Net Asset Value Per Share | | $ | 30.59 | |
Net Assets - Class T Shares | | $ | 1,045,715,451 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 32,242,463 | |
Net Asset Value Per Share | | $ | 32.43 | |
| |
(1) Includes $263,372 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, 2022 |
Janus Henderson Global Technology and Innovation Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 28,116,101 | |
| Dividends from affiliates | | 529,801 | |
| Affiliated securities lending income, net | | 477,384 | |
| Unaffiliated securities lending income, net | | 6,837 | |
| Other income | | 23,875 | |
| Foreign tax withheld | | (1,669,307) | |
Total Investment Income | | 27,484,691 | |
Expenses: | | | |
| Advisory fees | | 35,631,130 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 655,028 | |
| | Class C Shares | | 661,810 | |
| | Class S Shares | | 66,723 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,882,718 | |
| | Class S Shares | | 66,940 | |
| | Class T Shares | | 3,899,846 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 185,365 | |
| | Class C Shares | | 62,751 | |
| | Class I Shares | | 841,176 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 16,817 | |
| | Class C Shares | | 4,048 | |
| | Class D Shares | | 314,547 | |
| | Class I Shares | | 43,496 | |
| | Class N Shares | | 6,031 | |
| | Class S Shares | | 284 | |
| | Class T Shares | | 15,499 | |
| Shareholder reports expense | | 303,151 | |
| Affiliated fund administration fees | | 139,185 | |
| Custodian fees | | 137,655 | |
| Registration fees | | 129,424 | |
| Trustees’ fees and expenses | | 115,491 | |
| Professional fees | | 91,241 | |
| Other expenses | | 364,760 | |
Total Expenses | | 46,635,116 | |
Less: Excess Expense Reimbursement and Waivers | | (175,620) | |
Net Expenses | | 46,459,496 | |
Net Investment Income/(Loss) | | (18,974,805) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Technology and Innovation Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 47,068,976 | |
| Investments in affiliates | | (459) | |
Total Net Realized Gain/(Loss) on Investments | | 47,068,517 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (2,452,269,730) | |
| Investments in affiliates | | (729) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (2,452,270,459) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (2,424,176,747) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Global Technology and Innovation Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (18,974,805) | | $ | (21,218,218) | |
| Net realized gain/(loss) on investments | | 47,068,517 | | | 957,712,135 | |
| Change in unrealized net appreciation/depreciation | | (2,452,270,459) | | | 579,443,181 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (2,424,176,747) | | | 1,515,937,098 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (46,604,439) | | | (24,126,815) | |
| | Class C Shares | | (16,566,428) | | | (9,512,616) | |
| | Class D Shares | | (431,253,501) | | | (228,155,423) | |
| | Class I Shares | | (166,649,528) | | | (84,659,567) | |
| | Class N Shares | | (25,779,168) | | | (11,937,362) | |
| | Class S Shares | | (5,259,139) | | | (2,161,126) | |
| | Class T Shares | | (278,237,921) | | | (150,400,901) | |
Net Decrease from Dividends and Distributions to Shareholders | | (970,350,124) | | | (510,953,810) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 23,568,044 | | | 20,777,355 | |
| | Class C Shares | | 384,649 | | | (959,381) | |
| | Class D Shares | | 276,314,024 | | | 174,903,766 | |
| | Class I Shares | | 31,451,226 | | | 129,009,173 | |
| | Class N Shares | | 34,697,306 | | | 34,445,636 | |
| | Class S Shares | | 8,846,141 | | | 2,232,031 | |
| | Class T Shares | | 39,626,244 | | | 66,730,556 | |
Net Increase/(Decrease) from Capital Share Transactions | | 414,887,634 | | | 427,139,136 | |
Net Increase/(Decrease) in Net Assets | | (2,979,639,237) | | | 1,432,122,424 | |
Net Assets: | | | | | | |
| Beginning of period | | 6,830,532,199 | | | 5,398,409,775 | |
| End of period | $ | 3,850,892,962 | | $ | 6,830,532,199 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $59.21 | | | $50.45 | | | $36.72 | | | $36.33 | | | $29.11 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.22) | | | (0.27) | | | (0.11) | | | (0.05) | | | (0.05) | |
| | Net realized and unrealized gain/(loss) | | (18.76) | | | 13.83 | | | 17.17 | | | 2.33 | | | 8.45 | |
| Total from Investment Operations | | (18.98) | | | 13.56 | | | 17.06 | | | 2.28 | | | 8.40 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | —(2) | | | —(2) | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | |
| Total Dividends and Distributions | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | |
| Net Asset Value, End of Period | | $31.58 | | | $59.21 | | | $50.45 | | | $36.72 | | | $36.33 | |
| Total Return* | | (37.50)% | | | 28.19% | | | 49.64% | | | 7.70% | | | 29.63% | |
| Net Assets, End of Period (in thousands) | | $182,141 | | | $319,194 | | | $252,037 | | | $172,237 | | | $136,689 | |
| Average Net Assets for the Period (in thousands) | | $260,997 | | | $299,780 | | | $204,220 | | | $151,979 | | | $125,207 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.99% | | | 0.98% | | | 0.99% | | | 1.01% | | | 1.00% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.99% | | | 0.98% | | | 0.99% | | | 1.01% | | | 1.00% | |
| | Ratio of Net Investment Income/(Loss) | | (0.49)% | | | (0.47)% | | | (0.26)% | | | (0.14)% | | | (0.16)% | |
| Portfolio Turnover Rate | | 47% | | | 43% | | | 37% | | | 36% | | | 20% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $51.77 | | | $44.91 | | | $33.24 | | | $33.31 | | | $26.96 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.42) | | | (0.56) | | | (0.36) | | | (0.26) | | | (0.27) | |
| | Net realized and unrealized gain/(loss) | | (15.94) | | | 12.22 | | | 15.36 | | | 2.08 | | | 7.80 | |
| Total from Investment Operations | | (16.36) | | | 11.66 | | | 15.00 | | | 1.82 | | | 7.53 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | |
| Total Dividends and Distributions | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | |
| Net Asset Value, End of Period | | $26.76 | | | $51.77 | | | $44.91 | | | $33.24 | | | $33.31 | |
| Total Return* | | (37.88)% | | | 27.37% | | | 48.56% | | | 6.97% | | | 28.73% | |
| Net Assets, End of Period (in thousands) | | $50,614 | | | $101,860 | | | $89,141 | | | $64,636 | | | $89,817 | |
| Average Net Assets for the Period (in thousands) | | $79,418 | | | $98,033 | | | $75,085 | | | $66,888 | | | $79,328 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.58% | | | 1.64% | | | 1.69% | | | 1.70% | | | 1.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.58% | | | 1.64% | | | 1.69% | | | 1.70% | | | 1.72% | |
| | Ratio of Net Investment Income/(Loss) | | (1.09)% | | | (1.13)% | | | (0.96)% | | | (0.85)% | | | (0.88)% | |
| Portfolio Turnover Rate | | 47% | | | 43% | | | 37% | | | 36% | | | 20% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $61.11 | | | $51.89 | | | $37.62 | | | $37.14 | | | $29.69 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.14) | | | (0.16) | | | (0.03) | | | 0.01 | | | —(2) | |
| | Net realized and unrealized gain/(loss) | | (19.49) | | | 14.23 | | | 17.63 | | | 2.40 | | | 8.63 | |
| Total from Investment Operations | | (19.63) | | | 14.07 | | | 17.60 | | | 2.41 | | | 8.63 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.05) | | | — | | | (0.04) | | | —(2) | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | |
| Total Dividends and Distributions | | (8.65) | | | (4.85) | | | (3.33) | | | (1.93) | | | (1.18) | |
| Net Asset Value, End of Period | | $32.83 | | | $61.11 | | | $51.89 | | | $37.62 | | | $37.14 | |
| Total Return* | | (37.39)% | | | 28.43% | | | 49.90% | | | 7.91% | | | 29.84% | |
| Net Assets, End of Period (in thousands) | | $1,794,752 | | | $3,058,182 | | | $2,426,380 | | | $1,603,112 | | | $1,570,846 | |
| Average Net Assets for the Period (in thousands) | | $2,524,660 | | | $2,878,436 | | | $1,911,725 | | | $1,501,953 | | | $1,400,342 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.80% | | | 0.79% | | | 0.80% | | | 0.83% | | | 0.83% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | | | 0.79% | | | 0.80% | | | 0.83% | | | 0.83% | |
| | Ratio of Net Investment Income/(Loss) | | (0.30)% | | | (0.29)% | | | (0.08)% | | | 0.03% | | | 0.01% | |
| Portfolio Turnover Rate | | 47% | | | 43% | | | 37% | | | 36% | | | 20% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $61.76 | | | $52.40 | | | $37.94 | | | $37.45 | | | $29.91 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.12) | | | (0.14) | | | (0.01) | | | 0.04 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | (19.74) | | | 14.38 | | | 17.80 | | | 2.41 | | | 8.69 | |
| Total from Investment Operations | | (19.86) | | | 14.24 | | | 17.79 | | | 2.45 | | | 8.73 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.08) | | | — | | | (0.07) | | | (0.01) | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | |
| Total Dividends and Distributions | | (8.65) | | | (4.88) | | | (3.33) | | | (1.96) | | | (1.19) | |
| Net Asset Value, End of Period | | $33.25 | | | $61.76 | | | $52.40 | | | $37.94 | | | $37.45 | |
| Total Return* | | (37.36)% | | | 28.48% | | | 49.99% | | | 7.97% | | | 29.97% | |
| Net Assets, End of Period (in thousands) | | $644,388 | | | $1,189,917 | | | $890,656 | | | $418,834 | | | $353,236 | |
| Average Net Assets for the Period (in thousands) | | $944,382 | | | $1,074,031 | | | $606,085 | | | $356,404 | | | $248,537 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.75% | | | 0.75% | | | 0.76% | | | 0.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.75% | | | 0.75% | | | 0.76% | | | 0.75% | |
| | Ratio of Net Investment Income/(Loss) | | (0.26)% | | | (0.24)% | | | (0.02)% | | | 0.11% | | | 0.10% | |
| Portfolio Turnover Rate | | 47% | | | 43% | | | 37% | | | 36% | | | 20% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $61.03 | | | $51.81 | | | $37.52 | | | $37.05 | | | $29.59 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.08) | | | (0.09) | | | 0.02 | | | 0.07 | | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | (19.47) | | | 14.21 | | | 17.60 | | | 2.37 | | | 8.60 | |
| Total from Investment Operations | | (19.55) | | | 14.12 | | | 17.62 | | | 2.44 | | | 8.66 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.10) | | | — | | | (0.08) | | | (0.02) | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | |
| Total Dividends and Distributions | | (8.65) | | | (4.90) | | | (3.33) | | | (1.97) | | | (1.20) | |
| Net Asset Value, End of Period | | $32.83 | | | $61.03 | | | $51.81 | | | $37.52 | | | $37.05 | |
| Total Return* | | (37.29)% | | | 28.59% | | | 50.10% | | | 8.06% | | | 30.04% | |
| Net Assets, End of Period (in thousands) | | $115,297 | | | $175,740 | | | $117,541 | | | $41,043 | | | $20,522 | |
| Average Net Assets for the Period (in thousands) | | $155,684 | | | $158,218 | | | $70,265 | | | $28,002 | | | $11,360 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.67% | | | 0.67% | | | 0.67% | | | 0.69% | | | 0.69% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.67% | | | 0.67% | | | 0.69% | | | 0.69% | |
| | Ratio of Net Investment Income/(Loss) | | (0.17)% | | | (0.16)% | | | 0.06% | | | 0.19% | | | 0.17% | |
| Portfolio Turnover Rate | | 47% | | | 43% | | | 37% | | | 36% | | | 20% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $57.73 | | | $49.38 | | | $36.07 | | | $35.79 | | | $28.75 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.29) | | | (0.36) | | | (0.19) | | | (0.12) | | | (0.12) | |
| | Net realized and unrealized gain/(loss) | | (18.20) | | | 13.51 | | | 16.83 | | | 2.29 | | | 8.34 | |
| Total from Investment Operations | | (18.49) | | | 13.15 | | | 16.64 | | | 2.17 | | | 8.22 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | |
| Total Dividends and Distributions | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | |
| Net Asset Value, End of Period | | $30.59 | | | $57.73 | | | $49.38 | | | $36.07 | | | $35.79 | |
| Total Return* | | (37.63)% | | | 27.95% | | | 49.35% | | | 7.49% | | | 29.36% | |
| Net Assets, End of Period (in thousands) | | $17,985 | | | $27,069 | | | $21,002 | | | $9,084 | | | $6,628 | |
| Average Net Assets for the Period (in thousands) | | $26,676 | | | $25,961 | | | $14,529 | | | $7,654 | | | $6,405 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.18% | | | 1.17% | | | 1.19% | | | 1.22% | | | 1.20% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.17% | | | 1.18% | | | 1.22% | | | 1.19% | |
| | Ratio of Net Investment Income/(Loss) | | (0.68)% | | | (0.66)% | | | (0.46)% | | | (0.35)% | | | (0.36)% | |
| Portfolio Turnover Rate | | 47% | | | 43% | | | 37% | | | 36% | | | 20% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $60.53 | | | $51.47 | | | $37.37 | | | $36.91 | | | $29.54 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.19) | | | (0.23) | | | (0.08) | | | (0.02) | | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | (19.26) | | | 14.11 | | | 17.51 | | | 2.39 | | | 8.58 | |
| Total from Investment Operations | | (19.45) | | | 13.88 | | | 17.43 | | | 2.37 | | | 8.55 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.02) | | | — | | | (0.02) | | | — | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | |
| Total Dividends and Distributions | | (8.65) | | | (4.82) | | | (3.33) | | | (1.91) | | | (1.18) | |
| Net Asset Value, End of Period | | $32.43 | | | $60.53 | | | $51.47 | | | $37.37 | | | $36.91 | |
| Total Return* | | (37.45)% | | | 28.26% | | | 49.77% | | | 7.82% | | | 29.70% | |
| Net Assets, End of Period (in thousands) | | $1,045,715 | | | $1,958,570 | | | $1,601,653 | | | $936,931 | | | $961,794 | |
| Average Net Assets for the Period (in thousands) | | $1,554,115 | | | $1,860,359 | | | $1,210,097 | | | $869,267 | | | $812,197 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.91% | | | 0.92% | | | 0.93% | | | 0.92% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.91% | | | 0.91% | | | 0.92% | | | 0.92% | |
| | Ratio of Net Investment Income/(Loss) | | (0.41)% | | | (0.40)% | | | (0.18)% | | | (0.06)% | | | (0.08)% | |
| Portfolio Turnover Rate | | 47% | | | 43% | | | 37% | | | 36% | | | 20% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
“Distributor”) 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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, 2022 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, 2022.
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
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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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
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 the Adviser 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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. Emerging market countries in which the Fund may invest include frontier market countries, the economies of which are less developed than other emerging market countries. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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.
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
Janus Henderson Global Technology and Innovation Fund
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.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Janus Henderson Global Technology and Innovation 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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser 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 the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $263,372. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $273,978, resulting in the net amount due to the counterparty of $10,606.
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 Offsetting Assets and Liabilities table located in the Schedule of Investments 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 Technology and Innovation Fund
Notes to Financial Statements
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Shareholder 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
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $49,166.
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, 2022, redeeming shareholders of Class A Shares paid CDSCs of $153 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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $5,099.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
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) | |
$ - | $ - | $ - | $(18,867,970) | $ - | $ (128,886) | $457,643,201 | |
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, 2022 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) |
$ 3,381,145,956 | $1,004,766,888 | $(547,123,687) | $ 457,643,201 |
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, 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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 34,402,388 | $ 935,947,736 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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 |
$ 28,795,957 | $ (313,574) | $ (28,482,383) |
Capital has been adjusted by $24,667,363, including $24,565,469 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, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 877,413 | $ 39,900,994 | | 1,549,800 | $ 87,810,243 |
Reinvested dividends and distributions | 785,445 | 39,554,989 | | 391,837 | 20,391,219 |
Shares repurchased | (1,285,642) | (55,887,939) | | (1,546,340) | (87,424,107) |
Net Increase/(Decrease) | 377,216 | $ 23,568,044 | | 395,297 | $ 20,777,355 |
Class C Shares: | | | | | |
Shares sold | 226,192 | $ 8,952,475 | | 392,494 | $ 19,087,641 |
Reinvested dividends and distributions | 359,888 | 15,435,591 | | 195,550 | 8,944,446 |
Shares repurchased | (662,056) | (24,003,417) | | (605,073) | (28,991,468) |
Net Increase/(Decrease) | (75,976) | $ 384,649 | | (17,029) | $ (959,381) |
Class D Shares: | | | | | |
Shares sold | 3,599,506 | $171,960,826 | | 5,633,990 | $321,381,945 |
Reinvested dividends and distributions | 8,016,491 | 419,182,331 | | 4,146,186 | 222,359,993 |
Shares repurchased | (6,992,723) | (314,829,133) | | (6,496,952) | (368,838,172) |
Net Increase/(Decrease) | 4,623,274 | $276,314,024 | | 3,283,224 | $174,903,766 |
Class I Shares: | | | | | |
Shares sold | 7,091,813 | $326,578,396 | | 7,875,296 | $456,468,434 |
Reinvested dividends and distributions | 2,866,657 | 151,760,832 | | 1,369,659 | 74,208,117 |
Shares repurchased | (9,846,435) | (446,888,002) | | (6,975,855) | (401,667,378) |
Net Increase/(Decrease) | 112,035 | $ 31,451,226 | | 2,269,100 | $129,009,173 |
Class N Shares: | | | | | |
Shares sold | 1,255,721 | $ 59,650,746 | | 1,460,792 | $ 83,346,222 |
Reinvested dividends and distributions | 493,570 | 25,779,168 | | 223,087 | 11,937,362 |
Shares repurchased | (1,116,408) | (50,732,608) | | (1,073,007) | (60,837,948) |
Net Increase/(Decrease) | 632,883 | $ 34,697,306 | | 610,872 | $ 34,445,636 |
Class S Shares: | | | | | |
Shares sold | 312,563 | $ 16,857,268 | | 142,000 | $ 7,600,543 |
Reinvested dividends and distributions | 107,615 | 5,259,139 | | 42,533 | 2,161,126 |
Shares repurchased | (301,224) | (13,270,266) | | (140,911) | (7,529,638) |
Net Increase/(Decrease) | 118,954 | $ 8,846,141 | | 43,622 | $ 2,232,031 |
Class T Shares: | | | | | |
Shares sold | 3,854,873 | $184,777,506 | | 7,511,806 | $425,071,108 |
Reinvested dividends and distributions | 5,264,764 | 272,188,274 | | 2,766,547 | 147,097,319 |
Shares repurchased | (9,232,493) | (417,339,536) | | (9,044,088) | (505,437,871) |
Net Increase/(Decrease) | (112,856) | $ 39,626,244 | | 1,234,265 | $ 66,730,556 |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$2,563,319,961 | $3,216,385,517 | $ - | $ - |
7. Recent Accounting Pronouncements
The FASB issued Accounting Standards Update 2022-03: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”) in June 2022. The new guidance in the ASU clarifies existing guidance
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
in ASC 820 related to the fair value measurement of an equity security subject to contractual sale restrictions with the intent to reduce diversity in interpretation. Under the guidance, a contractual restriction on the sale of an equity security would not be considered when measuring fair value as such restriction is not treated as part of the equity security’s unit of account. The amendments would be applied prospectively on or after adoption date to equity securities with a contract containing a sale restriction that is executed or modified after such date. The effective date set by the FASB is December 15, 2023, with early adoption permitted. The Adviser is currently evaluating whether to early adopt and does not anticipate it to have a material impact on the Fund.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser 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)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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Capital Gain Distributions | $964,641,799 |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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 | | | | |
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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 | | | | |
William F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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 |
Jonathan Cofsky
151 Detroit Street
Denver, CO 80206
DOB: 1983 | Executive Vice President and Co-Portfolio Manager Janus Henderson Global Technology and Innovation Fund | 3/22-Present
| Portfolio Manager for other Janus Henderson accounts and Analyst for the Adviser. Formerly, vice president at Sanford C. Bernstein (2006-2014). |
Denny Fish
151 Detroit Street
Denver, CO 80206
DOB: 1971 | Executive Vice President and Co-Portfolio Manager Janus Henderson Global Technology and Innovation Fund | 1/16-Present
| Head of Technology Sector of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US LLC (2009-2017). |
* 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
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 |
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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Global Technology and Innovation Fund
Notes
NotesPage1
Janus Henderson Global Technology and Innovation 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93047 11-22 |
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| | | |
| | | ANNUAL REPORT September 30, 2022 |
| | |
| | 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 long-term growth of capital and current income by investing in a portfolio of high-quality companies – defined by sustainable earnings growth, strong cash flow conversion, 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
The Janus Henderson Growth and Income Fund Class I Shares returned -14.12% for the 12-month period ended September 30, 2022. The Fund’s benchmark, the S&P 500® Index, returned -15.47%.
INVESTMENT ENVIRONMENT
The period began amid optimism that increased vaccination rates and the imminent arrival of oral antiviral drugs could help lessen the health risks posed by the COVID virus, but investor mood soured rapidly as the Federal Reserve (Fed) realized that it was behind the curve in fighting inflation. Investors hoped the Fed would slow the pace of its interest rate hikes on early signs that inflation could be easing, but that did not materialize. Inflation remained elevated, and the Fed continued to tighten monetary policy aggressively and conveyed that rates would need to remain higher for longer to bring inflation back to its 2% target. The Fed’s hawkish stance underpinned gains in the U.S. dollar, which hit its highest level in more than 20 years toward the end of the period. While the U.S. economy entered a technical recession – experiencing two consecutive quarters of contraction in the first and second quarters of 2022 – the economic outlook remained uncertain, as consumer and labor force data were relatively resilient even amid fears of a weaker economic environment.
PERFORMANCE DISCUSSION
The Fund outperformed the S&P 500 Index during the period. On a sector level, our stock selection in the information technology sector and underweight allocation in the communication services sector contributed to relative results. Our underweight allocation in the strong-performing energy sector and stock selection in the consumer discretionary sector weighed on relative results.
Our holdings in the healthcare sector contributed to relative outperformance, as the more defensive sector generally held up better than the market during a volatile period. Large-cap pharmaceutical company Eli Lilly reported strong results and continued to have success with its product portfolio and pipeline, including treatments for diabetes and a new therapy for obesity that demonstrated efficacy in clinical trials. UnitedHealth Group also reported solid growth and moderately raised guidance during the period. The company has seen continued strength in its Medicare Advantage healthcare plan and Optum, its information and technology-enabled health services business focused on lowering costs within the healthcare system. Consumer staples stock Hershey also contributed to performance. The company has seen an acceleration in revenue growth and continued innovation in its confectionery segment. Management has also executed effectively on recent acquisitions that have been positive for its business.
Fears of slowing consumer demand and nagging supply chain effects hurt the results of some of our holdings in the consumer discretionary sector, such as apparel and footwear company VF Corp., which was among the top relative detractors. The company’s largest brand, Vans, which had been driving sustainable growth with healthy margins, has more recently hit a plateau, with the company struggling to reignite momentum. Garmin was another detractor, as the company’s fitness segment, which benefited during the pandemic, has more recently suffered from difficult year-over-year comparisons and concerns over slowing consumer demand in an uncertain economic environment. Comcast Corp. fell on a growth slowdown in its high-speed Internet business and concerns around increased competition from fiber and wireless offerings. Additionally, a slowing economic environment could eat into Comcast’s sizable advertising revenue.
OUTLOOK
The U.S. equity market has readjusted aggressively this year, as investors try to assess what effects inflation – and the Fed’s response - will have on economic growth, and
Janus Henderson Growth and Income Fund (unaudited)
likewise, corporate earnings. For now, it remains uncertain how much demand destruction we will see from higher rates and what level they will need to reach in order for inflation to return to sustainable levels. Consumers, who drive the bulk of the U.S. economy, are in a stronger position than in previous rate-hiking cycles. This has complicated the Fed’s task of reining in inflation, as consumer strength has kept upward pressure on prices despite tightening monetary policy and fears of a recession.
While we have seen marginal improvement in some data, we continue to look for signals that would make the economic outlook more favorable. An increase in labor force participation - which has lagged since the onset of the pandemic - would help contain wage inflation. At the same time, improved labor productivity as newly hired employees season and pandemic-related disruptions abate would help ease businesses’ need to hire additional workers. Improved raw material and electronic component supplies, as well as easing in other lingering supply chain bottlenecks, would help drive down prices and improve the growth outlook. For now, we remain cautious, as external uncertainties the Russia/Ukraine war, dramatically higher interest rates, increasing restrictions on cross-border trade, and global currency fluctuations - also make the outlook unpredictable.
As always, we remain focused on companies with the ability to generate sustainable cash flow in various economic scenarios and the potential to pay attractive and growing dividends to shareholders while still investing in future growth opportunities. Companies with strong balance sheets that can invest through volatile macroeconomic periods like the current one may be able to position themselves for faster relative growth as we move toward a more normal investment environment.
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, 2022
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| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Eli Lilly & Co | 2.32% | | 0.80% | | Comcast Corp | 2.36% | | -0.68% |
| UnitedHealth Group Inc | 3.14% | | 0.69% | | VF Corp | 1.37% | | -0.67% |
| Hershey Co | 1.43% | | 0.54% | | Garmin Ltd | 1.29% | | -0.51% |
| General Dynamics Corp | 1.64% | | 0.37% | | JPMorgan Chase & Co | 3.00% | | -0.42% |
| AbbVie Inc | 1.75% | | 0.37% | | Chevron Corp | 0.28% | | -0.32% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | 1.85% | | 37.04% | 27.75% |
| Communication Services | | 1.40% | | 4.29% | 9.46% |
| Health Care | | 0.98% | | 16.06% | 13.77% |
| Industrials | | 0.95% | | 11.75% | 7.89% |
| Consumer Staples | | 0.29% | | 6.15% | 6.30% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | -1.67% | | 0.28% | 3.79% |
| Consumer Discretionary | | -0.90% | | 12.03% | 11.83% |
| Utilities | | -0.51% | | 0.00% | 2.75% |
| Financials | | -0.34% | | 11.31% | 11.11% |
| Materials | | -0.16% | | 0.92% | 2.59% |
| | | | | | | |
| 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 Growth and Income Fund (unaudited)
Fund At A Glance
September 30, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 8.5% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 7.2% |
Accenture PLC | |
Information Technology Services | 4.2% |
UnitedHealth Group Inc | |
Health Care Providers & Services | 3.7% |
JPMorgan Chase & Co | |
Banks | 3.0% |
| | 26.6% |
| | | | | | |
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, 2022 
| As of September 30, 2021 
|
Janus Henderson Growth and Income Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended September 30, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -14.38% | 7.96% | 10.95% | 10.18% | | | 1.01% |
Class A Shares at MOP | | -19.30% | 6.69% | 10.29% | 9.97% | | | |
Class C Shares at NAV | | -14.93% | 7.23% | 10.14% | 9.43% | | | 1.69% |
Class C Shares at CDSC | | -15.74% | 7.23% | 10.14% | 9.43% | | | |
Class D Shares | | -14.17% | 8.21% | 11.16% | 10.30% | | | 0.75% |
Class I Shares | | -14.12% | 8.26% | 11.23% | 10.33% | | | 0.70% |
Class N Shares | | -14.06% | 8.34% | 11.19% | 10.29% | | | 0.62% |
Class R Shares | | -14.72% | 7.51% | 10.47% | 9.75% | | | 1.40% |
Class S Shares | | -14.48% | 7.81% | 10.77% | 10.01% | | | 1.13% |
Class T Shares | | -14.24% | 8.09% | 11.06% | 10.25% | | | 0.87% |
S&P 500 Index | | -15.47% | 9.24% | 11.70% | 9.71% | | | |
Morningstar Quartile - Class T Shares | | 2nd | 3rd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Large Blend Funds | | 388/1,374 | 609/1,198 | 388/1,026 | 30/316 | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
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), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and
Janus Henderson Growth and Income 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 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.
© 2022 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 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.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $816.10 | $4.64 | | $1,000.00 | $1,019.95 | $5.16 | 1.02% |
Class C Shares | $1,000.00 | $813.40 | $7.50 | | $1,000.00 | $1,016.80 | $8.34 | 1.65% |
Class D Shares | $1,000.00 | $817.10 | $3.46 | | $1,000.00 | $1,021.26 | $3.85 | 0.76% |
Class I Shares | $1,000.00 | $817.30 | $3.19 | | $1,000.00 | $1,021.56 | $3.55 | 0.70% |
Class N Shares | $1,000.00 | $817.70 | $2.87 | | $1,000.00 | $1,021.91 | $3.19 | 0.63% |
Class R Shares | $1,000.00 | $814.40 | $6.50 | | $1,000.00 | $1,017.90 | $7.23 | 1.43% |
Class S Shares | $1,000.00 | $815.70 | $5.14 | | $1,000.00 | $1,019.40 | $5.72 | 1.13% |
Class T Shares | $1,000.00 | $816.70 | $3.92 | | $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, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 99.9% | | | |
Aerospace & Defense – 2.6% | | | |
| | General Dynamics Corp | | 524,110 | | | $111,200,419 | |
| | L3Harris Technologies Inc | | 170,265 | | | 35,386,175 | |
| | | 146,586,594 | |
Air Freight & Logistics – 2.0% | | | |
| | United Parcel Service Inc | | 717,666 | | | 115,931,766 | |
Banks – 3.6% | | | |
| | JPMorgan Chase & Co | | 1,647,635 | | | 172,177,857 | |
| | US Bancorp | | 788,714 | | | 31,800,948 | |
| | | 203,978,805 | |
Beverages – 0.5% | | | |
| | Constellation Brands Inc | | 129,480 | | | 29,738,966 | |
Biotechnology – 3.4% | | | |
| | AbbVie Inc | | 898,509 | | | 120,588,893 | |
| | Amgen Inc | | 157,493 | | | 35,498,922 | |
| | Gilead Sciences Inc | | 606,008 | | | 37,384,634 | |
| | | 193,472,449 | |
Capital Markets – 5.6% | | | |
| | Charles Schwab Corp | | 483,797 | | | 34,770,490 | |
| | CME Group Inc | | 602,707 | | | 106,757,491 | |
| | Goldman Sachs Group Inc | | 240,049 | | | 70,346,359 | |
| | Morgan Stanley | | 1,359,923 | | | 107,447,516 | |
| | | 319,321,856 | |
Chemicals – 1.0% | | | |
| | Air Products & Chemicals Inc | | 126,602 | | | 29,464,083 | |
| | International Flavors & Fragrances Inc | | 302,295 | | | 27,457,455 | |
| | | 56,921,538 | |
Commercial Services & Supplies – 0.5% | | | |
| | Waste Management Inc | | 164,298 | | | 26,322,183 | |
Communications Equipment – 0.5% | | | |
| | Motorola Solutions Inc | | 120,602 | | | 27,011,230 | |
Consumer Finance – 2.3% | | | |
| | American Express Co | | 996,736 | | | 134,469,654 | |
Electrical Equipment – 0.8% | | | |
| | Rockwell Automation Inc | | 201,325 | | | 43,307,021 | |
Electronic Equipment, Instruments & Components – 3.1% | | | |
| | Corning Inc | | 2,364,052 | | | 68,604,789 | |
| | TE Connectivity Ltd | | 994,371 | | | 109,738,784 | |
| | | 178,343,573 | |
Entertainment – 0.7% | | | |
| | Warner Music Group Corp - Class A | | 1,720,126 | | | 39,924,124 | |
Food & Staples Retailing – 1.8% | | | |
| | Costco Wholesale Corp | | 116,811 | | | 55,166,331 | |
| | Sysco Corp | | 681,167 | | | 48,165,319 | |
| | | 103,331,650 | |
Food Products – 1.7% | | | |
| | Hershey Co | | 447,724 | | | 98,709,710 | |
Health Care Equipment & Supplies – 4.4% | | | |
| | Abbott Laboratories | | 1,162,359 | | | 112,469,857 | |
| | Medtronic PLC | | 1,161,759 | | | 93,812,039 | |
| | Stryker Corp | | 215,417 | | | 43,630,559 | |
| | | 249,912,455 | |
Health Care Providers & Services – 4.3% | | | |
| | Quest Diagnostics Inc | | 270,200 | | | 33,150,838 | |
| | UnitedHealth Group Inc | | 423,792 | | | 214,031,912 | |
| | | 247,182,750 | |
Hotels, Restaurants & Leisure – 3.9% | | | |
| | McDonald's Corp | | 564,226 | | | 130,189,507 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Growth and Income Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Hotels, Restaurants & Leisure– (continued) | | | |
| | Starbucks Corp | | 1,111,310 | | | $93,638,981 | |
| | | 223,828,488 | |
Household Durables – 1.0% | | | |
| | Garmin Ltd | | 727,652 | | | 58,437,732 | |
Household Products – 1.9% | | | |
| | Procter & Gamble Co | | 864,493 | | | 109,142,241 | |
Industrial Conglomerates – 1.5% | | | |
| | Honeywell International Inc | | 533,419 | | | 89,064,970 | |
Information Technology Services – 8.8% | | | |
| | Accenture PLC | | 931,255 | | | 239,611,911 | |
| | Automatic Data Processing Inc | | 314,479 | | | 71,132,005 | |
| | Cognizant Technology Solutions Corp | | 512,099 | | | 29,414,967 | |
| | Fidelity National Information Services Inc | | 389,035 | | | 29,399,375 | |
| | Visa Inc | | 749,342 | | | 133,120,606 | |
| | | 502,678,864 | |
Insurance – 0.5% | | | |
| | Travelers Cos Inc | | 182,693 | | | 27,988,568 | |
Leisure Products – 1.3% | | | |
| | Hasbro Inc | | 1,096,466 | | | 73,923,738 | |
Machinery – 4.0% | | | |
| | Deere & Co | | 483,398 | | | 161,401,758 | |
| | Parker-Hannifin Corp | | 104,367 | | | 25,289,168 | |
| | Trane Technologies PLC | | 309,081 | | | 44,758,020 | |
| | | 231,448,946 | |
Media – 2.0% | | | |
| | Comcast Corp | | 4,017,366 | | | 117,829,345 | |
Multiline Retail – 0.8% | | | |
| | Target Corp | | 293,391 | | | 43,536,290 | |
Oil, Gas & Consumable Fuels – 1.4% | | | |
| | Chevron Corp | | 572,421 | | | 82,239,725 | |
Personal Products – 0.6% | | | |
| | Estee Lauder Cos Inc | | 149,629 | | | 32,304,901 | |
Pharmaceuticals – 5.2% | | | |
| | Eli Lilly & Co | | 453,306 | | | 146,576,495 | |
| | Merck & Co Inc | | 1,246,697 | | | 107,365,546 | |
| | Zoetis Inc | | 288,032 | | | 42,712,265 | |
| | | 296,654,306 | |
Professional Services – 0.4% | | | |
| | Booz Allen Hamilton Holding Corp | | 268,245 | | | 24,772,426 | |
Road & Rail – 0.6% | | | |
| | Union Pacific Corp | | 188,078 | | | 36,641,356 | |
Semiconductor & Semiconductor Equipment – 5.5% | | | |
| | KLA Corp | | 537,298 | | | 162,602,494 | |
| | Texas Instruments Inc | | 994,243 | | | 153,888,932 | |
| | | 316,491,426 | |
Software – 10.4% | | | |
| | Intuit Inc | | 73,777 | | | 28,575,308 | |
| | Microsoft Corp | | 2,087,268 | | | 486,124,717 | |
| | Oracle Corp | | 1,356,615 | | | 82,848,478 | |
| | | 597,548,503 | |
Specialty Retail – 2.6% | | | |
| | Home Depot Inc | | 376,425 | | | 103,870,714 | |
| | TJX Cos Inc | | 742,535 | | | 46,126,274 | |
| | | 149,996,988 | |
Technology Hardware, Storage & Peripherals – 7.2% | | | |
| | Apple Inc | | 2,985,545 | | | 412,602,319 | |
Textiles, Apparel & Luxury Goods – 1.5% | | | |
| | NIKE Inc - Class B | | 444,613 | | | 36,956,233 | |
| | |
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, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Textiles, Apparel & Luxury Goods– (continued) | | | |
| | VF Corp | | 1,630,738 | | | $48,775,374 | |
| | | 85,731,607 | |
Total Common Stocks (cost $3,474,749,409) | | 5,727,329,063 | |
Investment Companies– 0.2% | | | |
Money Markets – 0.2% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $11,984,222) | | 11,983,024 | | | 11,984,222 | |
Total Investments (total cost $3,486,733,631) – 100.1% | | 5,739,313,285 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | | (4,458,690) | |
Net Assets – 100% | | $5,734,854,595 | |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - 0.2% |
Money Markets - 0.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 50,889 | $ | (66) | $ | - | $ | 11,984,222 |
| |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - 0.2% |
Money Markets - 0.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 13,284,317 | | 228,571,879 | | (229,871,908) | | 11,984,222 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
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. |
| | |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
£ | 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, 2022. 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 | $ | 5,727,329,063 | $ | - | $ | - |
Investment Companies | | - | | 11,984,222 | | - |
Total Assets | $ | 5,727,329,063 | $ | 11,984,222 | $ | - |
| | | | | | | |
Janus Henderson Growth and Income Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,474,749,409) | | $ | 5,727,329,063 | |
| Affiliated investments, at value (cost $11,984,222) | | | 11,984,222 | |
| Trustees' deferred compensation | | | 172,027 | |
| Receivables: | | | | |
| | Investments sold | | | 19,747,160 | |
| | Fund shares sold | | | 5,866,479 | |
| | Dividends | | | 3,577,919 | |
| | Foreign tax reclaims | | | 106,600 | |
| | Dividends from affiliates | | | 16,589 | |
| Other assets | | | 7,842 | |
Total Assets | | | 5,768,807,901 | |
Liabilities: | | | | |
| Due to custodian | | | 588 | |
| Payables: | | | — | |
| | Investments purchased | | | 20,343,373 | |
| | Fund shares repurchased | | | 7,960,118 | |
| | Advisory fees | | | 3,270,456 | |
| | Transfer agent fees and expenses | | | 940,178 | |
| | Dividends | | | 765,175 | |
| | Trustees' deferred compensation fees | | | 172,027 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 60,548 | |
| | Professional fees | | | 57,672 | |
| | Trustees' fees and expenses | | | 29,731 | |
| | Affiliated fund administration fees payable | | | 13,627 | |
| | Custodian fees | | | 10,455 | |
| | Accrued expenses and other payables | | | 329,358 | |
Total Liabilities | | | 33,953,306 | |
Net Assets | | $ | 5,734,854,595 | |
| | |
See Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
Janus Henderson Growth and Income Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,166,539,150 | |
| Total distributable earnings (loss) | | | 2,568,315,445 | |
Total Net Assets | | $ | 5,734,854,595 | |
Net Assets - Class A Shares | | $ | 71,632,551 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,196,765 | |
Net Asset Value Per Share(1) | | $ | 59.86 | |
Maximum Offering Price Per Share(2) | | $ | 63.51 | |
Net Assets - Class C Shares | | $ | 40,161,352 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 682,227 | |
Net Asset Value Per Share(1) | | $ | 58.87 | |
Net Assets - Class D Shares | | $ | 3,529,397,116 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 58,856,160 | |
Net Asset Value Per Share | | $ | 59.97 | |
Net Assets - Class I Shares | | $ | 344,523,704 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,742,056 | |
Net Asset Value Per Share | | $ | 60.00 | |
Net Assets - Class N Shares | | $ | 47,906,173 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 799,767 | |
Net Asset Value Per Share | | $ | 59.90 | |
Net Assets - Class R Shares | | $ | 5,477,335 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 92,185 | |
Net Asset Value Per Share | | $ | 59.42 | |
Net Assets - Class S Shares | | $ | 12,049,339 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 201,377 | |
Net Asset Value Per Share | | $ | 59.83 | |
Net Assets - Class T Shares | | $ | 1,683,707,025 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 28,106,471 | |
Net Asset Value Per Share | | $ | 59.90 | |
| |
(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, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 124,139,513 | |
| Dividends from affiliates | | 50,889 | |
| Other income | | 38,120 | |
| Foreign tax withheld | | (37,159) | |
Total Investment Income | | 124,191,363 | |
Expenses: | | | |
| Advisory fees | | 41,910,358 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 226,896 | |
| | Class C Shares | | 474,412 | |
| | Class R Shares | | 33,024 | |
| | Class S Shares | | 49,045 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 4,860,135 | |
| | Class R Shares | | 17,041 | |
| | Class S Shares | | 49,174 | |
| | Class T Shares | | 5,144,096 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 119,596 | |
| | Class C Shares | | 30,974 | |
| | Class I Shares | | 331,362 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 5,504 | |
| | Class C Shares | | 2,335 | |
| | Class D Shares | | 455,138 | |
| | Class I Shares | | 18,472 | |
| | Class N Shares | | 2,535 | |
| | Class R Shares | | 176 | |
| | Class S Shares | | 303 | |
| | Class T Shares | | 17,892 | |
| Shareholder reports expense | | 348,225 | |
| Registration fees | | 175,167 | |
| Affiliated fund administration fees | | 174,626 | |
| Trustees’ fees and expenses | | 147,468 | |
| Professional fees | | 80,917 | |
| Custodian fees | | 35,318 | |
| Other expenses | | 416,359 | |
Total Expenses | | 55,126,548 | |
Less: Excess Expense Reimbursement and Waivers | | (327,792) | |
Net Expenses | | 54,798,756 | |
Net Investment Income/(Loss) | | 69,392,607 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2022 |
Janus Henderson Growth and Income Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments(1) | $ | 370,337,452 | |
| Investments in affiliates | | (66) | |
Total Net Realized Gain/(Loss) on Investments | | 370,337,386 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (1,387,712,807) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (1,387,712,807) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (947,982,814) | |
| | | | | |
| |
(1) Includes $10,145,387 of realized gains and losses resulting from a redemption-in-kind during the year ended September 30, 2022. |
| | |
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, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 69,392,607 | | $ | 62,891,585 | |
| Net realized gain/(loss) on investments | | 370,337,386 | | | 373,778,928 | |
| Change in unrealized net appreciation/depreciation | | (1,387,712,807) | | | 1,201,908,352 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (947,982,814) | | | 1,638,578,865 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (5,314,593) | | | (3,005,988) | |
| | Class C Shares | | (2,753,238) | | | (1,593,791) | |
| | Class D Shares | | (260,184,925) | | | (147,338,668) | |
| | Class I Shares | | (26,709,382) | | | (17,034,840) | |
| | Class N Shares | | (4,394,143) | | | (2,416,858) | |
| | Class R Shares | | (391,842) | | | (286,219) | |
| | Class S Shares | | (1,294,942) | | | (800,410) | |
| | Class T Shares | | (125,047,566) | | | (72,590,111) | |
Net Decrease from Dividends and Distributions to Shareholders | | (426,090,631) | | | (245,066,885) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (2,581,520) | | | (7,064,117) | |
| | Class C Shares | | (3,207,945) | | | (7,962,136) | |
| | Class D Shares | | 87,339,620 | | | (52,885,131) | |
| | Class I Shares | | (30,154,463) | | | (63,281,156) | |
| | Class N Shares | | (11,386,114) | | | 4,488,641 | |
| | Class R Shares | | (565,996) | | | (2,644,604) | |
| | Class S Shares | | (8,461,564) | | | (3,898,946) | |
| | Class T Shares | | (22,616,596) | | | (117,933,431) | |
Net Increase/(Decrease) from Capital Share Transactions | | 8,365,422 | | | (251,180,880) | |
Net Increase/(Decrease) in Net Assets | | (1,365,708,023) | | | 1,142,331,100 | |
Net Assets: | | | | | | |
| Beginning of period | | 7,100,562,618 | | | 5,958,231,518 | |
| End of period | $ | 5,734,854,595 | | $ | 7,100,562,618 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $73.95 | | | $59.77 | | | $58.49 | | | $59.20 | | | $51.66 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.55 | | | 0.49 | | | 0.80 | | | 1.00 | | | 0.91 | |
| | Net realized and unrealized gain/(loss) | | (10.31) | | | 16.06 | | | 2.53 | | | 2.27 | | | 8.49 | |
| Total from Investment Operations | | (9.76) | | | 16.55 | | | 3.33 | | | 3.27 | | | 9.40 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.57) | | | (0.51) | | | (0.83) | | | (1.01) | | | (0.91) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | |
| Total Dividends and Distributions | | (4.33) | | | (2.37) | | | (2.05) | | | (3.98) | | | (1.86) | |
| Net Asset Value, End of Period | | $59.86 | | | $73.95 | | | $59.77 | | | $58.49 | | | $59.20 | |
| Total Return* | | (14.38)% | | | 28.28% | | | 5.81% | | | 6.53% | | | 18.48% | |
| Net Assets, End of Period (in thousands) | | $71,633 | | | $91,735 | | | $80,310 | | | $88,445 | | | $32,284 | |
| Average Net Assets for the Period (in thousands) | | $90,358 | | | $88,624 | | | $80,441 | | | $64,525 | | | $25,843 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.01% | | | 1.01% | | | 0.99% | | | 0.95% | | | 0.95% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.01% | | | 1.01% | | | 0.99% | | | 0.95% | | | 0.95% | |
| | Ratio of Net Investment Income/(Loss) | | 0.77% | | | 0.71% | | | 1.41% | | | 1.79% | | | 1.63% | |
| Portfolio Turnover Rate | | 17% | | | 11% | | | 24% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $72.81 | | | $58.90 | | | $57.68 | | | $58.46 | | | $51.07 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.10 | | | 0.05 | | | 0.43 | | | 0.56 | | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | (10.13) | | | 15.82 | | | 2.49 | | | 2.26 | | | 8.39 | |
| Total from Investment Operations | | (10.03) | | | 15.87 | | | 2.92 | | | 2.82 | | | 8.88 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.15) | | | (0.10) | | | (0.48) | | | (0.63) | | | (0.54) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | |
| Total Dividends and Distributions | | (3.91) | | | (1.96) | | | (1.70) | | | (3.60) | | | (1.49) | |
| Net Asset Value, End of Period | | $58.87 | | | $72.81 | | | $58.90 | | | $57.68 | | | $58.46 | |
| Total Return* | | (14.93)% | | | 27.48% | | | 5.12% | | | 5.75% | | | 17.59% | |
| Net Assets, End of Period (in thousands) | | $40,161 | | | $53,156 | | | $49,982 | | | $59,591 | | | $25,899 | |
| Average Net Assets for the Period (in thousands) | | $50,122 | | | $53,200 | | | $55,935 | | | $42,229 | | | $22,813 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.64% | | | 1.65% | | | 1.64% | | | 1.69% | | | 1.68% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.64% | | | 1.65% | | | 1.64% | | | 1.69% | | | 1.68% | |
| | Ratio of Net Investment Income/(Loss) | | 0.15% | | | 0.08% | | | 0.77% | | | 1.02% | | | 0.90% | |
| Portfolio Turnover Rate | | 17% | | | 11% | | | 24% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $74.09 | | | $59.87 | | | $58.58 | | | $59.27 | | | $51.71 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.74 | | | 0.67 | | | 0.93 | | | 1.09 | | | 1.01 | |
| | Net realized and unrealized gain/(loss) | | (10.34) | | | 16.11 | | | 2.54 | | | 2.28 | | | 8.51 | |
| Total from Investment Operations | | (9.60) | | | 16.78 | | | 3.47 | | | 3.37 | | | 9.52 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.76) | | | (0.70) | | | (0.96) | | | (1.09) | | | (1.01) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | |
| Total Dividends and Distributions | | (4.52) | | | (2.56) | | | (2.18) | | | (4.06) | | | (1.96) | |
| Net Asset Value, End of Period | | $59.97 | | | $74.09 | | | $59.87 | | | $58.58 | | | $59.27 | |
| Total Return* | | (14.17)% | | | 28.63% | | | 6.07% | | | 6.71% | | | 18.69% | |
| Net Assets, End of Period (in thousands) | | $3,529,397 | | | $4,284,567 | | | $3,506,038 | | | $3,546,939 | | | $3,508,493 | |
| Average Net Assets for the Period (in thousands) | | $4,238,795 | | | $4,038,177 | | | $3,410,901 | | | $3,396,252 | | | $3,349,596 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.75% | | | 0.75% | | | 0.76% | | | 0.76% | | | 0.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.75% | | | 0.75% | | | 0.76% | | | 0.76% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | 1.04% | | | 0.97% | | | 1.64% | | | 1.95% | | | 1.80% | |
| Portfolio Turnover Rate | | 17% | | | 11% | | | 24% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $74.12 | | | $59.90 | | | $58.61 | | | $59.29 | | | $51.74 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.78 | | | 0.71 | | | 0.97 | | | 1.13 | | | 1.05 | |
| | Net realized and unrealized gain/(loss) | | (10.35) | | | 16.10 | | | 2.52 | | | 2.29 | | | 8.50 | |
| Total from Investment Operations | | (9.57) | | | 16.81 | | | 3.49 | | | 3.42 | | | 9.55 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.79) | | | (0.73) | | | (0.98) | | | (1.13) | | | (1.05) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | |
| Total Dividends and Distributions | | (4.55) | | | (2.59) | | | (2.20) | | | (4.10) | | | (2.00) | |
| Net Asset Value, End of Period | | $60.00 | | | $74.12 | | | $59.90 | | | $58.61 | | | $59.29 | |
| Total Return* | | (14.12)% | | | 28.68% | | | 6.11% | | | 6.80% | | | 18.75% | |
| Net Assets, End of Period (in thousands) | | $344,524 | | | $458,387 | | | $429,567 | | | $537,792 | | | $175,321 | |
| Average Net Assets for the Period (in thousands) | | $425,515 | | | $443,087 | | | $500,070 | | | $359,418 | | | $129,552 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.70% | | | 0.70% | | | 0.71% | | | 0.71% | | | 0.69% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.70% | | | 0.70% | | | 0.71% | | | 0.71% | | | 0.69% | |
| | Ratio of Net Investment Income/(Loss) | | 1.08% | | | 1.03% | | | 1.70% | | | 2.02% | | | 1.88% | |
| Portfolio Turnover Rate | | 17% | | | 11% | | | 24% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $74.01 | | | $59.80 | | | $58.52 | | | $59.22 | | | $51.67 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.84 | | | 0.76 | | | 1.00 | | | 1.14 | | | 1.12 | |
| | Net realized and unrealized gain/(loss) | | (10.35) | | | 16.09 | | | 2.53 | | | 2.30 | | | 8.45 | |
| Total from Investment Operations | | (9.51) | | | 16.85 | | | 3.53 | | | 3.44 | | | 9.57 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.84) | | | (0.78) | | | (1.03) | | | (1.17) | | | (1.07) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | |
| Total Dividends and Distributions | | (4.60) | | | (2.64) | | | (2.25) | | | (4.14) | | | (2.02) | |
| Net Asset Value, End of Period | | $59.90 | | | $74.01 | | | $59.80 | | | $58.52 | | | $59.22 | |
| Total Return* | | (14.06)% | | | 28.81% | | | 6.20% | | | 6.85% | | | 18.83% | |
| Net Assets, End of Period (in thousands) | | $47,906 | | | $73,167 | | | $55,506 | | | $40,399 | | | $8,802 | |
| Average Net Assets for the Period (in thousands) | | $73,633 | | | $65,537 | | | $50,678 | | | $17,524 | | | $7,427 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.63% | | | 0.62% | | | 0.63% | | | 0.64% | | | 0.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.63% | | | 0.62% | | | 0.63% | | | 0.64% | | | 0.65% | |
| | Ratio of Net Investment Income/(Loss) | | 1.17% | | | 1.09% | | | 1.76% | | | 2.04% | | | 2.00% | |
| Portfolio Turnover Rate | | 17% | | | 11% | | | 24% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $73.44 | | | $59.35 | | | $58.10 | | | $58.86 | | | $51.40 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.27 | | | 0.23 | | | 0.57 | | | 0.72 | | | 0.65 | |
| | Net realized and unrealized gain/(loss) | | (10.23) | | | 15.95 | | | 2.51 | | | 2.27 | | | 8.44 | |
| Total from Investment Operations | | (9.96) | | | 16.18 | | | 3.08 | | | 2.99 | | | 9.09 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.30) | | | (0.23) | | | (0.61) | | | (0.78) | | | (0.68) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | |
| Total Dividends and Distributions | | (4.06) | | | (2.09) | | | (1.83) | | | (3.75) | | | (1.63) | |
| Net Asset Value, End of Period | | $59.42 | | | $73.44 | | | $59.35 | | | $58.10 | | | $58.86 | |
| Total Return* | | (14.72)% | | | 27.82% | | | 5.38% | | | 6.03% | | | 17.92% | |
| Net Assets, End of Period (in thousands) | | $5,477 | | | $7,329 | | | $8,023 | | | $7,760 | | | $5,244 | |
| Average Net Assets for the Period (in thousands) | | $6,786 | | | $8,987 | | | $8,032 | | | $6,321 | | | $3,952 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.40% | | | 1.39% | | | 1.40% | | | 1.42% | | | 1.41% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.40% | | | 1.39% | | | 1.40% | | | 1.42% | | | 1.41% | |
| | Ratio of Net Investment Income/(Loss) | | 0.38% | | | 0.34% | | | 1.00% | | | 1.30% | | | 1.18% | |
| Portfolio Turnover Rate | | 17% | | | 11% | | | 24% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $73.92 | | | $59.74 | | | $58.47 | | | $59.17 | | | $51.63 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.46 | | | 0.42 | | | 0.72 | | | 0.89 | | | 0.80 | |
| | Net realized and unrealized gain/(loss) | | (10.31) | | | 16.05 | | | 2.53 | | | 2.28 | | | 8.50 | |
| Total from Investment Operations | | (9.85) | | | 16.47 | | | 3.25 | | | 3.17 | | | 9.30 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.48) | | | (0.43) | | | (0.76) | | | (0.90) | | | (0.81) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | |
| Total Dividends and Distributions | | (4.24) | | | (2.29) | | | (1.98) | | | (3.87) | | | (1.76) | |
| Net Asset Value, End of Period | | $59.83 | | | $73.92 | | | $59.74 | | | $58.47 | | | $59.17 | |
| Total Return* | | (14.49)% | | | 28.15% | | | 5.67% | | | 6.34% | | | 18.27% | |
| Net Assets, End of Period (in thousands) | | $12,049 | | | $23,935 | | | $22,870 | | | $24,559 | | | $23,236 | |
| Average Net Assets for the Period (in thousands) | | $19,602 | | | $23,621 | | | $23,489 | | | $22,203 | | | $24,627 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.13% | | | 1.13% | | | 1.13% | | | 1.13% | | | 1.13% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.12% | | | 1.13% | | | 1.12% | | | 1.12% | |
| | Ratio of Net Investment Income/(Loss) | | 0.63% | | | 0.61% | | | 1.28% | | | 1.59% | | | 1.43% | |
| Portfolio Turnover Rate | | 17% | | | 11% | | | 24% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $74.01 | | | $59.81 | | | $58.53 | | | $59.22 | | | $51.68 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.67 | | | 0.60 | | | 0.88 | | | 1.04 | | | 0.95 | |
| | Net realized and unrealized gain/(loss) | | (10.34) | | | 16.08 | | | 2.52 | | | 2.28 | | | 8.49 | |
| Total from Investment Operations | | (9.67) | | | 16.68 | | | 3.40 | | | 3.32 | | | 9.44 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.68) | | | (0.62) | | | (0.90) | | | (1.04) | | | (0.95) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | |
| Total Dividends and Distributions | | (4.44) | | | (2.48) | | | (2.12) | | | (4.01) | | | (1.90) | |
| Net Asset Value, End of Period | | $59.90 | | | $74.01 | | | $59.81 | | | $58.53 | | | $59.22 | |
| Total Return* | | (14.26)% | | | 28.49% | | | 5.95% | | | 6.62% | | | 18.56% | |
| Net Assets, End of Period (in thousands) | | $1,683,707 | | | $2,108,286 | | | $1,805,935 | | | $1,996,900 | | | $1,842,777 | |
| Average Net Assets for the Period (in thousands) | | $2,048,237 | | | $2,025,668 | | | $1,863,456 | | | $1,852,659 | | | $1,735,754 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.87% | | | 0.87% | | | 0.87% | | | 0.87% | | | 0.87% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.85% | | | 0.86% | | | 0.86% | | | 0.86% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 0.93% | | | 0.87% | | | 1.54% | | | 1.86% | | | 1.71% | |
| Portfolio Turnover Rate | | 17% | | | 11% | | | 24% | | | 13% | | | 13% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) 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 Growth and Income 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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 Growth and Income 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, 2022 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 translations arise from changes in the value of assets and liabilities, including investments in securities held at the date
Janus Henderson Growth and Income 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
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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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 the Adviser or the subadviser (as
Janus Henderson Growth and Income 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Henderson Growth and Income Fund
Notes to Financial Statements
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent 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.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Reordering IAA Comps to match JHI requestClass D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, of up to 0.50% of the Class R Shares’ average daily net assets, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $12,836.
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 Growth and Income Fund
Notes to Financial Statements
no CDSCs paid by redeeming shareholders of Class A Shares to the Distributor during the year ended September 30, 2022.
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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $1,588.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser 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, 2022, the Fund engaged in cross trades amounting to $9,523,334 in purchases.
Janus Henderson Growth and Income Fund
Notes to Financial Statements
As of September 30, 2022, shares of the Fund were owned by affiliates of the Adviser, and/or other funds advised by the Adviser, 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 | 24 | | -* | | |
Class R Shares | - | | - | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
* | Less than 0.50% | | | | | |
In addition, other shareholders, including other funds, 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) | |
$ - | $ 319,941,397 | $ - | $ - | $ - | $ (196,331) | $2,248,570,379 | |
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, 2022 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) |
$ 3,490,742,906 | $2,441,024,102 | $(192,453,723) | $ 2,248,570,379 |
Janus Henderson Growth and 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, 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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 70,745,031 | $ 355,345,600 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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 |
$ 22,669,257 | $ (1,071,612) | $ (21,597,645) |
Capital has been adjusted by $12,684,193, including $11,612,582 of long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
Janus Henderson Growth and Income Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 337,245 | $ 24,516,166 | | 317,074 | $ 21,900,002 |
Reinvested dividends and distributions | 57,277 | 4,326,800 | | 38,554 | 2,496,983 |
Shares repurchased | (438,197) | (31,424,486) | | (458,894) | (31,461,102) |
Net Increase/(Decrease) | (43,675) | $ (2,581,520) | | (103,266) | $ (7,064,117) |
Class C Shares: | | | | | |
Shares sold | 61,090 | $ 4,343,205 | | 65,045 | $ 4,373,127 |
Reinvested dividends and distributions | 33,118 | 2,489,705 | | 22,908 | 1,440,854 |
Shares repurchased | (142,074) | (10,040,855) | | (206,455) | (13,776,117) |
Net Increase/(Decrease) | (47,866) | $ (3,207,945) | | (118,502) | $ (7,962,136) |
Class D Shares: | | | | | |
Shares sold | 1,909,020 | $139,542,930 | | 2,072,425 | $ 145,475,499 |
Reinvested dividends and distributions | 3,338,269 | 251,383,633 | | 2,190,254 | 142,830,614 |
Shares repurchased | (4,223,345) | (303,586,943) | | (4,993,327) | (341,191,244) |
Net Increase/(Decrease) | 1,023,944 | $ 87,339,620 | | (730,648) | $ (52,885,131) |
Class I Shares: | | | | | |
Shares sold | 1,279,575 | $ 92,804,912 | | 1,655,059 | $ 115,739,516 |
Reinvested dividends and distributions | 325,224 | 24,502,380 | | 235,177 | 15,341,172 |
Shares repurchased | (2,046,739) | (147,461,755) | | (2,878,102) | (194,361,844) |
Net Increase/(Decrease) | (441,940) | $ (30,154,463) | | (987,866) | $ (63,281,156) |
Class N Shares: | | | | | |
Shares sold | 399,722 | $ 27,478,070 | | 284,710 | $ 20,263,050 |
Reinvested dividends and distributions | 55,534 | 4,172,414 | | 35,695 | 2,332,353 |
Shares repurchased | (644,155) | (43,036,598) | | (259,866) | (18,106,762) |
Net Increase/(Decrease) | (188,899) | $ (11,386,114) | | 60,539 | $ 4,488,641 |
Class R Shares: | | | | | |
Shares sold | 8,252 | $ 588,018 | | 19,220 | $ 1,276,569 |
Reinvested dividends and distributions | 5,174 | 391,000 | | 4,494 | 285,834 |
Shares repurchased | (21,043) | (1,545,014) | | (59,092) | (4,207,007) |
Net Increase/(Decrease) | (7,617) | $ (565,996) | | (35,378) | $ (2,644,604) |
Class S Shares: | | | | | |
Shares sold | 34,533 | $ 2,494,027 | | 30,316 | $ 2,038,164 |
Reinvested dividends and distributions | 16,974 | 1,290,405 | | 12,366 | 797,994 |
Shares repurchased | (173,932) | (12,245,996) | | (101,712) | (6,735,104) |
Net Increase/(Decrease) | (122,425) | $ (8,461,564) | | (59,030) | $ (3,898,946) |
Class T Shares: | | | | | |
Shares sold | 1,463,801 | $105,819,866 | | 1,893,177 | $ 131,550,510 |
Reinvested dividends and distributions | 1,617,397 | 121,911,409 | | 1,088,846 | 70,761,595 |
Shares repurchased | (3,459,836) | (250,347,871) | | (4,689,839) | (320,245,536) |
Net Increase/(Decrease) | (378,638) | $ (22,616,596) | | (1,707,816) | $(117,933,431) |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$1,178,254,406 | $1,524,189,814 | $ - | $ - |
Janus Henderson Growth and Income Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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Capital Gain Distributions | $366,958,183 |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
Janus Henderson Growth and Income 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 F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
Janus Henderson Growth and Income 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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
Janus Henderson Growth and Income 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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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)
| | | | |
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. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US LLC (2009-2017). |
* 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
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 |
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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
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| | | | |
This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93048 11-22 |
| | | | |
| | | |
| | | ANNUAL REPORT September 30, 2022 |
| | |
| | Janus Henderson International Opportunities Fund |
| | |
| | Janus Investment Fund |
| |
| | | 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)
| | | | | | |
FUND SNAPSHOT Janus Henderson International Opportunities Fund is an international equity fund that seeks capital appreciation primarily through investment in equities of non-U.S. companies. The Fund employs a multi-sleeve approach where underlying managers can focus on their highest-conviction ideas. | | | | 
Paul O’Connor co-portfolio manager | 
Dean Cheeseman co-portfolio manager |
| | | |
PERFORMANCE
The Janus Henderson International Opportunities Fund lagged its benchmark, the MSCI All Country World ex USA IndexSM, for the 12-month period ended September 30, 2022. The Fund’s Class I Shares returned -27.83% versus the benchmark’s return of -25.17%.
INVESTMENT ENVIRONMENT
Global equity markets declined over the 12-month period as high levels of inflation in many of the world’s key developed economies prompted aggressive monetary and fiscal tightening, triggering fears of global recession. Equities began the period with positive, if volatile, performance in the fourth quarter of 2021, as investors focused on strong corporate earnings. However, global stock markets sold off in February following Russia’s invasion of Ukraine. Geopolitical turmoil and ongoing supply chain issues drove prices higher, with particularly sharp increases in commodities. Steep inflation prompted several central banks to raise interest rates, causing a rotation from long-duration growth stocks to more cyclical companies. Higher interest rates also fueled fears of a potential recession in the U.S. and other markets, with implications for global growth. As a result, we saw a sharp sell-off in risk-related assets, particularly in countries, industries, and companies that would be sensitive to a slowing global demand. Against this backdrop, emerging market stocks underperformed developed market equities, as measured by the MSCI World IndexSM. Circumstances in China weighed upon markets as the country reinstituted COVID-19 restrictions, suffered continued property market declines, and faced a sharp slowdown in gross domestic product (GDP) growth. In Europe, a looming energy crisis added to investors’ concerns as Russia substantially reduced gas supplies to several European countries.
International developed market indices declined overall during the period. International equity sectors also contracted across the board, with information technology, consumer discretionary, and communications services bearing the brunt of investors’ lowered sentiment, while the best-performing sectors were energy, utilities, and consumer staples.
PERFORMANCE DISCUSSION
Among the Fund’s five regional sub-portfolios, the Emerging Markets sub-portfolio was the top detractor, returning -33.45%, while the Europe 1 sub-portfolio was the top performer, returning -23.43%, followed by Global Growth (-24.28%), Japan (-27.18%), and Europe 2 (-32.36%). The Europe 1 and Japan sub-portfolios declined with broader equity markets but managed to outperform their respective regional benchmarks. In February 2022, we reduced our number of sub-portfolios from six to five with the closure of the Asia Pacific ex Japan sub-portfolio, whose assets were rotated into an enlarged Emerging Markets sub-portfolio. Our rationale was the commonality between the constructs of the Asia Pacific and Emerging Markets universes and our belief that this would enable the Fund to better reflect the highest-conviction ideas from the regions to drive longer-term performance.
On a sector basis, stock selection in communications services, industrials, and consumer staples drove relative underperformance for the period. Stock selection in utilities contributed positively, as did an overweight and stock selection in consumer discretionary. While stock selection in information technology led to a positive relative contribution overall, our overweight in the sector dampened performance.
Among the largest individual detractors to relative performance over the period was The KION Group, a German producer of forklift trucks and warehouse automation hardware and software. While the forklift business tends to be steady, the warehouse automation portion has come under pressure due to rising costs for various inputs due to scarcity and supply chain issues, and concerns on consumer demand across Europe in light of
Janus Henderson International Opportunities Fund (unaudited)
the economic impacts from the Russo-Ukrainian war. Wingtech Technology, a leading domestic semiconductor distributor for the Chinese market, also weighed on relative returns due to economic uncertainty and worries over COVID factory lockdowns.
Top individual contributors to relative results included ICICI Bank, a leading private sector bank in India. The company has produced solid results on fundamental improvement of its broad banking business over the period. Increased retail business poised to benefit from the rising middle class in India has been favorably received by investors. Ming Yang Smart Energy Group, a Chinese renewable energy generation manufacturer and operator, also contributed. The company was boosted by the easing of lockdown restrictions across China. In addition, the company won several offshore wind farm contracts around the world during the period, as the global emphasis on renewable energy generation accelerates.
During the period, our slight overweight to Europe was moved to neutral via reductions to both European sub-portfolios. The proceeds were evenly split between Global Growth and an increase in our cash allocation. At period end, our regional allocations were slightly overweight in Emerging Markets and Japan, neutral to Europe, and underweight North America.
OUTLOOK
Although the year is far from over, it is already clear that 2022 will be a memorable year in global financial markets. Many investors are now experiencing economic and market phenomena that they have never encountered before, such as double-digit inflation and aggressive interest rate hikes in major economies, and simultaneous bear markets in equities and fixed income.
From an equity investor’s perspective, the global economic and political challenges of 2022 have ultimately taken their toll on market sentiment through their adverse impact on interest rate and growth expectations. From here, the outlook remains murky. We are less concerned about interest rate risk than we have been for most of the year now that market estimates of peak rates in many
major economies are at levels that do not seem sustainable for very long. However, we still see analysts’ earnings estimates as being too high, and expect earnings downgrades to remain a persistent headwind for stocks in the months ahead. Stock markets are likely to remain choppy until investors can be confident that the peak in the interest rate cycle has been priced-in, or markets have factored in more realistic growth expectations.
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, 2022
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| RWE AG | 2.42% | | 0.60% | | KION Group AG | 1.14% | | -1.19% |
| Bank Negara Indonesia Persero Tbk PT | 1.28% | | 0.54% | | Allfunds Group PLC | 1.17% | | -0.62% |
| ICICI Bank Ltd | 1.57% | | 0.53% | | Yandex NV | 0.21% | | -0.57% |
| Novo Nordisk A/S | 2.72% | | 0.51% | | Wingtech Technology Co Ltd - Class A | 0.83% | | -0.48% |
| Ming Yang Smart Energy Group Ltd - Class A | 0.65% | | 0.44% | | Grifols SA (ADR) | 1.41% | | -0.47% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-USA Index |
| | | Contribution | | Average Weight | Average Weight |
| Utilities | | 0.59% | | 4.41% | 3.23% |
| Consumer Discretionary | | 0.38% | | 11.64% | 11.75% |
| Information Technology | | 0.18% | | 14.69% | 12.14% |
| Real Estate | | 0.14% | | 0.51% | 2.45% |
| Health Care | | 0.04% | | 11.88% | 9.38% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-USA Index |
| | | Contribution | | Average Weight | Average Weight |
| Communication Services | | -1.29% | | 7.43% | 6.26% |
| Industrials | | -0.78% | | 13.37% | 12.16% |
| Consumer Staples | | -0.73% | | 8.72% | 8.69% |
| Energy | | -0.61% | | 2.02% | 5.54% |
| Other** | | -0.56% | | 0.23% | 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 International Opportunities Fund (unaudited)
Fund At A Glance
September 30, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 3.3% |
JD.Com Inc - Class A | |
Internet & Direct Marketing Retail | 3.3% |
Saudi Telecom Co | |
Diversified Telecommunication Services | 3.2% |
ICICI Bank Ltd | |
Banks | 3.1% |
Bank Negara Indonesia Persero Tbk PT | |
Banks | 2.9% |
| | 15.8% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.8% | |
Investment Companies | | 2.9% | |
Other | | 0.3% |
| | | 100.0% |
Emerging markets comprised 34.7% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson International Opportunities Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2022 | | | 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 | | -28.04% | -2.85% | 2.93% | 5.98% | | | 1.49% | 1.19% |
Class A Shares at MOP | | -32.17% | -4.00% | 2.33% | 5.69% | | | | |
Class C Shares at NAV | | -28.51% | -3.50% | 2.19% | 5.21% | | | 2.22% | 1.93% |
Class C Shares at CDSC | | -29.09% | -3.50% | 2.19% | 5.21% | | | | |
Class D Shares | | -27.88% | -2.65% | 3.04% | 6.04% | | | 1.44% | 0.98% |
Class I Shares | | -27.83% | -2.56% | 3.23% | 6.18% | | | 1.21% | 0.90% |
Class N Shares | | -27.79% | -2.51% | 3.16% | 6.10% | | | 1.10% | 0.83% |
Class R Shares | | -28.11% | -3.08% | 2.65% | 5.75% | | | 1.90% | 1.54% |
Class S Shares | | -27.81% | -2.81% | 2.91% | 5.97% | | | 5.99% | 1.34% |
Class T Shares | | -27.95% | -2.73% | 3.00% | 6.02% | | | 1.40% | 1.08% |
MSCI All Country World ex-USA Index | | -25.17% | -0.81% | 3.01% | 4.76% | | | | |
Morningstar Quartile - Class A Shares | | 4th | 4th | 3rd | 1st | | | | |
Morningstar Ranking - based on total returns for Foreign Large Blend Funds | | 603/758 | 599/668 | 375/544 | 19/308 | | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk
Janus Henderson International Opportunities Fund (unaudited)
Performance
securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson 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.
© 2022 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See important disclosures on the next page.
Janus Henderson International Opportunities Fund (unaudited)
Performance
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 November 1, 2022, George Maris and Paul O’Connor are Portfolio Managers of the Fund, with George Maris serving as Lead Portfolio Manager.
*The Predecessor Fund’s inception date – August 31, 2001.
‡ As stated in the prospectus. Net expense ratios reflect the expense waivers, if any, contractually agreed to for at least a one-year period commencing on January 28, 2022. 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $797.00 | $5.45 | | $1,000.00 | $1,019.00 | $6.12 | 1.21% |
Class C Shares | $1,000.00 | $794.80 | $7.83 | | $1,000.00 | $1,016.34 | $8.80 | 1.74% |
Class D Shares | $1,000.00 | $797.50 | $4.51 | | $1,000.00 | $1,020.05 | $5.06 | 1.00% |
Class I Shares | $1,000.00 | $798.00 | $4.15 | | $1,000.00 | $1,020.46 | $4.66 | 0.92% |
Class N Shares | $1,000.00 | $798.00 | $3.79 | | $1,000.00 | $1,020.86 | $4.26 | 0.84% |
Class R Shares | $1,000.00 | $796.20 | $6.26 | | $1,000.00 | $1,018.10 | $7.03 | 1.39% |
Class S Shares | $1,000.00 | $797.70 | $4.24 | | $1,000.00 | $1,020.36 | $4.76 | 0.94% |
Class T Shares | $1,000.00 | $797.30 | $4.82 | | $1,000.00 | $1,019.70 | $5.42 | 1.07% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 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, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 96.8% | | | |
Aerospace & Defense – 1.7% | | | |
| | Airbus SE | | 127,119 | | | $10,980,443 | |
Automobiles – 3.1% | | | |
| | Daimler AG | | 163,292 | | | 8,349,109 | |
| | Toyota Motor Corp | | 900,000 | | | 11,716,768 | |
| | | 20,065,877 | |
Banks – 8.0% | | | |
| | Bank Negara Indonesia Persero Tbk PT | | 32,050,700 | | | 18,741,316 | |
| | ICICI Bank Ltd | | 1,915,002 | | | 20,061,193 | |
| | UniCredit SpA | | 1,269,411 | | | 12,834,532 | |
| | | 51,637,041 | |
Beverages – 3.1% | | | |
| | Asahi Group Holdings Ltd | | 230,000 | | | 7,135,892 | |
| | Carlsberg A/S | | 69,943 | | | 8,162,422 | |
| | Pernod Ricard SA | | 26,815 | | | 4,900,586 | |
| | | 20,198,900 | |
Building Products – 1.5% | | | |
| | Cie de Saint-Gobain | | 194,333 | | | 6,929,614 | |
| | LIXIL Group Corp | | 200,000 | | | 2,898,472 | |
| | | 9,828,086 | |
Capital Markets – 3.6% | | | |
| | Allfunds Group PLC | | 1,309,175 | | | 9,595,530 | |
| | CITIC Securities Co Ltd | | 8,013,500 | | | 13,583,055 | |
| | | 23,178,585 | |
Chemicals – 4.5% | | | |
| | Fertiglobe PLC | | 6,968,151 | | | 10,825,229 | |
| | Koninklijke DSM NV | | 97,750 | | | 11,085,120 | |
| | Shin-Etsu Chemical Co Ltd | | 75,000 | | | 7,448,803 | |
| | | 29,359,152 | |
Commercial Services & Supplies – 1.8% | | | |
| | SPIE SA | | 564,670 | | | 11,798,748 | |
Diversified Financial Services – 0.6% | | | |
| | Linklogis Inc - Class B (144A)* | | 9,307,000 | | | 3,851,799 | |
Diversified Telecommunication Services – 3.2% | | | |
| | Saudi Telecom Co | | 1,956,045 | | | 20,435,572 | |
Electric Utilities – 1.2% | | | |
| | EDP - Energias de Portugal SA | | 1,822,452 | | | 7,888,449 | |
Electronic Equipment, Instruments & Components – 1.8% | | | |
| | TDK Corp | | 210,000 | | | 6,373,564 | |
| | Wingtech Technology Co Ltd - Class A | | 776,439 | | | 5,179,507 | |
| | | 11,553,071 | |
Food & Staples Retailing – 4.0% | | | |
| | Seven & i Holdings Co Ltd | | 208,000 | | | 8,356,297 | |
| | Wal-Mart de Mexico SAB de CV | | 5,038,095 | | | 17,722,609 | |
| | | 26,078,906 | |
Food Products – 1.4% | | | |
| | Masan Group Corp | | 2,257,980 | | | 9,289,332 | |
Health Care Equipment & Supplies – 1.3% | | | |
| | Siemens Healthineers AG (144A) | | 196,174 | | | 8,496,333 | |
Health Care Providers & Services – 1.0% | | | |
| | New Horizon Health Ltd (144A)* | | 3,613,000 | | | 6,662,745 | |
Hotels, Restaurants & Leisure – 2.8% | | | |
| | Compass Group PLC | | 275,164 | | | 5,499,059 | |
| | Yum China Holdings Inc | | 271,050 | | | 12,790,647 | |
| | | 18,289,706 | |
Household Durables – 1.4% | | | |
| | Sony Corp | | 140,000 | | | 9,011,970 | |
Household Products – 2.0% | | | |
| | Reckitt Benckiser Group PLC | | 193,926 | | | 12,813,923 | |
| | |
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, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Industrial Conglomerates – 0.9% | | | |
| | Hitachi Ltd | | 138,000 | | | $5,844,041 | |
Information Technology Services – 0.8% | | | |
| | Mastercard Inc | | 18,380 | | | 5,226,169 | |
Insurance – 3.4% | | | |
| | ASR Nederland NV | | 296,172 | | | 11,384,377 | |
| | Dai-ichi Life Holdings Inc | | 300,000 | | | 4,769,324 | |
| | Tokio Marine Holdings Inc | | 330,000 | | | 5,866,101 | |
| | | 22,019,802 | |
Interactive Media & Services – 0.4% | | | |
| | Alphabet Inc - Class C* | | 28,700 | | | 2,759,505 | |
Internet & Direct Marketing Retail – 3.3% | | | |
| | JD.Com Inc - Class A | | 834,028 | | | 21,060,968 | |
Life Sciences Tools & Services – 1.5% | | | |
| | ICON PLC* | | 20,431 | | | 3,754,809 | |
| | Thermo Fisher Scientific Inc | | 10,954 | | | 5,555,759 | |
| | | 9,310,568 | |
Machinery – 4.1% | | | |
| | Daimler Truck Holding AG* | | 221,811 | | | 5,075,580 | |
| | KION Group AG | | 212,485 | | | 4,116,789 | |
| | Outotec Oyj | | 926,710 | | | 6,140,084 | |
| | Shenzhen Inovance Technology Co Ltd - Class A | | 776,739 | | | 6,232,361 | |
| | SMC Corp/Japan | | 12,500 | | | 5,043,482 | |
| | | 26,608,296 | |
Media – 1.3% | | | |
| | Informa PLC | | 1,495,721 | | | 8,615,007 | |
Metals & Mining – 3.5% | | | |
| | Allkem Ltd* | | 572,576 | | | 5,089,276 | |
| | Anglo American PLC | | 332,825 | | | 10,051,814 | |
| | Ivanhoe Mines Ltd* | | 1,194,608 | | | 7,689,013 | |
| | | 22,830,103 | |
Multi-Utilities – 2.0% | | | |
| | RWE AG | | 352,037 | | | 12,951,164 | |
Oil, Gas & Consumable Fuels – 2.0% | | | |
| | Total SE | | 267,500 | | | 12,589,303 | |
Paper & Forest Products – 1.1% | | | |
| | UPM-Kymmene Oyj | | 228,256 | | | 7,252,282 | |
Personal Products – 1.7% | | | |
| | Estee Lauder Cos Inc | | 22,475 | | | 4,852,353 | |
| | Unilever PLC | | 131,799 | | | 5,811,938 | |
| | | 10,664,291 | |
Pharmaceuticals – 6.2% | | | |
| | Bayer AG | | 116,333 | | | 5,367,717 | |
| | Daiichi Sankyo Co Ltd | | 330,000 | | | 9,180,839 | |
| | Novo Nordisk A/S | | 117,135 | | | 11,677,469 | |
| | Sanofi | | 184,634 | | | 14,089,192 | |
| | | 40,315,217 | |
Professional Services – 1.9% | | | |
| | Recruit Holdings Co Ltd | | 111,000 | | | 3,204,260 | |
| | RELX PLC | | 366,487 | | | 8,889,320 | |
| | | 12,093,580 | |
Road & Rail – 1.4% | | | |
| | Full Truck Alliance Co (ADR)* | | 1,367,344 | | | 8,956,103 | |
Semiconductor & Semiconductor Equipment – 5.2% | | | |
| | ASM International NV | | 33,151 | | | 7,416,087 | |
| | Renesas Electronics Corp* | | 600,000 | | | 5,001,164 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 1,618,000 | | | 21,268,793 | |
| | | 33,686,044 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson International Opportunities Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Software – 0.9% | | | |
| | Microsoft Corp | | 23,853 | | | $5,555,364 | |
Technology Hardware, Storage & Peripherals – 2.2% | | | |
| | FUJIFILM Holdings Corp | | 84,000 | | | 3,844,433 | |
| | Samsung Electronics Co Ltd | | 272,263 | | | 10,004,548 | |
| | | 13,848,981 | |
Textiles, Apparel & Luxury Goods – 1.1% | | | |
| | Hugo Boss AG | | 154,685 | | | 7,277,452 | |
Thrifts & Mortgage Finance – 2.8% | | | |
| | Housing Development Finance Corp Ltd | | 637,784 | | | 17,761,304 | |
Trading Companies & Distributors – 1.1% | | | |
| | Mitsubishi Corp | | 260,000 | | | 7,141,563 | |
Total Common Stocks (cost $706,160,616) | | 625,785,745 | |
Investment Companies– 2.9% | | | |
Money Markets – 2.9% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $18,775,651) | | 18,773,810 | | | 18,775,687 | |
Total Investments (total cost $724,936,267) – 99.7% | | 644,561,432 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.3% | | 2,195,235 | |
Net Assets – 100% | | $646,756,667 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
Japan | | $102,836,973 | | 16.0 | % |
China | | 78,317,185 | | 12.1 | |
France | | 61,287,886 | | 9.5 | |
Germany | | 51,634,144 | | 8.0 | |
Netherlands | | 44,586,842 | | 6.9 | |
United States | | 42,724,837 | | 6.6 | |
India | | 37,822,497 | | 5.9 | |
United Kingdom | | 36,979,803 | | 5.7 | |
Taiwan | | 21,268,793 | | 3.3 | |
Saudi Arabia | | 20,435,572 | | 3.2 | |
Denmark | | 19,839,891 | | 3.1 | |
Indonesia | | 18,741,316 | | 2.9 | |
Mexico | | 17,722,609 | | 2.7 | |
Finland | | 13,392,366 | | 2.1 | |
Italy | | 12,834,532 | | 2.0 | |
United Arab Emirates | | 10,825,229 | | 1.7 | |
South Korea | | 10,004,548 | | 1.6 | |
Spain | | 9,595,530 | | 1.5 | |
Vietnam | | 9,289,332 | | 1.4 | |
Portugal | | 7,888,449 | | 1.2 | |
Canada | | 7,689,013 | | 1.2 | |
Australia | | 5,089,276 | | 0.8 | |
Ireland | | 3,754,809 | | 0.6 | |
| | | | | | |
| | | | | | |
Total | | $644,561,432 | | 100.0 | % |
| | |
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, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - 2.9% |
Money Markets - 2.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 129,352 | $ | (133) | $ | 36 | $ | 18,775,687 |
| |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - 2.9% |
Money Markets - 2.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 88,574,437 | | 478,099,827 | | (547,898,480) | | 18,775,687 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
Janus Henderson International Opportunities Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI All Country World ex-USA IndexSM | MSCI All Country World ex-USA 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, 2022 is $19,010,877, which represents 2.9% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
£ | 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, 2022. 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 | | | | | | |
Food & Staples Retailing | $ | 17,722,609 | $ | 8,356,297 | $ | - |
Information Technology Services | | 5,226,169 | | - | | - |
Interactive Media & Services | | 2,759,505 | | - | | - |
Life Sciences Tools & Services | | 9,310,568 | | - | | - |
Metals & Mining | | 7,689,013 | | 15,141,090 | | - |
Personal Products | | 4,852,353 | | 5,811,938 | | - |
Road & Rail | | 8,956,103 | | - | | - |
Software | | 5,555,364 | | - | | - |
All Other | | - | | 534,404,736 | | - |
Investment Companies | | - | | 18,775,687 | | - |
Total Assets | $ | 62,071,684 | $ | 582,489,748 | $ | - |
| | | | | | | |
Janus Henderson International Opportunities Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $706,160,616) | | $ | 625,785,745 | |
| Affiliated investments, at value (cost $18,775,651) | | | 18,775,687 | |
| Cash denominated in foreign currency (cost $91,928) | | | 89,549 | |
| Trustees' deferred compensation | | | 19,481 | |
| Receivables: | | | | |
| | Fund shares sold | | | 30,849,895 | |
| | Investments sold | | | 23,359,455 | |
| | Foreign tax reclaims | | | 4,624,271 | |
| | Dividends | | | 1,180,442 | |
| | Dividends from affiliates | | | 34,793 | |
| Other assets | | | 3,277 | |
Total Assets | | | 704,722,595 | |
Liabilities: | | | | |
| Due to custodian | | | 710,173 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 31,573,057 | |
| | Investments purchased | | | 19,630,732 | |
| | Foreign withholding tax reclaim fee (Note 1) | | | 4,216,505 | |
| | Advisory fees | | | 482,253 | |
| | Foreign tax liability | | | 363,701 | |
| | Transfer agent fees and expenses | | | 117,078 | |
| | Professional fees | | | 65,709 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 64,684 | |
| | Custodian fees | | | 31,760 | |
| | Trustees' deferred compensation fees | | | 19,481 | |
| | Trustees' fees and expenses | | | 3,795 | |
| | Affiliated fund administration fees payable | | | 1,547 | |
| | Accrued expenses and other payables | | | 685,453 | |
Total Liabilities | | | 57,965,928 | |
Net Assets | | $ | 646,756,667 | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2022 |
Janus Henderson International Opportunities Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 731,795,330 | |
| Total distributable earnings (loss) (includes $363,701 of foreign capital gains tax) | | | (85,038,663) | |
Total Net Assets | | $ | 646,756,667 | |
Net Assets - Class A Shares | | $ | 194,188,654 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 11,585,958 | |
Net Asset Value Per Share(1) | | $ | 16.76 | |
Maximum Offering Price Per Share(2) | | $ | 17.78 | |
Net Assets - Class C Shares | | $ | 18,218,503 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,176,018 | |
Net Asset Value Per Share(1) | | $ | 15.49 | |
Net Assets - Class D Shares | | $ | 2,346,854 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 140,861 | |
Net Asset Value Per Share | | $ | 16.66 | |
Net Assets - Class I Shares | | $ | 371,967,850 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 22,315,505 | |
Net Asset Value Per Share | | $ | 16.67 | |
Net Assets - Class N Shares | | $ | 57,297,762 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,444,854 | |
Net Asset Value Per Share | | $ | 16.63 | |
Net Assets - Class R Shares | | $ | 1,654,029 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 100,788 | |
Net Asset Value Per Share | | $ | 16.41 | |
Net Assets - Class S Shares | | $ | 54,440 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,256 | |
Net Asset Value Per Share | | $ | 16.72 | |
Net Assets - Class T Shares | | $ | 1,028,575 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 61,368 | |
Net Asset Value Per Share | | $ | 16.76 | |
| |
(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 | 15 |
Janus Henderson International Opportunities Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 19,584,051 | |
| | Non-cash dividends | | 4,254,690 | |
| Dividends from affiliates | | 129,352 | |
| Other income | | 28,673 | |
| Foreign tax withheld (net of foreign withholding tax reclaim fee of $4,216,505 (Note 1)) | | (1,088,673) | |
Total Investment Income | | 22,908,093 | |
Expenses: | | | |
| Advisory fees | | 9,769,587 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 692,266 | |
| | Class C Shares | | 279,801 | |
| | Class R Shares | | 5,568 | |
| | Class S Shares | | — | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 3,468 | |
| | Class R Shares | | 5,815 | |
| | Class S Shares | | 163 | |
| | Class T Shares | | 4,901 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 283,514 | |
| | Class C Shares | | 32,777 | |
| | Class I Shares | | 408,167 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 19,010 | |
| | Class C Shares | | 1,725 | |
| | Class D Shares | | 1,273 | |
| | Class I Shares | | 27,420 | |
| | Class N Shares | | 4,215 | |
| | Class R Shares | | 111 | |
| | Class S Shares | | 7 | |
| | Class T Shares | | 41 | |
| Professional fees | | 443,717 | |
| Custodian fees | | 210,598 | |
| Registration fees | | 148,578 | |
| Shareholder reports expense | | 58,538 | |
| Affiliated fund administration fees | | 23,497 | |
| Trustees’ fees and expenses | | 17,039 | |
| Other expenses | | 145,478 | |
Total Expenses | | 12,587,274 | |
Less: Excess Expense Reimbursement and Waivers | | (2,503,440) | |
Net Expenses | | 10,083,834 | |
Net Investment Income/(Loss) | | 12,824,259 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson International Opportunities Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (net of foreign taxes of $1,162,409) | $ | 31,955,903 | |
| Investments in affiliates | | (133) | |
Total Net Realized Gain/(Loss) on Investments | | 31,955,770 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation (net of increase in deferred foreign taxes of $363,701) | | (327,049,355) | |
| Investments in affiliates | | 36 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (327,049,319) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (282,269,290) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson International Opportunities Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 12,824,259 | | $ | 24,473,737 | |
| Net realized gain/(loss) on investments | | 31,955,770 | | | 248,283,288 | |
| Change in unrealized net appreciation/depreciation | | (327,049,319) | | | (13,483,959) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (282,269,290) | | | 259,273,066 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (60,588,628) | | | (2,070,127) | |
| | Class C Shares | | (7,396,079) | | | — | |
| | Class D Shares | | (638,077) | | | (22,785) | |
| | Class I Shares | | (127,459,428) | | | (7,683,079) | |
| | Class N Shares | | (35,877,873) | | | (4,419,924) | |
| | Class R Shares | | (510,576) | | | (7,534) | |
| | Class S Shares | | (13,129) | | | (518) | |
| | Class T Shares | | (513,349) | | | (21,323) | |
Net Decrease from Dividends and Distributions to Shareholders | | (232,997,139) | | | (14,225,290) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 8,971,208 | | | (14,395,046) | |
| | Class C Shares | | (9,250,117) | | | (27,820,112) | |
| | Class D Shares | | 530,673 | | | 836,898 | |
| | Class I Shares | | (42,479,246) | | | (133,210,365) | |
| | Class N Shares | | (77,590,063) | | | (238,333,529) | |
| | Class R Shares | | (53,220) | | | (1,958,297) | |
| | Class S Shares | | 18,202 | | | 1,216 | |
| | Class T Shares | | (974,315) | | | (1,351,819) | |
Net Increase/(Decrease) from Capital Share Transactions | | (120,826,878) | | | (416,231,054) | |
Net Increase/(Decrease) in Net Assets | | (636,093,307) | | | (171,183,278) | |
Net Assets: | | | | | | |
| Beginning of period | | 1,282,849,974 | | | 1,454,033,252 | |
| End of period | $ | 646,756,667 | | $ | 1,282,849,974 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2022 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $28.82 | | | $24.77 | | | $24.08 | | | $29.10 | | | $29.50 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.27(2) | | | 0.44(3) | | | 0.11 | | | 0.23 | | | 0.28 | |
| | Net realized and unrealized gain/(loss) | | (6.99) | | | 3.79 | | | 1.49 | | | (1.64) | | | (0.39) | |
| Total from Investment Operations | | (6.72) | | | 4.23 | | | 1.60 | | | (1.41) | | | (0.11) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.33) | | | (0.18) | | | (0.22) | | | (0.44) | | | (0.29) | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | |
| Total Dividends and Distributions | | (5.34) | | | (0.18) | | | (0.91) | | | (3.61) | | | (0.29) | |
| Net Asset Value, End of Period | | $16.76 | | | $28.82 | | | $24.77 | | | $24.08 | | | $29.10 | |
| Total Return* | | (28.19)% | | | 17.08% | | | 6.61% | | | (3.07)%(4) | | | (0.40)% | |
| Net Assets, End of Period (in thousands) | | $194,189 | | | $328,759 | | | $295,282 | | | $357,079 | | | $485,243 | |
| Average Net Assets for the Period (in thousands) | | $275,837 | | | $337,873 | | | $316,482 | | | $419,053 | | | $577,151 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.47%(5) | | | 1.49%(6) | | | 1.42% | | | 1.45% | | | 1.29% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.21% | | | 1.23% | | | 1.28% | | | 1.32% | | | 1.29% | |
| | Ratio of Net Investment Income/(Loss) | | 1.20%(2) | | | 1.53%(3) | | | 0.46% | | | 0.96% | | | 0.94% | |
| Portfolio Turnover Rate | | 88% | | | 63% | | | 57% | | | 45% | | | 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) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.01 and 0.06%, respectively. (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. (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 November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.03%. (6) 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%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $26.95 | | | $23.17 | | | $22.53 | | | $27.13 | | | $27.46 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.09(2) | | | 0.16(3) | | | (0.05) | | | 0.02 | | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | (6.47) | | | 3.62 | | | 1.38 | | | (1.45) | | | (0.36) | |
| Total from Investment Operations | | (6.38) | | | 3.78 | | | 1.33 | | | (1.43) | | | (0.30) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.07) | | | — | | | — | | | — | | | (0.03) | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | |
| Total Dividends and Distributions | | (5.08) | | | — | | | (0.69) | | | (3.17) | | | (0.03) | |
| Net Asset Value, End of Period | | $15.49 | | | $26.95 | | | $23.17 | | | $22.53 | | | $27.13 | |
| Total Return* | | (28.70)% | | | 16.31% | | | 5.86% | | | (3.64)%(4) | | | (1.09)% | |
| Net Assets, End of Period (in thousands) | | $18,219 | | | $43,690 | | | $61,292 | | | $106,863 | | | $336,880 | |
| Average Net Assets for the Period (in thousands) | | $30,662 | | | $55,342 | | | $82,679 | | | $161,985 | | | $397,796 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.14%(5) | | | 2.19%(6) | | | 2.06% | | | 2.09% | | | 2.00% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.88% | | | 1.95% | | | 1.92% | | | 1.97% | | | 2.00% | |
| | Ratio of Net Investment Income/(Loss) | | 0.42%(2) | | | 0.60%(3) | | | (0.24)% | | | 0.10% | | | 0.22% | |
| Portfolio Turnover Rate | | 88% | | | 63% | | | 57% | | | 45% | | | 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) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.01 and 0.06%, respectively. (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 $0.14 and 0.52%, respectively. (4) Total return without the effect of affiliated payments would have been (3.68)%. (5) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.03%. (6) 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%. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2022 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $28.69 | | | $24.68 | | | $24.00 | | | $29.06 | | | $29.51 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.32(2) | | | 0.56(3) | | | 0.17 | | | 0.29 | | | 0.37 | |
| | Net realized and unrealized gain/(loss) | | (6.95) | | | 3.70 | | | 1.48 | | | (1.67) | | | (0.40) | |
| Total from Investment Operations | | (6.63) | | | 4.26 | | | 1.65 | | | (1.38) | | | (0.03) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.39) | | | (0.25) | | | (0.28) | | | (0.51) | | | (0.42) | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | |
| Total Dividends and Distributions | | (5.40) | | | (0.25) | | | (0.97) | | | (3.68) | | | (0.42) | |
| Net Asset Value, End of Period | | $16.66 | | | $28.69 | | | $24.68 | | | $24.00 | | | $29.06 | |
| Total Return* | | (28.04)% | | | 17.29% | | | 6.84% | | | (2.90)%(4) | | | (0.15)% | |
| Net Assets, End of Period (in thousands) | | $2,347 | | | $3,379 | | | $2,210 | | | $2,257 | | | $3,002 | |
| Average Net Assets for the Period (in thousands) | | $3,028 | | | $3,047 | | | $2,132 | | | $2,483 | | | $3,163 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.47%(5) | | | 1.44%(6) | | | 1.41% | | | 1.59% | | | 1.16% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.01% | | | 1.03% | | | 1.06% | | | 1.13% | | | 1.10% | |
| | Ratio of Net Investment Income/(Loss) | | 1.45%(2) | | | 1.93%(3) | | | 0.73% | | | 1.20% | | | 1.25% | |
| Portfolio Turnover Rate | | 88% | | | 63% | | | 57% | | | 45% | | | 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) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.01 and 0.06%, respectively. (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. (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 November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.03%. (6) 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%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $28.72 | | | $24.69 | | | $24.03 | | | $29.06 | | | $29.47 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.32(2) | | | 0.50(3) | | | 0.17 | | | 0.24 | | | 0.38 | |
| | Net realized and unrealized gain/(loss) | | (6.95) | | | 3.81 | | | 1.49 | | | (1.58) | | | (0.39) | |
| Total from Investment Operations | | (6.63) | | | 4.31 | | | 1.66 | | | (1.34) | | | (0.01) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.41) | | | (0.28) | | | (0.31) | | | (0.52) | | | (0.40) | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | |
| Total Dividends and Distributions | | (5.42) | | | (0.28) | | | (1.00) | | | (3.69) | | | (0.40) | |
| Net Asset Value, End of Period | | $16.67 | | | $28.72 | | | $24.69 | | | $24.03 | | | $29.06 | |
| Total Return* | | (28.00)% | | | 17.47% | | | 6.87% | | | (2.75)%(4) | | | (0.07)% | |
| Net Assets, End of Period (in thousands) | | $371,968 | | | $703,785 | | | $720,915 | | | $1,050,061 | | | $3,021,157 | |
| Average Net Assets for the Period (in thousands) | | $551,653 | | | $770,690 | | | $860,681 | | | $1,621,134 | | | $3,542,904 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.19%(5) | | | 1.20%(6) | | | 1.12% | | | 1.12% | | | 0.99% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.93% | | | 0.95% | | | 0.98% | | | 1.01% | | | 0.99% | |
| | Ratio of Net Investment Income/(Loss) | | 1.45%(2) | | | 1.75%(3) | | | 0.71% | | | 0.99% | | | 1.27% | |
| Portfolio Turnover Rate | | 88% | | | 63% | | | 57% | | | 45% | | | 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) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.01 and 0.06%, respectively. (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. (4) Total return without the effect of affiliated payments would have been (2.79)%. (5) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.03%. (6) 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%. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $28.73 | | | $24.67 | | | $23.99 | | | $29.08 | | | $29.47 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.28(2) | | | 0.44(3) | | | 0.22 | | | 0.48 | | | 0.41 | |
| | Net realized and unrealized gain/(loss) | | (6.92) | | | 3.91 | | | 1.46 | | | (1.85) | | | (0.38) | |
| Total from Investment Operations | | (6.64) | | | 4.35 | | | 1.68 | | | (1.37) | | | 0.03 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.45) | | | (0.29) | | | (0.31) | | | (0.55) | | | (0.42) | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | |
| Total Dividends and Distributions | | (5.46) | | | (0.29) | | | (1.00) | | | (3.72) | | | (0.42) | |
| Net Asset Value, End of Period | | $16.63 | | | $28.73 | | | $24.67 | | | $23.99 | | | $29.08 | |
| Total Return* | | (28.07)% | | | 17.67% | | | 6.99% | | | (2.82)%(4) | | | 0.07% | |
| Net Assets, End of Period (in thousands) | | $57,298 | | | $197,222 | | | $366,371 | | | $280,749 | | | $43,305 | |
| Average Net Assets for the Period (in thousands) | | $107,875 | | | $337,046 | | | $315,851 | | | $128,934 | | | $12,868 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.12%(5) | | | 1.10%(6) | | | 1.05% | | | 1.07% | | | 0.96% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.86% | | | 0.88% | | | 0.90% | | | 0.91% | | | 0.94% | |
| | Ratio of Net Investment Income/(Loss) | | 1.21%(2) | | | 1.54%(3) | | | 0.95% | | | 2.02% | | | 1.41% | |
| Portfolio Turnover Rate | | 88% | | | 63% | | | 57% | | | 45% | | | 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) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.01 and 0.06%, respectively. (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. (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 November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.03%. (6) 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%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $28.28 | | | $24.21 | | | $23.51 | | | $28.42 | | | $28.81 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.21(2) | | | 0.33(3) | | | 0.01 | | | 0.15 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | (6.85) | | | 3.79 | | | 1.47 | | | (1.59) | | | (0.36) | |
| Total from Investment Operations | | (6.64) | | | 4.12 | | | 1.48 | | | (1.44) | | | (0.20) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.22) | | | (0.05) | | | (0.09) | | | (0.30) | | | (0.19) | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | |
| Total Dividends and Distributions | | (5.23) | | | (0.05) | | | (0.78) | | | (3.47) | | | (0.19) | |
| Net Asset Value, End of Period | | $16.41 | | | $28.28 | | | $24.21 | | | $23.51 | | | $28.42 | |
| Total Return* | | (28.34)% | | | 17.01% | | | 6.27% | | | (3.35)%(4) | | | (0.71)% | |
| Net Assets, End of Period (in thousands) | | $1,654 | | | $2,905 | | | $4,147 | | | $9,168 | | | $16,214 | |
| Average Net Assets for the Period (in thousands) | | $2,318 | | | $4,093 | | | $6,096 | | | $11,867 | | | $19,820 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.69%(5) | | | 1.70%(6) | | | 1.79% | | | 1.81% | | | 1.66% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.31% | | | 1.39% | | | 1.57% | | | 1.62% | | | 1.62% | |
| | Ratio of Net Investment Income/(Loss) | | 0.97%(2) | | | 1.15%(3) | | | 0.03% | | | 0.63% | | | 0.54% | |
| Portfolio Turnover Rate | | 88% | | | 63% | | | 57% | | | 45% | | | 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) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.01 and 0.06%, respectively. (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. (4) Total return without the effect of affiliated payments would have been (3.39)%. (5) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.03%. (6) 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%. |
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See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2022 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $28.71 | | | $24.66 | | | $23.80 | | | $29.00 | | | $29.48 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.34(2) | | | 0.52(3) | | | 0.09 | | | 0.23 | | | 0.44 | |
| | Net realized and unrealized gain/(loss) | | (6.97) | | | 3.75 | | | 1.46 | | | (1.72) | | | (0.53) | |
| Total from Investment Operations | | (6.63) | | | 4.27 | | | 1.55 | | | (1.49) | | | (0.09) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.35) | | | (0.22) | | | — | | | (0.54) | | | (0.39) | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | |
| Total Dividends and Distributions | | (5.36) | | | (0.22) | | | (0.69) | | | (3.71) | | | (0.39) | |
| Net Asset Value, End of Period | | $16.72 | | | $28.71 | | | $24.66 | | | $23.80 | | | $29.00 | |
| Total Return* | | (27.96)% | | | 17.33% | | | 6.49% | | | (3.32)%(4) | | | (0.36)% | |
| Net Assets, End of Period (in thousands) | | $54 | | | $70 | | | $59 | | | $110 | | | $2,674 | |
| Average Net Assets for the Period (in thousands) | | $65 | | | $69 | | | $95 | | | $1,736 | | | $591 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 5.93%(5) | | | 5.70%(6) | | | 4.69% | | | 1.76% | | | 1.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.89% | | | 0.99% | | | 1.41% | | | 1.46% | | | 1.43% | |
| | Ratio of Net Investment Income/(Loss) | | 1.53%(2) | | | 1.80%(3) | | | 0.40% | | | 0.97% | | | 1.57% | |
| Portfolio Turnover Rate | | 88% | | | 63% | | | 57% | | | 45% | | | 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) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.01 and 0.06%, respectively. (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. (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 November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.03%. (6) 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%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $28.87 | | | $24.69 | | | $24.00 | | | $29.02 | | | $29.50 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.22(2) | | | 0.62(3) | | | (0.01) | | | 0.57 | | | 0.30 | |
| | Net realized and unrealized gain/(loss) | | (6.98) | | | 3.70 | | | 1.63 | | | (1.95) | | | (0.37) | |
| Total from Investment Operations | | (6.76) | | | 4.32 | | | 1.62 | | | (1.38) | | | (0.07) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.34) | | | (0.14) | | | (0.24) | | | (0.47) | | | (0.41) | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | |
| Total Dividends and Distributions | | (5.35) | | | (0.14) | | | (0.93) | | | (3.64) | | | (0.41) | |
| Net Asset Value, End of Period | | $16.76 | | | $28.87 | | | $24.69 | | | $24.00 | | | $29.02 | |
| Total Return* | | (28.28)% | | | 17.49% | | | 6.73% | | | (2.92)%(4) | | | (0.26)% | |
| Net Assets, End of Period (in thousands) | | $1,029 | | | $3,040 | | | $3,758 | | | $32,333 | | | $8,614 | |
| Average Net Assets for the Period (in thousands) | | $1,955 | | | $6,040 | | | $14,280 | | | $37,969 | | | $9,802 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.52%(5) | | | 1.40%(6) | | | 1.31% | | | 1.48% | | | 1.19% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.11% | | | 1.10% | | | 1.16% | | | 1.33% | | | 1.17% | |
| | Ratio of Net Investment Income/(Loss) | | 0.95%(2) | | | 2.14%(3) | | | (0.03)% | | | 2.38% | | | 1.01% | |
| Portfolio Turnover Rate | | 88% | | | 63% | | | 57% | | | 45% | | | 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) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. 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 $0.01 and 0.06%, respectively. (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. (4) Total return without the effect of affiliated payments would have been (2.96)%. (5) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.03%. (6) 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%. |
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See Notes to Financial Statements. |
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26 | SEPTEMBER 30, 2022 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) 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 International Opportunities 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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 International Opportunities 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, 2022 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 International Opportunities 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
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 $4,757,427 of tax reclaims received as well as $334,972 of professional fees and $4,216,505 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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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-
Janus Henderson International Opportunities Fund
Notes to Financial Statements
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 the Adviser 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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. Emerging market countries in which the Fund may invest include frontier market countries, the economies of which are less developed than other emerging market countries. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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
Janus Henderson International Opportunities Fund
Notes to Financial Statements
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.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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.
The Adviser 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 the Adviser. In this capacity, such employees of HGIL are subject to the oversight and supervision of the Adviser and may provide portfolio management, research, and related services to the Fund on behalf of the Adviser.
The Adviser 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 payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.83% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. The previous expense limit (for the one-year period commencing January 28, 2021) was 0.88%. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations. In addition, for Class R Shares of the Fund, for at least a one-year period commencing on January 28, 2022, the Adviser has agreed to reduce the administrative service 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.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder
Janus Henderson International Opportunities Fund
Notes to Financial Statements
services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent 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.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, 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 Plans, the Trust is authorized to make payments to the Distributor 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.
Janus Henderson International Opportunities Fund
Notes to Financial Statements
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $2,984.
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 the Distributor during the year ended September 30, 2022.
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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $955.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Janus Henderson International Opportunities Fund
Notes to Financial Statements
As of September 30, 2022, shares of the Fund were owned by affiliates of the Adviser, and/or other funds advised by the Adviser, 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 | 82 | | -* | | |
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) | |
$ - | $ 29,488,234 | $ - | $ (2,216,018) | $ - | $(4,839,257) | $(107,471,622) | |
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, 2022 are noted below. The primary difference 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) |
$751,669,353 | $34,291,803 | $(141,399,724) | $(107,107,921) |
Janus Henderson International Opportunities 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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 116,322,818 | $ 116,674,321 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | $ - | |
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 |
$ (33,919,715) | $ 2,522,455 | $ 31,397,260 |
Janus Henderson International Opportunities Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 1,398,369 | $ 32,971,313 | | 1,270,599 | $ 36,749,490 |
Reinvested dividends and distributions | 2,277,920 | 51,777,126 | | 61,958 | 1,758,986 |
Shares repurchased | (3,496,152) | (75,777,231) | | (1,847,497) | (52,903,522) |
Net Increase/(Decrease) | 180,137 | $ 8,971,208 | | (514,940) | $ (14,395,046) |
Class C Shares: | | | | | |
Shares sold | 63,225 | $ 1,345,788 | | 60,556 | $ 1,614,870 |
Reinvested dividends and distributions | 336,931 | 7,112,622 | | - | - |
Shares repurchased | (845,139) | (17,708,527) | | (1,084,698) | (29,434,982) |
Net Increase/(Decrease) | (444,983) | $ (9,250,117) | | (1,024,142) | $ (27,820,112) |
Class D Shares: | | | | | |
Shares sold | 39,793 | $ 893,672 | | 49,919 | $ 1,457,595 |
Reinvested dividends and distributions | 28,284 | 638,077 | | 807 | 22,785 |
Shares repurchased | (45,009) | (1,001,076) | | (22,515) | (643,482) |
Net Increase/(Decrease) | 23,068 | $ 530,673 | | 28,211 | $ 836,898 |
Class I Shares: | | | | | |
Shares sold | 4,533,828 | $101,375,429 | | 3,827,292 | $ 111,716,963 |
Reinvested dividends and distributions | 5,203,944 | 117,400,967 | | 250,868 | 7,079,499 |
Shares repurchased | (11,929,039) | (261,255,642) | | (8,765,123) | (252,006,827) |
Net Increase/(Decrease) | (2,191,267) | $ (42,479,246) | | (4,686,963) | $(133,210,365) |
Class N Shares: | | | | | |
Shares sold | 1,264,325 | $ 28,401,439 | | 1,633,062 | $ 46,194,658 |
Reinvested dividends and distributions | 1,099,629 | 24,741,657 | | 132,300 | 3,728,216 |
Shares repurchased | (5,784,157) | (130,733,159) | | (9,752,003) | (288,256,403) |
Net Increase/(Decrease) | (3,420,203) | $ (77,590,063) | | (7,986,641) | $(238,333,529) |
Class R Shares: | | | | | |
Shares sold | 24,171 | $ 543,711 | | 21,973 | $ 615,383 |
Reinvested dividends and distributions | 15,868 | 353,708 | | 168 | 4,692 |
Shares repurchased | (41,972) | (950,639) | | (90,672) | (2,578,372) |
Net Increase/(Decrease) | (1,933) | $ (53,220) | | (68,531) | $ (1,958,297) |
Class S Shares: | | | | | |
Shares sold | 248 | $ 5,085 | | 59 | $ 1,689 |
Reinvested dividends and distributions | 580 | 13,129 | | 18 | 518 |
Shares repurchased | (1) | (12) | | (36) | (991) |
Net Increase/(Decrease) | 827 | $ 18,202 | | 41 | $ 1,216 |
Class T Shares: | | | | | |
Shares sold | 4,780 | $ 104,701 | | 443,166 | $ 13,160,079 |
Reinvested dividends and distributions | 22,516 | 511,333 | | 749 | 21,234 |
Shares repurchased | (71,241) | (1,590,349) | | (490,825) | (14,533,132) |
Net Increase/(Decrease) | (43,945) | $ (974,315) | | (46,910) | $ (1,351,819) |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$ 817,746,461 | $ 1,073,597,280 | $ - | $ - |
Janus Henderson International Opportunities Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson International 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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Capital Gain Distributions | $116,674,321 |
Dividends Received Deduction Percentage | 4% |
Qualified Dividend Income Percentage | 100% |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
Janus Henderson International Opportunities 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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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 |
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 inception 4/16) | Head of Multi-Asset of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
* 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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US 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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson International 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93082 11-22 |
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| | | ANNUAL REPORT September 30, 2022 |
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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 Janus Henderson Overseas Fund is an international equity fund seeking to grow capital by investing with conviction in companies outside the U.S. where the portfolio managers think the market underestimates free-cash-flow growth. The Fund considers both growth and value criteria as it seeks to deliver strong, risk-adjusted returns over the long term, irrespective of prevailing market conditions. | | | | 
Julian McManus co-portfolio manager | 
George Maris co-portfolio manager |
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PERFORMANCE
The Janus Henderson Overseas Fund Class I Shares returned -21.46% for the 12-month period ended September 30, 2022. The Fund’s primary benchmark, the MSCI All Country World ex USA IndexSM, returned -25.17%.
INVESTMENT ENVIRONMENT
Non-U.S. equity markets declined over the 12-month period as high levels of inflation in many of the world’s key economies prompted aggressive monetary and fiscal tightening, triggering fears of global recession. Equities began the period with positive, if volatile performance, in the fourth quarter of 2021, as investors focused on strong corporate earnings. However, global stock markets sold off in February following Russia’s invasion of Ukraine. Geopolitical turmoil and ongoing supply chain issues drove prices higher, with particularly sharp increases in commodities. Adding to investors’ concerns was a looming energy crisis as Russia substantially reduced gas supplies to several European countries. Meanwhile circumstances in China weighed upon markets as the country reinstituted COVID-19 restrictions, suffered continued property market declines, and faced a sharp slowdown in gross domestic product (GDP) growth. Steep inflation prompted several central banks to raise interest rates, causing a rotation from long-duration growth stocks to more cyclical companies. To head off inflationary pressures, the European Central Bank flipped rates from -0.50% to +0.75%. The Bank of England and the central banks of Canada, Australia, and Brazil, among others, likewise embarked on a rate hiking cycle. Unlike most central banks, the Bank of Japan continued its yield curve control policy, suppressing both short- and long-term interest rates. This resulted in the Yen weakening significantly versus the U.S. dollar due to widening interest rate differentials. China witnessed a similar weakening of its currency relative to the U.S. dollar.
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. Our approach enabled us to outperform our benchmark for the period.
Individual contributors to the Fund’s relative performance included energy holdings, which gained amid a recovery in oil prices as a result of improved demand from a recovery in travel and economic activity, and tighter supplies of crude and natural gas driven by geopolitical strife and regulatory policies. Standout performers included oil and natural gas producer Canadian Natural Resources, which also benefited from strong execution across its operations, increased production of natural gas, and substantial free cash flow. Its commitment to maximizing value for shareholders through thoughtful capital allocation also supported strength in its shares. During the period, management continued to allocate excess cash to stock buybacks and debt reduction.
Another notable contributor was Teck Resources, a Canada-based miner of steelmaking coal, copper, and zinc. The company benefited from rising commodity prices and Teck’s progress in building out Quebrada Blanca Phase 2 (QB2), a low-cost, long-life copper project in northern Chile. QB2 is expected to allow Teck to double its copper production in 2023. Teck is also exploring portfolio optimization, particularly within its oil sands business. A sale of this business would bolster the company’s environmental, social, and governance (ESG) position. We think asset sales, along with the tapering of capital expenditures associated with QB2, should allow Teck to return significant capital to shareholders.
Luggage company Samsonite International also bolstered relative results. Our thesis for the Hong Kong-based firm
Janus Henderson Overseas Fund (unaudited)
remained on track as its stock advanced due to margin expansion combined with a strong sales recovery in the Americas and Europe. Cost reductions planned before COVID-19 are benefiting the company at the same time as travel and luggage sales return to previous levels in many parts of the world. During the pandemic-related slowdown in travel, we were confident Samsonite’s strong brand and share of voice would enable it to emerge in an even stronger competitive position. We are optimistic that when China relaxes its zero-tolerance COVID-19 policy, travel in China will also recover, further benefiting Samsonite.
Conversely, select holdings weighed on results. Concerns about a downturn in the global economy and perceptions that many internet gaming stocks were overvalued pressured gaming stocks. Despite continued strong fundamentals, UK-based online gaming company Entain declined with the broader sector. Further pressuring its stock were political delays around the UK government white paper expected to shape future gambling regulation. We are confident strong fundamentals will enable Entain to overcome these headwinds. During the period, the company continued to demonstrate an ability to consistently drive strong cash flows and grow market share.
Austria-based Erste Group Bank also detracted. While Erste does not have exposure in Ukraine or Russia, its stock declined with the sector on windfall taxes and concerns an economic slowdown and deteriorating demand backdrop could impair loan growth for European banks and increase credit losses. We maintained our position in Erste, which we think possesses a healthy balance sheet and good credit exposures.
Relative performance also was hindered by Alstom, a leading maker of rail equipment in Europe. Alstom struggled with problematic contracts it inherited when it acquired Bombardier’s rail business. Further pressuring the stock was speculation that Alstom’s balance sheet could force the company to raise capital through a stock offering. We think it may take the company some time to work through these issues and liquidated our position in the company.
OUTLOOK
We think the backdrop for equity markets will remain challenging in the near term as persistent inflation, rising interest rates, and a weakening global economy threaten corporate profit growth. Although we witnessed a remarkable shift in global monetary policy during the period, we believe central banks were slow to tackle inflation and will likely continue to aggressively raise interest rates. Adding to economic challenges in Europe is a deepening energy crisis caused by Russia’s dramatic reduction in natural gas supplies to the region. In China, the government’s zero-COVID policy represents a continued drag on its economy, and we think U.S. restrictions on semiconductor technology exports to Chinese entities could further hamper the country’s attempts to move up the value-add curve.
In response to these macroeconomic challenges, the Fund increased its focus on businesses that our analysis suggests have the potential for superior free-cash-flow visibility and are trading at attractive valuations. More of these opportunities became evident recently in the pharmaceutical and consumer staples sectors. The Fund also increased exposure to European banks, which are over-provisioned for credit losses stemming from a recession and yet do not price in the benefits of higher interest rates. As a result of these modifications, we think the Fund is positioned to weather continued market and economic volatility, which we will be using to look for future opportunities.
Thank you for your continued investment in Janus Henderson Overseas Fund.
Janus Henderson Overseas Fund (unaudited)
Fund At A Glance
September 30, 2022
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Canadian Natural Resources Ltd | 3.92% | | 1.91% | | Entain PLC | 2.98% | | -1.33% |
| Teck Resources Ltd | 4.10% | | 1.80% | | Sea Ltd (ADR) | 0.58% | | -0.58% |
| Samsonite International SA | 2.28% | | 0.75% | | Erste Group Bank AG | 2.38% | | -0.54% |
| AstraZeneca PLC | 4.41% | | 0.74% | | Alstom SA | 1.33% | | -0.39% |
| Beazley PLC | 1.78% | | 0.73% | | Prudential PLC | 1.41% | | -0.39% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-USA Index |
| | | Contribution | | Average Weight | Average Weight |
| Materials | | 2.05% | | 7.75% | 8.29% |
| Energy | | 1.50% | | 6.01% | 5.54% |
| Other** | | 1.01% | | 3.93% | 0.00% |
| Health Care | | 0.92% | | 10.82% | 9.38% |
| Information Technology | | 0.46% | | 12.08% | 12.14% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-USA Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -1.19% | | 20.36% | 20.11% |
| Industrials | | -0.49% | | 12.01% | 12.16% |
| Utilities | | -0.28% | | 0.00% | 3.23% |
| Consumer Discretionary | | -0.01% | | 11.38% | 11.75% |
| Real Estate | | 0.12% | | 0.00% | 2.45% |
| | | | | | | |
| 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, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Yum China Holdings Inc | |
Hotels, Restaurants & Leisure | 3.8% |
Diageo PLC | |
Beverages | 3.7% |
Teck Resources Ltd | |
Metals & Mining | 3.7% |
JD.Com Inc - Class A | |
Internet & Direct Marketing Retail | 3.6% |
AstraZeneca PLC | |
Pharmaceuticals | 3.6% |
| | 18.4% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 95.2% | |
Investment Companies | | 4.5% | |
Investments Purchased with Cash Collateral from Securities Lending | | 3.1% | |
Preferred Stocks | | 0.8% | |
Other | | (3.6)% |
| | | 100.0% |
Emerging markets comprised 17.2% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson Overseas Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2022 | | | 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 | | -21.71% | 2.26% | 2.26% | 6.89% | | | 1.23% | 1.23% |
Class A Shares at MOP | | -26.21% | 1.05% | 1.66% | 6.67% | | | | |
Class C Shares at NAV | | -22.39% | 1.42% | 1.45% | 6.14% | | | 2.14% | 2.12% |
Class C Shares at CDSC | | -23.17% | 1.42% | 1.45% | 6.14% | | | | |
Class D Shares | | -21.50% | 2.55% | 2.56% | 7.08% | | | 0.95% | 0.95% |
Class I Shares | | -21.46% | 2.60% | 2.60% | 7.11% | | | 0.90% | 0.90% |
Class N Shares | | -21.37% | 2.71% | 2.71% | 7.13% | | | 0.82% | 0.82% |
Class R Shares | | -21.97% | 1.94% | 1.95% | 6.53% | | | 1.57% | 1.57% |
Class S Shares | | -21.77% | 2.21% | 2.21% | 6.77% | | | 1.31% | 1.31% |
Class T Shares | | -21.56% | 2.46% | 2.48% | 7.04% | | | 1.06% | 1.06% |
MSCI All Country World ex-USA Index | | -25.17% | -0.81% | 3.01% | N/A** | | | | |
Morningstar Quartile - Class T Shares | | 1st | 1st | 4th | 1st | | | | |
Morningstar Ranking - based on total returns for Foreign Large Blend Funds | | 82/758 | 25/668 | 446/544 | 13/119 | | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Janus Henderson Overseas Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective 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.
© 2022 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 2, 1994
**Since inception index return is not available for indices created subsequent to fund inception.
‡ As stated in the prospectus. Net expense ratios reflect the expense waivers, if any, contractually agreed to for at least a one-year period commencing on January 28, 2022. 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $795.60 | $5.58 | | $1,000.00 | $1,018.85 | $6.28 | 1.24% |
Class C Shares | $1,000.00 | $792.20 | $9.35 | | $1,000.00 | $1,014.64 | $10.50 | 2.08% |
Class D Shares | $1,000.00 | $796.50 | $4.32 | | $1,000.00 | $1,020.26 | $4.86 | 0.96% |
Class I Shares | $1,000.00 | $796.80 | $4.19 | | $1,000.00 | $1,020.41 | $4.71 | 0.93% |
Class N Shares | $1,000.00 | $797.20 | $3.69 | | $1,000.00 | $1,020.96 | $4.15 | 0.82% |
Class R Shares | $1,000.00 | $794.30 | $7.11 | | $1,000.00 | $1,017.15 | $7.99 | 1.58% |
Class S Shares | $1,000.00 | $795.10 | $5.94 | | $1,000.00 | $1,018.45 | $6.68 | 1.32% |
Class T Shares | $1,000.00 | $796.30 | $4.77 | | $1,000.00 | $1,019.75 | $5.37 | 1.06% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 95.2% | | | |
Aerospace & Defense – 2.0% | | | |
| | Airbus SE | | 394,916 | | | $34,112,545 | |
Banks – 10.9% | | | |
| | BNP Paribas SA | | 1,409,403 | | | 59,492,279 | |
| | China Construction Bank Corp | | 63,406,000 | | | 36,489,033 | |
| | Erste Group Bank AG | | 1,425,108 | | | 31,203,918 | |
| | Natwest Group PLC | | 16,896,232 | | | 42,157,325 | |
| | Permanent TSB Group Holdings PLC* | | 7,893,218 | | | 12,137,902 | |
| | | 181,480,457 | |
Beverages – 7.3% | | | |
| | Diageo PLC | | 1,489,758 | | | 62,430,100 | |
| | Heineken NV | | 677,308 | | | 59,368,267 | |
| | | 121,798,367 | |
Biotechnology – 0.9% | | | |
| | Ascendis Pharma A/S (ADR)*,# | | 150,891 | | | 15,581,005 | |
Diversified Telecommunication Services – 2.9% | | | |
| | Deutsche Telekom AG | | 2,879,937 | | | 49,360,650 | |
Electronic Equipment, Instruments & Components – 4.5% | | | |
| | E Ink Holdings Inc | | 2,154,000 | | | 14,232,438 | |
| | Hexagon AB - Class B | | 1,793,134 | | | 16,633,249 | |
| | Keyence Corp | | 131,400 | | | 43,631,219 | |
| | | 74,496,906 | |
Entertainment – 5.3% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 695,298 | | | 40,674,933 | |
| | Nintendo Co Ltd | | 1,166,000 | | | 47,220,976 | |
| | | 87,895,909 | |
Hotels, Restaurants & Leisure – 6.3% | | | |
| | Entain PLC | | 3,463,481 | | | 41,582,457 | |
| | Yum China Holdings Inc# | | 1,333,800 | | | 62,941,027 | |
| | | 104,523,484 | |
Insurance – 8.4% | | | |
| | AIA Group Ltd | | 6,517,600 | | | 54,114,467 | |
| | Beazley PLC | | 5,873,100 | | | 36,426,174 | |
| | NN Group NV | | 1,286,247 | | | 50,054,310 | |
| | | 140,594,951 | |
Internet & Direct Marketing Retail – 3.6% | | | |
| | JD.Com Inc - Class A | | 2,391,361 | | | 60,386,914 | |
Metals & Mining – 6.4% | | | |
| | Freeport-McMoRan Inc | | 684,761 | | | 18,714,518 | |
| | Hindustan Zinc Ltd | | 8,149,485 | | | 26,556,765 | |
| | Teck Resources Ltd | | 2,051,334 | | | 62,392,515 | |
| | | 107,663,798 | |
Oil, Gas & Consumable Fuels – 5.6% | | | |
| | Canadian Natural Resources Ltd | | 1,131,593 | | | 52,698,286 | |
| | Total SE | | 856,314 | | | 40,300,547 | |
| | | 92,998,833 | |
Personal Products – 3.2% | | | |
| | Unilever PLC | | 1,207,670 | | | 53,125,199 | |
Pharmaceuticals – 11.4% | | | |
| | AstraZeneca PLC | | 548,569 | | | 60,312,428 | |
| | Bayer AG | | 342,977 | | | 15,825,289 | |
| | Novartis AG | | 666,238 | | | 50,799,783 | |
| | Sanofi | | 679,407 | | | 51,844,709 | |
| | Takeda Pharmaceutical Co Ltd# | | 459,576 | | | 11,937,829 | |
| | | 190,720,038 | |
Road & Rail – 3.1% | | | |
| | Central Japan Railway Co | | 282,400 | | | 33,087,764 | |
| | Full Truck Alliance Co (ADR)*,# | | 2,862,326 | | | 18,748,235 | |
| | | 51,835,999 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Overseas Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Semiconductor & Semiconductor Equipment – 6.6% | | | |
| | ASML Holding NV | | 103,234 | | | $42,814,103 | |
| | SK Hynix Inc | | 306,849 | | | 17,607,658 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 3,854,000 | | | 50,661,266 | |
| | | 111,083,027 | |
Textiles, Apparel & Luxury Goods – 4.8% | | | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 56,312 | | | 33,097,172 | |
| | Samsonite International SA (144A)* | | 19,325,100 | | | 46,386,067 | |
| | | 79,483,239 | |
Trading Companies & Distributors – 2.0% | | | |
| | Ferguson PLC | | 324,348 | | | 33,765,920 | |
Total Common Stocks (cost $1,659,839,000) | | 1,590,907,241 | |
Preferred Stocks– 0.8% | | | |
Automobiles – 0.8% | | | |
| | Dr Ing hc F Porsche AG((cost $13,890,844) | | 172,957 | | | 13,982,178 | |
Investment Companies– 4.5% | | | |
Money Markets – 4.5% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $75,214,148) | | 75,209,108 | | | 75,216,629 | |
Investments Purchased with Cash Collateral from Securities Lending– 3.1% | | | |
Investment Companies – 2.5% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 41,118,585 | | | 41,118,585 | |
Time Deposits – 0.6% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $10,279,646 | | | 10,279,646 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $51,398,231) | | 51,398,231 | |
Total Investments (total cost $1,800,342,223) – 103.6% | | 1,731,504,279 | |
Liabilities, net of Cash, Receivables and Other Assets – (3.6)% | | (60,216,545) | |
Net Assets – 100% | | $1,671,287,734 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United Kingdom | | $296,033,683 | | 17.1 | % |
United States | | 219,770,231 | | 12.7 | |
France | | 218,847,252 | | 12.6 | |
China | | 178,565,209 | | 10.3 | |
Netherlands | | 152,236,680 | | 8.8 | |
Japan | | 135,877,788 | | 7.9 | |
Canada | | 115,090,801 | | 6.6 | |
Hong Kong | | 100,500,534 | | 5.8 | |
Germany | | 79,168,117 | | 4.6 | |
Taiwan | | 64,893,704 | | 3.8 | |
Switzerland | | 50,799,783 | | 2.9 | |
Austria | | 31,203,918 | | 1.8 | |
India | | 26,556,765 | | 1.5 | |
South Korea | | 17,607,658 | | 1.0 | |
Sweden | | 16,633,249 | | 1.0 | |
Denmark | | 15,581,005 | | 0.9 | |
Ireland | | 12,137,902 | | 0.7 | |
| | | | | | |
| | | | | | |
Total | | $1,731,504,279 | | 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, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/22 |
Investment Companies - 4.5% |
Money Markets - 4.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | $ | 614,717 | $ | (9,319) | $ | 2,216 | $ | 75,216,629 |
Investments Purchased with Cash Collateral from Securities Lending - 2.5% |
Investment Companies - 2.5% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 621,490∆ | | - | | - | | 41,118,585 |
Total Affiliated Investments - 7.0% | $ | 1,236,207 | $ | (9,319) | $ | 2,216 | $ | 116,335,214 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Investment Companies - 4.5% |
Money Markets - 4.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 74,344,941 | | 485,797,049 | | (484,918,258) | | 75,216,629 |
Investments Purchased with Cash Collateral from Securities Lending - 2.5% |
Investment Companies - 2.5% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | - | | 384,804,690 | | (343,686,105) | | 41,118,585 |
| | | | | | | | | | |
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 | $ | 50,062,790 | $ | — | $ | (50,062,790) | $ | — |
| | | | | | | | | |
(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. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Overseas Fund
Notes to Schedule of Investments and Other Information
| | |
MSCI All Country World ex-USA IndexSM | MSCI All Country World ex-USA 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, 2022 is $46,386,067, which represents 2.8% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
| | |
£ | 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, 2022. 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 | $ | 15,581,005 | $ | - | $ | - |
Entertainment | | 40,674,933 | | 47,220,976 | | - |
Metals & Mining | | 81,107,033 | | 26,556,765 | | - |
Oil, Gas & Consumable Fuels | | 52,698,286 | | 40,300,547 | | - |
Road & Rail | | 18,748,235 | | 33,087,764 | | - |
All Other | | - | | 1,234,931,697 | | - |
Preferred Stocks | | 13,982,178 | | - | | - |
Investment Companies | | - | | 75,216,629 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 51,398,231 | | - |
Total Assets | $ | 222,791,670 | $ | 1,508,712,609 | $ | - |
| | | | | | | |
Janus Henderson Overseas Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $1,684,009,490)(1) | | $ | 1,615,169,065 | |
| Affiliated investments, at value (cost $116,332,733) | | | 116,335,214 | |
| Cash denominated in foreign currency (cost $51,811) | | | 48,690 | |
| Trustees' deferred compensation | | | 50,219 | |
| Receivables: | | | | |
| | Fund shares sold | | | 10,094,401 | |
| | Dividends | | | 3,014,436 | |
| | Foreign tax reclaims | | | 1,581,344 | |
| | Dividends from affiliates | | | 152,040 | |
| Other assets | | | 140,734 | |
Total Assets | | | 1,746,586,143 | |
Liabilities: | | | | |
| Due to custodian | | | 1,849 | |
| Collateral for securities loaned (Note 2) | | | 51,398,231 | |
| Payables: | | | — | |
| | Investments purchased | | | 13,890,844 | |
| | Fund shares repurchased | | | 7,925,075 | |
| | Advisory fees | | | 1,189,279 | |
| | Transfer agent fees and expenses | | | 281,157 | |
| | Professional fees | | | 67,706 | |
| | Trustees' deferred compensation fees | | | 50,219 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 37,736 | |
| | Custodian fees | | | 13,812 | |
| | Trustees' fees and expenses | | | 8,176 | |
| | Affiliated fund administration fees payable | | | 3,910 | |
| | Accrued expenses and other payables | | | 430,415 | |
Total Liabilities | | | 75,298,409 | |
Net Assets | | $ | 1,671,287,734 | |
| | |
See Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
Janus Henderson Overseas Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,233,489,689 | |
| Total distributable earnings (loss) | | | (1,562,201,955) | |
Total Net Assets | | $ | 1,671,287,734 | |
Net Assets - Class A Shares | | $ | 19,007,934 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 557,420 | |
Net Asset Value Per Share(2) | | $ | 34.10 | |
Maximum Offering Price Per Share(3) | | $ | 36.18 | |
Net Assets - Class C Shares | | $ | 1,941,461 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 57,984 | |
Net Asset Value Per Share(2) | | $ | 33.48 | |
Net Assets - Class D Shares | | $ | 528,220,640 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 15,639,135 | |
Net Asset Value Per Share | | $ | 33.78 | |
Net Assets - Class I Shares | | $ | 532,808,141 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 15,721,119 | |
Net Asset Value Per Share | | $ | 33.89 | |
Net Assets - Class N Shares | | $ | 70,341,847 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,085,628 | |
Net Asset Value Per Share | | $ | 33.73 | |
Net Assets - Class R Shares | | $ | 18,007,525 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 537,913 | |
Net Asset Value Per Share | | $ | 33.48 | |
Net Assets - Class S Shares | | $ | 101,257,001 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,998,424 | |
Net Asset Value Per Share | | $ | 33.77 | |
Net Assets - Class T Shares | | $ | 399,703,185 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 11,822,769 | |
Net Asset Value Per Share | | $ | 33.81 | |
| |
(1) Includes $50,062,790 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 Overseas Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 55,886,107 | |
| Affiliated securities lending income, net | | 621,490 | |
| Dividends from affiliates | | 614,717 | |
| Unaffiliated securities lending income, net | | 37,180 | |
| Other income | | 28,012 | |
| Foreign tax withheld | | (5,896,273) | |
Total Investment Income | | 51,291,233 | |
Expenses: | | | |
| Advisory fees | | 13,995,252 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 50,019 | |
| | Class C Shares | | 16,631 | |
| | Class R Shares | | 111,464 | |
| | Class S Shares | | 307,461 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 765,440 | |
| | Class R Shares | | 56,370 | |
| | Class S Shares | | 308,058 | |
| | Class T Shares | | 1,253,534 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 28,878 | |
| | Class C Shares | | 1,791 | |
| | Class I Shares | | 447,354 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 1,503 | |
| | Class C Shares | | 108 | |
| | Class D Shares | | 129,874 | |
| | Class I Shares | | 21,460 | |
| | Class N Shares | | 2,908 | |
| | Class R Shares | | 466 | |
| | Class S Shares | | 2,009 | |
| | Class T Shares | | 7,579 | |
| Registration fees | | 204,201 | |
| Shareholder reports expense | | 172,026 | |
| Custodian fees | | 141,134 | |
| Professional fees | | 84,550 | |
| Affiliated fund administration fees | | 46,251 | |
| Trustees’ fees and expenses | | 40,138 | |
| Other expenses | | 184,872 | |
Total Expenses | | 18,381,331 | |
Less: Excess Expense Reimbursement and Waivers | | (59,782) | |
Net Expenses | | 18,321,549 | |
Net Investment Income/(Loss) | | 32,969,684 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2022 |
Janus Henderson Overseas Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | |
| Investments and foreign currency transactions | $ | (4,553,122) | |
| Investments in affiliates | | (9,319) | |
Total Net Realized Gain/(Loss) on Investments | (4,562,441) | |
Change in Unrealized Net Appreciation/Depreciation: |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (468,599,482) | |
| Investments in affiliates | | 2,216 | |
Total Change in Unrealized Net Appreciation/Depreciation | (468,597,266) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (440,190,023) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Overseas Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 32,969,684 | | $ | 18,837,707 | |
| Net realized gain/(loss) on investments | | (4,562,441) | | | 186,233,897 | |
| Change in unrealized net appreciation/depreciation | (468,597,266) | | | 193,777,063 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | (440,190,023) | | | 398,848,667 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (163,941) | | | (107,051) | |
| | Class D Shares | | (7,514,426) | | | (5,967,635) | |
| | Class I Shares | | (4,194,570) | | | (517,002) | |
| | Class N Shares | | (764,172) | | | (284,437) | |
| | Class R Shares | | (103,612) | | | (79,393) | |
| | Class S Shares | | (907,459) | | | (691,150) | |
| | Class T Shares | | (5,080,049) | | | (3,930,037) | |
Net Decrease from Dividends and Distributions to Shareholders | (18,728,229) | | | (11,576,705) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 2,623,775 | | | 922,662 | |
| | Class C Shares | | 1,110,931 | | | (2,078,020) | |
| | Class D Shares | | (43,685,697) | | | (31,046,777) | |
| | Class I Shares | | 348,539,981 | | | 254,653,679 | |
| | Class N Shares | | 28,719,088 | | | 28,902,097 | |
| | Class R Shares | | (931,155) | | | (3,865,001) | |
| | Class S Shares | | 3,222 | | | (11,238,460) | |
| | Class T Shares | | (17,862,031) | | | (11,754,047) | |
Net Increase/(Decrease) from Capital Share Transactions | 318,518,114 | | | 224,496,133 | |
Net Increase/(Decrease) in Net Assets | | (140,400,138) | | | 611,768,095 | |
Net Assets: | | | | | | |
| Beginning of period | | 1,811,687,872 | | | 1,199,919,777 | |
| End of period | $ | 1,671,287,734 | | $ | 1,811,687,872 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $43.91 | | | $33.08 | | | $30.94 | | | $32.42 | | | $32.21 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.63 | | | 0.43 | | | 0.21 | | | 0.53 | | | 0.37 | |
| | Net realized and unrealized gain/(loss) | | (10.09) | | | 10.64 | | | 2.51 | | | (1.77) | | | 0.34 | |
| Total from Investment Operations | | (9.46) | | | 11.07 | | | 2.72 | | | (1.24) | | | 0.71 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.35) | | | (0.24) | | | (0.58) | | | (0.24) | | | (0.50) | |
| Total Dividends and Distributions | | (0.35) | | | (0.24) | | | (0.58) | | | (0.24) | | | (0.50) | |
| Net Asset Value, End of Period | | $34.10 | | | $43.91 | | | $33.08 | | | $30.94 | | | $32.42 | |
| Total Return* | | (21.71)% | | | 33.54% | | | 8.74% | | | (3.74)% | | | 2.18% | |
| Net Assets, End of Period (in thousands) | | $19,008 | | | $21,130 | | | $15,231 | | | $17,470 | | | $16,739 | |
| Average Net Assets for the Period (in thousands) | | $19,976 | | | $19,864 | | | $15,904 | | | $17,537 | | | $18,900 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.22% | | | 1.22% | | | 1.17% | | | 1.11% | | | 1.01% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.22% | | | 1.22% | | | 1.17% | | | 1.10% | | | 0.99% | |
| | Ratio of Net Investment Income/(Loss) | | 1.53% | | | 1.03% | | | 0.66% | | | 1.78% | | | 1.12% | |
| Portfolio Turnover Rate | | 32% | | | 27% | | | 18% | | | 22% | | | 23% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $43.14 | | | $32.58 | | | $30.34 | | | $31.76 | | | $31.52 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.36 | | | (0.02) | | | (0.06) | | | 0.28 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | (10.02) | | | 10.58 | | | 2.43 | | | (1.70) | | | 0.35 | |
| Total from Investment Operations | | (9.66) | | | 10.56 | | | 2.37 | | | (1.42) | | | 0.45 | |
| 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 | | $33.48 | | | $43.14 | | | $32.58 | | | $30.34 | | | $31.76 | |
| Total Return* | | (22.39)% | | | 32.41% | | | 7.79% | | | (4.47)% | | | 1.42% | |
| Net Assets, End of Period (in thousands) | | $1,941 | | | $1,295 | | | $2,665 | | | $3,693 | | | $10,244 | |
| Average Net Assets for the Period (in thousands) | | $1,631 | | | $1,910 | | | $3,305 | | | $5,809 | | | $13,589 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.13% | | | 2.06% | | | 2.02% | | | 1.90% | | | 1.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.09% | | | 2.06% | | | 1.99% | | | 1.87% | | | 1.71% | |
| | Ratio of Net Investment Income/(Loss) | | 0.90% | | | (0.04)% | | | (0.19)% | | | 0.95% | | | 0.31% | |
| Portfolio Turnover Rate | | 32% | | | 27% | | | 18% | | | 22% | | | 23% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $43.49 | | | $32.77 | | | $30.66 | | | $32.12 | | | $31.92 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.73 | | | 0.53 | | | 0.30 | | | 0.63 | | | 0.47 | |
| | Net realized and unrealized gain/(loss) | | (9.98) | | | 10.54 | | | 2.50 | | | (1.78) | | | 0.34 | |
| Total from Investment Operations | | (9.25) | | | 11.07 | | | 2.80 | | | (1.15) | | | 0.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.46) | | | (0.35) | | | (0.69) | | | (0.31) | | | (0.61) | |
| Total Dividends and Distributions | | (0.46) | | | (0.35) | | | (0.69) | | | (0.31) | | | (0.61) | |
| Net Asset Value, End of Period | | $33.78 | | | $43.49 | | | $32.77 | | | $30.66 | | | $32.12 | |
| Total Return* | | (21.48)% | | | 33.89% | | | 9.06% | | | (3.46)% | | | 2.52% | |
| Net Assets, End of Period (in thousands) | | $528,221 | | | $726,916 | | | $572,590 | | | $587,147 | | | $687,846 | |
| Average Net Assets for the Period (in thousands) | | $668,081 | | | $704,107 | | | $570,593 | | | $605,377 | | | $738,059 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.95% | | | 0.95% | | | 0.89% | | | 0.79% | | | 0.68% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.95% | | | 0.95% | | | 0.89% | | | 0.79% | | | 0.68% | |
| | Ratio of Net Investment Income/(Loss) | | 1.77% | | | 1.28% | | | 0.98% | | | 2.11% | | | 1.42% | |
| Portfolio Turnover Rate | | 32% | | | 27% | | | 18% | | | 22% | | | 23% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $43.68 | | | $32.91 | | | $30.79 | | | $32.25 | | | $32.05 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.83 | | | 0.72 | | | 0.32 | | | 0.64 | | | 0.48 | |
| | Net realized and unrealized gain/(loss) | | (10.11) | | | 10.41 | | | 2.50 | | | (1.77) | | | 0.34 | |
| Total from Investment Operations | | (9.28) | | | 11.13 | | | 2.82 | | | (1.13) | | | 0.82 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.51) | | | (0.36) | | | (0.70) | | | (0.33) | | | (0.62) | |
| Total Dividends and Distributions | | (0.51) | | | (0.36) | | | (0.70) | | | (0.33) | | | (0.62) | |
| Net Asset Value, End of Period | | $33.89 | | | $43.68 | | | $32.91 | | | $30.79 | | | $32.25 | |
| Total Return* | | (21.46)% | | | 33.96% | | | 9.10% | | | (3.40)% | | | 2.54% | |
| Net Assets, End of Period (in thousands) | | $532,808 | | | $312,685 | | | $44,806 | | | $42,606 | | | $52,204 | |
| Average Net Assets for the Period (in thousands) | | $434,124 | | | $90,200 | | | $43,005 | | | $45,239 | | | $58,918 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.90% | | | 0.84% | | | 0.74% | | | 0.64% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.92% | | | 0.90% | | | 0.84% | | | 0.74% | | | 0.64% | |
| | Ratio of Net Investment Income/(Loss) | | 2.05% | | | 1.72% | | | 1.04% | | | 2.14% | | | 1.44% | |
| Portfolio Turnover Rate | | 32% | | | 27% | | | 18% | | | 22% | | | 23% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $43.43 | | | $32.72 | | | $30.62 | | | $32.08 | | | $31.89 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.84 | | | 0.64 | | | 0.32 | | | 0.68 | | | 0.52 | |
| | Net realized and unrealized gain/(loss) | | (10.02) | | | 10.46 | | | 2.52 | | | (1.77) | | | 0.33 | |
| Total from Investment Operations | | (9.18) | | | 11.10 | | | 2.84 | | | (1.09) | | | 0.85 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.52) | | | (0.39) | | | (0.74) | | | (0.37) | | | (0.66) | |
| Total Dividends and Distributions | | (0.52) | | | (0.39) | | | (0.74) | | | (0.37) | | | (0.66) | |
| Net Asset Value, End of Period | | $33.73 | | | $43.43 | | | $32.72 | | | $30.62 | | | $32.08 | |
| Total Return* | | (21.37)% | | | 34.06% | | | 9.20% | | | (3.27)% | �� | | 2.65% | |
| Net Assets, End of Period (in thousands) | | $70,342 | | | $61,263 | | | $23,810 | | | $51,945 | | | $69,995 | |
| Average Net Assets for the Period (in thousands) | | $72,777 | | | $42,249 | | | $45,317 | | | $59,886 | | | $74,170 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.81% | | | 0.81% | | | 0.74% | | | 0.63% | | | 0.53% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.81% | | | 0.81% | | | 0.74% | | | 0.63% | | | 0.53% | |
| | Ratio of Net Investment Income/(Loss) | | 2.07% | | | 1.54% | | | 1.02% | | | 2.27% | | | 1.58% | |
| Portfolio Turnover Rate | | 32% | | | 27% | | | 18% | | | 22% | | | 23% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $43.10 | | | $32.48 | | | $30.41 | | | $31.78 | | | $31.60 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.47 | | | 0.27 | | | 0.11 | | | 0.44 | | | 0.26 | |
| | Net realized and unrealized gain/(loss) | | (9.90) | | | 10.48 | | | 2.45 | | | (1.72) | | | 0.34 | |
| Total from Investment Operations | | (9.43) | | | 10.75 | | | 2.56 | | | (1.28) | | | 0.60 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.19) | | | (0.13) | | | (0.49) | | | (0.09) | | | (0.42) | |
| Total Dividends and Distributions | | (0.19) | | | (0.13) | | | (0.49) | | | (0.09) | | | (0.42) | |
| Net Asset Value, End of Period | | $33.48 | | | $43.10 | | | $32.48 | | | $30.41 | | | $31.78 | |
| Total Return* | | (21.97)% | | | 33.12% | | | 8.37% | | | (4.00)% | | | 1.88% | |
| Net Assets, End of Period (in thousands) | | $18,008 | | | $24,155 | | | $21,288 | | | $24,381 | | | $30,258 | |
| Average Net Assets for the Period (in thousands) | | $22,449 | | | $24,617 | | | $22,679 | | | $25,588 | | | $34,353 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.56% | | | 1.56% | | | 1.49% | | | 1.39% | | | 1.27% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.56% | | | 1.56% | | | 1.49% | | | 1.39% | | | 1.27% | |
| | Ratio of Net Investment Income/(Loss) | | 1.16% | | | 0.66% | | | 0.35% | | | 1.50% | | | 0.81% | |
| Portfolio Turnover Rate | | 32% | | | 27% | | | 18% | | | 22% | | | 23% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $43.48 | | | $32.77 | | | $30.67 | | | $32.08 | | | $31.89 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.59 | | | 0.38 | | | 0.19 | | | 0.53 | | | 0.35 | |
| | Net realized and unrealized gain/(loss) | | (10.00) | | | 10.55 | | | 2.48 | | | (1.75) | | | 0.34 | |
| Total from Investment Operations | | (9.41) | | | 10.93 | | | 2.67 | | | (1.22) | | | 0.69 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.30) | | | (0.22) | | | (0.57) | | | (0.19) | | | (0.50) | |
| Total Dividends and Distributions | | (0.30) | | | (0.22) | | | (0.57) | | | (0.19) | | | (0.50) | |
| Net Asset Value, End of Period | | $33.77 | | | $43.48 | | | $32.77 | | | $30.67 | | | $32.08 | |
| Total Return* | | (21.77)% | | | 33.43% | | | 8.64% | | | (3.74)% | | | 2.16% | |
| Net Assets, End of Period (in thousands) | | $101,257 | | | $130,076 | | | $107,722 | | | $118,308 | | | $143,500 | |
| Average Net Assets for the Period (in thousands) | | $122,666 | | | $127,073 | | | $109,624 | | | $125,646 | | | $158,138 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.31% | | | 1.31% | | | 1.23% | | | 1.13% | | | 1.02% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.31% | | | 1.31% | | | 1.23% | | | 1.13% | | | 1.02% | |
| | Ratio of Net Investment Income/(Loss) | | 1.43% | | | 0.92% | | | 0.62% | | | 1.77% | | | 1.06% | |
| Portfolio Turnover Rate | | 32% | | | 27% | | | 18% | | | 22% | | | 23% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $43.53 | | | $32.80 | | | $30.70 | | | $32.14 | | | $31.95 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.69 | | | 0.49 | | | 0.27 | | | 0.60 | | | 0.43 | |
| | Net realized and unrealized gain/(loss) | | (9.99) | | | 10.56 | | | 2.49 | | | (1.76) | | | 0.34 | |
| Total from Investment Operations | | (9.30) | | | 11.05 | | | 2.76 | | | (1.16) | | | 0.77 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.42) | | | (0.32) | | | (0.66) | | | (0.28) | | | (0.58) | |
| Total Dividends and Distributions | | (0.42) | | | (0.32) | | | (0.66) | | | (0.28) | | | (0.58) | |
| Net Asset Value, End of Period | | $33.81 | | | $43.53 | | | $32.80 | | | $30.70 | | | $32.14 | |
| Total Return* | | (21.56)% | | | 33.78% | | | 8.93% | | | (3.51)% | | | 2.40% | |
| Net Assets, End of Period (in thousands) | | $399,703 | | | $534,168 | | | $411,807 | | | $444,252 | | | $532,840 | |
| Average Net Assets for the Period (in thousands) | | $499,214 | | | $511,140 | | | $422,347 | | | $462,499 | | | $589,204 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.05% | | | 1.05% | | | 0.98% | | | 0.88% | | | 0.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.04% | | | 1.05% | | | 0.97% | | | 0.87% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | 1.68% | | | 1.19% | | | 0.88% | | | 2.03% | | | 1.32% | |
| Portfolio Turnover Rate | | 32% | | | 27% | | | 18% | | | 22% | | | 23% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) 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 Overseas 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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 Overseas 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.
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.
Janus Henderson Overseas Fund
Notes to Financial Statements
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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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 the Adviser 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.
Janus Henderson Overseas Fund
Notes to Financial Statements
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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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. Emerging market countries in which the Fund may invest include frontier market countries, the economies of which are less developed than other emerging market countries. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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.
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 the Adviser believes to be creditworthy at the time of the transaction. There is
Janus Henderson Overseas Fund
Notes to Financial Statements
always the risk that the Adviser’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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser 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 the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $50,062,790 for equity securities. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $51,398,231, resulting in the net amount due to the counterparty of $1,335,441.
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.
Janus Henderson Overseas Fund
Notes to Financial Statements
The Offsetting Assets and Liabilities table located in the Schedule of Investments 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.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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 the Adviser 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-USA 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 the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’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, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.76%.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.82% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing January 28, 2022. The previous expense limit (for at least a one-year period commencing on January 28, 2021) was 0.87%. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser
Janus Henderson Overseas Fund
Notes to Financial Statements
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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent 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.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Janus Henderson Overseas Fund
Notes to Financial Statements
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, of up to 0.50% of the Class R Shares’ average daily net assets, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $2,928.
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 the Distributor during the year ended September 30, 2022.
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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $183.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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 Overseas Fund
Notes to Financial Statements
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the year ended September 30, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
As of September 30, 2022, shares of the Fund were owned by affiliates of the Adviser, and/or other funds advised by the Adviser, 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 | 32 | | 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).
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) | |
$ 32,301,283 | $ - | $(1,521,244,826) | $ - | $ - | $ (345,045) | $(72,913,367) | |
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2022, 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, 2022 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(174,056,974) | $(1,347,187,852) | $(1,521,244,826) | | |
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, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 1,804,607,896 | $ 152,155,172 | $(225,258,789) | $ (73,103,617) |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 18,728,229 | $ - | $ - | $ - | |
| | | | | |
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 | $ - | $ - | $ - | |
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 |
$ - | $ (673,439) | $ 673,439 |
Janus Henderson Overseas Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 150,131 | $ 5,617,275 | | 102,005 | $ 4,230,884 |
Reinvested dividends and distributions | 3,517 | 148,824 | | 2,396 | 94,728 |
Shares repurchased | (77,473) | (3,142,324) | | (83,593) | (3,402,950) |
Net Increase/(Decrease) | 76,175 | $ 2,623,775 | | 20,808 | $ 922,662 |
Class C Shares: | | | | | |
Shares sold | 36,815 | $ 1,473,830 | | 8,149 | $ 348,407 |
Reinvested dividends and distributions | - | - | | - | - |
Shares repurchased | (8,855) | (362,899) | | (59,908) | (2,426,427) |
Net Increase/(Decrease) | 27,960 | $ 1,110,931 | | (51,759) | $ (2,078,020) |
Class D Shares: | | | | | |
Shares sold | 295,417 | $ 12,439,513 | | 498,097 | $ 20,658,885 |
Reinvested dividends and distributions | 169,001 | 7,069,316 | | 143,831 | 5,620,916 |
Shares repurchased | (1,540,034) | (63,194,526) | | (1,401,589) | (57,326,578) |
Net Increase/(Decrease) | (1,075,616) | $ (43,685,697) | | (759,661) | $ (31,046,777) |
Class I Shares: | | | | | |
Shares sold | 11,619,053 | $468,755,843 | | 6,251,378 | $273,610,269 |
Reinvested dividends and distributions | 99,055 | 4,156,347 | | 13,025 | 511,118 |
Shares repurchased | (3,155,471) | (124,372,209) | | (467,402) | (19,467,708) |
Net Increase/(Decrease) | 8,562,637 | $348,539,981 | | 5,797,001 | $254,653,679 |
Class N Shares: | | | | | |
Shares sold | 979,538 | $ 41,252,029 | | 797,738 | $ 33,711,854 |
Reinvested dividends and distributions | 18,317 | 764,172 | | 7,295 | 284,437 |
Shares repurchased | (322,727) | (13,297,113) | | (122,302) | (5,094,194) |
Net Increase/(Decrease) | 675,128 | $ 28,719,088 | | 682,731 | $ 28,902,097 |
Class R Shares: | | | | | |
Shares sold | 99,343 | $ 4,051,490 | | 83,917 | $ 3,412,821 |
Reinvested dividends and distributions | 2,475 | 103,109 | | 1,977 | 76,958 |
Shares repurchased | (124,408) | (5,085,754) | | (180,713) | (7,354,780) |
Net Increase/(Decrease) | (22,590) | $ (931,155) | | (94,819) | $ (3,865,001) |
Class S Shares: | | | | | |
Shares sold | 481,312 | $ 19,583,450 | | 397,104 | $ 16,471,575 |
Reinvested dividends and distributions | 21,616 | 906,569 | | 17,602 | 689,820 |
Shares repurchased | (496,046) | (20,486,797) | | (710,004) | (28,399,855) |
Net Increase/(Decrease) | 6,882 | $ 3,222 | | (295,298) | $ (11,238,460) |
Class T Shares: | | | | | |
Shares sold | 990,010 | $ 41,112,070 | | 1,432,727 | $ 58,299,796 |
Reinvested dividends and distributions | 118,113 | 4,948,931 | | 97,849 | 3,830,788 |
Shares repurchased | (1,556,278) | (63,923,032) | | (1,812,827) | (73,884,631) |
Net Increase/(Decrease) | (448,155) | $ (17,862,031) | | (282,251) | $ (11,754,047) |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$908,543,378 | $568,339,918 | $ - | $ - |
Janus Henderson Overseas Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Overseas Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Overseas Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Overseas Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Overseas Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Overseas Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Overseas Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Overseas Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Overseas Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Overseas Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Overseas Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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Foreign Taxes Paid | $5,450,625 |
Foreign Source Income | $39,634,119 |
Dividends Received Deduction Percentage | 1% |
Qualified Dividend Income Percentage | 100% |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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 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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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)
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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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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)
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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 |
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 the Adviser. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US LLC (2009-2017). |
* 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
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 |
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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Overseas Fund
Notes
NotesPage1
Janus Henderson Overseas 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93050 11-22 |
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| | | |
| | | ANNUAL REPORT September 30, 2022 |
| | |
| | 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)
| | | | | | |
FUND SNAPSHOT By investing in the best ideas from each global research sector team, this U.S. large-cap growth fund seeks long-term growth of capital. Our analysts identify industry-leading companies with brand power, enduring business models and strong competitive positioning. | | | | | Team-Based Approach Led by Matthew Peron, Director of Research |
| | | |
PERFORMANCE
The Janus Henderson Research Fund Class I Shares returned -27.90% for the 12-month period ended September 30, 2022, while its primary benchmark, the Russell 1000® Growth Index, returned -22.59%, and its secondary benchmark, the S&P 500® Index, returned -15.47%.
INVESTMENT ENVIRONMENT
U.S. stock markets posted negative returns for the 12-month period, falling amid soaring inflation, rising interest rates, and concerns that the economy may slide into a recession. While positive corporate earnings reports supported gains among equities early in the period, market volatility increased in early 2022 as persistent supply chain disruptions, Russia’s invasion of Ukraine, and surging commodities prices led to a challenging backdrop for equities. Expectations for more restrictive Federal Reserve (Fed) policy triggered a sell-off in higher-valuation growth stocks. The Fed raised interest rates by 0.25% in March, but then moved more aggressively with a 0.50% increase in May and consecutive 0.75% hikes in June, July, and September and signaled that additional rate hikes were likely into 2023. The Fed’s aggressive campaign against inflation as well as economic data that showed signs of weakness in the economy fueled fears about a recession. Corporate earnings growth also slowed as companies faced weaker demand, higher input and financing costs, and currency pressures.
PERFORMANCE DISCUSSION
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. Despite this approach, the Fund underperformed both benchmarks for the reporting period.
Areas of relative weakness in the Fund included the technology sector, where technology hardware and services company Apple weighed on performance. Compared to our benchmark, we held a much smaller position in Apple, which delivered solid relative results during the period. As such, we did not benefit from the stock’s gains to the same degree as the benchmark. Apple continued to execute well despite the supply-constrained environment. Momentum for products and services across the business remained robust.
Our underweight position in electric vehicle (EV) manufacturer Tesla also hindered the Fund’s relative results. Tesla’s stock gained on optimism that its margins and volumes could improve as a result of new tax credits to EV consumers and U.S. battery manufacturers that produce batteries with locally sourced materials. The vast majority of Tesla vehicles sold in the U.S. are supplied with batteries produced in Tesla manufacturing facilities in Nevada and Texas. Signs of improvement at the company’s Shanghai manufacturing facility, which resumed production following a COVID-related suspension, also supported share strength.
Gaming and hospitality company Caesars Entertainment also weighed on the Fund’s relative performance. Concerns about a downturn in the global economy and perceptions that many gaming stocks had become overvalued caused the sector to fall out of favor. Despite continued strong fundamentals, Caesars declined with the broad sector. Concerns about lower occupancy rates at Caesars’ hotels also weighed on the stock, although higher revenue per room helped to offset this weakness. Another overhang for the stock was stalled progress on the sale of one of its properties.
Conversely, top relative contributors to Fund performance were a downtrodden technology company we did not invest in and three stocks within the consumer sector that
Janus Henderson Research Fund (unaudited)
we did own. That latter included U.S.-focused beverage and alcohol company Constellation Brands, which saw an improvement in beer sales and operating profit following a COVID-related slowdown. During the period, management announced a planned share repurchase of up to $500 million, which further boosted sentiment for the stock.
Consumer holding Deckers Outdoor Corp. also delivered solid relative results. Deckers makes casual lifestyle and high-performance footwear and apparel under the brands UGG, HOKA, and Teva. Better-than-expected revenue growth supported strength in Deckers’ stock during the period. Adding to investors’ confidence was management’s decision to slightly raise its earnings outlook for the remainder of the year and its announcement of a $100 million repurchase of existing shares.
Another notable contributor within the consumer sector was Liberty Media Corporation, the parent company of Formula One Group. Formula One benefited from strong viewership and new sponsorship agreements. We believe the market’s increasing appreciation for potential free-cash-flow growth under Liberty Media’s stewardship also drove performance.
OUTLOOK
Despite a synchronized shift in monetary and fiscal tightening, inflation remains stubbornly high. As a result, we have adopted a more cautious outlook for the global economy. Meanwhile, on a relative basis, the U.S. economy has remained somewhat resilient, with a strong labor market giving investors hope that a downturn in the U.S. may not be as severe as in other parts of the world and that the U.S. may therefore bolster the global economy. The loosening of China’s zero-tolerance COVID-19 policy could also have positive implications for the global economy.
Turning to the Fund, our strategy is to invest in quality businesses able to demonstrate future earnings growth by providing innovative products and services, while also focusing on the price we pay for that growth. Our investment universe has expanded with the market sell-off as we continue to find good companies supporting our investment themes in e-commerce, cloud computing, digital payments, and healthcare innovation. Nonetheless, macroeconomic headwinds have prompted us to take additional measures to manage the Fund’s risk. To that end, we are being vigilant in our evaluation of stock-specific risk, including stress-testing each company’s free cash flow to assess any potential impact from the current economic environment. We’ve also shortened the Fund’s equity duration with the goal of further reducing its sensitivity to rising interest rates. We believe these measures, in combination with our focus on companies participating in secular growth trends, will enable us to pursue our goal of long-term growth of capital.
Thank you for investing in the Janus Henderson Research Fund.
Janus Henderson Research Fund (unaudited)
Fund At A Glance
September 30, 2022
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| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Constellation Brands Inc | 1.52% | | 0.40% | | Apple Inc | 6.02% | | -1.07% |
| Deckers Outdoor Corp | 0.59% | | 0.32% | | Tesla Inc | 0.47% | | -0.65% |
| Liberty Media Corp-Liberty Formula One | 1.14% | | 0.31% | | Caesars Entertainment Inc | 0.82% | | -0.57% |
| EOG Resources Inc | 0.71% | | 0.28% | | Align Technology Inc | 0.72% | | -0.40% |
| Procter & Gamble Co | 1.62% | | 0.24% | | NVIDIA Corp | 4.78% | | -0.36% |
| | | | | | | |
| 4 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | 0.93% | | 8.43% | 8.13% |
| Healthcare | | 0.54% | | 9.92% | 9.61% |
| Other** | | 0.04% | | 0.16% | 0.00% |
| Energy | | 0.01% | | 0.74% | 0.73% |
| | | | | | |
| | | | | | |
| 4 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Technology | | -3.43% | | 39.33% | 39.98% |
| Consumer | | -1.69% | | 18.75% | 18.75% |
| Industrials | | -0.92% | | 10.23% | 10.60% |
| Communications | | -0.40% | | 12.44% | 12.20% |
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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 Research Fund (unaudited)
Fund At A Glance
September 30, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 11.1% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 6.7% |
Alphabet Inc - Class C | |
Interactive Media & Services | 6.3% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 6.2% |
NVIDIA Corp | |
Semiconductor & Semiconductor Equipment | 3.0% |
| | 33.3% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 100.1% | |
Investment Companies | | 0.1% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.0% | |
Private Placements | | 0.0% | |
Other | | (0.2)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson 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, 2022 | | | 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 | | -28.10% | 8.20% | 11.29% | 10.38% | | | 0.86% | 0.86% |
Class A Shares at MOP | | -32.23% | 6.92% | 10.63% | 10.16% | | | | |
Class C Shares at NAV | | -28.58% | 7.45% | 10.50% | 9.61% | | | 1.63% | 1.63% |
Class C Shares at CDSC | | -29.20% | 7.45% | 10.50% | 9.61% | | | | |
Class D Shares | | -27.94% | 8.42% | 11.51% | 10.61% | | | 0.66% | 0.66% |
Class I Shares | | -27.90% | 8.48% | 11.59% | 10.65% | | | 0.61% | 0.61% |
Class N Shares | | -27.85% | 8.56% | 11.68% | 10.66% | | | 0.54% | 0.54% |
Class R Shares | | -28.40% | 7.72% | 10.87% | 10.08% | | | 1.36% | 1.31% |
Class S Shares | | -28.23% | 8.01% | 11.12% | 10.22% | | | 1.05% | 1.05% |
Class T Shares | | -28.03% | 8.31% | 11.41% | 10.57% | | | 0.79% | 0.79% |
Russell 1000 Growth Index | | -22.59% | 12.17% | 13.70% | 9.66% | | | | |
S&P 500 Index | | -15.47% | 9.24% | 11.70% | 9.49% | | | | |
Morningstar Quartile - Class T Shares | | 3rd | 3rd | 3rd | 1st | | | | |
Morningstar Ranking - based on total returns for Large Growth Funds | | 727/1,269 | 737/1,146 | 590/1,050 | 36/367 | | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
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), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, 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.
© 2022 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. Net expense ratios reflect the expense waivers, if any, contractually agreed to for at least a one-year period commencing on January 28, 2022. 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.
| | | | | | | | | | | |
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $742.30 | $3.58 | | $1,000.00 | $1,020.96 | $4.15 | 0.82% |
Class C Shares | $1,000.00 | $739.70 | $6.45 | | $1,000.00 | $1,017.65 | $7.49 | 1.48% |
Class D Shares | $1,000.00 | $743.10 | $2.75 | | $1,000.00 | $1,021.91 | $3.19 | 0.63% |
Class I Shares | $1,000.00 | $743.30 | $2.49 | | $1,000.00 | $1,022.21 | $2.89 | 0.57% |
Class N Shares | $1,000.00 | $743.60 | $2.19 | | $1,000.00 | $1,022.56 | $2.54 | 0.50% |
Class R Shares | $1,000.00 | $740.70 | $5.50 | | $1,000.00 | $1,018.75 | $6.38 | 1.26% |
Class S Shares | $1,000.00 | $741.60 | $4.41 | | $1,000.00 | $1,020.00 | $5.11 | 1.01% |
Class T Shares | $1,000.00 | $742.70 | $3.19 | | $1,000.00 | $1,021.41 | $3.70 | 0.73% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 100.1% | | | |
Aerospace & Defense – 2.0% | | | |
| | General Dynamics Corp | | 715,937 | | | $151,900,353 | |
| | Howmet Aerospace Inc | | 4,002,915 | | | 123,810,161 | |
| | | 275,710,514 | |
Air Freight & Logistics – 2.6% | | | |
| | United Parcel Service Inc | | 2,202,902 | | | 355,856,789 | |
Automobiles – 1.8% | | | |
| | Rivian Automotive Inc - Class A*,# | | 1,992,994 | | | 65,589,433 | |
| | Tesla Inc* | | 674,565 | | | 178,928,366 | |
| | | 244,517,799 | |
Beverages – 1.7% | | | |
| | Constellation Brands Inc | | 1,045,698 | | | 240,175,917 | |
Biotechnology – 3.9% | | | |
| | AbbVie Inc | | 1,984,425 | | | 266,329,679 | |
| | Regeneron Pharmaceuticals Inc* | | 76,113 | | | 52,431,962 | |
| | Sarepta Therapeutics Inc* | | 636,070 | | | 70,311,178 | |
| | United Therapeutics Corp* | | 272,271 | | | 57,008,102 | |
| | Vertex Pharmaceuticals Inc* | | 305,812 | | | 88,544,806 | |
| | | 534,625,727 | |
Capital Markets – 1.3% | | | |
| | Blackstone Group Inc | | 919,583 | | | 76,969,097 | |
| | Charles Schwab Corp | | 706,881 | | | 50,803,537 | |
| | LPL Financial Holdings Inc | | 242,319 | | | 52,941,855 | |
| | | 180,714,489 | |
Diversified Financial Services – 0.4% | | | |
| | Apollo Global Management Inc | | 1,248,699 | | | 58,064,504 | |
Entertainment – 1.3% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 2,966,131 | | | 173,518,663 | |
Equity Real Estate Investment Trusts (REITs) – 1.4% | | | |
| | American Tower Corp | | 887,740 | | | 190,597,778 | |
Health Care Equipment & Supplies – 1.9% | | | |
| | Align Technology Inc* | | 159,894 | | | 33,115,646 | |
| | Danaher Corp | | 336,350 | | | 86,875,841 | |
| | Edwards Lifesciences Corp* | | 1,190,234 | | | 98,349,035 | |
| | Intuitive Surgical Inc* | | 261,440 | | | 49,004,314 | |
| | | 267,344,836 | |
Health Care Providers & Services – 3.2% | | | |
| | Centene Corp* | | 495,657 | | | 38,567,071 | |
| | UnitedHealth Group Inc | | 790,836 | | | 399,403,813 | |
| | | 437,970,884 | |
Hotels, Restaurants & Leisure – 0.5% | | | |
| | Caesars Entertainment Inc* | | 2,000,561 | | | 64,538,098 | |
Household Products – 1.6% | | | |
| | Procter & Gamble Co | | 1,736,539 | | | 219,238,049 | |
Industrial Conglomerates – 0.8% | | | |
| | Honeywell International Inc | | 629,361 | | | 105,084,406 | |
Information Technology Services – 6.1% | | | |
| | Fidelity National Information Services Inc | | 713,621 | | | 53,928,339 | |
| | Global Payments Inc | | 458,964 | | | 49,591,060 | |
| | Mastercard Inc | | 1,229,685 | | | 349,648,633 | |
| | Snowflake Inc - Class A* | | 293,557 | | | 49,892,948 | |
| | Visa Inc | | 1,874,675 | | | 333,036,014 | |
| | | 836,096,994 | |
Insurance – 0.6% | | | |
| | Aon PLC - Class A | | 283,675 | | | 75,988,022 | |
Interactive Media & Services – 6.3% | | | |
| | Alphabet Inc - Class C* | | 8,980,093 | | | 863,435,942 | |
Internet & Direct Marketing Retail – 8.3% | | | |
| | Amazon.com Inc* | | 7,518,034 | | | 849,537,842 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Research Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Internet & Direct Marketing Retail– (continued) | | | |
| | Booking Holdings Inc* | | 172,186 | | | $282,937,757 | |
| | | 1,132,475,599 | |
Life Sciences Tools & Services – 0.6% | | | |
| | Illumina Inc* | | 204,794 | | | 39,072,647 | |
| | Thermo Fisher Scientific Inc | | 95,746 | | | 48,561,414 | |
| | | 87,634,061 | |
Machinery – 2.2% | | | |
| | Deere & Co | | 615,712 | | | 205,580,080 | |
| | Ingersoll Rand Inc | | 2,321,290 | | | 100,419,005 | |
| | | 305,999,085 | |
Oil, Gas & Consumable Fuels – 1.4% | | | |
| | EOG Resources Inc | | 1,751,268 | | | 195,669,174 | |
Pharmaceuticals – 3.2% | | | |
| | AstraZeneca PLC (ADR) | | 2,309,026 | | | 126,626,986 | |
| | Eli Lilly & Co | | 513,879 | | | 166,162,775 | |
| | Horizon Therapeutics PLC* | | 596,783 | | | 36,934,900 | |
| | Merck & Co Inc | | 1,218,328 | | | 104,922,407 | |
| | | 434,647,068 | |
Professional Services – 1.4% | | | |
| | CoStar Group Inc* | | 2,729,132 | | | 190,084,044 | |
Road & Rail – 1.5% | | | |
| | JB Hunt Transport Services Inc | | 776,218 | | | 121,416,020 | |
| | Uber Technologies Inc* | | 3,364,591 | | | 89,161,661 | |
| | | 210,577,681 | |
Semiconductor & Semiconductor Equipment – 9.6% | | | |
| | Advanced Micro Devices Inc* | | 2,958,917 | | | 187,476,981 | |
| | ASML Holding NV | | 434,817 | | | 180,601,241 | |
| | KLA Corp | | 336,012 | | | 101,687,312 | |
| | Lam Research Corp | | 499,949 | | | 182,981,334 | |
| | Marvell Technology Inc | | 930,418 | | | 39,924,236 | |
| | NVIDIA Corp | | 3,396,062 | | | 412,247,966 | |
| | ON Semiconductor Corp* | | 647,611 | | | 40,365,594 | |
| | Teradyne Inc | | 939,667 | | | 70,615,975 | |
| | Texas Instruments Inc | | 610,179 | | | 94,443,506 | |
| | | 1,310,344,145 | |
Software – 19.5% | | | |
| | Adobe Inc* | | 270,239 | | | 74,369,773 | |
| | Atlassian Corp PLC - Class A* | | 1,396,010 | | | 293,985,746 | |
| | Autodesk Inc* | | 354,366 | | | 66,195,569 | |
| | Avalara Inc* | | 531,696 | | | 48,809,693 | |
| | Cadence Design Systems Inc* | | 975,308 | | | 159,394,586 | |
| | Microsoft Corp | | 6,559,298 | | | 1,527,660,504 | |
| | ServiceNow Inc* | | 293,152 | | | 110,697,127 | |
| | Synopsys Inc* | | 484,034 | | | 147,877,227 | |
| | Tyler Technologies Inc* | | 199,695 | | | 69,394,013 | |
| | Workday Inc - Class A* | | 1,169,163 | | | 177,969,992 | |
| | | 2,676,354,230 | |
Specialty Retail – 3.1% | | | |
| | Olaplex Holdings Inc* | | 3,475,713 | | | 33,193,059 | |
| | O'Reilly Automotive Inc* | | 271,129 | | | 190,698,582 | |
| | TJX Cos Inc | | 3,144,768 | | | 195,352,988 | |
| | | 419,244,629 | |
Technology Hardware, Storage & Peripherals – 6.7% | | | |
| | Apple Inc | | 6,681,593 | | | 923,396,153 | |
Textiles, Apparel & Luxury Goods – 2.4% | | | |
| | Deckers Outdoor Corp* | | 597,870 | | | 186,900,141 | |
| | NIKE Inc - Class B | | 1,753,361 | | | 145,739,366 | |
| | | 332,639,507 | |
| | |
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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Trading Companies & Distributors – 1.3% | | | |
| | Ferguson PLC | | 1,722,060 | | | $179,273,312 | |
Wireless Telecommunication Services – 1.5% | | | |
| | T-Mobile US Inc* | | 1,530,513 | | | 205,348,929 | |
Total Common Stocks (cost $10,096,986,270) | | 13,727,167,028 | |
Private Placements– 0% | | | |
Health Care Equipment & Supplies – 0% | | | |
| | MedicaMetrix Inc*,¢,£,§((cost $3,000,000) | | 2,727,273 | | | 3 | |
Investment Companies– 0.1% | | | |
Money Markets – 0.1% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $13,038,186) | | 13,036,882 | | | 13,038,186 | |
Investments Purchased with Cash Collateral from Securities Lending– 0% | | | |
Investment Companies – 0% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 1,275,965 | | | 1,275,965 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $318,991 | | | 318,991 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $1,594,956) | | 1,594,956 | |
Total Investments (total cost $10,114,619,412) – 100.2% | | 13,741,800,173 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.2)% | | (22,064,291) | |
Net Assets – 100% | | $13,719,735,882 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $13,140,586,200 | | 95.6 | % |
Australia | | 293,985,746 | | 2.2 | |
Netherlands | | 180,601,241 | | 1.3 | |
United Kingdom | | 126,626,986 | | 0.9 | |
| | | | | | |
| | | | | | |
Total | | $13,741,800,173 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Research Fund
Schedule of Investments
September 30, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/22 |
Private Placements - 0.0% |
Health Care Equipment & Supplies - 0.0% | |
| | MedicaMetrix Inc*,¢,§ | $ | - | $ | - | $ | (2,999,997) | $ | 3 |
Investment Companies - 0.1% |
Money Markets - 0.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 105,092 | | 2,460 | | - | | 13,038,186 |
Investments Purchased with Cash Collateral from Securities Lending - 0.0% |
Investment Companies - 0.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 531,646∆ | | - | | - | | 1,275,965 |
Total Affiliated Investments - 0.1% | $ | 636,738 | $ | 2,460 | $ | (2,999,997) | $ | 14,314,154 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2022, this column reflects amounts for the entire year ended September 30, 2022 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Private Placements - 0.0% |
Health Care Equipment & Supplies - 0.0% | |
| | MedicaMetrix Inc*,¢,§ | | 3,000,000 | | - | | - | | 3 |
Investment Companies - 0.1% |
Money Markets - 0.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | - | | 1,265,019,219 | | (1,251,983,493) | | 13,038,186 |
Investments Purchased with Cash Collateral from Securities Lending - 0.0% |
Investment Companies - 0.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 1,570,800 | | 673,880,843 | | (674,175,678) | | 1,275,965 |
| | | | | | | | | | |
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 | $ | 1,590,606 | $ | — | $ | (1,590,606) | $ | — |
| | | | | | | | | |
(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. |
| | |
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 |
| | |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2022 is $3, 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, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
MedicaMetrix Inc | 1/26/21 | $ | 3,000,000 | $ | 3 | | 0.0 | % |
| | | | | | | | | |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2022. The issuer incurs all registration costs. | |
Janus Henderson 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, 2022. 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 | $ | - | $ | 179,273,312 | $ | - |
All Other | | 13,547,893,716 | | - | | - |
Private Placements | | - | | - | | 3 |
Investment Companies | | - | | 13,038,186 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 1,594,956 | | - |
Total Assets | $ | 13,547,893,716 | $ | 193,906,454 | $ | 3 |
| | | | | | | |
Janus Henderson Research Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $10,097,305,261)(1) | | $ | 13,727,486,019 | |
| Affiliated investments, at value (cost $17,314,151) | | | 14,314,154 | |
| Trustees' deferred compensation | | | 412,892 | |
| Receivables: | | | | |
| | Investments sold | | | 14,824,873 | |
| | Fund shares sold | | | 7,919,322 | |
| | Dividends | | | 2,973,356 | |
| | Foreign tax reclaims | | | 24,545 | |
| | Dividends from affiliates | | | 12,804 | |
| Other assets | | | 136,457 | |
Total Assets | | | 13,768,104,422 | |
Liabilities: | | | | |
| Due to custodian | | | 3,298 | |
| Collateral for securities loaned (Note 2) | | | 1,594,956 | |
| Payables: | | | — | |
| | Investments purchased | | | 26,710,104 | |
| | Fund shares repurchased | | | 10,528,662 | |
| | Advisory fees | | | 6,166,063 | |
| | Transfer agent fees and expenses | | | 2,106,129 | |
| | Trustees' deferred compensation fees | | | 412,892 | |
| | Trustees' fees and expenses | | | 73,729 | |
| | Professional fees | | | 59,588 | |
| | Affiliated fund administration fees payable | | | 32,629 | |
| | Custodian fees | | | 23,669 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 23,199 | |
| | Accrued expenses and other payables | | | 633,622 | |
Total Liabilities | | | 48,368,540 | |
Net Assets | | $ | 13,719,735,882 | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2022 |
Janus Henderson Research Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 10,094,226,929 | |
| Total distributable earnings (loss) | | | 3,625,508,953 | |
Total Net Assets | | $ | 13,719,735,882 | |
Net Assets - Class A Shares | | $ | 36,486,137 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 816,555 | |
Net Asset Value Per Share(2) | | $ | 44.68 | |
Maximum Offering Price Per Share(3) | | $ | 47.41 | |
Net Assets - Class C Shares | | $ | 8,523,456 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 214,185 | |
Net Asset Value Per Share(2) | | $ | 39.79 | |
Net Assets - Class D Shares | | $ | 10,017,030,393 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 221,141,259 | |
Net Asset Value Per Share | | $ | 45.30 | |
Net Assets - Class I Shares | | $ | 298,319,389 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,596,320 | |
Net Asset Value Per Share | | $ | 45.23 | |
Net Assets - Class N Shares | | $ | 286,346,269 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,322,961 | |
Net Asset Value Per Share | | $ | 45.29 | |
Net Assets - Class R Shares | | $ | 2,903,124 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 65,949 | |
Net Asset Value Per Share | | $ | 44.02 | |
Net Assets - Class S Shares | | $ | 19,124,107 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 438,930 | |
Net Asset Value Per Share | | $ | 43.57 | |
Net Assets - Class T Shares | | $ | 3,051,003,007 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 67,453,723 | |
Net Asset Value Per Share | | $ | 45.23 | |
| |
(1) Includes $1,590,606 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 | 15 |
Janus Henderson Research Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 121,471,144 | |
| Affiliated securities lending income, net | | 531,646 | |
| Dividends from affiliates | | 105,092 | |
| Unaffiliated securities lending income, net | | 19,257 | |
| Other income | | 99,779 | |
| Foreign tax withheld | | (508,339) | |
Total Investment Income | | 121,718,579 | |
Expenses: | | | |
| Advisory fees | | 90,597,873 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 122,320 | |
| | Class C Shares | | 116,531 | |
| | Class R Shares | | 18,580 | |
| | Class S Shares | | 66,808 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 15,049,528 | |
| | Class R Shares | | 9,595 | |
| | Class S Shares | | 66,978 | |
| | Class T Shares | | 10,184,675 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 29,288 | |
| | Class C Shares | | 10,121 | |
| | Class I Shares | | 298,761 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 3,004 | |
| | Class C Shares | | 644 | |
| | Class D Shares | | 1,165,987 | |
| | Class I Shares | | 16,901 | |
| | Class N Shares | | 12,616 | |
| | Class R Shares | | 58 | |
| | Class S Shares | | 3,227 | |
| | Class T Shares | | 32,392 | |
| Shareholder reports expense | | 786,178 | |
| Affiliated fund administration fees | | 453,942 | |
| Trustees’ fees and expenses | | 379,462 | |
| Registration fees | | 174,089 | |
| Professional fees | | 135,742 | |
| Custodian fees | | 103,352 | |
| Other expenses | | 998,587 | |
Total Expenses | | 120,837,239 | |
Less: Excess Expense Reimbursement and Waivers | | (940,095) | |
Net Expenses | | 119,897,144 | |
Net Investment Income/(Loss) | | 1,821,435 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
Janus Henderson Research Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 156,761,753 | |
| Investments in affiliates | | 2,460 | |
Total Net Realized Gain/(Loss) on Investments | | 156,764,213 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (5,569,729,772) | |
| Investments in affiliates | | (2,999,997) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (5,572,729,769) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (5,414,144,121) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Research Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 1,821,435 | | $ | (7,549,955) | |
| Net realized gain/(loss) on investments | | 156,764,213 | | | 2,429,556,331 | |
| Change in unrealized net appreciation/depreciation | | (5,572,729,769) | | | 1,480,355,402 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (5,414,144,121) | | | 3,902,361,778 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (6,911,925) | | | (1,133,031) | |
| | Class C Shares | | (2,088,374) | | | (562,873) | |
| | Class D Shares | | (1,802,485,719) | | | (398,705,851) | |
| | Class I Shares | | (55,752,162) | | | (12,258,273) | |
| | Class N Shares | | (53,166,280) | | | (12,695,033) | |
| | Class R Shares | | (537,126) | | | (132,542) | |
| | Class S Shares | | (3,541,069) | | | (840,310) | |
| | Class T Shares | | (562,781,567) | | | (121,681,672) | |
Net Decrease from Dividends and Distributions to Shareholders | | (2,487,264,222) | | | (548,009,585) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 4,554,902 | | | 9,926,159 | |
| | Class C Shares | | (1,479,412) | | | (5,488,086) | |
| | Class D Shares | | 1,046,592,561 | | | (355,951,384) | |
| | Class I Shares | | 24,195,712 | | | (8,686,429) | |
| | Class N Shares | | 18,448,765 | | | (36,562,362) | |
| | Class R Shares | | 382,838 | | | (772,746) | |
| | Class S Shares | | (453,903) | | | (650,692) | |
| | Class T Shares | | 250,068,736 | | | (117,902,220) | |
Net Increase/(Decrease) from Capital Share Transactions | | 1,342,310,199 | | | (516,087,760) | |
Net Increase/(Decrease) in Net Assets | | (6,559,098,144) | | | 2,838,264,433 | |
Net Assets: | | | | | | |
| Beginning of period | | 20,278,834,026 | | | 17,440,569,593 | |
| End of period | $ | 13,719,735,882 | | $ | 20,278,834,026 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2022 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $70.69 | | | $59.31 | | | $49.56 | | | $53.33 | | | $45.29 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.10) | | | (0.15) | | | 0.06 | | | 0.14 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | (17.06) | | | 13.37 | | | 14.75 | | | 0.50 | | | 10.25 | |
| Total from Investment Operations | | (17.16) | | | 13.22 | | | 14.81 | | | 0.64 | | | 10.33 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.13) | | | (0.06) | | | (0.03) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | |
| Total Dividends and Distributions | | (8.85) | | | (1.84) | | | (5.06) | | | (4.41) | | | (2.29) | |
| Net Asset Value, End of Period | | $44.68 | | | $70.69 | | | $59.31 | | | $49.56 | | | $53.33 | |
| Total Return* | | (28.11)% | | | 22.66% | | | 32.14% | | | 2.98% | | | 23.56% | |
| Net Assets, End of Period (in thousands) | | $36,486 | | | $53,589 | | | $36,300 | | | $29,853 | | | $28,474 | |
| Average Net Assets for the Period (in thousands) | | $48,724 | | | $45,054 | | | $31,223 | | | $28,823 | | | $26,135 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.84% | | | 0.86% | | | 0.86% | | | 0.89% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.84% | | | 0.86% | | | 0.86% | | | 0.89% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | (0.16)% | | | (0.22)% | | | 0.12% | | | 0.30% | | | 0.17% | |
| Portfolio Turnover Rate | | 32% | | | 31% | | | 38% | | | 41% | | | 43% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $64.28 | | | $54.45 | | | $46.06 | | | $50.18 | | | $42.99 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.45) | | | (0.53) | | | (0.27) | | | (0.18) | | | (0.23) | |
| | Net realized and unrealized gain/(loss) | | (15.19) | | | 12.20 | | | 13.59 | | | 0.41 | | | 9.68 | |
| Total from Investment Operations | | (15.64) | | | 11.67 | | | 13.32 | | | 0.23 | | | 9.45 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | |
| Total Dividends and Distributions | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | |
| Net Asset Value, End of Period | | $39.79 | | | $64.28 | | | $54.45 | | | $46.06 | | | $50.18 | |
| Total Return* | | (28.60)% | | | 21.81% | | | 31.20% | | | 2.27% | | | 22.73% | |
| Net Assets, End of Period (in thousands) | | $8,523 | | | $15,910 | | | $18,502 | | | $19,109 | | | $27,515 | |
| Average Net Assets for the Period (in thousands) | | $12,989 | | | $17,155 | | | $18,763 | | | $21,832 | | | $26,463 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.52% | | | 1.54% | | | 1.55% | | | 1.58% | | | 1.61% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.52% | | | 1.54% | | | 1.55% | | | 1.57% | | | 1.58% | |
| | Ratio of Net Investment Income/(Loss) | | (0.85)% | | | (0.88)% | | | (0.57)% | | | (0.39)% | | | (0.50)% | |
| Portfolio Turnover Rate | | 32% | | | 31% | | | 38% | | | 41% | | | 43% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $71.42 | | | $59.86 | | | $49.98 | | | $53.74 | | | $45.60 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.02 | | | (0.01) | | | 0.17 | | | 0.24 | | | 0.19 | |
| | Net realized and unrealized gain/(loss) | | (17.29) | | | 13.48 | | | 14.87 | | | 0.50 | | | 10.33 | |
| Total from Investment Operations | | (17.27) | | | 13.47 | | | 15.04 | | | 0.74 | | | 10.52 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.07) | | | (0.23) | | | (0.15) | | | (0.12) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | |
| Total Dividends and Distributions | | (8.85) | | | (1.91) | | | (5.16) | | | (4.50) | | | (2.38) | |
| Net Asset Value, End of Period | | $45.30 | | | $71.42 | | | $59.86 | | | $49.98 | | | $53.74 | |
| Total Return* | | (27.96)% | | | 22.89% | | | 32.40% | | | 3.20% | | | 23.85% | |
| Net Assets, End of Period (in thousands) | | $10,017,030 | | | $14,715,777 | | | $12,635,778 | | | $10,221,640 | | | $10,550,222 | |
| Average Net Assets for the Period (in thousands) | | $13,156,776 | | | $14,113,628 | | | $11,047,912 | | | $9,901,606 | | | $9,778,967 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.64% | | | 0.66% | | | 0.66% | | | 0.69% | | | 0.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.64% | | | 0.66% | | | 0.66% | | | 0.68% | | | 0.69% | |
| | Ratio of Net Investment Income/(Loss) | | 0.03% | | | (0.02)% | | | 0.32% | | | 0.50% | | | 0.39% | |
| Portfolio Turnover Rate | | 32% | | | 31% | | | 38% | | | 41% | | | 43% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $71.28 | | | $59.74 | | | $49.89 | | | $53.67 | | | $45.53 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.02 | | | 0.20 | | | 0.27 | | | 0.22 | |
| | Net realized and unrealized gain/(loss) | | (17.25) | | | 13.46 | | | 14.84 | | | 0.48 | | | 10.32 | |
| Total from Investment Operations | | (17.20) | | | 13.48 | | | 15.04 | | | 0.75 | | | 10.54 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.10) | | | (0.26) | | | (0.18) | | | (0.14) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | |
| Total Dividends and Distributions | | (8.85) | | | (1.94) | | | (5.19) | | | (4.53) | | | (2.40) | |
| Net Asset Value, End of Period | | $45.23 | | | $71.28 | | | $59.74 | | | $49.89 | | | $53.67 | |
| Total Return* | | (27.91)% | | | 22.95% | | | 32.47% | | | 3.23% | | | 23.94% | |
| Net Assets, End of Period (in thousands) | | $298,319 | | | $448,508 | | | $383,533 | | | $340,425 | | | $387,130 | |
| Average Net Assets for the Period (in thousands) | | $396,836 | | | $428,367 | | | $349,367 | | | $339,641 | | | $382,642 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.59% | | | 0.61% | | | 0.60% | | | 0.63% | | | 0.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.59% | | | 0.61% | | | 0.60% | | | 0.62% | | | 0.63% | |
| | Ratio of Net Investment Income/(Loss) | | 0.08% | | | 0.03% | | | 0.38% | | | 0.56% | | | 0.45% | |
| Portfolio Turnover Rate | | 32% | | | 31% | | | 38% | | | 41% | | | 43% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $71.32 | | | $59.75 | | | $49.90 | | | $53.69 | | | $45.54 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.09 | | | 0.07 | | | 0.23 | | | 0.31 | | | 0.26 | |
| | Net realized and unrealized gain/(loss) | | (17.27) | | | 13.47 | | | 14.85 | | | 0.47 | | | 10.31 | |
| Total from Investment Operations | | (17.18) | | | 13.54 | | | 15.08 | | | 0.78 | | | 10.57 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.13) | | | (0.30) | | | (0.22) | | | (0.16) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | |
| Total Dividends and Distributions | | (8.85) | | | (1.97) | | | (5.23) | | | (4.57) | | | (2.42) | |
| Net Asset Value, End of Period | | $45.29 | | | $71.32 | | | $59.75 | | | $49.90 | | | $53.69 | |
| Total Return* | | (27.86)% | | | 23.05% | | | 32.57% | | | 3.31% | | | 24.02% | |
| Net Assets, End of Period (in thousands) | | $286,346 | | | $432,553 | | | $394,953 | | | $308,922 | | | $311,140 | |
| Average Net Assets for the Period (in thousands) | | $378,504 | | | $426,650 | | | $350,927 | | | $296,644 | | | $278,339 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.52% | | | 0.54% | | | 0.53% | | | 0.55% | | | 0.58% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.52% | | | 0.54% | | | 0.53% | | | 0.54% | | | 0.56% | |
| | Ratio of Net Investment Income/(Loss) | | 0.15% | | | 0.11% | | | 0.45% | | | 0.64% | | | 0.53% | |
| Portfolio Turnover Rate | | 32% | | | 31% | | | 38% | | | 41% | | | 43% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $70.04 | | | $59.04 | | | $49.46 | | | $53.37 | | | $45.47 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.35) | | | (0.42) | | | (0.18) | | | (0.05) | | | (0.12) | |
| | Net realized and unrealized gain/(loss) | | (16.82) | | | 13.26 | | | 14.69 | | | 0.49 | | | 10.28 | |
| Total from Investment Operations | | (17.17) | | | 12.84 | | | 14.51 | | | 0.44 | | | 10.16 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | |
| Total Dividends and Distributions | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | |
| Net Asset Value, End of Period | | $44.02 | | | $70.04 | | | $59.04 | | | $49.46 | | | $53.37 | |
| Total Return* | | (28.41)% | | | 22.10% | | | 31.48% | | | 2.55% | | | 23.06% | |
| Net Assets, End of Period (in thousands) | | $2,903 | | | $4,226 | | | $4,269 | | | $4,476 | | | $5,021 | |
| Average Net Assets for the Period (in thousands) | | $3,822 | | | $4,354 | | | $4,322 | | | $4,550 | | | $4,931 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.33% | | | 1.34% | | | 1.34% | | | 1.30% | | | 1.35% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.27% | | | 1.30% | | | 1.34% | | | 1.30% | | | 1.33% | |
| | Ratio of Net Investment Income/(Loss) | | (0.60)% | | | (0.64)% | | | (0.36)% | | | (0.11)% | | | (0.25)% | |
| Portfolio Turnover Rate | | 32% | | | 31% | | | 38% | | | 41% | | | 43% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $69.26 | | | $58.25 | | | $48.72 | | | $52.52 | | | $44.68 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.20) | | | (0.26) | | | (0.03) | | | 0.07 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | (16.64) | | | 13.11 | | | 14.49 | | | 0.48 | | | 10.10 | |
| Total from Investment Operations | | (16.84) | | | 12.85 | | | 14.46 | | | 0.55 | | | 10.11 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | (0.01) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | |
| Total Dividends and Distributions | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.27) | |
| Net Asset Value, End of Period | | $43.57 | | | $69.26 | | | $58.25 | | | $48.72 | | | $52.52 | |
| Total Return* | | (28.24)% | | | 22.43% | | | 31.89% | | | 2.82% | | | 23.38% | |
| Net Assets, End of Period (in thousands) | | $19,124 | | | $30,909 | | | $26,600 | | | $33,835 | | | $27,788 | |
| Average Net Assets for the Period (in thousands) | | $26,683 | | | $29,786 | | | $25,562 | | | $28,972 | | | $27,937 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.04% | | | 1.05% | | | 1.03% | | | 1.06% | | | 1.08% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.03% | | | 1.04% | | | 1.03% | | | 1.05% | | | 1.06% | |
| | Ratio of Net Investment Income/(Loss) | | (0.35)% | | | (0.39)% | | | (0.06)% | | | 0.14% | | | 0.03% | |
| Portfolio Turnover Rate | | 32% | | | 31% | | | 38% | | | 41% | | | 43% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $71.39 | | | $59.86 | | | $49.98 | | | $53.74 | | | $45.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.04) | | | (0.08) | | | 0.11 | | | 0.20 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | (17.27) | | | 13.48 | | | 14.89 | | | 0.49 | | | 10.33 | |
| Total from Investment Operations | | (17.31) | | | 13.40 | | | 15.00 | | | 0.69 | | | 10.47 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.03) | | | (0.19) | | | (0.10) | | | (0.08) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | |
| Total Dividends and Distributions | | (8.85) | | | (1.87) | | | (5.12) | | | (4.45) | | | (2.34) | |
| Net Asset Value, End of Period | | $45.23 | | | $71.39 | | | $59.86 | | | $49.98 | | | $53.74 | |
| Total Return* | | (28.04)% | | | 22.76% | | | 32.27% | | | 3.07% | | | 23.74% | |
| Net Assets, End of Period (in thousands) | | $3,051,003 | | | $4,577,362 | | | $3,940,635 | | | $3,319,149 | | | $3,481,882 | |
| Average Net Assets for the Period (in thousands) | | $4,056,851 | | | $4,384,575 | | | $3,505,134 | | | $3,219,617 | | | $3,264,878 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.77% | | | 0.79% | | | 0.78% | | | 0.80% | | | 0.83% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.74% | | | 0.77% | | | 0.76% | | | 0.77% | | | 0.79% | |
| | Ratio of Net Investment Income/(Loss) | | (0.07)% | | | (0.13)% | | | 0.22% | | | 0.41% | | | 0.29% | |
| Portfolio Turnover Rate | | 32% | | | 31% | | | 38% | | | 41% | | | 43% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the
Janus Henderson Research Fund
Notes to Financial Statements
“Distributor”) 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on
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an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of September 30, 2022 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, 2022.
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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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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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
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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 the Adviser 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market
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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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser 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 the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $1,590,606. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $1,594,956, resulting in the net amount due to the counterparty of $4,350.
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 Offsetting Assets and Liabilities table located in the Schedule of Investments present gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has
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been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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 the Adviser 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 the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’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, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.50%.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least a one-year period ending January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the
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Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent 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.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, of up to 0.50% of the Class
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R Shares’ average daily net assets, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $3,477.
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 the Distributor during the year ended September 30, 2022.
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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $196.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the
Janus Henderson Research Fund
Notes to Financial Statements
transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the year ended September 30, 2022, the Fund engaged in cross trades amounting to $33,704,804 in purchases and $79,722,361 in sales, resulting in a net realized gain of $7,918,243. 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) | |
$ 1,609,786 | $ 34,113,366 | $ - | $ - | $ - | $ (287,839) | $3,590,073,640 | |
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, 2022 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) |
$10,151,726,533 | $4,720,596,443 | $(1,130,522,803) | $3,590,073,640 |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 136,128,222 | $ 2,351,136,000 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
Janus Henderson Research 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 |
$ 91,501,608 | $ (118,791) | $ (91,382,817) |
Capital has been adjusted by $555,199, 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, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 175,606 | $ 10,649,895 | | 266,614 | $ 17,903,311 |
Reinvested dividends and distributions | 95,791 | 6,169,874 | | 15,644 | 988,359 |
Shares repurchased | (212,938) | (12,264,867) | | (136,203) | (8,965,511) |
Net Increase/(Decrease) | 58,459 | $ 4,554,902 | | 146,055 | $ 9,926,159 |
Class C Shares: | | | | | |
Shares sold | 9,627 | $ 570,670 | | 22,144 | $ 1,342,818 |
Reinvested dividends and distributions | 35,103 | 2,024,369 | | 9,336 | 539,413 |
Shares repurchased | (78,041) | (4,074,451) | | (123,771) | (7,370,317) |
Net Increase/(Decrease) | (33,311) | $ (1,479,412) | | (92,291) | $ (5,488,086) |
Class D Shares: | | | | | |
Shares sold | 2,832,009 | $ 171,231,316 | | 3,326,107 | $ 220,997,171 |
Reinvested dividends and distributions | 26,529,687 | 1,729,735,563 | | 6,022,078 | 383,787,030 |
Shares repurchased | (14,276,695) | (854,374,318) | | (14,398,341) | (960,735,585) |
Net Increase/(Decrease) | 15,085,001 | $1,046,592,561 | | (5,050,156) | $(355,951,384) |
Class I Shares: | | | | | |
Shares sold | 1,299,315 | $ 76,937,896 | | 1,377,299 | $ 92,389,122 |
Reinvested dividends and distributions | 795,671 | 51,774,306 | | 176,530 | 11,225,532 |
Shares repurchased | (1,790,464) | (104,516,490) | | (1,682,084) | (112,301,083) |
Net Increase/(Decrease) | 304,522 | $ 24,195,712 | | (128,255) | $ (8,686,429) |
Class N Shares: | | | | | |
Shares sold | 544,068 | $ 32,790,860 | | 761,708 | $ 51,177,439 |
Reinvested dividends and distributions | 815,570 | 53,109,893 | | 199,163 | 12,664,782 |
Shares repurchased | (1,101,554) | (67,451,988) | | (1,505,622) | (100,404,583) |
Net Increase/(Decrease) | 258,084 | $ 18,448,765 | | (544,751) | $ (36,562,362) |
Class R Shares: | | | | | |
Shares sold | 9,779 | $ 536,087 | | 9,957 | $ 654,373 |
Reinvested dividends and distributions | 8,356 | 532,028 | | 2,094 | 131,597 |
Shares repurchased | (12,520) | (685,277) | | (24,025) | (1,558,716) |
Net Increase/(Decrease) | 5,615 | $ 382,838 | | (11,974) | $ (772,746) |
Class S Shares: | | | | | |
Shares sold | 95,521 | $ 5,406,583 | | 78,526 | $ 5,126,028 |
Reinvested dividends and distributions | 56,135 | 3,531,423 | | 13,532 | 838,966 |
Shares repurchased | (158,984) | (9,391,909) | | (102,443) | (6,615,686) |
Net Increase/(Decrease) | (7,328) | $ (453,903) | | (10,385) | $ (650,692) |
Class T Shares: | | | | | |
Shares sold | 4,935,340 | $ 301,385,804 | | 4,517,826 | $ 303,568,991 |
Reinvested dividends and distributions | 8,407,226 | 547,814,842 | | 1,861,188 | 118,687,931 |
Shares repurchased | (10,007,466) | (599,131,910) | | (8,091,628) | (540,159,142) |
Net Increase/(Decrease) | 3,335,100 | $ 250,068,736 | | (1,712,614) | $(117,902,220) |
Janus Henderson Research Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$5,688,122,082 | $6,846,418,238 | $ - | $ - |
7. Recent Accounting Pronouncements
The FASB issued Accounting Standards Update 2022-03: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”) in June 2022. The new guidance in the ASU clarifies existing guidance in ASC 820 related to the fair value measurement of an equity security subject to contractual sale restrictions with the intent to reduce diversity in interpretation. Under the guidance, a contractual restriction on the sale of an equity security would not be considered when measuring fair value as such restriction is not treated as part of the equity security’s unit of account. The amendments would be applied prospectively on or after adoption date to equity securities with a contract containing a sale restriction that is executed or modified after such date. The effective date set by the FASB is December 15, 2023, with early adoption permitted. The Adviser is currently evaluating whether to early adopt and does not anticipate it to have a material impact on the Fund.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Research Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Research Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Research Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Research Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Research Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Research Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Research Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Research Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Research Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Research Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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Capital Gain Distributions | $2,442,637,608 |
Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income Percentage | 100% |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 F. McCalpin
151 Detroit Street
Denver, CO 80206
DOB: 1957 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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 |
Matthew Peron
151 Detroit Street
Denver, CO 80206
DOB: 1968 | Executive Vice President
Janus Henderson Research Fund | 4/20-Present | Director of Research of the Adviser and Portfolio Manager for other Janus Henderson accounts. Formerly, Chief Investment Officer for City National Rochdale (2018-2020), Executive Vice President and Managing Director of Global Equity at Northern Trust (2005-2018). |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US LLC (2009-2017). |
* 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
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 |
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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Research 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93053 11-22 |
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| | | ANNUAL REPORT September 30, 2022 |
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| | Janus Henderson Triton Fund |
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| | Janus Investment Fund |
| |
| | | 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)
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FUND SNAPSHOT A moderately positioned, small-mid-cap growth fund seeking long-term growth of capital. The Fund invests in small- and mid-cap companies with differentiated business models and sustainable competitive advantages that are positioned to grow market share regardless of economic conditions. | | | | 
Jonathan Coleman co-portfolio manager | 
Scott Stutzman co-portfolio manager |
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PERFORMANCE
The Janus Henderson Triton Fund Class I Shares returned -26.38% for the 12-month period ended September 30, 2022. The Fund’s primary benchmark, the Russell 2500™ Growth Index, returned -29.39%. The Fund’s secondary benchmark, the Russell 2000® Growth Index, returned -29.27%.
INVESTMENT ENVIRONMENT
Stocks declined over the 12-month period as soaring inflation, rising interest rates, and fears of recession led to market turbulence. Equities started out the period with positive yet volatile performance in the fourth quarter of 2021, as investors focused on strong corporate earnings news. This volatility increased in the first quarter of 2022 as inflation, rising rates, and geopolitical uncertainty weighed on investor sentiment. Expectations for a more restrictive Federal Reserve (Fed) policy also triggered a sell-off in higher-valuation growth stocks. The Fed raised interest rates by 25 basis points (bps) in March, but then moved more aggressively with a 50-bps increase in May and consecutive 75-bps rate hikes in June, July, and September. The Fed also signaled that additional rate hikes were likely into 2023, which kept upward pressure on bond yields. As this aggressive pace of tightening fueled recession fears, we began to witness signs of economic slowing and pressure on earnings as companies faced weaker demand, higher input and financing costs, and currency pressures.
PERFORMANCE DISCUSSION
The past 12 months have been especially challenging for higher-multiple, longer-duration growth stocks, many of which had outperformed during the pandemic. Investors also had little patience for unprofitable or highly indebted companies, and those stocks were among the market’s largest detractors. We have always viewed such companies with skepticism, given our focus on companies with proven earnings performance, high returns on invested capital, and reasonable valuations. Our preference towards investing in these higher quality business models aided our relative outperformance during the last year.
We were also pleased that some of our disciplined growth stocks were rewarded by investors despite this challenging backdrop. Long-time holding ON Semiconductor was a notable contributor. This chip manufacturer delivered strong earnings performance, as shortages in the semiconductor supply chain supported favorable pricing trends. ON Semiconductor also saw widening profit margins as its new management team streamlined operations and focused on fast-growing end markets such as electric vehicles. LPL Financial was another a top contributor. This financial services firm provides a full-service, technology-enabled platform that helps independent financial advisors serve their customers. LPL Financial has continued to add new advisors to its network, which supported its revenue and earnings growth. Higher interest rates were an additional tailwind for its earnings growth due to the interest income it earned on client cash balances.
Catalent, a prominent detractor, is a leading provider of contract drug development and manufacturing services. It has become a trusted manufacturer for biotech companies and some of the largest pharmaceutical companies in the world. This diversified business has been a source of steady earnings growth, but Catalent earned additional revenues over the past few years from its production of COVID vaccines. The COVID-related business slowed more quickly than expected in 2022, leading Catalent to reduce its near-term revenue guidance. This news led to a sell-off in the stock even
Janus Henderson Triton Fund (unaudited)
though the company’s non-COVID-related businesses continued to grow at a healthy pace. We held onto the stock because of the company’s diverse customer base, strong earnings track record, healthy free cash flow, and exposure to some of the highest growth areas within therapeutics.
Purple Innovation, another notable detractor, sells patented polymer mattresses. In late 2021, the company lost sales due to inventory shortfalls and manufacturing setbacks. It subsequently reduced its marketing efforts as it tried to reduce costs, and this retrenchment led to slowing sales growth. News of a management change and a potential capital raise added to pressure on the stock. We opted to exit the position given the headwinds for the business, especially in a less-certain consumer spending environment.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We caution that markets may remain volatile in the near term as investors await more clarity on the extent and impact of Fed interest rate hikes. Despite this uncertainty, we have been encouraged by signs that inflation pressures may be starting to ease along with supply chain bottlenecks, commodity prices, and labor market tightness. The shift away from global supply chains in favor of more regional production may also put upward pressure on prices. These dynamics have made the Fed’s task more challenging, while adding to headwinds for economic growth. We have already seen signs that higher rates are slowing economic growth and corporate earnings, and we recognize that this slowdown may become more pronounced later in the year. At the same time, we have felt reassured about the relative health of the underlying economy and of corporate balance sheets, which may help to mitigate the severity of an economic downturn. We also believe our portfolio is well positioned for this environment due to our focus on disciplined growth companies with strong balance sheets, healthy free cash flow, and high returns on investment. We believe these kinds of companies may be better able to navigate near-term market uncertainty while they capitalize on long-term trends.
Thank you for investing in Janus Henderson Triton Fund.
Janus Henderson Triton Fund (unaudited)
Fund At A Glance
September 30, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| LPL Financial Holdings Inc | 2.73% | | 1.11% | | LivePerson Inc | 0.53% | | -0.53% |
| Hostess Brands Inc | 1.40% | | 0.66% | | Catalent Inc | 2.68% | | -0.49% |
| ON Semiconductor Corp | 1.67% | | 0.66% | | Purple Innovation Inc | 0.24% | | -0.37% |
| Carlisle Cos Inc | 1.19% | | 0.45% | | LiveRamp Holdings Inc | 0.89% | | -0.36% |
| Crown Holdings Inc | 2.80% | | 0.40% | | NeoGenomics Inc | 0.25% | | -0.28% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2500 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | 1.65% | | 23.85% | 21.02% |
| Financials | | 1.14% | | 7.88% | 6.10% |
| Consumer Staples | | 1.00% | | 4.39% | 3.10% |
| Information Technology | | 0.61% | | 26.92% | 26.57% |
| Materials | | 0.37% | | 6.83% | 3.84% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2500 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | -1.43% | | 0.52% | 3.35% |
| Industrials | | -0.21% | | 14.41% | 15.87% |
| Consumer Discretionary | | -0.10% | | 10.50% | 14.44% |
| Communication Services | | 0.02% | | 2.31% | 2.18% |
| Real Estate | | 0.05% | | 0.71% | 2.86% |
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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 Triton Fund (unaudited)
Fund At A Glance
September 30, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
LPL Financial Holdings Inc | |
Capital Markets | 3.5% |
Crown Holdings Inc | |
Containers & Packaging | 2.5% |
Terminix Global Holdings Inc | |
Diversified Consumer Services | 2.4% |
Catalent Inc | |
Pharmaceuticals | 2.2% |
ON Semiconductor Corp | |
Semiconductor & Semiconductor Equipment | 2.1% |
| | 12.7% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.7% | |
Private Investment in Public Equity (PIPES) | | 1.5% | |
Investments Purchased with Cash Collateral from Securities Lending | | 1.0% | |
Private Placements | | 0.6% | |
Investment Companies | | 0.3% | |
Warrants | | 0.0% | |
Other | | (1.1)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson Triton 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, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -26.63% | 4.37% | 9.89% | 10.31% | | | 1.29% |
Class A Shares at MOP | | -30.85% | 3.14% | 9.24% | 9.94% | | | |
Class C Shares at NAV | | -26.99% | 3.79% | 9.22% | 9.58% | | | 1.73% |
Class C Shares at CDSC | | -27.57% | 3.79% | 9.22% | 9.58% | | | |
Class D Shares | | -26.39% | 4.70% | 10.23% | 10.59% | | | 0.78% |
Class I Shares | | -26.38% | 4.74% | 10.28% | 10.65% | | | 0.75% |
Class N Shares | | -26.32% | 4.84% | 10.39% | 10.67% | | | 0.66% |
Class R Shares | | -26.87% | 4.06% | 9.56% | 9.95% | | | 1.41% |
Class S Shares | | -26.66% | 4.32% | 9.84% | 10.21% | | | 1.16% |
Class T Shares | | -26.50% | 4.58% | 10.12% | 10.51% | | | 0.91% |
Russell 2500 Growth Index | | -29.39% | 6.30% | 10.30% | 8.65% | | | |
Russell 2000 Growth Index | | -29.27% | 3.60% | 8.81% | 7.49% | | | |
Morningstar Quartile - Class T Shares | | 2nd | 3rd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Small Growth Funds | | 186/626 | 411/586 | 211/540 | 16/445 | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
Janus Henderson Triton Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective 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.
© 2022 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 Triton 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $784.50 | $5.01 | | $1,000.00 | $1,019.45 | $5.67 | 1.12% |
Class C Shares | $1,000.00 | $782.90 | $6.70 | | $1,000.00 | $1,017.55 | $7.59 | 1.50% |
Class D Shares | $1,000.00 | $785.90 | $3.58 | | $1,000.00 | $1,021.06 | $4.05 | 0.80% |
Class I Shares | $1,000.00 | $785.90 | $3.45 | | $1,000.00 | $1,021.21 | $3.90 | 0.77% |
Class N Shares | $1,000.00 | $786.40 | $3.00 | | $1,000.00 | $1,021.71 | $3.40 | 0.67% |
Class R Shares | $1,000.00 | $783.40 | $6.35 | | $1,000.00 | $1,017.95 | $7.18 | 1.42% |
Class S Shares | $1,000.00 | $784.70 | $5.23 | | $1,000.00 | $1,019.20 | $5.92 | 1.17% |
Class T Shares | $1,000.00 | $785.20 | $4.07 | | $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 Triton Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 97.7% | | | |
Aerospace & Defense – 2.5% | | | |
| | Axon Enterprise Inc* | | 631,332 | | | $73,076,679 | |
| | Kensington Capital Acquisition Corp* | | 943,535 | | | 8,703,356 | |
| | Teledyne Technologies Inc* | | 259,420 | | | 87,546,467 | |
| | | 169,326,502 | |
Auto Components – 1.2% | | | |
| | Fox Factory Holding Corp* | | 183,548 | | | 14,514,976 | |
| | Quantumscape Corp*,# | | 1,293,635 | | | 10,879,470 | |
| | Visteon Corp* | | 541,128 | | | 57,392,036 | |
| | | 82,786,482 | |
Automobiles – 0.6% | | | |
| | Thor Industries Inc | | 583,347 | | | 40,822,623 | |
Banks – 0.5% | | | |
| | MSD Acquisition Corp*,£ | | 3,778,417 | | | 37,406,328 | |
Biotechnology – 7.8% | | | |
| | Abcam PLC* | | 2,325,256 | | | 34,679,362 | |
| | Akero Therapeutics Inc* | | 327,062 | | | 11,136,461 | |
| | Altimmune Inc* | | 495,733 | | | 6,330,510 | |
| | Arrowhead Pharmaceuticals Inc* | | 503,310 | | | 16,634,396 | |
| | Ascendis Pharma A/S (ADR)*,# | | 429,046 | | | 44,303,290 | |
| | Eagle Pharmaceuticals Inc/DE*,£ | | 793,212 | | | 20,956,661 | |
| | Fate Therapeutics Inc* | | 736,438 | | | 16,503,576 | |
| | Global Blood Therapeutics Inc* | | 322,121 | | | 21,936,440 | |
| | Legend Biotech Corp (ADR)* | | 320,301 | | | 13,068,281 | |
| | Ligand Pharmaceuticals Inc*,£ | | 897,906 | | | 77,318,686 | |
| | Mirati Therapeutics Inc* | | 138,675 | | | 9,685,062 | |
| | Neurocrine Biosciences Inc* | | 1,084,299 | | | 115,163,397 | |
| | Sarepta Therapeutics Inc* | | 950,626 | | | 105,082,198 | |
| | Vaxcyte Inc* | | 1,570,995 | | | 37,703,880 | |
| | | 530,502,200 | |
Building Products – 1.0% | | | |
| | Zurn Water Solutions Corp | | 2,800,311 | | | 68,607,620 | |
Capital Markets – 4.8% | | | |
| | Cboe Global Markets Inc | | 742,604 | | | 87,159,431 | |
| | LPL Financial Holdings Inc | | 1,101,625 | | | 240,683,030 | |
| | | 327,842,461 | |
Chemicals – 1.7% | | | |
| | Sensient Technologies Corp£ | | 1,638,321 | | | 113,601,178 | |
Commercial Services & Supplies – 1.9% | | | |
| | Brady Corp | | 1,810,739 | | | 75,562,138 | |
| | Driven Brands Holdings Inc* | | 1,943,156 | | | 54,369,505 | |
| | | 129,931,643 | |
Construction Materials – 1.0% | | | |
| | Summit Materials Inc* | | 2,911,583 | | | 69,761,529 | |
Containers & Packaging – 3.7% | | | |
| | Crown Holdings Inc | | 2,087,954 | | | 169,186,913 | |
| | Sealed Air Corp | | 1,886,558 | | | 83,970,697 | |
| | | 253,157,610 | |
Diversified Consumer Services – 2.9% | | | |
| | Frontdoor Inc* | | 484,467 | | | 9,878,282 | |
| | Mister Car Wash Inc*,# | | 2,931,672 | | | 25,153,746 | |
| | Terminix Global Holdings Inc* | | 4,266,728 | | | 163,373,015 | |
| | | 198,405,043 | |
Diversified Financial Services – 0.6% | | | |
| | Clarivate Analytics PLC* | | 4,213,106 | | | 39,561,065 | |
Diversified Telecommunication Services – 0.2% | | | |
| | AST SpaceMobile Inc*,# | | 1,670,199 | | | 12,058,837 | |
Electrical Equipment – 2.8% | | | |
| | EnerSys | | 1,001,940 | | | 58,282,850 | |
| | Regal Beloit Corp | | 629,458 | | | 88,350,725 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Electrical Equipment– (continued) | | | |
| | Stem Inc* | | 1,100,279 | | | $14,677,722 | |
| | Wallbox NV* | | 3,607,555 | | | 28,427,533 | |
| | | 189,738,830 | |
Electronic Equipment, Instruments & Components – 3.3% | | | |
| | Flex Ltd* | | 3,970,616 | | | 66,150,463 | |
| | Itron Inc* | | 460,116 | | | 19,375,485 | |
| | Mirion Technologies Inc* | | 1,385,807 | | | 10,351,978 | |
| | National Instruments Corp | | 959,578 | | | 36,214,474 | |
| | OSI Systems Inc*,£ | | 1,280,610 | | | 92,280,757 | |
| | | 224,373,157 | |
Energy Equipment & Services – 0.5% | | | |
| | Helmerich & Payne Inc | | 931,529 | | | 34,438,627 | |
Equity Real Estate Investment Trusts (REITs) – 0.7% | | | |
| | Lamar Advertising Co | | 576,730 | | | 47,574,458 | |
Food & Staples Retailing – 1.4% | | | |
| | Casey's General Stores Inc | | 285,239 | | | 57,766,602 | |
| | Grocery Outlet Holding Corp* | | 1,232,726 | | | 41,037,449 | |
| | | 98,804,051 | |
Food Products – 3.7% | | | |
| | Hostess Brands Inc*,£ | | 5,823,832 | | | 135,345,856 | |
| | Premium Brands Holdings Corp# | | 791,107 | | | 48,685,270 | |
| | Simply Good Foods Co* | | 2,239,066 | | | 71,627,721 | |
| | | 255,658,847 | |
Health Care Equipment & Supplies – 7.2% | | | |
| | Glaukos Corp* | | 1,040,179 | | | 55,379,130 | |
| | Globus Medical Inc* | | 1,800,248 | | | 107,240,773 | |
| | ICU Medical Inc* | | 458,201 | | | 69,005,071 | |
| | Integra LifeSciences Holdings Corp* | | 2,196,320 | | | 93,036,115 | |
| | iRhythm Technologies Inc* | | 433,241 | | | 54,276,432 | |
| | Neogen Corp* | | 1,323,406 | | | 18,487,982 | |
| | QuidelOrtho Corp* | | 339,522 | | | 24,269,033 | |
| | STERIS PLC | | 402,789 | | | 66,975,755 | |
| | | 488,670,291 | |
Health Care Providers & Services – 2.4% | | | |
| | Agiliti Inc*,# | | 5,258,127 | | | 75,243,797 | |
| | Chemed Corp | | 68,819 | | | 30,043,623 | |
| | HealthEquity Inc* | | 907,611 | | | 60,964,231 | |
| | | 166,251,651 | |
Hotels, Restaurants & Leisure – 1.5% | | | |
| | Churchill Downs Inc | | 238,400 | | | 43,901,360 | |
| | Wendy's Co | | 3,223,186 | | | 60,241,346 | |
| | | 104,142,706 | |
Household Durables – 0.3% | | | |
| | Helen of Troy Ltd* | | 212,962 | | | 20,538,055 | |
Independent Power and Renewable Electricity Producers – 0.8% | | | |
| | NRG Energy Inc | | 1,474,565 | | | 56,431,603 | |
Industrial Conglomerates – 1.4% | | | |
| | Carlisle Cos Inc | | 345,283 | | | 96,820,806 | |
Information Technology Services – 5.1% | | | |
| | Broadridge Financial Solutions Inc | | 651,399 | | | 94,009,904 | |
| | Euronet Worldwide Inc* | | 959,852 | | | 72,718,388 | |
| | LiveRamp Holdings Inc* | | 2,165,441 | | | 39,324,409 | |
| | MAXIMUS Inc | | 1,277,117 | | | 73,906,761 | |
| | WEX Inc* | | 539,247 | | | 68,452,014 | |
| | | 348,411,476 | |
Insurance – 1.0% | | | |
| | Selective Insurance Group Inc | | 804,270 | | | 65,467,578 | |
| | |
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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Internet & Direct Marketing Retail – 0.5% | | | |
| | Etsy Inc* | | 349,344 | | | $34,979,815 | |
Life Sciences Tools & Services – 2.2% | | | |
| | Bio-Techne Corp | | 150,908 | | | 42,857,872 | |
| | Bruker Corp | | 1,030,721 | | | 54,690,056 | |
| | PerkinElmer Inc | | 361,928 | | | 43,550,796 | |
| | SomaLogic Inc* | | 2,296,045 | | | 6,658,531 | |
| | | 147,757,255 | |
Machinery – 3.5% | | | |
| | Desktop Metal Inc - Class A*,# | | 6,227,980 | | | 16,130,468 | |
| | Donaldson Co Inc | | 1,009,213 | | | 49,461,529 | |
| | Gates Industrial Corp PLC* | | 5,145,314 | | | 50,218,265 | |
| | ITT Inc | | 834,656 | | | 54,536,423 | |
| | Nordson Corp | | 293,953 | | | 62,397,403 | |
| | Xos Inc* | | 2,131,405 | | | 2,557,686 | |
| | | 235,301,774 | |
Media – 0.5% | | | |
| | Cable One Inc | | 38,984 | | | 33,255,301 | |
Oil, Gas & Consumable Fuels – 1.3% | | | |
| | Magnolia Oil & Gas Corp | | 3,041,158 | | | 60,245,340 | |
| | PDC Energy Inc | | 494,733 | | | 28,590,620 | |
| | | 88,835,960 | |
Pharmaceuticals – 2.8% | | | |
| | Catalent Inc* | | 2,103,325 | | | 152,196,597 | |
| | Horizon Therapeutics PLC* | | 660,290 | | | 40,865,348 | |
| | | 193,061,945 | |
Professional Services – 2.4% | | | |
| | Alight Inc - Class A* | | 9,817,346 | | | 71,961,146 | |
| | TriNet Group Inc* | | 1,245,601 | | | 88,711,703 | |
| | | 160,672,849 | |
Road & Rail – 1.0% | | | |
| | Saia Inc*,# | | 347,673 | | | 66,057,870 | |
Semiconductor & Semiconductor Equipment – 4.4% | | | |
| | Brooks Automation Inc | | 790,150 | | | 33,865,829 | |
| | Entegris Inc | | 695,716 | | | 57,758,342 | |
| | ON Semiconductor Corp* | | 2,287,552 | | | 142,583,116 | |
| | SMART Global Holdings Inc* | | 1,330,139 | | | 21,109,306 | |
| | Wolfspeed Inc* | | 404,748 | | | 41,834,753 | |
| | | 297,151,346 | |
Software – 12.6% | | | |
| | Altair Engineering Inc* | | 1,002,619 | | | 44,335,812 | |
| | Aspen Technology Inc* | | 203,626 | | | 48,503,713 | |
| | Avalara Inc* | | 595,080 | | | 54,628,344 | |
| | Blackbaud Inc* | | 1,924,576 | | | 84,796,819 | |
| | Ceridian HCM Holding Inc* | | 531,481 | | | 29,699,158 | |
| | Clearwater Analytics Holdings Inc - Class A*,# | | 1,460,677 | | | 24,524,767 | |
| | Consensus Cloud Solutions Inc* | | 691,027 | | | 32,685,577 | |
| | Dynatrace Inc* | | 1,901,578 | | | 66,193,930 | |
| | Envestnet Inc* | | 959,377 | | | 42,596,339 | |
| | j2 Global Inc* | | 1,495,334 | | | 102,400,472 | |
| | LivePerson Inc* | | 1,675,668 | | | 15,784,793 | |
| | Nice Ltd (ADR)* | | 254,734 | | | 47,951,128 | |
| | Pagerduty Inc* | | 2,716,736 | | | 62,675,100 | |
| | SS&C Technologies Holdings Inc | | 2,687,634 | | | 128,334,523 | |
| | Zendesk Inc* | | 929,099 | | | 70,704,434 | |
| | | 855,814,909 | |
Specialty Retail – 2.4% | | | |
| | Leslie's Inc*,# | | 4,294,551 | | | 63,172,845 | |
| | National Vision Holdings Inc* | | 1,962,464 | | | 64,074,450 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Specialty Retail– (continued) | | | |
| | Williams-Sonoma Inc | | 323,909 | | | $38,172,676 | |
| | | 165,419,971 | |
Technology Hardware, Storage & Peripherals – 0.4% | | | |
| | NCR Corp* | | 1,330,737 | | | 25,297,310 | |
Thrifts & Mortgage Finance – 1.2% | | | |
| | Walker & Dunlop Inc | | 1,002,843 | | | 83,968,044 | |
Total Common Stocks (cost $4,977,214,059) | | 6,658,667,606 | |
Private Investment in Public Equity (PIPES)– 1.5% | | | |
Capital Markets – 0.4% | | | |
| | P3 Health Partners Inc*,§ | | 6,240,748 | | | 28,832,256 | |
Diversified Financial Services – 1.1% | | | |
| | Mirion Technologies Inc*,§ | | 9,458,407 | | | 70,654,300 | |
Total Private Investment in Public Equity (PIPES) (cost $154,104,774) | | 99,486,556 | |
Private Placements– 0.6% | | | |
Professional Services – 0.2% | | | |
| | IntelyCare Inc*,¢,§ | | 1,023,958 | | | 16,240,076 | |
Software – 0.4% | | | |
| | Loadsmart Inc - Series A*,¢,§ | | 377,303 | | | 7,043,832 | |
| | Loadsmart Inc - Series D*,¢,§ | | 1,075,313 | | | 20,074,911 | |
| | | 27,118,743 | |
Total Private Placements (cost $53,756,971) | | 43,358,819 | |
Warrants– 0% | | | |
Aerospace & Defense – 0% | | | |
| | Amprius Technologies Inc, expires 3/2/27* | | 1,887,070 | | | 603,862 | |
Electrical Equipment – 0% | | | |
| | Wallbox NV - Class A, expires 12/31/26* | | 665,780 | | | 925,434 | |
Total Warrants (cost $1,754,802) | | 1,529,296 | |
Investment Companies– 0.3% | | | |
Money Markets – 0.3% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $22,505,545) | | 22,504,410 | | | 22,506,660 | |
Investments Purchased with Cash Collateral from Securities Lending– 1.0% | | | |
Investment Companies – 0.8% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 54,754,734 | | | 54,754,734 | |
Time Deposits – 0.2% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $14,503,294 | | | 14,503,294 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $69,258,028) | | 69,258,028 | |
Total Investments (total cost $5,278,594,179) – 101.1% | | 6,894,806,965 | |
Liabilities, net of Cash, Receivables and Other Assets – (1.1)% | | (76,391,287) | |
Net Assets – 100% | | $6,818,415,678 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $6,689,834,948 | | 97.0 | % |
Canada | | 48,685,270 | | 0.7 | |
Israel | | 47,951,128 | | 0.7 | |
Denmark | | 44,303,290 | | 0.7 | |
United Kingdom | | 34,679,362 | | 0.5 | |
Spain | | 29,352,967 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $6,894,806,965 | | 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, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/22 |
Common Stocks - 3.3% |
Banks - 0.5% | |
| | MSD Acquisition Corp* | $ | - | $ | (45,770) | $ | (418,575) | $ | 37,406,328 |
Biotechnology - 1.4% | |
| | Eagle Pharmaceuticals Inc/DE* | | - | | (6,515,414) | | (19,542,531) | | 20,956,661 |
| | Ligand Pharmaceuticals Inc* | | - | | (3,118,987) | | (49,761,316) | | 77,318,686 |
Total Biotechnology | $ | - | $ | (9,634,401) | $ | (69,303,847) | $ | 98,275,347 |
Chemicals - N/A | |
| | Sensient Technologies Corpš | | 3,119,540 | | 22,813,017 | | (58,141,099) | | N/A |
Diversified Financial Services - N/A | |
| | Kensington Capital Acquisition Corp | | - | | - | | 3,821,581 | | - |
Electronic Equipment, Instruments & Components - 1.4% | |
| | OSI Systems Inc* | | - | | - | | (29,121,071) | | 92,280,757 |
Food Products - N/A | |
| | Hostess Brands Inc*,š | | - | | 2,776,918 | | 33,352,451 | | N/A |
Household Durables - N/A | |
| | Purple Innovation Inc | | - | | (97,067,983) | | 30,348,168 | | - |
Total Common Stocks | $ | 3,119,540 | $ | (81,158,219) | $ | (89,462,392) | $ | 227,962,432 |
Private Investment in Public Equity (PIPES) - N/A |
Diversified Financial Services - N/A | |
| | Wallbox BV | | - | | - | | 2,332,010 | | - |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 210,779 | | (3,427) | | 678 | | 22,506,660 |
Investments Purchased with Cash Collateral from Securities Lending - 0.8% |
Investment Companies - 0.8% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 1,134,698∆ | | - | | - | | 54,754,734 |
Total Affiliated Investments - 4.4% | $ | 4,465,017 | $ | (81,161,646) | $ | (87,129,704) | $ | 305,223,826 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2022, this column reflects amounts for the entire year ended September 30, 2022 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, 2022 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2022
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Common Stocks - 3.3% |
Banks - 0.5% | |
| | MSD Acquisition Corp* | | 40,773,523 | | - | | (2,902,850) | | 37,406,328 |
Biotechnology - 1.4% | |
| | Eagle Pharmaceuticals Inc/DE* | | 53,871,543 | | - | | (6,856,937) | | 20,956,661 |
| | Ligand Pharmaceuticals Inc* | | 145,600,685 | | - | | (15,401,696) | | 77,318,686 |
Chemicals - N/A | |
| | Sensient Technologies Corpš | | 231,045,095 | | - | | (82,115,835) | | 113,601,178 |
Diversified Financial Services - N/A | |
| | Kensington Capital Acquisition Corp | | 22,809,649 | | - | | (26,631,230)Ð | | - |
Electronic Equipment, Instruments & Components - 1.4% | |
| | OSI Systems Inc* | | 121,401,828 | | - | | - | | 92,280,757 |
Food Products - N/A | |
| | Hostess Brands Inc*,š | | 114,429,165 | | - | | (15,212,678) | | 135,345,856 |
Household Durables - N/A | |
| | Purple Innovation Inc | | 64,992,516 | | 20,461,023 | | (18,733,724) | | - |
Private Investment in Public Equity (PIPES) - N/A |
Diversified Financial Services - N/A | |
| | Wallbox BV | | 11,226,190 | | - | | (13,558,200)Ð | | - |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 188,325,249 | | 1,461,693,077 | | (1,627,508,917) | | 22,506,660 |
Investments Purchased with Cash Collateral from Securities Lending - 0.8% |
Investment Companies - 0.8% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 39,470,021 | | 629,386,452 | | (614,101,739) | | 54,754,734 |
| | |
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, 2022
| | | | | | | |
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 | 12/22/22 | (5,868,000) | $ | 6,800,132 | $ | 242,271 | | |
Canadian Dollar | 12/22/22 | (11,299,000) | | 8,590,860 | | 406,106 | | |
Euro | 12/22/22 | (5,156,000) | | 5,187,220 | | 101,193 | | |
| | | | | | | | | |
| | | | | | | 749,570 | | |
Citibank, National Association: | | | | | | | | |
British Pound | 12/22/22 | 993,000 | | (1,128,200) | | (18,460) | | |
British Pound | 12/22/22 | (6,087,000) | | 7,049,259 | | 246,652 | | |
Canadian Dollar | 12/22/22 | 1,935,000 | | (1,412,237) | | (10,564) | | |
Canadian Dollar | 12/22/22 | (11,299,000) | | 8,589,906 | | 405,152 | | |
Euro | 12/22/22 | (4,337,000) | | 4,368,058 | | 89,917 | | |
| | | | | | | | | |
| | | | | | | 712,697 | | |
HSBC Securities (USA), Inc.: | | | | | | | | |
British Pound | 12/22/22 | 2,184,000 | | (2,388,191) | | 52,567 | | |
British Pound | 12/22/22 | (6,829,000) | | 7,918,021 | | 286,182 | | |
Canadian Dollar | 12/22/22 | (11,298,000) | | 8,592,444 | | 408,415 | | |
Euro | 12/22/22 | 2,226,000 | | (2,171,937) | | 23,854 | | |
Euro | 12/22/22 | (10,616,000) | | 10,686,172 | | 214,245 | | |
| | | | | | | | | |
| | | | | | | 985,263 | | |
JPMorgan Chase Bank, National Association: | | | | | | | | |
British Pound | 12/22/22 | (6,866,000) | | 7,945,757 | | 272,568 | | |
British Pound | 12/22/22 | (925,000) | | 997,784 | | (35,962) | | |
Canadian Dollar | 12/22/22 | (13,446,000) | | 10,220,315 | | 480,320 | | |
Euro | 12/22/22 | 957,000 | | (938,604) | | 5,408 | | |
Euro | 12/22/22 | 639,000 | | (637,556) | | (7,228) | | |
Euro | 12/22/22 | (2,783,000) | | 2,800,742 | | 55,511 | | |
| | | | | | | | | |
| | | | | | | 770,617 | | |
State Street Bank and Trust Company: | | | | | | | | |
British Pound | 12/22/22 | 420,000 | | (464,786) | | 4,591 | | |
British Pound | 12/22/22 | (5,916,000) | | 6,861,211 | | 249,707 | | |
Canadian Dollar | 12/22/22 | 4,202,000 | | (3,120,695) | | (76,857) | | |
Canadian Dollar | 12/22/22 | (11,299,000) | | 8,598,182 | | 413,428 | | |
Euro | 12/22/22 | (2,857,000) | | 2,878,213 | | 59,986 | | |
| | | | | | | | | |
| | | | | | | 650,855 | | |
Total | | | | | $ | 3,869,002 | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2022 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2022
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, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2022 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $4,018,073 |
| | | | |
Liability Derivatives: | | | |
Forward foreign currency exchange contracts | | | $ 149,071 |
| | | | |
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, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $13,209,045 |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ 1,618,285 |
| | | | | |
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 Value of Derivative Instruments During the Year Ended September 30, 2022 |
| |
| |
Forward foreign currency exchange contracts: | |
Average amounts purchased - in USD | $27,211,327 |
Average amounts sold - in USD | 142,096,912 |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2022
| | | | | | | | | | |
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. | $ | 749,570 | $ | — | $ | — | $ | 749,570 |
Citibank, National Association | | 741,721 | | (29,024) | | — | | 712,697 |
HSBC Securities (USA), Inc. | | 985,263 | | — | | — | | 985,263 |
JPMorgan Chase Bank, National Association | | 67,827,513 | | (43,190) | | (67,013,706) | | 770,617 |
State Street Bank and Trust Company | | 727,712 | | (76,857) | | — | | 650,855 |
| | | | | | | | | |
Total | $ | 71,031,779 | $ | (149,071) | $ | (67,013,706) | $ | 3,869,002 |
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 | $ | 29,024 | $ | (29,024) | $ | — | $ | — |
JPMorgan Chase Bank, National Association | | 43,190 | | (43,190) | | — | | — |
State Street Bank and Trust Company | | 76,857 | | (76,857) | | — | | — |
| | | | | | | | | |
Total | $ | 149,071 | $ | (149,071) | $ | — | $ | — |
(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. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
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, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2022 is $43,358,819, which represents 0.6% 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, 2022. |
| | |
∆ | 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, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
IntelyCare Inc | 3/29/22 | $ | 25,081,954 | $ | 16,240,076 | | 0.2 | % |
Loadsmart Inc - Series A | 1/4/22 | | 7,168,757 | | 7,043,832 | | 0.1 | |
Loadsmart Inc - Series D | 1/4/22 | | 21,506,260 | | 20,074,911 | | 0.3 | |
Mirion Technologies Inc | 6/16/21 | | 94,584,070 | | 70,654,300 | | 1.1 | |
P3 Health Partners Inc | 5/25/21 | | 59,520,704 | | 28,832,256 | | 0.4 | |
Total | | $ | 207,861,745 | $ | 142,845,375 | | 2.1 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2022. 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, 2022. 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 | $ | 495,822,838 | $ | 34,679,362 | $ | - |
All Other | | 6,128,165,406 | | - | | - |
Private Investment in Public Equity (PIPES) | | 99,486,556 | | - | | - |
Private Placements | | - | | - | | 43,358,819 |
Warrants | | 1,529,296 | | - | | - |
Investment Companies | | - | | 22,506,660 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 69,258,028 | | - |
Total Investments in Securities | $ | 6,725,004,096 | $ | 126,444,050 | $ | 43,358,819 |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 4,018,073 | | - |
Total Assets | $ | 6,725,004,096 | $ | 130,462,123 | $ | 43,358,819 |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 149,071 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures contracts, and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson Triton Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $4,929,505,196)(1) | | $ | 6,589,583,139 | |
| Affiliated investments, at value (cost $349,088,983) | | | 305,223,826 | |
| Forward foreign currency exchange contracts | | | 4,018,073 | |
| Trustees' deferred compensation | | | 205,412 | |
| Receivables: | | | | |
| | Fund shares sold | | | 39,561,314 | |
| | Investments sold | | | 1,725,327 | |
| | Dividends | | | 1,273,785 | |
| | Foreign tax reclaims | | | 201,263 | |
| | Dividends from affiliates | | | 41,715 | |
| Other assets | | | 257,884 | |
Total Assets | | | 6,942,091,738 | |
Liabilities: | | | | |
| Due to custodian | | | 70 | |
| Collateral for securities loaned (Note 3) | | | 69,258,028 | |
| Forward foreign currency exchange contracts | | | 149,071 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 48,416,511 | |
| | Advisory fees | | | 4,126,319 | |
| | Transfer agent fees and expenses | | | 885,451 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 228,927 | |
| | Trustees' deferred compensation fees | | | 205,412 | |
| | Professional fees | | | 59,564 | |
| | Trustees' fees and expenses | | | 36,980 | |
| | Custodian fees | | | 17,126 | |
| | Affiliated fund administration fees payable | | | 16,118 | |
| | Accrued expenses and other payables | | | 276,483 | |
Total Liabilities | | | 123,676,060 | |
Net Assets | | $ | 6,818,415,678 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Triton Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 4,877,243,098 | |
| Total distributable earnings (loss) | | | 1,941,172,580 | |
Total Net Assets | | $ | 6,818,415,678 | |
Net Assets - Class A Shares | | $ | 277,727,161 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,069,530 | |
Net Asset Value Per Share(2) | | $ | 23.01 | |
Maximum Offering Price Per Share(3) | | $ | 24.41 | |
Net Assets - Class C Shares | | $ | 18,939,521 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 944,580 | |
Net Asset Value Per Share(2) | | $ | 20.05 | |
Net Assets - Class D Shares | | $ | 864,531,264 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 35,798,057 | |
Net Asset Value Per Share | | $ | 24.15 | |
Net Assets - Class I Shares | | $ | 1,154,792,096 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 47,301,784 | |
Net Asset Value Per Share | | $ | 24.41 | |
Net Assets - Class N Shares | | $ | 2,485,743,305 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 100,783,138 | |
Net Asset Value Per Share | | $ | 24.66 | |
Net Assets - Class R Shares | | $ | 188,832,370 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 8,684,762 | |
Net Asset Value Per Share | | $ | 21.74 | |
Net Assets - Class S Shares | | $ | 234,960,913 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,366,094 | |
Net Asset Value Per Share | | $ | 22.67 | |
Net Assets - Class T Shares | | $ | 1,592,889,048 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 67,027,227 | |
Net Asset Value Per Share | | $ | 23.76 | |
| |
(1) Includes $67,013,706 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. |
| |
20 | SEPTEMBER 30, 2022 |
Janus Henderson Triton Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 39,410,903 | |
| Dividends from affiliates | | 3,330,319 | |
| Affiliated securities lending income, net | | 1,134,698 | |
| Unaffiliated securities lending income, net | | 60,883 | |
| Other income | | 11,062 | |
| Foreign tax withheld | | (255,653) | |
Total Investment Income | | 43,692,212 | |
Expenses: | | | |
| Advisory fees | | 60,013,309 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 938,224 | |
| | Class C Shares | | 286,039 | |
| | Class R Shares | | 1,230,759 | |
| | Class S Shares | | 843,885 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,271,337 | |
| | Class R Shares | | 624,822 | |
| | Class S Shares | | 848,926 | |
| | Class T Shares | | 5,373,016 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 1,464,086 | |
| | Class C Shares | | 24,010 | |
| | Class I Shares | | 1,553,351 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 24,043 | |
| | Class C Shares | | 1,688 | |
| | Class D Shares | | 122,332 | |
| | Class I Shares | | 115,716 | |
| | Class N Shares | | 128,141 | |
| | Class R Shares | | 5,892 | |
| | Class S Shares | | 4,474 | |
| | Class T Shares | | 19,672 | |
| Shareholder reports expense | | 261,021 | |
| Affiliated fund administration fees | | 234,426 | |
| Trustees’ fees and expenses | | 184,291 | |
| Registration fees | | 175,112 | |
| Custodian fees | | 112,130 | |
| Professional fees | | 93,432 | |
| Other expenses | | 564,845 | |
Total Expenses | | 76,518,979 | |
Less: Excess Expense Reimbursement and Waivers | | (835,215) | |
Net Expenses | | 75,683,764 | |
Net Investment Income/(Loss) | | (31,991,552) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Triton Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 538,322,741 | |
| Investments in affiliates | | (81,161,646) | |
| Forward foreign currency exchange contracts | | 13,209,045 | |
Total Net Realized Gain/(Loss) on Investments | | 470,370,140 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (2,961,931,201) | |
| Investments in affiliates | | (87,129,704) | |
| Forward foreign currency exchange contracts | | 1,618,285 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (3,047,442,620) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (2,609,064,032) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Triton Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (31,991,552) | | $ | (49,031,496) | |
| Net realized gain/(loss) on investments | | 470,370,140 | | | 2,261,924,577 | |
| Change in unrealized net appreciation/depreciation | | (3,047,442,620) | | | 1,229,246,038 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (2,609,064,032) | | | 3,442,139,119 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (79,886,294) | | | (20,918,705) | |
| | Class C Shares | | (8,666,725) | | | (5,224,115) | |
| | Class D Shares | | (220,219,254) | | | (52,614,084) | |
| | Class I Shares | | (331,363,921) | | | (94,827,813) | |
| | Class N Shares | | (711,413,843) | | | (187,894,503) | |
| | Class R Shares | | (53,978,801) | | | (14,319,168) | |
| | Class S Shares | | (72,364,312) | | | (22,371,704) | |
| | Class T Shares | | (450,188,562) | | | (118,585,208) | |
Net Decrease from Dividends and Distributions to Shareholders | | (1,928,081,712) | | | (516,755,300) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (3,460,663) | | | (61,612,927) | |
| | Class C Shares | | (13,329,427) | | | (72,525,699) | |
| | Class D Shares | | 113,336,445 | | | (64,762,842) | |
| | Class I Shares | | (150,968,605) | | | (416,233,465) | |
| | Class N Shares | | (248,827,543) | | | (499,325,933) | |
| | Class R Shares | | 21,508,574 | | | (62,146,403) | |
| | Class S Shares | | (52,512,981) | | | (118,034,473) | |
| | Class T Shares | | (28,513,973) | | | (372,317,004) | |
Net Increase/(Decrease) from Capital Share Transactions | | (362,768,173) | | | (1,666,958,746) | |
Net Increase/(Decrease) in Net Assets | | (4,899,913,917) | | | 1,258,425,073 | |
Net Assets: | | | | | | |
| Beginning of period | | 11,718,329,595 | | | 10,459,904,522 | |
| End of period | $ | 6,818,415,678 | | $ | 11,718,329,595 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $38.38 | | | $30.01 | | | $29.95 | | | $33.12 | | | $28.03 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.19) | | | (0.26) | | | (0.16) | | | (0.08) | | | (0.07) | |
| | Net realized and unrealized gain/(loss) | | (8.25) | | | 10.22 | | | 1.55 | | | (1.19) | | | 6.62 | |
| Total from Investment Operations | | (8.44) | | | 9.96 | | | 1.39 | | | (1.27) | | | 6.55 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Net Asset Value, End of Period | | $23.01 | | | $38.38 | | | $30.01 | | | $29.95 | | | $33.12 | |
| Total Return* | | (26.63)% | | | 33.41% | | | 4.64% | | | (2.69)% | | | 24.26% | |
| Net Assets, End of Period (in thousands) | | $277,727 | | | $467,269 | | | $416,036 | | | $491,045 | | | $586,644 | |
| Average Net Assets for the Period (in thousands) | | $376,354 | | | $494,458 | | | $430,974 | | | $501,143 | | | $544,457 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.30% | | | 1.29% | | | 1.35% | | | 1.33% | | | 1.30% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.10% | | | 1.12% | | | 1.12% | | | 1.12% | |
| | Ratio of Net Investment Income/(Loss) | | (0.65)% | | | (0.69)% | | | (0.57)% | | | (0.28)% | | | (0.25)% | |
| Portfolio Turnover Rate | | 8% | | | 24% | | | 32% | | | 26% | | | 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) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2022 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $34.49 | | | $27.23 | | | $27.45 | | | $30.72 | | | $26.25 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.31) | | | (0.42) | | | (0.30) | | | (0.23) | | | (0.25) | |
| | Net realized and unrealized gain/(loss) | | (7.20) | | | 9.27 | | | 1.41 | | | (1.14) | | | 6.18 | |
| Total from Investment Operations | | (7.51) | | | 8.85 | | | 1.11 | | | (1.37) | | | 5.93 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Net Asset Value, End of Period | | $20.05 | | | $34.49 | | | $27.23 | | | $27.45 | | | $30.72 | |
| Total Return* | | (26.99)% | | | 32.72% | | | 4.02% | | | (3.26)% | | | 23.51% | |
| Net Assets, End of Period (in thousands) | | $18,940 | | | $49,738 | | | $97,105 | | | $150,431 | | | $206,617 | |
| Average Net Assets for the Period (in thousands) | | $33,240 | | | $75,187 | | | $124,872 | | | $168,909 | | | $219,336 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.60% | | | 1.65% | | | 1.70% | | | 1.68% | | | 1.74% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.60% | | | 1.65% | | | 1.70% | | | 1.68% | | | 1.74% | |
| | Ratio of Net Investment Income/(Loss) | | (1.15)% | | | (1.25)% | | | (1.14)% | | | (0.84)% | | | (0.88)% | |
| Portfolio Turnover Rate | | 8% | | | 24% | | | 32% | | | 26% | | | 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) 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 D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $39.82 | | | $30.99 | | | $30.79 | | | $33.89 | | | $28.56 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.10) | | | (0.14) | | | (0.07) | | | 0.01 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | (8.64) | | | 10.56 | | | 1.60 | | | (1.21) | | | 6.77 | |
| Total from Investment Operations | | (8.74) | | | 10.42 | | | 1.53 | | | (1.20) | | | 6.79 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Net Asset Value, End of Period | | $24.15 | | | $39.82 | | | $30.99 | | | $30.79 | | | $33.89 | |
| Total Return* | | (26.39)% | | | 33.85% | | | 4.98% | | | (2.41)% | | | 24.67% | |
| Net Assets, End of Period (in thousands) | | $864,531 | | | $1,289,904 | | | $1,057,332 | | | $1,191,950 | | | $1,302,196 | |
| Average Net Assets for the Period (in thousands) | | $1,111,102 | | | $1,297,945 | | | $1,088,543 | | | $1,183,056 | | | $1,190,715 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.78% | | | 0.80% | | | 0.80% | | | 0.80% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.78% | | | 0.80% | | | 0.80% | | | 0.80% | |
| | Ratio of Net Investment Income/(Loss) | | (0.32)% | | | (0.37)% | | | (0.25)% | | | 0.04% | | | 0.07% | |
| Portfolio Turnover Rate | | 8% | | | 24% | | | 32% | | | 26% | | | 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) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
26 | SEPTEMBER 30, 2022 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $40.17 | | | $31.24 | | | $31.02 | | | $34.11 | | | $28.72 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.09) | | | (0.13) | | | (0.06) | | | 0.02 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | (8.74) | | | 10.65 | | | 1.61 | | | (1.21) | | | 6.81 | |
| Total from Investment Operations | | (8.83) | | | 10.52 | | | 1.55 | | | (1.19) | | | 6.85 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Net Asset Value, End of Period | | $24.41 | | | $40.17 | | | $31.24 | | | $31.02 | | | $34.11 | |
| Total Return* | | (26.38)% | | | 33.90% | | | 5.00% | | | (2.36)% | | | 24.74% | |
| Net Assets, End of Period (in thousands) | | $1,154,792 | | | $2,082,427 | | | $1,953,114 | | | $2,235,807 | | | $2,451,517 | |
| Average Net Assets for the Period (in thousands) | | $1,607,957 | | | $2,243,961 | | | $2,022,112 | | | $2,206,658 | | | $2,158,823 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.75% | | | 0.76% | | | 0.76% | | | 0.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.75% | | | 0.76% | | | 0.76% | | | 0.75% | |
| | Ratio of Net Investment Income/(Loss) | | (0.30)% | | | (0.34)% | | | (0.21)% | | | 0.08% | | | 0.12% | |
| Portfolio Turnover Rate | | 8% | | | 24% | | | 32% | | | 26% | | | 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) 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 Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $40.48 | | | $31.44 | | | $31.18 | | | $34.24 | | | $28.80 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.06) | | | (0.10) | | | (0.03) | | | 0.05 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | (8.83) | | | 10.73 | | | 1.62 | | | (1.21) | | | 6.83 | |
| Total from Investment Operations | | (8.89) | | | 10.63 | | | 1.59 | | | (1.16) | | | 6.90 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Net Asset Value, End of Period | | $24.66 | | | $40.48 | | | $31.44 | | | $31.18 | | | $34.24 | |
| Total Return* | | (26.32)% | | | 34.04% | | | 5.11% | | | (2.26)% | | | 24.85% | |
| Net Assets, End of Period (in thousands) | | $2,485,743 | | | $4,412,467 | | | $3,824,419 | | | $3,848,034 | | | $3,218,359 | |
| Average Net Assets for the Period (in thousands) | | $3,483,140 | | | $4,658,162 | | | $3,817,816 | | | $3,452,214 | | | $2,381,425 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | |
| | Ratio of Net Investment Income/(Loss) | | (0.20)% | | | (0.25)% | | | (0.12)% | | | 0.17% | | | 0.23% | |
| Portfolio Turnover Rate | | 8% | | | 24% | | | 32% | | | 26% | | | 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) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
28 | SEPTEMBER 30, 2022 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $36.75 | | | $28.86 | | | $28.94 | | | $32.17 | | | $27.34 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.26) | | | (0.35) | | | (0.24) | | | (0.16) | | | (0.16) | |
| | Net realized and unrealized gain/(loss) | | (7.82) | | | 9.83 | | | 1.49 | | | (1.17) | | | 6.45 | |
| Total from Investment Operations | | (8.08) | | | 9.48 | | | 1.25 | | | (1.33) | | | 6.29 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Net Asset Value, End of Period | | $21.74 | | | $36.75 | | | $28.86 | | | $28.94 | | | $32.17 | |
| Total Return* | | (26.87)% | | | 33.06% | | | 4.30% | | | (2.97)% | | | 23.91% | |
| Net Assets, End of Period (in thousands) | | $188,832 | | | $293,567 | | | $281,907 | | | $325,507 | | | $386,643 | |
| Average Net Assets for the Period (in thousands) | | $248,880 | | | $316,824 | | | $295,035 | | | $341,001 | | | $352,329 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.41% | | | 1.40% | | | 1.41% | | | 1.41% | | | 1.41% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.41% | | | 1.40% | | | 1.41% | | | 1.41% | | | 1.41% | |
| | Ratio of Net Investment Income/(Loss) | | (0.94)% | | | (0.99)% | | | (0.86)% | | | (0.57)% | | | (0.54)% | |
| Portfolio Turnover Rate | | 8% | | | 24% | | | 32% | | | 26% | | | 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) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 29 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $37.93 | | | $29.68 | | | $29.65 | | | $32.83 | | | $27.81 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.21) | | | (0.28) | | | (0.17) | | | (0.09) | | | (0.09) | |
| | Net realized and unrealized gain/(loss) | | (8.12) | | | 10.12 | | | 1.53 | | | (1.19) | | | 6.57 | |
| Total from Investment Operations | | (8.33) | | | 9.84 | | | 1.36 | | | (1.28) | | | 6.48 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Net Asset Value, End of Period | | $22.67 | | | $37.93 | | | $29.68 | | | $29.65 | | | $32.83 | |
| Total Return* | | (26.66)% | | | 33.37% | | | 4.58% | | | (2.75)% | | | 24.20% | |
| Net Assets, End of Period (in thousands) | | $234,961 | | | $452,832 | | | $450,947 | | | $520,950 | | | $619,660 | |
| Average Net Assets for the Period (in thousands) | | $338,266 | | | $498,603 | | | $471,543 | | | $541,037 | | | $553,006 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | |
| | Ratio of Net Investment Income/(Loss) | | (0.69)% | | | (0.75)% | | | (0.61)% | | | (0.32)% | | | (0.29)% | |
| Portfolio Turnover Rate | | 8% | | | 24% | | | 32% | | | 26% | | | 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) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
30 | SEPTEMBER 30, 2022 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $39.34 | | | $30.67 | | | $30.51 | | | $33.64 | | | $28.39 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.13) | | | (0.19) | | | (0.10) | | | (0.02) | | | (0.01) | |
| | Net realized and unrealized gain/(loss) | | (8.52) | | | 10.45 | | | 1.59 | | | (1.21) | | | 6.72 | |
| Total from Investment Operations | | (8.65) | | | 10.26 | | | 1.49 | | | (1.23) | | | 6.71 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | |
| Net Asset Value, End of Period | | $23.76 | | | $39.34 | | | $30.67 | | | $30.51 | | | $33.64 | |
| Total Return* | | (26.50)% | | | 33.67% | | | 4.89% | | | (2.52)% | | | 24.53% | |
| Net Assets, End of Period (in thousands) | | $1,592,889 | | | $2,670,126 | | | $2,379,045 | | | $2,881,377 | | | $3,317,058 | |
| Average Net Assets for the Period (in thousands) | | $2,140,397 | | | $2,809,155 | | | $2,557,135 | | | $2,940,071 | | | $3,031,535 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.90% | | | 0.90% | | | 0.90% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | (0.44)% | | | (0.49)% | | | (0.35)% | | | (0.07)% | | | (0.04)% | |
| Portfolio Turnover Rate | | 8% | | | 24% | | | 32% | | | 26% | | | 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) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
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Janus Investment Fund | 31 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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. Effective July 18, 2022, the Fund reopened to all new investors.
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, employer-sponsored retirement plans, and bank trust platforms.
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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Janus Henderson Triton Fund
Notes to Financial Statements
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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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 Triton 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, 2022 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, 2022.
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 Triton 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, 2022 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 Triton 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 the Adviser’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 Triton 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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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 the Adviser 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
Janus Henderson Triton Fund
Notes to Financial Statements
recovery or have other unintended consequences. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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.
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.
Janus Henderson Triton Fund
Notes to Financial Statements
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the 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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser 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 the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $67,013,706. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $69,258,028, resulting in the net amount due to the counterparty of $2,244,322.
Janus Henderson Triton Fund
Notes to Financial Statements
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment.
The Offsetting Assets and Liabilities tables located in the Schedule of Investments 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, 2022” table located in the Fund’s Schedule of Investments.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.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order
Janus Henderson Triton Fund
Notes to Financial Statements
processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent 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.
Shareholder 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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, of up to 0.50% of the Class R Shares' average daily net assets, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $2,143.
Janus Henderson Triton 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 the Distributor during the year ended September 30, 2022.
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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $624.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser 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, 2022, the Fund engaged in cross trades amounting to $16,543,654 in sales, resulting in a net realized gain of $6,927,050. The net realized gain is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
Janus Henderson Triton Fund
Notes to Financial Statements
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation, 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) | |
$ - | $ 354,490,468 | $ - | $(20,904,581) | $ - | $ (213,260) | $1,607,799,953 | |
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, 2022 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) |
$ 5,287,007,012 | $2,209,608,140 | $(601,808,187) | $ 1,607,799,953 |
Information on the tax components of derivatives as of September 30, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 3,869,002 | $ - | $ - | $ - |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 230,707,045 | $ 1,697,374,667 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
Janus Henderson Triton 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 |
$ 23,882,068 | $ 11,215,095 | $ (35,097,163) |
Capital has been adjusted by $35,088,909, all of which is long-term capital gain, for distributions in connection with Fund share redemptions (tax equalization).
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 2,937,275 | $ 88,643,047 | | 3,853,025 | $ 144,902,447 |
Reinvested dividends and distributions | 1,630,945 | 50,477,762 | | 346,342 | 12,748,838 |
Shares repurchased | (4,672,637) | (142,581,472) | | (5,889,451) | (219,264,212) |
Net Increase/(Decrease) | (104,417) | $ (3,460,663) | | (1,690,084) | $ (61,612,927) |
Class C Shares: | | | | | |
Shares sold | 41,904 | $ 1,116,254 | | 41,662 | $ 1,410,929 |
Reinvested dividends and distributions | 315,522 | 8,538,022 | | 155,451 | 5,162,542 |
Shares repurchased | (855,073) | (22,983,703) | | (2,320,663) | (79,099,170) |
Net Increase/(Decrease) | (497,647) | $ (13,329,427) | | (2,123,550) | $ (72,525,699) |
Class D Shares: | | | | | |
Shares sold | 1,135,387 | $ 34,665,655 | | 1,527,088 | $ 59,085,722 |
Reinvested dividends and distributions | 6,559,596 | 212,530,907 | | 1,342,054 | 51,118,827 |
Shares repurchased | (4,287,428) | (133,860,117) | | (4,593,066) | (174,967,391) |
Net Increase/(Decrease) | 3,407,555 | $ 113,336,445 | | (1,723,924) | $ (64,762,842) |
Class I Shares: | | | | | |
Shares sold | 5,914,164 | $ 184,023,211 | | 7,377,365 | $ 287,287,212 |
Reinvested dividends and distributions | 9,090,129 | 297,610,830 | | 2,237,820 | 85,954,671 |
Shares repurchased | (19,540,591) | (632,602,646) | | (20,291,149) | (789,475,348) |
Net Increase/(Decrease) | (4,536,298) | $ (150,968,605) | | (10,675,964) | $ (416,233,465) |
Class N Shares: | | | | | |
Shares sold | 16,856,775 | $ 530,171,185 | | 23,123,566 | $ 908,840,328 |
Reinvested dividends and distributions | 20,501,639 | 677,579,161 | | 4,627,982 | 179,010,359 |
Shares repurchased | (45,586,136) | (1,456,577,889) | | (40,368,606) | (1,587,176,620) |
Net Increase/(Decrease) | (8,227,722) | $ (248,827,543) | | (12,617,058) | $ (499,325,933) |
Class R Shares: | | | | | |
Shares sold | 1,063,048 | $ 29,759,479 | | 1,089,601 | $ 38,896,368 |
Reinvested dividends and distributions | 1,823,751 | 53,454,135 | | 398,972 | 14,091,687 |
Shares repurchased | (2,191,161) | (61,705,040) | | (3,265,891) | (115,134,458) |
Net Increase/(Decrease) | 695,638 | $ 21,508,574 | | (1,777,318) | $ (62,146,403) |
Class S Shares: | | | | | |
Shares sold | 1,423,695 | $ 42,111,779 | | 2,184,486 | $ 80,368,356 |
Reinvested dividends and distributions | 2,334,571 | 71,181,074 | | 605,674 | 22,034,418 |
Shares repurchased | (5,331,144) | (165,805,834) | | (6,042,323) | (220,437,247) |
Net Increase/(Decrease) | (1,572,878) | $ (52,512,981) | | (3,252,163) | $ (118,034,473) |
Class T Shares: | | | | | |
Shares sold | 4,993,809 | $ 146,578,935 | | 6,341,829 | $ 243,373,921 |
Reinvested dividends and distributions | 13,871,334 | 442,634,268 | | 3,101,260 | 116,793,438 |
Shares repurchased | (19,713,824) | (617,727,176) | | (19,145,899) | (732,484,363) |
Net Increase/(Decrease) | (848,681) | $ (28,513,973) | | (9,702,810) | $ (372,317,004) |
Janus Henderson Triton Fund
Notes to Financial Statements
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$ 787,929,315 | $ 3,090,167,956 | $ - | $ - |
8. Recent Accounting Pronouncements
The FASB issued Accounting Standards Update 2022-03: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”) in June 2022. The new guidance in the ASU clarifies existing guidance in ASC 820 related to the fair value measurement of an equity security subject to contractual sale restrictions with the intent to reduce diversity in interpretation. Under the guidance, a contractual restriction on the sale of an equity security would not be considered when measuring fair value as such restriction is not treated as part of the equity security’s unit of account. The amendments would be applied prospectively on or after adoption date to equity securities with a contract containing a sale restriction that is executed or modified after such date. The effective date set by the FASB is December 15, 2023, with early adoption permitted. The Adviser is currently evaluating whether to early adopt and does not anticipate it to have a material impact on the Fund.
9. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Triton Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Triton Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Triton Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Triton Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Triton Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Triton Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Triton Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Triton Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Triton Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Triton Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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Capital Gain Distributions | $1,732,463,576 |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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 the Adviser. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US LLC (2009-2017). |
* 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
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 |
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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
| | | | 125-02-93054 11-22 |
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| | | ANNUAL REPORT September 30, 2022 |
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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)
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FUND SNAPSHOT A moderately positioned U.S. small-cap growth fund seeking capital appreciation. Invests in small-cap companies with differentiated business models and sustainable competitive advantages that we believe are positioned to grow market share regardless of economic conditions. | | | | 
Jonathan Coleman co-portfolio manager | 
Scott Stutzman co-portfolio manager |
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PERFORMANCE
The Janus Henderson Venture Fund Class I Shares returned -28.40% for the 12-month period ended September 30, 2022. The Fund’s primary benchmark, the Russell 2000® Growth Index, returned -29.27%, while its secondary benchmark, the Russell 2000® Index, returned -23.50%.
INVESTMENT ENVIRONMENT
Stocks declined over the 12-month period as soaring inflation, rising interest rates, and fears of recession led to market turbulence. Equities started out the period with positive yet volatile performance in the fourth quarter of 2021, as investors focused on strong corporate earnings news. This volatility increased in the first quarter of 2022 as inflation, rising rates, and geopolitical uncertainty weighed on investor sentiment. Expectations for a more restrictive Federal Reserve (Fed) policy also triggered a sell-off in higher-valuation growth stocks. The Fed raised interest rates by 25 basis points (bps) in March, but then moved more aggressively with a 50-bps increase in May and consecutive 75-bps rate hikes in June, July, and September. The Fed also signaled that additional rate hikes were likely into 2023, which kept upward pressure on bond yields. As this aggressive pace of tightening fueled recession fears, we began to witness signs of economic slowing and pressure on earnings as companies faced weaker demand, higher input and financing costs, and currency pressures.
PERFORMANCE DISCUSSION
The past 12 months have been especially challenging for higher-multiple, longer-duration growth stocks, many of which had outperformed during the pandemic. Investors also had little patience for unprofitable or highly indebted companies, and those stocks were among the market’s largest detractors. We have always viewed such companies with skepticism, given our focus on companies with proven earnings performance, high returns on invested capital, and reasonable valuations. Our preference towards investing in these higher quality business models aided our relative outperformance during the last year.
We were also pleased that some of our disciplined growth stocks were rewarded by investors despite this challenging backdrop. Long-time holding ON Semiconductor was a notable contributor. This chip manufacturer delivered strong earnings performance, as shortages in the semiconductor supply chain supported favorable pricing trends. ON Semiconductor also saw widening profit margins as its new management team streamlined operations and focused on fast-growing end markets such as electric vehicles. LPL Financial was another a top contributor. This financial services firm provides a full-service, technology-enabled platform that helps independent financial advisors serve their customers. LPL Financial has continued to add new advisors to its network, which supported its revenue and earnings growth. Higher interest rates were an additional tailwind for its earnings growth due to the interest income it earned on client cash balances.
Catalent, a prominent detractor, is a leading provider of contract drug development and manufacturing services. It has become a trusted manufacturer for biotech companies and some of the largest pharmaceutical companies in the world. This diversified business has been a source of steady earnings growth, but Catalent earned additional revenues over the past few years from its production of COVID vaccines. The COVID-related business slowed more quickly than expected in 2022, leading Catalent to reduce its near-term revenue guidance. This news led to a sell-off in the stock even though the company’s non-COVID-related businesses continued to grow at a healthy pace. We held onto the stock because of the company’s diverse customer base, strong earnings track record, healthy free cash flow, and exposure to some of the highest growth areas within therapeutics.
Janus Henderson Venture Fund (unaudited)
Higher living costs were also headwinds for consumer spending. These headwinds negatively impacted our investment in Lovesac, an omnichannel retailer of modular furniture. The stock was a notable detractor even though the company’s earnings growth remained strong. Despite near-term economic uncertainty, we continue to believe in Lovesac's innovative sales model and long-term market opportunity.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We caution that markets may remain volatile in the near term as investors await more clarity on the extent and impact of Fed interest rate hikes. Despite this uncertainty, we have been encouraged by signs that inflation pressures may be starting to ease along with supply chain bottlenecks, commodity prices, and labor market tightness. The shift away from global supply chains in favor of more regional production may also put upward pressure on prices. These dynamics have made the Fed’s task more challenging, while adding to headwinds for economic growth. We have already seen signs that higher rates are slowing economic growth and corporate earnings, and we recognize that this slowdown may become more pronounced later in the year. At the same time, we have felt reassured about the relative health of the underlying economy and of corporate balance sheets, which may help to mitigate the severity of an economic downturn. We also believe our portfolio is well positioned for this environment due to our focus on disciplined growth companies with strong balance sheets, healthy free cash flow, and high returns on investment. We believe these kinds of companies may be better able to navigate near-term market uncertainty while they capitalize on long-term trends.
Thank you for investing in Janus Henderson Venture Fund.
Janus Henderson Venture Fund (unaudited)
Fund At A Glance
September 30, 2022
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| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| LPL Financial Holdings Inc | 2.71% | | 1.36% | | LivePerson Inc | 0.60% | | -0.52% |
| ON Semiconductor Corp | 2.01% | | 0.97% | | Catalent Inc | 2.65% | | -0.47% |
| NAPCO Security Technologies Inc | 0.98% | | 0.51% | | NeoGenomics Inc | 0.54% | | -0.41% |
| SailPoint Technologies Holdings Inc | 1.05% | | 0.46% | | Lovesac Co | 0.80% | | -0.37% |
| Stride Inc | 1.10% | | 0.42% | | Clarivate Analytics PLC | 0.89% | | -0.29% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | 3.26% | | 29.47% | 21.93% |
| Financials | | 1.10% | | 7.38% | 5.64% |
| Consumer Discretionary | | 1.01% | | 9.37% | 13.48% |
| Other** | | 0.30% | | 1.35% | 0.00% |
| Communication Services | | 0.09% | | 2.82% | 2.65% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | -1.34% | | 0.47% | 3.87% |
| Industrials | | -1.19% | | 15.04% | 16.05% |
| Health Care | | -1.15% | | 23.97% | 24.88% |
| Consumer Staples | | -0.68% | | 1.86% | 4.16% |
| Materials | | -0.21% | | 6.53% | 3.63% |
| | | | | | | |
| 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)
Fund At A Glance
September 30, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
LPL Financial Holdings Inc | |
Capital Markets | 3.3% |
Nice Ltd (ADR) | |
Software | 2.4% |
ON Semiconductor Corp | |
Semiconductor & Semiconductor Equipment | 2.4% |
Paylocity Holding Corp | |
Software | 2.3% |
Catalent Inc | |
Pharmaceuticals | 2.1% |
| | 12.5% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 98.6% | |
Investments Purchased with Cash Collateral from Securities Lending | | 2.0% | |
Private Placements | | 0.8% | |
Investment Companies | | 0.5% | |
Warrants | | 0.1% | |
Rights | | 0.0% | |
Other | | (2.0)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2022 
| As of September 30, 2021 
|
Janus Henderson Venture Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2022 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -28.59% | 4.90% | 9.68% | 11.10% | | | 1.00% |
Class A Shares at MOP | | -32.70% | 3.66% | 9.04% | 10.92% | | | |
Class C Shares at NAV | | -29.11% | 4.14% | 8.91% | 10.35% | | | 1.80% |
Class C Shares at CDSC | | -29.72% | 4.14% | 8.91% | 10.35% | | | |
Class D Shares | | -28.43% | 5.13% | 9.95% | 11.31% | | | 0.78% |
Class I Shares | | -28.40% | 5.17% | 10.00% | 11.32% | | | 0.75% |
Class N Shares | | -28.34% | 5.26% | 10.10% | 11.34% | | | 0.66% |
Class S Shares | | -28.70% | 4.74% | 9.55% | 10.97% | | | 1.16% |
Class T Shares | | -28.51% | 5.01% | 9.83% | 11.27% | | | 0.91% |
Russell 2000 Growth Index | | -29.27% | 3.60% | 8.81% | 7.69% | | | |
Russell 2000 Index | | -23.50% | 3.55% | 8.55% | 9.05% | | | |
Morningstar Quartile - Class T Shares | | 2nd | 3rd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Small Growth Funds | | 250/626 | 380/586 | 251/540 | 7/47 | | | |
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.
For certain periods, the Fund’s performance may reflect the effect of expense waivers.
Janus Henderson Venture Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, 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.
© 2022 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.
Janus Henderson Venture 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
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | | Beginning
Account
Value
(4/1/22) | Ending
Account
Value
(9/30/22) | Expenses
Paid During
Period
(4/1/22 - 9/30/22)† | Net Annualized
Expense Ratio
(4/1/22 - 9/30/22) |
Class A Shares | $1,000.00 | $820.80 | $4.61 | | $1,000.00 | $1,020.00 | $5.11 | 1.01% |
Class C Shares | $1,000.00 | $817.60 | $8.06 | | $1,000.00 | $1,016.19 | $8.95 | 1.77% |
Class D Shares | $1,000.00 | $821.70 | $3.65 | | $1,000.00 | $1,021.06 | $4.05 | 0.80% |
Class I Shares | $1,000.00 | $821.90 | $3.43 | | $1,000.00 | $1,021.31 | $3.80 | 0.75% |
Class N Shares | $1,000.00 | $822.20 | $3.06 | | $1,000.00 | $1,021.71 | $3.40 | 0.67% |
Class S Shares | $1,000.00 | $820.10 | $5.34 | | $1,000.00 | $1,019.20 | $5.92 | 1.17% |
Class T Shares | $1,000.00 | $821.10 | $4.11 | | $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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 98.6% | | | |
Auto Components – 1.0% | | | |
| | Quantumscape Corp*,# | | 486,572 | | | $4,092,071 | |
| | Visteon Corp* | | 223,534 | | | 23,708,016 | |
| | | 27,800,087 | |
Automobiles – 0.5% | | | |
| | Thor Industries Inc | | 202,891 | | | 14,198,312 | |
Banks – 0.7% | | | |
| | Bancorp Inc/The* | | 927,645 | | | 20,389,637 | |
Biotechnology – 8.3% | | | |
| | Akero Therapeutics Inc* | | 131,980 | | | 4,493,919 | |
| | Altimmune Inc*,# | | 197,698 | | | 2,524,603 | |
| | Ascendis Pharma A/S (ADR)* | | 170,315 | | | 17,586,727 | |
| | Eagle Pharmaceuticals Inc/DE* | | 360,214 | | | 9,516,854 | |
| | Global Blood Therapeutics Inc* | | 132,692 | | | 9,036,325 | |
| | Halozyme Therapeutics Inc* | | 572,470 | | | 22,635,464 | |
| | Insmed Inc* | | 545,448 | | | 11,748,950 | |
| | Ligand Pharmaceuticals Inc* | | 276,741 | | | 23,830,168 | |
| | Mirati Therapeutics Inc* | | 117,381 | | | 8,197,889 | |
| | Myovant Sciences Ltd* | | 911,369 | | | 16,368,187 | |
| | Neurocrine Biosciences Inc* | | 289,676 | | | 30,766,488 | |
| | PTC Therapeutics Inc* | | 287,254 | | | 14,420,151 | |
| | Sarepta Therapeutics Inc* | | 148,861 | | | 16,455,095 | |
| | Seres Therapeutics Inc* | | 1,406,930 | | | 9,032,491 | |
| | Travere Therapeutics Inc* | | 624,927 | | | 15,398,201 | |
| | Vaxcyte Inc* | | 603,547 | | | 14,485,128 | |
| | Zai Lab Ltd (ADR)* | | 132,147 | | | 4,519,427 | |
| | | 231,016,067 | |
Building Products – 3.1% | | | |
| | CSW Industrials Inc | | 285,103 | | | 34,155,339 | |
| | Janus International Group Inc* | | 2,317,505 | | | 20,672,145 | |
| | Zurn Water Solutions Corp | | 1,229,360 | | | 30,119,320 | |
| | | 84,946,804 | |
Capital Markets – 4.5% | | | |
| | Assetmark Financial Holdings Inc* | | 678,283 | | | 12,405,796 | |
| | Focus Financial Partners Inc* | | 666,879 | | | 21,013,357 | |
| | LPL Financial Holdings Inc | | 416,427 | | | 90,980,971 | |
| | | 124,400,124 | |
Chemicals – 4.6% | | | |
| | Perimeter Solutions SA* | | 2,557,669 | | | 20,486,929 | |
| | PureCycle Technologies Inc*,# | | 1,100,416 | | | 8,880,357 | |
| | Sensient Technologies Corp | | 683,817 | | | 47,415,871 | |
| | Valvoline Inc | | 2,008,914 | | | 50,905,881 | |
| | | 127,689,038 | |
Commercial Services & Supplies – 1.5% | | | |
| | Brady Corp | | 706,170 | | | 29,468,474 | |
| | Montrose Environmental Group Inc* | | 325,995 | | | 10,969,732 | |
| | | 40,438,206 | |
Containers & Packaging – 1.2% | | | |
| | Sealed Air Corp | | 733,823 | | | 32,662,462 | |
Diversified Consumer Services – 3.6% | | | |
| | Frontdoor Inc* | | 399,290 | | | 8,141,523 | |
| | Stride Inc* | | 1,041,878 | | | 43,790,132 | |
| | Terminix Global Holdings Inc* | | 1,237,411 | | | 47,380,467 | |
| | | 99,312,122 | |
Diversified Financial Services – 0.6% | | | |
| | Clarivate Analytics PLC* | | 1,882,322 | | | 17,675,004 | |
Electrical Equipment – 2.0% | | | |
| | EnerSys | | 350,777 | | | 20,404,698 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2022 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Electrical Equipment– (continued) | | | |
| | Regal Beloit Corp | | 253,738 | | | $35,614,666 | |
| | | 56,019,364 | |
Electronic Equipment, Instruments & Components – 4.6% | | | |
| | Napco Security Technologies Inc | | 1,578,454 | | | 45,901,442 | |
| | National Instruments Corp | | 229,880 | | | 8,675,671 | |
| | Novanta Inc* | | 164,859 | | | 19,065,943 | |
| | OSI Systems Inc* | | 409,632 | | | 29,518,082 | |
| | Xometry Inc - Class A*,# | | 446,365 | | | 25,349,068 | |
| | | 128,510,206 | |
Energy Equipment & Services – 0.5% | | | |
| | Helmerich & Payne Inc | | 362,629 | | | 13,406,394 | |
Entertainment – 0.4% | | | |
| | Manchester United PLC | | 854,323 | | | 11,336,866 | |
Equity Real Estate Investment Trusts (REITs) – 0.6% | | | |
| | Easterly Government Properties Inc | | 1,088,946 | | | 17,172,678 | |
Food & Staples Retailing – 0.8% | | | |
| | Casey's General Stores Inc | | 109,463 | | | 22,168,447 | |
Food Products – 0.5% | | | |
| | Hain Celestial Group Inc* | | 755,774 | | | 12,757,465 | |
Health Care Equipment & Supplies – 8.9% | | | |
| | Alphatec Holdings Inc* | | 1,776,696 | | | 15,528,323 | |
| | Axogen Inc* | | 1,324,915 | | | 15,792,987 | |
| | CryoPort Inc* | | 554,262 | | | 13,501,822 | |
| | Glaukos Corp* | | 403,170 | | | 21,464,771 | |
| | Globus Medical Inc* | | 475,488 | | | 28,324,820 | |
| | Heska Corp* | | 101,773 | | | 7,421,287 | |
| | ICU Medical Inc* | | 184,671 | | | 27,811,453 | |
| | Insulet Corp* | | 95,396 | | | 21,883,842 | |
| | Integra LifeSciences Holdings Corp* | | 712,962 | | | 30,201,070 | |
| | Paragon 28 Inc*,# | | 685,264 | | | 12,211,405 | |
| | Sight Sciences Inc*,# | | 761,852 | | | 4,837,760 | |
| | STERIS PLC | | 140,232 | | | 23,317,777 | |
| | Surmodics Inc* | | 342,018 | | | 10,397,347 | |
| | Treace Medical Concepts Inc* | | 607,482 | | | 13,407,128 | |
| | | 246,101,792 | |
Health Care Providers & Services – 1.4% | | | |
| | HealthEquity Inc* | | 273,743 | | | 18,387,317 | |
| | ModivCare Inc* | | 203,298 | | | 20,264,745 | |
| | | 38,652,062 | |
Health Care Technology – 0.4% | | | |
| | Phreesia Inc* | | 381,609 | | | 9,723,397 | |
Hotels, Restaurants & Leisure – 1.2% | | | |
| | Dutch Bros Inc - Class A*,# | | 212,083 | | | 6,606,385 | |
| | Inspirato Inc* | | 1,430,805 | | | 3,376,700 | |
| | Monarch Casino & Resort Inc* | | 405,737 | | | 22,778,075 | |
| | | 32,761,160 | |
Household Durables – 0.4% | | | |
| | Lovesac Co* | | 593,257 | | | 12,090,578 | |
Information Technology Services – 6.6% | | | |
| | Broadridge Financial Solutions Inc | | 263,614 | | | 38,044,773 | |
| | Euronet Worldwide Inc* | | 379,800 | | | 28,773,648 | |
| | Payfare Inc*,#,£ | | 2,403,934 | | | 9,207,074 | |
| | Repay Holdings Corp* | | 1,108,768 | | | 7,827,902 | |
| | Shift4 Payments Inc - Class A*,# | | 403,622 | | | 18,005,577 | |
| | WEX Inc* | | 175,079 | | | 22,224,528 | |
| | WNS Holdings Ltd (ADR)* | | 700,151 | | | 57,300,358 | |
| | | 181,383,860 | |
Insurance – 1.9% | | | |
| | BRP Group Inc - Class A* | | 620,634 | | | 16,353,706 | |
| | |
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, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Insurance– (continued) | | | |
| | RLI Corp | | 334,333 | | | $34,229,013 | |
| | Trean Insurance Group Inc* | | 291,308 | | | 990,447 | |
| | | 51,573,166 | |
Internet & Direct Marketing Retail – 1.2% | | | |
| | CarParts.com Inc* | | 2,214,195 | | | 11,447,388 | |
| | Global-E Online Ltd* | | 277,773 | | | 7,433,205 | |
| | Vivid Seats Inc - Class A# | | 1,745,658 | | | 13,371,740 | |
| | | 32,252,333 | |
Life Sciences Tools & Services – 2.4% | | | |
| | Bio-Techne Corp | | 68,831 | | | 19,548,004 | |
| | ICON PLC* | | 145,539 | | | 26,747,157 | |
| | Inotiv Inc*,# | | 519,798 | | | 8,758,596 | |
| | NeoGenomics Inc* | | 1,327,705 | | | 11,431,540 | |
| | | 66,485,297 | |
Machinery – 6.0% | | | |
| | Alamo Group Inc | | 159,759 | | | 19,533,733 | |
| | ATS Automation Tooling Systems Inc* | | 1,420,645 | | | 37,501,243 | |
| | Gates Industrial Corp PLC* | | 1,655,485 | | | 16,157,534 | |
| | ITT Inc | | 349,395 | | | 22,829,469 | |
| | Kornit Digital Ltd* | | 431,474 | | | 11,481,523 | |
| | Nordson Corp | | 124,959 | | | 26,525,047 | |
| | SPX Technologies Inc* | | 581,456 | | | 32,108,000 | |
| | | 166,136,549 | |
Media – 0.5% | | | |
| | John Wiley & Sons Inc | | 394,558 | | | 14,819,599 | |
Metals & Mining – 0.8% | | | |
| | Constellium SE* | | 2,041,969 | | | 20,705,566 | |
Oil, Gas & Consumable Fuels – 1.1% | | | |
| | Magnolia Oil & Gas Corp | | 930,132 | | | 18,425,915 | |
| | PDC Energy Inc | | 218,324 | | | 12,616,944 | |
| | | 31,042,859 | |
Personal Products – 0.5% | | | |
| | BellRing Brands Inc* | | 700,625 | | | 14,439,881 | |
Pharmaceuticals – 2.2% | | | |
| | Catalent Inc* | | 802,936 | | | 58,100,449 | |
| | EyePoint Pharmaceuticals Inc*,# | | 356,978 | | | 2,823,696 | |
| | | 60,924,145 | |
Real Estate Management & Development – 0.6% | | | |
| | FirstService Corp# | | 135,649 | | | 16,143,588 | |
Road & Rail – 0.7% | | | |
| | AMERCO | | 39,881 | | | 20,308,203 | |
Semiconductor & Semiconductor Equipment – 2.4% | | | |
| | ON Semiconductor Corp* | | 1,048,703 | | | 65,365,658 | |
Software – 18.0% | | | |
| | Altair Engineering Inc* | | 483,323 | | | 21,372,543 | |
| | AvidXchange Holdings Inc* | | 1,538,106 | | | 12,950,853 | |
| | Blackbaud Inc* | | 669,004 | | | 29,476,316 | |
| | ChannelAdvisor Corp*,£ | | 1,648,264 | | | 37,349,662 | |
| | Clear Secure Inc - Class A* | | 614,038 | | | 14,036,909 | |
| | Consensus Cloud Solutions Inc* | | 369,011 | | | 17,454,220 | |
| | Descartes Systems Group Inc* | | 707,114 | | | 44,903,684 | |
| | Enfusion Inc - Class A*,# | | 1,235,040 | | | 15,240,394 | |
| | EngageSmart Inc* | | 583,009 | | | 12,062,456 | |
| | Envestnet Inc* | | 437,897 | | | 19,442,627 | |
| | Expensify Inc - Class A*,# | | 648,455 | | | 9,649,010 | |
| | Intelligent Systems Corp*,#,£ | | 477,352 | | | 10,391,953 | |
| | j2 Global Inc* | | 659,980 | | | 45,195,430 | |
| | LivePerson Inc* | | 768,367 | | | 7,238,017 | |
| | Nice Ltd (ADR)* | | 351,132 | | | 66,097,088 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2022 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Software– (continued) | | | |
| | Paylocity Holding Corp* | | 260,869 | | | $63,020,733 | |
| | SS&C Technologies Holdings Inc | | 951,434 | | | 45,430,974 | |
| | Tyler Technologies Inc* | | 80,974 | | | 28,138,465 | |
| | | 499,451,334 | |
Specialty Retail – 0.6% | | | |
| | Williams-Sonoma Inc | | 139,943 | | | 16,492,283 | |
Thrifts & Mortgage Finance – 0.4% | | | |
| | Walker & Dunlop Inc | | 133,001 | | | 11,136,174 | |
Trading Companies & Distributors – 1.4% | | | |
| | Core & Main Inc - Class A* | | 1,695,615 | | | 38,558,285 | |
Total Common Stocks (cost $2,070,226,509) | | 2,728,447,052 | |
Private Placements– 0.8% | | | |
Professional Services – 0.5% | | | |
| | Apartment List Inc*,¢,§ | | 2,431,401 | | | 6,905,179 | |
| | IntelyCare Inc*,¢,§ | | 384,276 | | | 6,094,656 | |
| | | 12,999,835 | |
Software – 0.3% | | | |
| | Loadsmart Inc - Series A*,¢,§ | | 140,312 | | | 2,619,471 | |
| | Loadsmart Inc - Series D*,¢,§ | | 399,891 | | | 7,465,525 | |
| | | 10,084,996 | |
Total Private Placements (cost $28,958,535) | | 23,084,831 | |
Rights– 0% | | | |
Pharmaceuticals – 0% | | | |
| | Zogenix Inc*,¢((cost $513,775) | | 755,552 | | | 951,996 | |
Warrants– 0.1% | | | |
Chemicals – 0.1% | | | |
| | Perimeter Solutions SA, expires 11/8/24*((cost $13,929) | | 1,392,883 | | | 1,671,460 | |
Investment Companies– 0.5% | | | |
Money Markets – 0.5% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº,£((cost $13,005,820) | | 13,004,629 | | | 13,005,929 | |
Investments Purchased with Cash Collateral from Securities Lending– 2.0% | | | |
Investment Companies – 1.5% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº,£ | | 42,547,193 | | | 42,547,193 | |
Time Deposits – 0.5% | | | |
| | Royal Bank of Canada, 3.0600%, 10/3/22 | | $13,603,153 | | | 13,603,153 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $56,150,346) | | 56,150,346 | |
Total Investments (total cost $2,168,868,914) – 102.0% | | 2,823,311,614 | |
Liabilities, net of Cash, Receivables and Other Assets – (2.0)% | | (55,415,989) | |
Net Assets – 100% | | $2,767,895,625 | |
| | |
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, 2022
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $2,492,348,108 | | 88.3 | % |
Canada | | 107,755,589 | | 3.8 | |
Israel | | 85,011,816 | | 3.0 | |
India | | 57,300,358 | | 2.0 | |
Ireland | | 26,747,157 | | 1.0 | |
Netherlands | | 20,705,566 | | 0.7 | |
Denmark | | 17,586,727 | | 0.6 | |
United Kingdom | | 11,336,866 | | 0.4 | |
China | | 4,519,427 | | 0.2 | |
| | | | | | |
| | | | | | |
Total | | $2,823,311,614 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2022 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/22 |
Common Stocks - 2.0% |
Information Technology Services - 0.3% | |
| | Payfare Inc*,# | $ | - | $ | - | $ | (10,685,193) | $ | 9,207,074 |
Software - 1.7% | |
| | ChannelAdvisor Corp* | | - | | (686,346) | | (4,969,821) | | 37,349,662 |
| | Intelligent Systems Corp*,# | | - | | - | | (8,993,312) | | 10,391,953 |
Total Software | $ | - | $ | (686,346) | $ | (13,963,133) | $ | 47,741,615 |
Total Common Stocks | $ | - | $ | (686,346) | $ | (24,648,326) | $ | 56,948,689 |
Investment Companies - 0.5% |
Money Markets - 0.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 230,412 | | 15 | | (1,748) | | 13,005,929 |
Investments Purchased with Cash Collateral from Securities Lending - 1.5% |
Investment Companies - 1.5% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 3,008,692∆ | | - | | - | | 42,547,193 |
Total Affiliated Investments - 4.0% | $ | 3,239,104 | $ | (686,331) | $ | (24,650,074) | $ | 112,501,811 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2022, this column reflects amounts for the entire year ended September 30, 2022 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 9/30/22 |
Common Stocks - 2.0% |
Information Technology Services - 0.3% | |
| | Payfare Inc*,# | | 17,302,806 | | 2,589,461 | | - | | 9,207,074 |
Software - 1.7% | |
| | ChannelAdvisor Corp* | | 44,998,563 | | - | | (1,992,734) | | 37,349,662 |
| | Intelligent Systems Corp*,# | | 19,385,265 | | - | | - | | 10,391,953 |
Investment Companies - 0.5% |
Money Markets - 0.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 2.8879%ºº | | 69,523,348 | | 461,751,801 | | (518,267,487) | | 13,005,929 |
Investments Purchased with Cash Collateral from Securities Lending - 1.5% |
Investment Companies - 1.5% | |
| | Janus Henderson Cash Collateral Fund LLC, 2.8581%ºº | | 23,642,180 | | 532,846,073 | | (513,941,060) | | 42,547,193 |
| | |
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, 2022
| | | | | | | |
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 | 12/22/22 | (1,861,900) | $ | 2,157,663 | $ | 76,872 | | |
Canadian Dollar | 12/22/22 | (22,648,900) | | 17,220,421 | | 814,042 | | |
| | | | | | | | | |
| | | | | | | 890,914 | | |
Citibank, National Association: | | | | | | | | |
British Pound | 12/22/22 | 406,000 | | (465,589) | | (11,858) | | |
British Pound | 12/22/22 | (1,670,800) | | 1,936,881 | | 69,657 | | |
Canadian Dollar | 12/22/22 | 838,000 | | (611,605) | | (4,575) | | |
Canadian Dollar | 12/22/22 | (22,648,900) | | 17,218,508 | | 812,129 | | |
| | | | | | | | | |
| | | | | | | 865,353 | | |
HSBC Securities (USA), Inc.: | | | | | | | | |
British Pound | 12/22/22 | (1,088,900) | | 1,262,547 | | 45,632 | | |
Canadian Dollar | 12/22/22 | (22,649,700) | | 17,225,729 | | 818,770 | | |
| | | | | | | | | |
| | | | | | | 864,402 | | |
JPMorgan Chase Bank, National Association: | | | | | | | | |
British Pound | 12/22/22 | 250,000 | | (269,671) | | 9,719 | | |
British Pound | 12/22/22 | 285,000 | | (324,885) | | (6,380) | | |
British Pound | 12/22/22 | (3,943,800) | | 4,571,306 | | 163,860 | | |
Canadian Dollar | 12/22/22 | (26,953,500) | | 20,487,376 | | 962,838 | | |
| | | | | | | | | |
| | | | | | | 1,130,037 | | |
State Street Bank and Trust Company: | | | | | | | | |
British Pound | 12/22/22 | 258,000 | | (285,511) | | 2,820 | | |
British Pound | 12/22/22 | (2,081,000) | | 2,413,485 | | 87,837 | | |
Canadian Dollar | 12/22/22 | 6,718,000 | | (5,019,158) | | (152,783) | | |
Canadian Dollar | 12/22/22 | (22,648,500) | | 17,234,793 | | 828,704 | | |
| | | | | | | | | |
| | | | | | | 766,578 | | |
Total | | | | | $ | 4,517,284 | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2022 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2022
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, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2022 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $4,692,880 |
| | | | |
Liability Derivatives: | | | |
Forward foreign currency exchange contracts | | | $ 175,596 |
| | | | |
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, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $7,325,234 |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $2,840,866 |
| | | | | |
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 Value of Derivative Instruments During the Year Ended September 30, 2022 |
| |
| |
Forward foreign currency exchange contracts: | |
Average amounts purchased - in USD | $ 19,977,721 |
Average amounts sold - in USD | 132,842,588 |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2022
| | | | | | | | | | |
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. | $ | 890,914 | $ | — | $ | — | $ | 890,914 |
Citibank, National Association | | 881,786 | | (16,433) | | — | | 865,353 |
HSBC Securities (USA), Inc. | | 864,402 | | — | | — | | 864,402 |
JPMorgan Chase Bank, National Association | | 55,535,917 | | (6,380) | | (54,399,500) | | 1,130,037 |
State Street Bank and Trust Company | | 919,361 | | (152,783) | | — | | 766,578 |
| | | | | | | | | |
Total | $ | 59,092,380 | $ | (175,596) | $ | (54,399,500) | $ | 4,517,284 |
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 | $ | 16,433 | $ | (16,433) | $ | — | $ | — |
JPMorgan Chase Bank, National Association | | 6,380 | | (6,380) | | — | | — |
State Street Bank and Trust Company | | 152,783 | | (152,783) | | — | | — |
| | | | | | | | | |
Total | $ | 175,596 | $ | (175,596) | $ | — | $ | — |
(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. |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2022 |
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 |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2022. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2022 is $24,036,827, which represents 0.9% 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, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Apartment List Inc | 11/2/20 | $ | 8,881,908 | $ | 6,905,179 | | 0.3 | % |
IntelyCare Inc | 3/29/22 | | 9,412,879 | | 6,094,656 | | 0.2 | |
Loadsmart Inc - Series A | 1/4/22 | | 2,665,928 | | 2,619,471 | | 0.1 | |
Loadsmart Inc - Series D | 1/4/22 | | 7,997,820 | | 7,465,525 | | 0.2 | |
Total | | $ | 28,958,535 | $ | 23,084,831 | | 0.8 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2022. The issuer incurs all registration costs. | |
Janus Henderson Venture 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, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | $ | 2,728,447,052 | $ | - | $ | - |
Private Placements | | - | | - | | 23,084,831 |
Rights | | - | | - | | 951,996 |
Warrants | | - | | 1,671,460 | | - |
Investment Companies | | - | | 13,005,929 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 56,150,346 | | - |
Total Investments in Securities | $ | 2,728,447,052 | $ | 70,827,735 | $ | 24,036,827 |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 4,692,880 | | - |
Total Assets | $ | 2,728,447,052 | $ | 75,520,615 | $ | 24,036,827 |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 175,596 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures contracts, and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson Venture Fund
Statement of Assets and Liabilities
September 30, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $2,050,478,884)(1) | | $ | 2,710,809,803 | |
| Affiliated investments, at value (cost $118,390,030) | | | 112,501,811 | |
| Cash | | | 19 | |
| Forward foreign currency exchange contracts | | | 4,692,880 | |
| Trustees' deferred compensation | | | 83,297 | |
| Receivables: | | | | |
| | Fund shares sold | | | 5,878,179 | |
| | Dividends | | | 395,517 | |
| | Investments sold | | | 213,211 | |
| | Foreign tax reclaims | | | 71,362 | |
| | Dividends from affiliates | | | 43,668 | |
| Other assets | | | 81,762 | |
Total Assets | | | 2,834,771,509 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 56,150,346 | |
| Forward foreign currency exchange contracts | | | 175,596 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 6,478,845 | |
| | Investments purchased | | | 1,695,639 | |
| | Advisory fees | | | 1,662,776 | |
| | Transfer agent fees and expenses | | | 396,948 | |
| | Trustees' deferred compensation fees | | | 83,297 | |
| | Professional fees | | | 54,939 | |
| | Trustees' fees and expenses | | | 14,248 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 12,090 | |
| | Custodian fees | | | 8,973 | |
| | Affiliated fund administration fees payable | | | 6,496 | |
| | Accrued expenses and other payables | | | 135,691 | |
Total Liabilities | | | 66,875,884 | |
Net Assets | | $ | 2,767,895,625 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Venture Fund
Statement of Assets and Liabilities
September 30, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 2,009,763,469 | |
| Total distributable earnings (loss) | | | 758,132,156 | |
Total Net Assets | | $ | 2,767,895,625 | |
Net Assets - Class A Shares | | $ | 15,149,395 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 227,309 | |
Net Asset Value Per Share(2) | | $ | 66.65 | |
Maximum Offering Price Per Share(3) | | $ | 70.72 | |
Net Assets - Class C Shares | | $ | 1,642,229 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 28,143 | |
Net Asset Value Per Share(2) | | $ | 58.35 | |
Net Assets - Class D Shares | | $ | 1,500,310,898 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 21,492,666 | |
Net Asset Value Per Share | | $ | 69.81 | |
Net Assets - Class I Shares | | $ | 220,157,320 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,130,726 | |
Net Asset Value Per Share | | $ | 70.32 | |
Net Assets - Class N Shares | | $ | 335,607,677 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,715,271 | |
Net Asset Value Per Share | | $ | 71.17 | |
Net Assets - Class S Shares | | $ | 29,212,647 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 447,191 | |
Net Asset Value Per Share | | $ | 65.32 | |
Net Assets - Class T Shares | | $ | 665,815,459 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,752,168 | |
Net Asset Value Per Share | | $ | 68.27 | |
| |
(1) Includes $54,399,500 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. |
| |
20 | SEPTEMBER 30, 2022 |
Janus Henderson Venture Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 11,747,816 | |
| Affiliated securities lending income, net | | 3,008,692 | |
| Dividends from affiliates | | 230,412 | |
| Unaffiliated securities lending income, net | | 99,324 | |
| Other income | | 13,265 | |
| Foreign tax withheld | | (16,498) | |
Total Investment Income | | 15,083,011 | |
Expenses: | | | |
| Advisory fees | | 22,841,834 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 50,862 | |
| | Class C Shares | | 21,664 | |
| | Class S Shares | | 105,709 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,147,795 | |
| | Class S Shares | | 106,023 | |
| | Class T Shares | | 2,156,635 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 14,904 | |
| | Class C Shares | | 2,020 | |
| | Class I Shares | | 261,231 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 1,410 | |
| | Class C Shares | | 143 | |
| | Class D Shares | | 155,320 | |
| | Class I Shares | | 13,074 | |
| | Class N Shares | | 16,610 | |
| | Class S Shares | | 470 | |
| | Class T Shares | | 7,507 | |
| Shareholder reports expense | | 144,807 | |
| Custodian fees | | 133,048 | |
| Registration fees | | 115,287 | |
| Affiliated fund administration fees | | 89,226 | |
| Trustees’ fees and expenses | | 72,369 | |
| Professional fees | | 70,112 | |
| Other expenses | | 253,895 | |
Total Expenses | | 28,781,955 | |
Less: Excess Expense Reimbursement and Waivers | | (155,139) | |
Net Expenses | | 28,626,816 | |
Net Investment Income/(Loss) | | (13,543,805) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Venture Fund
Statement of Operations
For the year ended September 30, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 161,346,572 | |
| Investments in affiliates | | (686,331) | |
| Forward foreign currency exchange contracts | | 7,325,234 | |
Total Net Realized Gain/(Loss) on Investments | | 167,985,475 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | (1,291,948,291) | |
| Investments in affiliates | | (24,650,074) | |
| Forward foreign currency exchange contracts | | 2,840,866 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (1,313,757,499) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (1,159,315,829) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2022 |
Janus Henderson Venture Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2022 | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (13,543,805) | | $ | (19,612,778) | |
| Net realized gain/(loss) on investments | | 167,985,475 | | | 499,250,189 | |
| Change in unrealized net appreciation/depreciation | | (1,313,757,499) | | | 750,404,122 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (1,159,315,829) | | | 1,230,041,533 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (2,765,688) | | | (1,268,484) | |
| | Class C Shares | | (429,596) | | | (367,739) | |
| | Class D Shares | | (245,929,527) | | | (112,793,742) | |
| | Class I Shares | | (39,332,133) | | | (18,385,450) | |
| | Class N Shares | | (60,480,498) | | | (29,110,615) | |
| | Class S Shares | | (6,073,592) | | | (3,515,025) | |
| | Class T Shares | | (117,792,659) | | | (54,714,762) | |
Net Decrease from Dividends and Distributions to Shareholders | | (472,803,693) | | | (220,155,817) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (121,465) | | | 855,548 | |
| | Class C Shares | | (837,470) | | | (3,257,033) | |
| | Class D Shares | | 129,351,737 | | | (22,405,392) | |
| | Class I Shares | | (6,508,752) | | | (10,338,530) | |
| | Class N Shares | | (19,282,673) | | | (27,207,120) | |
| | Class S Shares | | (5,473,577) | | | (24,627,306) | |
| | Class T Shares | | 11,716,334 | | | (8,874,501) | |
Net Increase/(Decrease) from Capital Share Transactions | | 108,844,134 | | | (95,854,334) | |
Net Increase/(Decrease) in Net Assets | | (1,523,275,388) | | | 914,031,382 | |
Net Assets: | | | | | | |
| Beginning of period | | 4,291,171,013 | | | 3,377,139,631 | |
| End of period | $ | 2,767,895,625 | | $ | 4,291,171,013 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $106.21 | | | $82.08 | | | $76.74 | | | $88.38 | | | $76.48 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.49) | | | (0.67) | | | (0.37) | | | (0.24) | | | (0.25) | |
| | Net realized and unrealized gain/(loss) | | (26.74) | | | 30.42 | | | 8.89 | | | (4.67) | | | 16.26 | |
| Total from Investment Operations | | (27.23) | | | 29.75 | | | 8.52 | | | (4.91) | | | 16.01 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Net Asset Value, End of Period | | $66.65 | | | $106.21 | | | $82.08 | | | $76.74 | | | $88.38 | |
| Total Return* | | (28.58)% | | | 36.78% | | | 11.26% | | | (4.08)% | | | 21.83% | |
| Net Assets, End of Period (in thousands) | | $15,149 | | | $24,644 | | | $18,447 | | | $27,201 | | | $31,373 | |
| Average Net Assets for the Period (in thousands) | | $20,355 | | | $23,550 | | | $22,978 | | | $27,960 | | | $24,358 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.01% | | | 1.00% | | | 1.02% | | | 1.02% | | | 1.01% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.01% | | | 1.00% | | | 1.02% | | | 1.02% | | | 1.01% | |
| | Ratio of Net Investment Income/(Loss) | | (0.59)% | | | (0.66)% | | | (0.49)% | | | (0.32)% | | | (0.31)% | |
| Portfolio Turnover Rate | | 14% | | | 21% | | | 25% | | | 19% | | | 28% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $95.22 | | | $74.59 | | | $70.48 | | | $82.39 | | | $72.06 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.99) | | | (1.29) | | | (0.82) | | | (0.72) | | | (0.78) | |
| | Net realized and unrealized gain/(loss) | | (23.55) | | | 27.54 | | | 8.11 | | | (4.46) | | | 15.22 | |
| Total from Investment Operations | | (24.54) | | | 26.25 | | | 7.29 | | | (5.18) | | | 14.44 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Net Asset Value, End of Period | | $58.35 | | | $95.22 | | | $74.59 | | | $70.48 | | | $82.39 | |
| Total Return* | | (29.11)% | | | 35.74% | | | 10.49% | | | (4.76)% | | | 20.95% | |
| Net Assets, End of Period (in thousands) | | $1,642 | | | $3,747 | | | $5,562 | | | $8,561 | | | $12,223 | |
| Average Net Assets for the Period (in thousands) | | $2,525 | | | $4,965 | | | $6,913 | | | $9,783 | | | $12,894 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.73% | | | 1.76% | | | 1.71% | | | 1.73% | | | 1.74% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.73% | | | 1.76% | | | 1.71% | | | 1.73% | | | 1.74% | |
| | Ratio of Net Investment Income/(Loss) | | (1.31)% | | | (1.42)% | | | (1.18)% | | | (1.03)% | | | (1.03)% | |
| Portfolio Turnover Rate | | 14% | | | 21% | | | 25% | | | 19% | | | 28% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $110.41 | | | $84.98 | | | $79.17 | | | $90.73 | | | $78.25 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.32) | | | (0.47) | | | (0.22) | | | (0.08) | | | (0.08) | |
| | Net realized and unrealized gain/(loss) | | (27.95) | | | 31.52 | | | 9.21 | | | (4.75) | | | 16.67 | |
| Total from Investment Operations | | (28.27) | | | 31.05 | | | 8.99 | | | (4.83) | | | 16.59 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Net Asset Value, End of Period | | $69.81 | | | $110.41 | | | $84.98 | | | $79.17 | | | $90.73 | |
| Total Return* | | (28.42)% | | | 37.07% | | | 11.52% | | | (3.87)% | | | 22.09% | |
| Net Assets, End of Period (in thousands) | | $1,500,311 | | | $2,228,324 | | | $1,731,098 | | | $1,668,639 | | | $1,843,494 | |
| Average Net Assets for the Period (in thousands) | | $1,877,171 | | | $2,160,434 | | | $1,645,324 | | | $1,668,200 | | | $1,712,398 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.78% | | | 0.80% | | | 0.80% | | | 0.80% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.78% | | | 0.80% | | | 0.80% | | | 0.80% | |
| | Ratio of Net Investment Income/(Loss) | | (0.37)% | | | (0.45)% | | | (0.28)% | | | (0.10)% | | | (0.09)% | |
| Portfolio Turnover Rate | | 14% | | | 21% | | | 25% | | | 19% | | | 28% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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, 2022 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $111.10 | | | $85.45 | | | $79.57 | | | $91.10 | | | $78.51 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.30) | | | (0.44) | | | (0.19) | | | (0.04) | | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | (28.15) | | | 31.71 | | | 9.25 | | | (4.76) | | | 16.73 | |
| Total from Investment Operations | | (28.45) | | | 31.27 | | | 9.06 | | | (4.80) | | | 16.70 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Net Asset Value, End of Period | | $70.32 | | | $111.10 | | | $85.45 | | | $79.57 | | | $91.10 | |
| Total Return* | | (28.40)% | | | 37.13% | | | 11.55% | | | (3.82)% | | | 22.16% | |
| Net Assets, End of Period (in thousands) | | $220,157 | | | $363,007 | | | $287,582 | | | $315,109 | | | $362,757 | |
| Average Net Assets for the Period (in thousands) | | $294,435 | | | $357,200 | | | $292,611 | | | $318,833 | | | $317,820 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.75% | | | 0.75% | | | 0.75% | | | 0.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.75% | | | 0.75% | | | 0.75% | | | 0.75% | |
| | Ratio of Net Investment Income/(Loss) | | (0.34)% | | | (0.42)% | | | (0.23)% | | | (0.05)% | | | (0.04)% | |
| Portfolio Turnover Rate | | 14% | | | 21% | | | 25% | | | 19% | | | 28% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | 27 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $112.20 | | | $86.18 | | | $80.15 | | | $91.63 | | | $78.88 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.22) | | | (0.35) | | | (0.12) | | | 0.02 | | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | (28.48) | | | 31.99 | | | 9.33 | | | (4.77) | | | 16.83 | |
| Total from Investment Operations | | (28.70) | | | 31.64 | | | 9.21 | | | (4.75) | | | 16.86 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Net Asset Value, End of Period | | $71.17 | | | $112.20 | | | $86.18 | | | $80.15 | | | $91.63 | |
| Total Return* | | (28.34)% | | | 37.25% | | | 11.65% | | | (3.74)% | | | 22.26% | |
| Net Assets, End of Period (in thousands) | | $335,608 | | | $565,040 | | | $454,982 | | | $411,523 | | | $346,638 | |
| Average Net Assets for the Period (in thousands) | | $458,042 | | | $572,312 | | | $430,317 | | | $365,491 | | | $248,072 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.67% | | | 0.66% | | | 0.66% | | | 0.67% | | | 0.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.66% | | | 0.66% | | | 0.67% | | | 0.67% | |
| | Ratio of Net Investment Income/(Loss) | | (0.25)% | | | (0.33)% | | | (0.15)% | | | 0.03% | | | 0.04% | |
| Portfolio Turnover Rate | | 14% | | | 21% | | | 25% | | | 19% | | | 28% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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. |
| |
28 | SEPTEMBER 30, 2022 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $104.51 | | | $80.97 | | | $75.85 | | | $87.56 | | | $75.92 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.62) | | | (0.83) | | | (0.49) | | | (0.35) | | | (0.37) | |
| | Net realized and unrealized gain/(loss) | | (26.24) | | | 29.99 | | | 8.79 | | | (4.63) | | | 16.12 | |
| Total from Investment Operations | | (26.86) | | | 29.16 | | | 8.30 | | | (4.98) | | | 15.75 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Net Asset Value, End of Period | | $65.32 | | | $104.51 | | | $80.97 | | | $75.85 | | | $87.56 | |
| Total Return* | | (28.70)% | | | 36.55% | | | 11.10% | | | (4.21)% | | | 21.64% | |
| Net Assets, End of Period (in thousands) | | $29,213 | | | $54,537 | | | $64,120 | | | $73,302 | | | $82,776 | |
| Average Net Assets for the Period (in thousands) | | $42,248 | | | $59,918 | | | $66,822 | | | $74,076 | | | $69,664 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.17% | | | 1.16% | | | 1.17% | | | 1.17% | | | 1.17% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.16% | | | 1.17% | | | 1.17% | | | 1.17% | |
| | Ratio of Net Investment Income/(Loss) | | (0.75)% | | | (0.83)% | | | (0.65)% | | | (0.47)% | | | (0.46)% | |
| Portfolio Turnover Rate | | 14% | | | 21% | | | 25% | | | 19% | | | 28% | |
| | | | | | | | | | | | | | | | | | | |
| |
* 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 | 29 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| Net Asset Value, Beginning of Period | | $108.38 | | | $83.59 | | | $78.01 | | | $89.60 | | | $77.41 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.41) | | | (0.58) | | | (0.30) | | | (0.16) | | | (0.16) | |
| | Net realized and unrealized gain/(loss) | | (27.37) | | | 30.99 | | | 9.06 | | | (4.70) | | | 16.46 | |
| Total from Investment Operations | | (27.78) | | | 30.41 | | | 8.76 | | | (4.86) | | | 16.30 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | |
| Net Asset Value, End of Period | | $68.27 | | | $108.38 | | | $83.59 | | | $78.01 | | | $89.60 | |
| Total Return* | | (28.51)% | | | 36.91% | | | 11.39% | | | (3.96)% | | | 21.95% | |
| Net Assets, End of Period (in thousands) | | $665,815 | | | $1,051,872 | | | $815,350 | | | $896,264 | | | $1,009,462 | |
| Average Net Assets for the Period (in thousands) | | $858,977 | | | $1,026,384 | | | $839,860 | | | $899,106 | | | $978,055 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.90% | | | 0.91% | | | 0.91% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | (0.47)% | | | (0.57)% | | | (0.38)% | | | (0.20)% | | | (0.20)% | |
| Portfolio Turnover Rate | | 14% | | | 21% | | | 25% | | | 19% | | | 28% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
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30 | SEPTEMBER 30, 2022 |
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 39 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. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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. Effective July 18, 2022, the Fund reopened to all new investors.
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, employer-sponsored retirement plans, and bank trust platforms.
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.
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, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Janus Henderson Venture 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 the Adviser 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 the Adviser 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
Fund holdings are valued in accordance with policies and procedures established by the Adviser pursuant to Rule 2a-5 under the 1940 Act and approved by and subject to the oversight of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at readily available market quotations, which are (i) the official close prices or (ii) last sale prices on the primary market or exchange in which the securities trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are generally 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. Foreign securities and currencies are converted to U.S. dollars using the current spot USD dollar 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 Adviser-approved 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 by the Adviser pursuant to the Valuation Procedures. Circumstances in which fair valuation 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 valuation policies provide for the use of systematic fair valuation models provided by independent pricing services to value foreign equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
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 Venture 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, 2022 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, 2022.
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 Venture 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. 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, 2022 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:
Janus Henderson Venture Fund
Notes to Financial Statements
· 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 the Adviser’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.
Janus Henderson Venture Fund
Notes to Financial Statements
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
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 in response to the COVID-19 pandemic. This and other government intervention into the economy and financial markets to address the COVID-19 pandemic may not work as intended, particularly if the efforts are perceived by investors as being unlikely to achieve the desired results. Government actions to mitigate the economic impact of the pandemic have resulted in a large expansion of government deficits and debt, the long term consequences of which are not known. The COVID-19 pandemic could adversely affect the value and liquidity of a Fund’s investments, impair a Fund’s ability to satisfy redemption requests, and negatively impact a Fund’s performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to a Fund by its service providers.
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 the Adviser 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all
Janus Henderson Venture Fund
Notes to Financial Statements
EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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, the Adviser 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, the Adviser 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. The
Janus Henderson Venture Fund
Notes to Financial Statements
Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser 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, the Adviser 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, the Adviser 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 the Adviser 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, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $54,399,500. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2022 is $56,150,346, resulting in the net amount due to the counterparty of $1,750,846.
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 Offsetting Assets and Liabilities tables located in the Schedule of Investments 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, 2022” table located in the Fund’s Schedule of Investments.
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
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser 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.
The Adviser has contractually agreed to waive the investment advisory fee and/or reimburse operating expenses to the extent that the Fund’s total annual fund operating expenses, 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 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. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is authorized to perform, or cause others to perform 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 the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser 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 the Adviser 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 the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (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 the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $502,935 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, subaccounting, answering inquiries regarding accounts, order processing, transaction confirmations, the mailing of prospectuses and shareholder reports, and other shareholder services provided to or on behalf of shareholders. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Class D Shares of the Fund pay the Transfer Agent an annual administrative services fee based on the average daily net assets of Class D Shares 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% |
During the reporting period, the administrative services fee rate was 0.11%.
The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Shareholder 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
Janus Henderson Venture Fund
Notes to Financial Statements
Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Certain, but not all, intermediaries may charge administrative fees 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Adviser has agreed to limit these fees up to 0.20% for Class A Shares and Class C Shares, and up to 0.15% for Class I Shares on an annual basis based on the daily net assets of each share class. 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 Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs, although the Transfer Agent is compensated for its services related to Fund��s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under distribution and shareholder servicing plans (the “Plans”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the shares based on the average daily net assets for each share class at an annual rate of up to 0.25% for Class A Shares, up to 1.00% for Class C Shares, and up to 0.25% for Class S Shares. Under the terms of the Plans, the Trust is authorized to make payments to the Distributor 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.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between the Distributor and financial intermediaries. During the year ended September 30, 2022, the Distributor retained upfront sales charges of $240.
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 the Distributor during the year ended September 30, 2022.
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, 2022, redeeming shareholders of Class C Shares paid CDSCs of $20.
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, 2022 on the Statement of Assets and Liabilities in the asset, “Trustees’ deferred compensation,” and liability, “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, 2022 are included in “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 $436,813 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2022.
Janus Henderson Venture Fund
Notes to Financial Statements
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”). The Adviser 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, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser 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, 2022, the Fund engaged in cross trades amounting to $571,767 in purchases in purchases.
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) | |
$ - | $ 122,593,482 | $ - | $(16,114,945) | $ - | $ (83,578) | $651,737,197 | |
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, 2022 are noted below. The primary difference 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) |
$ 2,171,574,417 | $923,329,971 | $(271,592,774) | $ 651,737,197 |
Janus Henderson Venture Fund
Notes to Financial Statements
Information on the tax components of derivatives as of September 30, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 4,517,284 | $ - | $ - | $ - |
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, 2022 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 101,234,609 | $ 371,569,084 | $ - | $ 6,860,408 | |
| | | | | |
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 | $ - | $ - | |
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 |
$ (1,662,531) | $ 6,873,844 | $ (5,211,313) |
Capital has been adjusted by $5,197,877, all of which is 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, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 64,744 | $ 5,895,760 | | 92,399 | $ 9,558,652 |
Reinvested dividends and distributions | 30,916 | 2,759,573 | | 12,869 | 1,266,434 |
Shares repurchased | (100,381) | (8,776,798) | | (97,981) | (9,969,538) |
Net Increase/(Decrease) | (4,721) | $ (121,465) | | 7,287 | $ 855,548 |
Class C Shares: | | | | | |
Shares sold | 1,236 | $ 83,173 | | 893 | $ 77,721 |
Reinvested dividends and distributions | 5,446 | 428,187 | | 4,135 | 367,054 |
Shares repurchased | (17,892) | (1,348,830) | | (40,250) | (3,701,808) |
Net Increase/(Decrease) | (11,210) | $ (837,470) | | (35,222) | $ (3,257,033) |
Class D Shares: | | | | | |
Shares sold | 305,542 | $ 26,256,961 | | 335,968 | $ 35,366,781 |
Reinvested dividends and distributions | 2,468,740 | 230,407,525 | | 1,035,846 | 105,790,991 |
Shares repurchased | (1,463,023) | (127,312,749) | | (1,560,909) | (163,563,164) |
Net Increase/(Decrease) | 1,311,259 | $129,351,737 | | (189,095) | $ (22,405,392) |
Class I Shares: | | | | | |
Shares sold | 445,613 | $ 39,292,085 | | 498,000 | $ 52,612,432 |
Reinvested dividends and distributions | 418,219 | 39,308,399 | | 178,842 | 18,374,262 |
Shares repurchased | (1,000,409) | (85,109,236) | | (774,849) | (81,325,224) |
Net Increase/(Decrease) | (136,577) | $ (6,508,752) | | (98,007) | $ (10,338,530) |
Class N Shares: | | | | | |
Shares sold | 871,586 | $ 77,195,805 | | 1,225,072 | $131,248,370 |
Reinvested dividends and distributions | 633,783 | 60,253,745 | | 279,594 | 28,991,082 |
Shares repurchased | (1,826,045) | (156,732,223) | | (1,747,964) | (187,446,572) |
Net Increase/(Decrease) | (320,676) | $ (19,282,673) | | (243,298) | $ (27,207,120) |
Class S Shares: | | | | | |
Shares sold | 109,609 | $ 9,081,991 | | 203,860 | $ 20,320,517 |
Reinvested dividends and distributions | 69,333 | 6,073,592 | | 36,249 | 3,515,025 |
Shares repurchased | (253,566) | (20,629,160) | | (510,183) | (48,462,848) |
Net Increase/(Decrease) | (74,624) | $ (5,473,577) | | (270,074) | $ (24,627,306) |
Class T Shares: | | | | | |
Shares sold | 540,865 | $ 46,473,854 | | 821,377 | $ 82,135,483 |
Reinvested dividends and distributions | 1,248,594 | 114,071,542 | | 530,319 | 53,217,526 |
Shares repurchased | (1,742,321) | (148,829,062) | | (1,400,723) | (144,227,510) |
Net Increase/(Decrease) | 47,138 | $ 11,716,334 | | (49,027) | $ (8,874,501) |
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2022, 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 |
$495,501,641 | $ 851,401,060 | $ - | $ - |
8. Recent Accounting Pronouncements
The FASB issued Accounting Standards Update 2022-03: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”) in June 2022. The new guidance in the ASU clarifies existing guidance
Janus Henderson Venture Fund
Notes to Financial Statements
in ASC 820 related to the fair value measurement of an equity security subject to contractual sale restrictions with the intent to reduce diversity in interpretation. Under the guidance, a contractual restriction on the sale of an equity security would not be considered when measuring fair value as such restriction is not treated as part of the equity security’s unit of account. The amendments would be applied prospectively on or after adoption date to equity securities with a contract containing a sale restriction that is executed or modified after such date. The effective date set by the FASB is December 15, 2023, with early adoption permitted. The Adviser is currently evaluating whether to early adopt and does not anticipate it to have a material impact on the Fund.
9. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2022 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, 2022, the related statement of operations for the year ended September 30, 2022, the statements of changes in net assets for each of the two years in the period ended September 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2022 (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, 2022, 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, 2022 and the financial highlights for each of the five years in the period ended September 30, 2022 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, 2022 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 28, 2022
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 (each, a “Fund,” and collectively, the “Funds” and 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 agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and 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, 2022 through February 1, 2023, 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 the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Venture Fund
Additional Information (unaudited)
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 the Adviser and the 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 the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser 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 the Adviser 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, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser 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 the Adviser and 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 the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each 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, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% 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 second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Venture Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Venture Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser 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 first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was 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, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Venture Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser 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 bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was 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, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. 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 the Adviser had taken or was taking to improve performance.
Janus Henderson Venture Fund
Additional Information (unaudited)
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 the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. 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 8% 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 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser 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 the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser 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, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser 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; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Venture Fund
Additional Information (unaudited)
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 the Adviser 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.
· 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 the Adviser 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 the Adviser 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 one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration 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 the Adviser 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 the Adviser 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 certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income 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 the Adviser 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.
Janus Henderson Venture Fund
Additional Information (unaudited)
· 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas 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 the Adviser 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.
Money Market Funds
· For Janus Henderson Government 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 the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· 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 the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted 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 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 the Adviser 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 the Adviser 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
Janus Henderson Venture Fund
Additional Information (unaudited)
that the Adviser 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 the Adviser 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 the Adviser 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, 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 the Adviser 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 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 the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 the Adviser 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 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 the Adviser 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 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 the Adviser 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 the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships 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
Janus Henderson Venture Fund
Additional Information (unaudited)
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 the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and 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 the Adviser 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 the Adviser 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 the Adviser’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 the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser 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 the Adviser and the subadviser 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 the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser 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 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) 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 (3) 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 the Adviser 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 the Adviser, the Adviser’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, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Venture Fund
Additional Information (unaudited)
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 the Adviser.
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 the Adviser 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 the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser 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 the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’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 the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 benefit each Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser 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 the Adviser and its affiliates. They also concluded that the Adviser and the subadviser 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 the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s 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, 2022. 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 the Adviser 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, 2022:
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Capital Gain Distributions | $376,766,960 |
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 the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 50 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 the Adviser. 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 | | | | |
Alan A. Brown
151 Detroit Street
Denver, CO 80206
DOB: 1962 | Chairman
Trustee | 5/22-Present
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). | 50 | 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). |
Cheryl D. Alston
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Trustee | 8/22-Present | Executive Director and Chief Investment Officer, Employees’ Retirement Fund of the City of Dallas (since 2004). | 50 | Director of Blue Cross Blue Shield of Kansas City (a not-for-profit health insurance provider) (since 2016) and Director of Global Life Insurance (life and supplemental health insurance provider) (since 2017). Formerly, Director of Federal Home Loan Bank of Dallas (2017-2021). |
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). | 50 | Member, Limited Partner Advisory Committee, Karmel Capital Fund III (later stage growth fund) (since 2022), Member of the Investment Committee for the Orange County Community Foundation (a grantmaking 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). Formerly, Senior Vice President and Senior Advisor, Albright Stonebridge Group LLC (global strategy firm) (2011-2021), and Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | 50 | Member of the Investment Committee for Cooper Union (private college) (since 2021), Board Member, Van Alen Institute (nonprofit architectural and design organization) (since 2019), and Director of Brightwood Capital Advisors, LLC (since 2014). |
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 | | | | |
Darrell B. Jackson
151 Detroit Street
Denver, CO 80206
DOB: 1958 | Trustee | 8/22-Present | President and Chief Executive Officer, The Efficace Group Inc. (since 2018). Formerly, President and Chief Executive Officer, Seaway Bank and Trust Company (community bank) (2014-2015), and Executive Vice President and Co-President, Wealth Management (2009-2014), and several senior positions, including Group Executive, Senior Vice President, and Vice President (1995-2009) of Northern Trust Company (financial services company) (1995-2014). | 50 | Director of Amalgamated Financial Corp (bank) (since August 2021), Director of YR Media (a not-for-profit production company) (since 2021), and Director of Gray-Bowen-Scott (transportation project consulting firm) (since April 2020). Formerly, Director of Delaware Place Bank (closely held commercial bank) (2016-2018) and Director of Seaway Bank and Trust Company (2014-2015). |
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 | Trustee | 6/02-Present | Chief Executive Officer, muun chi LLC (organic food business) (since 2022) and Independent Consultant (since 2019). Formerly, Chief Operating Officer, muun chi LLC (2020-2022), 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). | 50 | Chairman of the Board and Trustee of The Investment Fund for Foundations Investment Program (TIP) (consisting of 1 fund) (since 2008). Formerly, Director of the F.B. Heron Foundation (a private grantmaking foundation) (2006-2022), and Director of Mutual Fund Directors Forum (a non-profit organization serving independent directors of U.S. mutual funds) (2016-2021). |
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 | | | | |
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. | 50 | Director of MGIC Investment Corporation (private mortgage insurance) (since 2013). Formerly, Director, 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). |
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). | 50 | 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). |
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 | | | | |
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). | 50 | Director of Chicago Community Trust (Regional Community Foundation), Lurie Children’s Hospital (Chicago, IL), and Shirley Ryan Ability Lab. Formerly, Director of Wrapports, LLC (until 2022), 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 the Adviser. |
Michelle Rosenberg
151 Detroit Street
Denver, CO 80206
DOB: 1973 | President and Chief Executive Officer | 9/22-Present | General Counsel and Corporate Secretary of Janus Henderson Investors (since 2018). Formerly, Interim President and Chief Executive Officer of the Trust and Janus Aspen Series (2022), Senior Vice President and Head of Legal, North America of Janus Henderson Investors (2017-2018) and Deputy General Counsel of Janus Henderson US (Holdings) Inc. (2015-2018). |
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 Henderson Investors US 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 US LLC (May 2017 – September 2017), Vice President, Compliance at Janus Henderson US (Holdings) Inc., Janus Henderson Investors US LLC, and Janus Henderson Distributors US LLC (2009-2017). |
* 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
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 |
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 Henderson Services US LLC. |
Abigail J. Murray
151 Detroit Street
Denver, CO 80206
DOB: 1975 | Vice President, Chief Legal Officer, and Secretary | 12/20-Present | Managing Counsel (2020-present). Formerly, Senior Counsel for Invesco Ltd. (2017-2020), and Vice President and Senior Counsel, ALPS Fund Services, Inc. and Assistant General Counsel, ALPS Advisors, Inc. (2015-2017). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Venture Fund
Notes
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Janus Henderson Venture Fund
Notes
NotesPage2
Janus Henderson Venture 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 is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc. Janus Henderson Distributors US LLC |
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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 $862,380 in fiscal 2022 and $817,000 in fiscal 2021.
(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 2022 and $0 in fiscal 2021.
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 $227,346 in fiscal 2022 and $215,497 in fiscal 2021.
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 2022 and $0 in fiscal 2021.
(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 $227,346 in fiscal 2022 and $215,497 in fiscal 2021.
(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
