While the Fund’s underweight exposure to Chinese equities aided relative performance, several individual investments in China were notable detractors. China's post-lockdown recovery has been weaker than expected, and official stimulus measures have yet to address the economic slowdown or problems in the property sector. These economic headwinds pressured the near-term business outlook for companies such as Linklogis, a provider of supply chain financing solutions for small- and medium-sized businesses in China. Linklogis also faced uncertainty because of reduced technology-related capital spending by banks, a critical consumer of its products. Given these headwinds for the business, we opted to exit the investment.
Chinese e-commerce retailer JD.Com was another detractor. JD.Com saw significant market share gains during the pandemic, supported by its differentiated logistics footprint. As China emerged from COVID lockdowns, however, these market share advantages started to narrow. This led the company to announce new advertising and promotional programs that investors worried would narrow profit margins. More recently, fears of a potential slowdown in Chinese consumer spending also weighed on the stock, and we eliminated the position.
Relative performance benefited from an investment in Structure Therapeutics, formerly known as ShouTi, as the stock has performed well since its January IPO. We were early investors in ShoutTi, even before the company went public, because of our positive view on its glucagon-like peptide 1 (GLP-1) oral medication to treat obesity and type 2 diabetes. These drugs have received increased focus from investors, which is helping support the stock performance. As the name “structure” implies, the company is focused on applying a unique structural biology method to drug development that it hopes may address a variety of metabolic and pulmonary indications. Additionally, the company has demonstrated strong governance while establishing a track record for developing, scaling, and selling biotechnology assets.
Several of our investments in India were also top contributors. Indian jewelry store chain Kalyan Jewelers continued to execute well, and it reported better-than-
expected sales and profitability. These results helped raise market sentiment around the company’s adoption of a franchise strategy for new store development, a transition it hopes will reduce the capital intensity of the business. We also believe Kalyan is well placed to capitalize on a long-term secular trend of the formalization of the jewelry retail trade.
We recognize that Asian stocks could experience near-term volatility as investors try to assess the outlook for global economic growth, inflation, and interest rates, along with the implications of these macroeconomic headwinds for emerging market economies. Despite this uncertainty, we remain optimistic on the emerging markets relative to developed economies. Central banks in the emerging markets started to raise rates before banks in the U.S. and Europe. We believe they are further along in their efforts to contain inflation and, therefore, are closer to ending their policy tightening. For this reason, we believe we could see rates stabilize sooner in the emerging markets, relative to the U.S. and Europe. We also continue to seek out longer-term trends, from innovation in healthcare to investments in electric vehicles and green energy, which are creating opportunities for emerging market companies. Additionally, we believe that the reshoring of manufacturing capacity may spur stronger economic growth and investment potential in emerging markets such as Vietnam. As we look to take advantage of this broad array of opportunities, we continue to pay close attention to company and country fundamentals, as well as corporate governance. We believe this strategy may lead to favorable long-term outcomes for our investors.
Thank you for investing in the Janus Henderson Asia Equity Fund.
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Emerging markets comprised 91.1% 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.
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.
‡ As stated in the prospectus. Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on January 27, 2023. This contractual waiver may be terminated or modified only at the discretion of the Board of Trustees 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 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 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 (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.
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
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 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, 2023 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 value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments,
the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
To the extent the Fund invests a significant portion of its assets in a particular country or geographic region, the Fund will generally have more exposure to certain risks due to possible political, economic, social, or regulatory events in that country or region. Adverse developments in certain regions could also adversely affect securities of other countries whose economies appear to be unrelated and could have a negative impact on the Fund’s performance.
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.
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.
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, 2023.
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.
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, 2023, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.73%.
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 0.94% 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 27, 2023. The previous expense limit (for the one-year period commencing January 28, 2022) was 0.99%. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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 0.12%.
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 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, 2023, the Distributor retained upfront sales charges of $46.
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, 2023.
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, 2023.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
As of September 30, 2023, 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:
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, 2023, 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, 2023 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.
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.
5. Capital Share Transactions
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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, 2023 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.
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Asia Equity Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 in conformity with accounting principles generally accepted in the United States of America.
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, 2023 by correspondence with the custodian, transfer agent and broker; when replies were not received from broker, 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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
The Trustees considered the performance 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 fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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 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 as part of its 2022 review 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 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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 48 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, 2023 |
| | |
| | Janus Henderson Balanced Fund |
| | |
| | Janus Investment Fund |
| |
| | | 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)
| | | | | | |
| | | 
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 11.28% for the 12-month period ended September 30, 2023. That compares with 21.62% for the Fund’s primary benchmark, the S&P 500® Index, and 0.64% 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 11.95%.
INVESTMENT ENVIRONMENT
The stock market climbed steadily from the beginning of the period to July, driven by optimism about the slowing pace of interest rate hikes and positive economic fundamentals. Excitement surrounding artificial intelligence (AI) and related technologies also boosted market sentiment. However, stock market returns have been narrow in breadth, driven by a handful of large- and mega-cap stocks linked to AI developments. Bouts of volatility have occurred in the rising rate environment, most notably the March collapse of Silicon Valley Bank and other regional banks. In July, the S&P 500 Index reached an 18-month peak, but market sentiment began to shift as investors recognized that the Fed may keep policy rates higher for longer in its fight against inflation.
The U.S. fixed income market posted a positive return over the past 12 months, with the Bloomberg US
Aggregate Bond Index up 0.64%. U.S. Treasury returns were negative during the period due to increasing rates across the curve, however, this performance was offset by spread sectors that generated very strong excess returns. The Treasury yield curve became more inverted, and yields rose across the board, with the benchmark 10-year Treasury yield jumping to 4.59%, from 3.83% 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. Rising investor concerns about an economic hard landing pressured returns in the last three months of 2022.
However, these concerns dissipated in 2023 as gross domestic product (GDP) growth exceeded expectations, inflation moderated, and the labor market consistently showed signs of resilience. As a result, expectations for a soft landing increased and risk assets rallied for most of the year-to-date 2023 period. Over the past 12 months, corporate investment-grade credit spreads tightened 38 basis points to 1.21% and high-yield credit spreads tightened 158 basis points to 3.94%.
PERFORMANCE DISCUSSION
We entered the period with approximately 52% in equity at the end of September 2022, with 48% in fixed income including cash. As the U.S. economy continued to fend off recessionary fears, paving the way for equities to move higher, we steadily increased our equity weight during the period. Portfolio positioning ended September with roughly 61% in equities and 39% in fixed income. Asset allocation positioning had a positive impact on performance relative to the Balanced Index during the period, while selection within each asset class detracted from performance.
The equity portion of the Fund underperformed the S&P 500 Index. Stock selection drove relative underperformance, particularly in industrials and consumer staples sectors. Mailing services company United Parcel Service (UPS) sank on a disappointing earnings report due, in part, to a decrease in shipping volumes as consumers shift spending away from goods and toward services post-pandemic. The stock also came under pressure as the company entered contract
Janus Henderson Balanced Fund (unaudited)
negotiations — which take place every four years — with the Teamsters Union representing UPS’ workers. In consumer staples, the primary detractor was Dollar General. The American variety store struggled amid inventory challenges as well as financial constraints facing core clientele.
An underweight allocation to utilities and stock selection in information technology contributed to relative returns. Computer chip manufacturer Nvidia was a top contributor due to optimism around advancements in AI. Nvidia’s graphic processing units, developer tools, and partnerships set the standard in AI, fueling excitement about the company’s long-term growth opportunities given the array of applications that its technologies enable. Cable company Comcast also contributed to performance. The company benefited from moderating investor concern around its high-speed internet competition. Less aggressive spending on fiberoptic network builds and a slowing rollout of fixed wireless have improved the competitive environment for the company’s broadband business. Additionally, Comcast and Disney announced that they agreed to speed up Comcast’s sale of Hulu. Management indicated that the proceeds of the sale will help fund share repurchases earlier than anticipated.
The fixed income allocation underperformed the Bloomberg US Aggregate Bond Index. The Fund’s overweight to interest rate risk during the second half of the period detracted from performance as rates continued to increase. We entered the period with a modest underweight to interest rate risk, and as rates rose late in the period, we added duration at favorable yields and ended the period with more interest rate risk than the benchmark. We remained dynamic in our duration positioning intra-period, seeking to increase or reduce duration depending on our present conviction regarding expectations for the future trajectory of interest rates.
Spread risk positioning helped performance due to our overweight to these sectors overall. Notably, the Fund generated excess returns in commercial mortgage-backed securities (CMBS), collateralized mortgage obligations (CMO), and collateralized loan obligations (CLO). However, this benefit was more than offset by agency mortgage-backed securities (MBS) positioning and selection and corporate bond security selection. While we maintained a relatively defensive stance within the Fund during most of the period, we were still overweight spread risk versus the benchmark. Furthermore, in the third quarter of 2023, we added to our spread risk allocation as economic data and corporate results came in better than expected. This positioning helped in the third quarter, as credit spread sectors broadly outperformed Treasuries. We added to our corporate investment-grade exposure, as we continue to seek select opportunities in corporate issuers with strong fundamentals. We maintained an overweight allocation to securitized sectors, as we believe securitized spreads are attractively valued and appropriately reflect the risk of an economic slowdown. Within CMBS, we remained selective and active, with minimal exposure to the troubled office sector; we prefer sectors with strong fundamentals, such as multifamily housing, industrial, and hospitality.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
As we approach the end of 2023, the debate surrounding the future path of inflation continues, as well as whether the Fed is done raising rates, and ultimately, whether the U.S. will enter a recession. While U.S. economic growth remains robust and the labor market tight by historical standards, we are beginning to see early signs of cooling in key areas of the economy. A softening in the job market, tighter lending conditions, erosion of COVID-19-era excess savings, and an uptick in consumer credit delinquencies all seem to point to continued below-average real GDP growth.
Additionally, market confidence in an economic soft landing eroded due to the Fed’s announcement that it expects to keep interest rates higher for longer. Both equities and fixed income adjusted accordingly. That said, we remain focused on the delayed impact of policy tightening, believing the full effects of rate increases have yet to be felt in the broader economy. We expect pressure on consumer spending to increase, and with that, some level of continued market volatility and macroeconomic uncertainty.
For equities, we believe that overall, equity multiples remain in a reasonable range relative to history, and we see opportunities for earnings growth in a number of areas despite a potentially slower-growth macroeconomic environment. We are particularly excited about opportunities in artificial intelligence, which has driven our overweight allocation in software and semiconductors. There are lasting productivity and efficiency benefits to be had across many industries that likely will spur high levels
Janus Henderson Balanced Fund (unaudited)
of technology investment levels for years to come. We also see opportunities where market misperception on the negative impact of AI is being overly discounted, and we are focused on identifying the potential winners and losers related to this long-term theme.
We continue to see tailwinds for companies from a price/cost standpoint, as supply chains have normalized and labor attrition has improved. These factors, along with declining commodity prices and transportation costs, could help lower the cost of goods sold and contribute to improved margins. The cost improvements have yet to be reflected in margins, and we expect companies to be able to hold on to most of their price gains. Macroeconomic risks that could challenge the earnings outlook in 2024 include rising energy prices and a softening labor force.
Within fixed income, we think investors should focus on what the market is offering in terms of risk-reward and position accordingly. For one, the risk that interest rates settle materially higher from here is low, in our view, as inflation continues to cool and rates markets are now largely pricing in the Fed’s expectations. While we are not forecasting that rates will come down significantly anytime soon, we think the higher yields currently available are likely to underpin better fixed income returns moving forward. At these levels, we are more comfortable adding duration risk, which could potentially provide much-needed defensive characteristics if the economy falters. From a spread risk perspective, we believe there are opportunities to construct a high-quality portfolio offering attractive yields while still managing risks. While corporate credit spreads currently trade tighter than their 10-year averages, corporates continue to exhibit stronger fundamentals than we have typically seen this late in the cycle. Our risk profile, therefore, remains measured in the corporate space. Compared to corporates, the securitized sector appears to be more appropriately pricing in potential downside risks to the economy and, in particular, we are finding attractive opportunities among agency MBS credits.
As always, we will dynamically adjust each of the equity and fixed income allocations, as well as the portfolio’s overall mix between equities and fixed income, as we analyze the risks and opportunities in each market.
Thank you for investing in the Janus Henderson Balanced Fund.
A yield curve plots the yields (interest rate) of bonds with equal credit quality but differing maturity dates. Typically bonds with longer maturities have higher yields.
An inverted yield curve occurs when short-term yields are higher than long-term yields.
10-Year Treasury Yield is the interest rate on U.S. Treasury bonds that will mature 10 years from the date of purchase.
Basis point (bp) equals 1/100 of a percentage point. 1 bp = 0.01%, 100 bps = 1%.
Duration measures a bond price’s sensitivity to changes in interest rates. The longer a bond’s duration, the higher its sensitivity to changes in interest rates and vice versa.
Securitized products, such as mortgage- and asset-backed securities, are more sensitive to interest rate changes, have extension and prepayment risk, and are subject to more credit, valuation and liquidity risk than other fixed-income securities.
Quantitative Tightening (QT) is a government monetary policy occasionally used to decrease the money supply by either selling government securities or letting them mature and removing them from its cash balances.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Balanced Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Equity Sleeve Holdings | 5 Top Detractors - Equity Sleeve Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Lam Research Corp | 2.01% | | 0.79% | | Dollar General Corp | 1.45% | | -1.41% |
| NVIDIA Corp | 2.44% | | 0.54% | | Meta Platforms Inc - Class A | 0.27% | | -0.93% |
| Mastercard Inc | 3.62% | | 0.45% | | UnitedHealth Group Inc | 3.52% | | -0.47% |
| Comcast Corp - Class A | 1.91% | | 0.44% | | United Parcel Service Inc | 2.27% | | -0.44% |
| Booking Holdings Inc | 1.04% | | 0.38% | | Amazon.com Inc | 0.92% | | -0.41% |
| | | | | | | |
| 5 Top Contributors - Equity Sleeve Sectors* | | | | | |
| | | Relative | | Equity Sleeve | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Utilities | | 0.91% | | 0.00% | 2.82% |
| Information Technology | | 0.79% | | 27.19% | 26.86% |
| Health Care | | 0.77% | | 15.63% | 14.37% |
| Real Estate | | 0.64% | | 0.29% | 2.58% |
| Financials | | 0.17% | | 14.36% | 12.17% |
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| | | | | | |
| 5 Top Detractors - Equity Sleeve Sectors* | | | | | |
| | | Relative | | Equity Sleeve | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Industrials | | -1.22% | | 10.25% | 8.45% |
| Consumer Staples | | -0.82% | | 7.99% | 6.89% |
| Communication Services | | -0.58% | | 7.49% | 8.10% |
| Energy | | -0.48% | | 2.36% | 4.73% |
| Materials | | -0.28% | | 1.43% | 2.60% |
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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, 2023
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 5.6% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 3.4% |
Alphabet Inc - Class C | |
Interactive Media & Services | 2.8% |
Mastercard Inc | |
Diversified Financial Services | 2.4% |
NVIDIA Corp | |
Semiconductor & Semiconductor Equipment | 2.3% |
| | 16.5% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 61.6% | |
Mortgage-Backed Securities | | 11.4% | |
Corporate Bonds | | 11.2% | |
Asset-Backed/Commercial Mortgage-Backed Securities | | 9.0% | |
United States Treasury Notes/Bonds | | 6.5% | |
Investment Companies | | 2.1% | |
Other | | (1.8)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
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, 2023 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 11.01% | 5.82% | 7.43% | 9.12% | | | 0.89% |
Class A Shares at MOP | | 4.63% | 4.57% | 6.79% | 8.91% | | | |
Class C Shares at NAV | | 10.22% | 5.08% | 6.68% | 8.43% | | | 1.64% |
Class C Shares at CDSC | | 9.22% | 5.08% | 6.68% | 8.43% | | | |
Class D Shares | | 11.24% | 6.03% | 7.65% | 9.23% | | | 0.70% |
Class I Shares | | 11.28% | 6.09% | 7.72% | 9.27% | | | 0.66% |
Class N Shares | | 11.39% | 6.17% | 7.81% | 9.28% | | | 0.57% |
Class R Shares | | 10.53% | 5.38% | 7.00% | 8.73% | | | 1.32% |
Class S Shares | | 10.81% | 5.65% | 7.27% | 8.96% | | | 1.07% |
Class T Shares | | 11.11% | 5.92% | 7.54% | 9.18% | | | 0.82% |
S&P 500 Index | | 21.62% | 9.92% | 11.91% | 9.93% | | | |
Bloomberg U.S. Aggregate Bond Index | | 0.64% | 0.10% | 1.13% | 4.39% | | | |
Balanced Index | | 11.95% | 5.79% | 7.20% | 7.70% | | | |
Morningstar Quartile - Class T Shares | | 2nd | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Allocation - 50% to 70% Equity Funds | | 383/751 | 93/694 | 66/599 | 15/184 | | | |
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.
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.
© 2023 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.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $1,000.70 | $4.41 | | $1,000.00 | $1,020.66 | $4.46 | 0.88% |
Class C Shares | $1,000.00 | $997.20 | $8.01 | | $1,000.00 | $1,017.05 | $8.09 | 1.60% |
Class D Shares | $1,000.00 | $1,001.90 | $3.51 | | $1,000.00 | $1,021.56 | $3.55 | 0.70% |
Class I Shares | $1,000.00 | $1,001.80 | $3.31 | | $1,000.00 | $1,021.76 | $3.35 | 0.66% |
Class N Shares | $1,000.00 | $1,002.50 | $2.86 | | $1,000.00 | $1,022.21 | $2.89 | 0.57% |
Class R Shares | $1,000.00 | $998.50 | $6.56 | | $1,000.00 | $1,018.50 | $6.63 | 1.31% |
Class S Shares | $1,000.00 | $1,000.00 | $5.31 | | $1,000.00 | $1,019.75 | $5.37 | 1.06% |
Class T Shares | $1,000.00 | $1,001.30 | $4.01 | | $1,000.00 | $1,021.06 | $4.05 | 0.80% |
† | 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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– 9.0% | | | |
| | 208 Park Avenue Mortgage Trust 2017-280P, | | | | | | |
| | CME Term SOFR 1 Month + 0.9300%, 6.5100%, 9/15/34 (144A)‡ | | $11,417,538 | | | $11,080,179 | |
| | A&D Mortgage Trust 2023-NQM2 A1, 6.1320%, 5/25/68 (144A)Ç | | 16,336,255 | | | 16,098,738 | |
| | ACC Auto Trust 2022-A A, 4.5800%, 7/15/26 (144A) | | 3,199,249 | | | 3,167,870 | |
| | Aimco 2020-11A AR, | | | | | | |
| | CME Term SOFR 3 Month + 1.3916%, 6.6996%, 10/17/34 (144A)‡ | | 5,821,000 | | | 5,785,370 | |
| | Angel Oak Mortgage Trust I LLC 2019-5, 2.5930%, 10/25/49 (144A)‡ | | 1,225,473 | | | 1,160,292 | |
| | Angel Oak Mortgage Trust I LLC 2019-6, | | | | | | |
| | Refinitiv USD IBOR Consumer Cash Fallbacks 1 Year + 0.9500%, 2.6200%, 11/25/59 (144A)‡ | | 1,082,819 | | | 1,033,074 | |
| | Angel Oak Mortgage Trust I LLC 2020-3, | | | | | | |
| | Refinitiv USD IBOR Consumer Cash Fallbacks 1 Year + 1.0000%, 2.4100%, 4/25/65 (144A)‡ | | 2,676,888 | | | 2,404,072 | |
| | Aqua Finance Trust 2021-A A, 1.5400%, 7/17/46 (144A) | | 4,373,484 | | | 3,822,885 | |
| | ARES CLO Ltd 2021-60A A, | | | | | | |
| | CME Term SOFR 3 Month + 1.3816%, 6.6915%, 7/18/34 (144A)‡ | | 5,454,000 | | | 5,402,165 | |
| | Arivo Acceptance Auto Loan Receivables 2022-1A A, 3.9300%, 5/15/28 (144A) | | 4,338,561 | | | 4,243,631 | |
| | Babson CLO Ltd 2018-3A A1, | | | | | | |
| | CME Term SOFR 3 Month + 1.2116%, 6.5378%, 7/20/29 (144A)‡ | | 6,271,560 | | | 6,266,242 | |
| | Babson CLO Ltd 2019-3A A1R, | | | | | | |
| | CME Term SOFR 3 Month + 1.3316%, 6.6578%, 4/20/31 (144A)‡ | | 22,450,000 | | | 22,343,475 | |
| | Babson CLO Ltd 2020-4A A, | | | | | | |
| | CME Term SOFR 3 Month + 1.4816%, 6.8078%, 1/20/32 (144A)‡ | | 7,293,853 | | | 7,278,871 | |
| | Barclays Commercial Mortgage Securities LLC 2015-SRCH, | | | | | | |
| | 4.1970%, 8/10/35 (144A) | | 8,386,000 | | | 7,425,529 | |
| | BPR Trust 2022-OANA A, | | | | | | |
| | CME Term SOFR 1 Month + 1.8980%, 7.2302%, 4/15/37 (144A)‡ | | 33,039,000 | | | 32,439,641 | |
| | BPR Trust 2023-BRK2 A, 0%, 11/5/28 (144A)‡ | | 20,831,000 | | | 20,829,946 | |
| | BX Commercial Mortgage Trust 2019-OC11, 3.6050%, 12/9/41 (144A) | | 4,134,000 | | | 3,488,513 | |
| | BX Commercial Mortgage Trust 2019-OC11, 3.8560%, 12/9/41 (144A) | | 8,218,000 | | | 6,891,209 | |
| | BX Commercial Mortgage Trust 2019-XL, | | | | | | |
| | CME Term SOFR 1 Month + 1.0345%, 6.3667%, 10/15/36 (144A)‡ | | 16,716,870 | | | 16,672,057 | |
| | BX Commercial Mortgage Trust 2019-XL, | | | | | | |
| | CME Term SOFR 1 Month + 1.1945%, 6.5267%, 10/15/36 (144A)‡ | | 6,531,400 | | | 6,490,392 | |
| | BX Commercial Mortgage Trust 2020-VKNG A, | | | | | | |
| | CME Term SOFR 1 Month + 1.0445%, 6.3767%, 10/15/37 (144A)‡ | | 3,140,315 | | | 3,108,065 | |
| | BX Commercial Mortgage Trust 2021-LBA AJV, | | | | | | |
| | CME Term SOFR 1 Month + 0.9145%, 6.2475%, 2/15/36 (144A)‡ | | 18,764,000 | | | 18,416,077 | |
| | BX Commercial Mortgage Trust 2021-LBA AV, | | | | | | |
| | CME Term SOFR 1 Month + 0.9145%, 6.2475%, 2/15/36 (144A)‡ | | 14,912,300 | | | 14,649,149 | |
| | BX Commercial Mortgage Trust 2021-VINO A, | | | | | | |
| | CME Term SOFR 1 Month + 0.7668%, 6.0988%, 5/15/38 (144A)‡ | | 14,353,181 | | | 14,082,176 | |
| | BX Commercial Mortgage Trust 2021-VOLT B, | | | | | | |
| | CME Term SOFR 1 Month + 1.0645%, 6.3967%, 9/15/36 (144A)‡ | | 15,945,000 | | | 15,401,904 | |
| | BX Commercial Mortgage Trust 2021-VOLT D, | | | | | | |
| | CME Term SOFR 1 Month + 1.7645%, 7.0967%, 9/15/36 (144A)‡ | | 16,692,000 | | | 15,919,118 | |
| | BX Commercial Mortgage Trust 2022-FOX2 A2, | | | | | | |
| | CME Term SOFR 1 Month + 0.7492%, 6.0814%, 4/15/39 (144A)‡ | | 17,523,787 | | | 16,950,204 | |
| | BX Commercial Mortgage Trust 2023-VLT2 A, | | | | | | |
| | CME Term SOFR 1 Month + 2.2810%, 7.6132%, 6/15/40 (144A)‡ | | 5,274,000 | | | 5,265,182 | |
| | BX Commercial Mortgage Trust 2023-VLT2 B, | | | | | | |
| | CME Term SOFR 1 Month + 3.1290%, 8.4612%, 6/15/40 (144A)‡ | | 11,725,000 | | | 11,702,716 | |
| | BXP Trust 2017-GM, 3.3790%, 6/13/39 (144A) | | 4,190,000 | | | 3,760,951 | |
| | CBAM CLO Management 2019-11RA A1, | | | | | | |
| | CME Term SOFR 3 Month + 1.4416%, 6.4304%, 1/20/35 (144A)‡ | | 16,984,000 | | | 16,821,242 | |
| | CBAM CLO Management 2019-11RA B, | | | | | | |
| | CME Term SOFR 3 Month + 2.0116%, 7.0004%, 1/20/35 (144A)‡ | | 6,819,244 | | | 6,675,065 | |
| | Cedar Funding Ltd 2019-11A A1R, | | | | | | |
| | CME Term SOFR 3 Month + 1.3116%, 6.7155%, 5/29/32 (144A)‡ | | 21,276,000 | | | 21,160,705 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | CENT Trust 2023-CITY A, | | | | | | |
| | CME Term SOFR 1 Month + 2.6200%, 7.9522%, 9/15/28 (144A)‡ | | $21,107,000 | | | $21,154,577 | |
| | CF Hippolyta Issuer LLC 2021-1A A1, 1.5300%, 3/15/61 (144A) | | 15,867,990 | | | 13,901,819 | |
| | CF Hippolyta Issuer LLC 2021-1A B1, 1.9800%, 3/15/61 (144A) | | 5,992,082 | | | 4,763,797 | |
| | CF Hippolyta Issuer LLC 2022-1A A1, 5.9700%, 8/15/62 (144A) | | 21,326,849 | | | 20,627,612 | |
| | CF Hippolyta Issuer LLC 2022-1A A2, 6.1100%, 8/15/62 (144A) | | 49,846,356 | | | 47,923,792 | |
| | Chase Auto Credit Linked Notes 2021-1 B, 0.8750%, 9/25/28 (144A) | | 1,449,072 | | | 1,413,010 | |
| | Chase Auto Credit Linked Notes 2021-2 B, 0.8890%, 12/26/28 (144A) | | 3,478,670 | | | 3,378,677 | |
| | Chase Mortgage Finance Corp 2021-CL1 M1, | | | | | | |
| | US 30 Day Average SOFR + 1.2000%, 6.5150%, 2/25/50 (144A)‡ | | 14,907,459 | | | 14,104,339 | |
| | CIFC Funding Ltd 2018-3A A, | | | | | | |
| | CME Term SOFR 3 Month + 1.3616%, 6.6715%, 7/18/31 (144A)‡ | | 10,918,000 | | | 10,906,132 | |
| | CIFC Funding Ltd 2021-4A A, | | | | | | |
| | CME Term SOFR 3 Month + 1.3116%, 6.6196%, 7/15/33 (144A)‡ | | 19,742,995 | | | 19,675,553 | |
| | CIFC Funding Ltd 2021-7A B, | | | | | | |
| | CME Term SOFR 3 Month + 1.8616%, 7.2072%, 1/23/35 (144A)‡ | | 5,524,216 | | | 5,397,800 | |
| | CIM Trust 2021-NR1 A1, 2.5690%, 7/25/55 (144A)Ç | | 5,972,970 | | | 5,796,866 | |
| | CIM Trust 2021-NR4 A1, 2.8160%, 10/25/61 (144A)Ç | | 4,192,589 | | | 3,881,612 | |
| | Cold Storage Trust 2020-ICE5 A, | | | | | | |
| | CME Term SOFR 1 Month + 1.0145%, 6.3467%, 11/15/37 (144A)‡ | | 24,568,865 | | | 24,338,488 | |
| | Cold Storage Trust 2020-ICE5 B, | | | | | | |
| | CME Term SOFR 1 Month + 1.4145%, 6.7467%, 11/15/37 (144A)‡ | | 10,924,957 | | | 10,809,340 | |
| | Cold Storage Trust 2020-ICE5 C, | | | | | | |
| | CME Term SOFR 1 Month + 1.7645%, 7.0967%, 11/15/37 (144A)‡ | | 10,966,242 | | | 10,843,090 | |
| | COLT Funding LLC 2020-2, | | | | | | |
| | Refinitiv USD IBOR Consumer Cash Fallbacks 1 Year + 1.5000%, 1.8530%, 3/25/65 (144A)‡ | | 84,746 | | | 83,838 | |
| | COLT Funding LLC 2020-3, | | | | | | |
| | Refinitiv USD IBOR Consumer Cash Fallbacks 1 Year + 1.2000%, 1.5060%, 4/27/65 (144A)‡ | | 926,564 | | | 860,002 | |
| | Connecticut Avenue Securities Trust 2018-R07, | | | | | | |
| | US 30 Day Average SOFR + 2.5145%, 7.8294%, 4/25/31 (144A)‡ | | 491,515 | | | 491,956 | |
| | Connecticut Avenue Securities Trust 2019-R03, | | | | | | |
| | US 30 Day Average SOFR + 2.2645%, 7.5794%, 9/25/31 (144A)‡ | | 35,896 | | | 35,896 | |
| | Connecticut Avenue Securities Trust 2019-R07, | | | | | | |
| | US 30 Day Average SOFR + 2.2145%, 7.5294%, 10/25/39 (144A)‡ | | 281,186 | | | 281,621 | |
| | Connecticut Avenue Securities Trust 2021-R02 2M2, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 7.3150%, 11/25/41 (144A)‡ | | 32,659,000 | | | 31,911,741 | |
| | Connecticut Avenue Securities Trust 2021-R03 1M2, | | | | | | |
| | US 30 Day Average SOFR + 1.6500%, 6.9650%, 12/25/41 (144A)‡ | | 10,646,000 | | | 10,402,565 | |
| | Connecticut Avenue Securities Trust 2022-R02 2M2, | | | | | | |
| | US 30 Day Average SOFR + 3.0000%, 8.3150%, 1/25/42 (144A)‡ | | 12,368,000 | | | 12,379,136 | |
| | Connecticut Avenue Securities Trust 2022-R03 1M1, | | | | | | |
| | US 30 Day Average SOFR + 2.1000%, 7.4150%, 3/25/42 (144A)‡ | | 19,320,594 | | | 19,488,640 | |
| | Connecticut Avenue Securities Trust 2022-R04 1M1, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 7.3150%, 3/25/42 (144A)‡ | | 8,236,997 | | | 8,292,870 | |
| | Connecticut Avenue Securities Trust 2022-R05 2M1, | | | | | | |
| | US 30 Day Average SOFR + 1.9000%, 7.2150%, 4/25/42 (144A)‡ | | 10,101,496 | | | 10,122,751 | |
| | Connecticut Avenue Securities Trust 2022-R05 2M2, | | | | | | |
| | US 30 Day Average SOFR + 3.0000%, 8.3150%, 4/25/42 (144A)‡ | | 9,001,000 | | | 9,130,037 | |
| | Connecticut Avenue Securities Trust 2022-R06 1M1, | | | | | | |
| | US 30 Day Average SOFR + 2.7500%, 8.0650%, 5/25/42 (144A)‡ | | 6,159,652 | | | 6,313,884 | |
| | Connecticut Avenue Securities Trust 2022-R08 1M1, | | | | | | |
| | US 30 Day Average SOFR + 2.5500%, 7.8650%, 7/25/42 (144A)‡ | | 5,199,600 | | | 5,291,497 | |
| | Connecticut Avenue Securities Trust 2022-R09 2M1, | | | | | | |
| | US 30 Day Average SOFR + 2.5000%, 7.8150%, 9/25/42 (144A)‡ | | 18,431,663 | | | 18,636,740 | |
| | Connecticut Avenue Securities Trust 2023-R01 1M1, | | | | | | |
| | US 30 Day Average SOFR + 2.4000%, 7.7150%, 12/25/42 (144A)‡ | | 8,717,227 | | | 8,862,793 | |
| | Connecticut Avenue Securities Trust 2023-R03 2M1, | | | | | | |
| | US 30 Day Average SOFR + 2.5000%, 7.8150%, 4/25/43 (144A)‡ | | 12,038,849 | | | 12,181,401 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Connecticut Avenue Securities Trust 2023-R04 1M1, | | | | | | |
| | US 30 Day Average SOFR + 2.3000%, 7.6150%, 5/25/43 (144A)‡ | | $14,648,116 | | | $14,834,563 | |
| | Connecticut Avenue Securities Trust 2023-R06 1M1, | | | | | | |
| | US 30 Day Average SOFR + 1.7000%, 7.0150%, 7/25/43 (144A)‡ | | 13,709,537 | | | 13,695,914 | |
| | Consumer Loan Underlying Bond Credit Trust 2020-P1 C, | | | | | | |
| | 4.6100%, 3/15/28 (144A) | | 207,752 | | | 206,896 | |
| | CP EF Asset Securitization I LLC 2002-1A A, 5.9600%, 4/15/30 (144A) | | 5,625,324 | | | 5,538,628 | |
| | Credit Suisse Commercial Mortgage Trust 2019-ICE4, | | | | | | |
| | CME Term SOFR 1 Month + 1.0270%, 6.3600%, 5/15/36 (144A)‡ | | 26,496,081 | | | 26,430,289 | |
| | Credit Suisse Commercial Mortgage Trust 2019-ICE4 C, | | | | | | |
| | CME Term SOFR 1 Month + 1.4770%, 6.8100%, 5/15/36 (144A)‡ | | 5,494,331 | | | 5,460,122 | |
| | Credit Suisse Commercial Mortgage Trust 2021-WEHO A, | | | | | | |
| | CME Term SOFR 1 Month + 4.0838%, 9.4168%, 4/15/26 (144A)‡ | | 11,328,953 | | | 11,189,664 | |
| | DC Commercial Mortgage Trust 2023-DC A, 6.3143%, 9/12/40 (144A) | | 17,548,000 | | | 17,471,554 | |
| | Diamond Infrastructure Funding LLC 2021-1A A, 1.7600%, 4/15/49 (144A) | | 17,354,000 | | | 14,831,983 | |
| | Dryden Senior Loan Fund 2020-83A A, | | | | | | |
| | CME Term SOFR 3 Month + 1.4816%, 6.7915%, 1/18/32 (144A)‡ | | 7,111,119 | | | 7,098,084 | |
| | Elmwood CLO VIII Ltd 2019-2A AR, | | | | | | |
| | CME Term SOFR 3 Month + 1.4116%, 6.7378%, 4/20/34 (144A)‡ | | 8,217,000 | | | 8,179,678 | |
| | Exeter Automobile Receivables Trust 2021-1A D, 1.0800%, 11/16/26 | | 11,355,000 | | | 10,808,390 | |
| | Extended Stay America Trust 2021-ESH A, | | | | | | |
| | CME Term SOFR 1 Month + 1.1945%, 6.5265%, 7/15/38 (144A)‡ | | 8,648,487 | | | 8,565,153 | |
| | Fannie Mae REMICS, 3.0000%, 5/25/48 | | 7,250,055 | | | 6,202,344 | |
| | Fannie Mae REMICS, 3.0000%, 11/25/49 | | 9,806,873 | | | 8,295,384 | |
| | Flagstar Mortgage Trust 2021-13IN A2, 3.0000%, 12/30/51 (144A)‡ | | 31,939,876 | | | 25,132,340 | |
| | Foursight Capital Auto Receivables Trust 2021-1 B, 0.8700%, 1/15/26 (144A) | | 337,460 | | | 336,869 | |
| | Freddie Mac - SLST 2020-2 M1, 4.7500%, 9/25/60 (144A)‡ | | 5,651,973 | | | 5,389,666 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2019-DNA4 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.0645%, 7.3794%, 10/25/49 (144A)‡ | | 103,072 | | | 103,198 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-DNA6 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 7.3150%, 12/25/50 (144A)‡ | | 12,556,360 | | | 12,642,409 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA2 M2, | | | | | | |
| | US 30 Day Average SOFR + 3.2145%, 8.5294%, 3/25/50 (144A)‡ | | 3,905,225 | | | 4,029,308 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA5 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.6000%, 7.9150%, 11/25/50 (144A)‡ | | 13,479,784 | | | 13,648,059 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-DNA2 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.3000%, 7.6150%, 8/25/33 (144A)‡ | | 19,968,923 | | | 20,130,429 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-DNA7 M1, | | | | | | |
| | US 30 Day Average SOFR + 0.8500%, 6.1650%, 11/25/41 (144A)‡ | | 9,920,246 | | | 9,793,051 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-HQA1 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.2500%, 7.5650%, 8/25/33 (144A)‡ | | 25,776,689 | | | 25,613,222 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-HQA4 M1, | | | | | | |
| | US 30 Day Average SOFR + 0.9500%, 6.2650%, 12/25/41 (144A)‡ | | 19,815,990 | | | 19,381,098 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-DNA2 M1A, | | | | | | |
| | US 30 Day Average SOFR + 1.3000%, 6.6150%, 2/25/42 (144A)‡ | | 3,930,324 | | | 3,920,348 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-DNA3 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 7.3150%, 4/25/42 (144A)‡ | | 3,848,654 | | | 3,877,702 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-DNA5 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.9500%, 8.2650%, 6/25/42 (144A)‡ | | 12,187,238 | | | 12,480,804 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-DNA6 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.1500%, 7.4650%, 9/25/42 (144A)‡ | | 3,023,402 | | | 3,046,952 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-HQA1 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.1000%, 7.4150%, 3/25/42 (144A)‡ | | 7,959,866 | | | 8,027,013 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-HQA2 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.6500%, 7.9650%, 7/25/42 (144A)‡ | | 6,525,707 | | | 6,655,783 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-HQA3 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.3000%, 7.6150%, 8/25/42 (144A)‡ | | 5,937,661 | | | 6,015,588 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2023-DNA2 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.1000%, 7.4150%, 4/25/43 (144A)‡ | | 6,306,444 | | | 6,365,516 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2023-HQA2 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 7.3150%, 6/25/43 (144A)‡ | | $1,605,038 | | | $1,612,716 | |
| | GCAT 2022-INV1 A1, 3.0000%, 12/25/51 (144A)‡ | | 40,888,369 | | | 32,393,221 | |
| | GCAT 2023-INV1 A1, 6.0000%, 8/25/53 (144A)‡ | | 23,323,165 | | | 22,533,854 | |
| | Great Wolf Trust, | | | | | | |
| | CME Term SOFR 1 Month + 1.1485%, 6.4805%, 12/15/36 (144A)‡ | | 19,125,000 | | | 19,033,587 | |
| | Great Wolf Trust, | | | | | | |
| | CME Term SOFR 1 Month + 1.4485%, 6.7805%, 12/15/36 (144A)‡ | | 4,405,000 | | | 4,366,869 | |
| | Great Wolf Trust, | | | | | | |
| | CME Term SOFR 1 Month + 1.7475%, 7.0795%, 12/15/36 (144A)‡ | | 4,900,000 | | | 4,846,878 | |
| | Highbridge Loan Management Ltd 2021-16A B, | | | | | | |
| | CME Term SOFR 3 Month + 1.9616%, 7.3072%, 1/23/35 (144A)‡ | | 5,360,143 | | | 5,267,970 | |
| | Hudson Bay Simon JV Trust 2015-HB7 A7, 3.9141%, 8/5/34 (144A) | | 6,829,000 | | | 6,069,409 | |
| | Hudsons Bay Simon JV Trust 2015-HB10 A10, 4.1545%, 8/5/34 (144A) | | 2,729,661 | | | 2,312,707 | |
| | Imerial Fund LLC 2023-NQM1 A1, 5.9410%, 2/25/68 (144A)Ç | | 11,642,730 | | | 11,397,819 | |
| | JP Morgan Chase Commercial Mortgage Sec Trust 2020-ACE A, | | | | | | |
| | 3.2865%, 1/10/37 (144A) | | 20,581,000 | | | 19,345,151 | |
| | JP Morgan Chase Commercial Mortgage Sec Trust 2020-ACE B, | | | | | | |
| | 3.6401%, 1/10/37 (144A) | | 14,000,000 | | | 12,973,947 | |
| | LAD Auto Receivables Trust 2021-1A A, 1.3000%, 8/17/26 (144A) | | 2,876,950 | | | 2,820,854 | |
| | LAD Auto Receivables Trust 2022-1A A, 5.2100%, 6/15/27 (144A) | | 13,356,980 | | | 13,253,301 | |
| | LCM LP 24A AR, CME Term SOFR 3 Month + 1.2416%, 6.5678%, 3/20/30 (144A)‡ | | 5,663,627 | | | 5,646,727 | |
| | Lendbuzz Securitization Trust 2021-1A A, 4.2200%, 5/17/27 (144A)‡ | | 11,563,719 | | | 11,212,656 | |
| | Lendbuzz Securitization Trust 2023-1A A2, 6.9200%, 8/15/28 (144A) | | 8,282,289 | | | 8,257,047 | |
| | Life Financial Services Trust 2021-BMR A, | | | | | | |
| | CME Term SOFR 1 Month + 0.8145%, 6.1465%, 3/15/38 (144A)‡ | | 26,199,103 | | | 25,660,335 | |
| | Life Financial Services Trust 2021-BMR C, | | | | | | |
| | CME Term SOFR 1 Month + 1.2145%, 6.5465%, 3/15/38 (144A)‡ | | 15,119,064 | | | 14,658,985 | |
| | Life Financial Services Trust 2022-BMR2 A1, | | | | | | |
| | CME Term SOFR 1 Month + 1.2952%, 6.6274%, 5/15/39 (144A)‡ | | 36,759,000 | | | 36,106,204 | |
| | Life Financial Services Trust 2022-BMR2 B, | | | | | | |
| | CME Term SOFR 1 Month + 1.7939%, 7.1261%, 5/15/39 (144A)‡ | | 6,155,000 | | | 6,027,106 | |
| | M&T Equipment Notes 2023-1A A2, 6.0900%, 7/15/30 (144A) | | 9,560,000 | | | 9,516,518 | |
| | M&T Equipment Notes 2023-1A A3, 5.7400%, 7/15/30 (144A) | | 5,243,000 | | | 5,154,717 | |
| | Madison Park Funding Ltd 2019-35A A1R, | | | | | | |
| | CME Term SOFR 3 Month + 1.2516%, 6.5778%, 4/20/32 (144A)‡ | | 28,249,000 | | | 28,154,874 | |
| | Marlette Funding Trust 2023-2A B, 6.5400%, 6/15/33 (144A) | | 5,503,000 | | | 5,487,154 | |
| | MED Trust 2021-MDLN E, | | | | | | |
| | CME Term SOFR 1 Month + 3.2645%, 8.5965%, 11/15/38 (144A)‡ | | 21,321,672 | | | 20,296,492 | |
| | Mello Mortgage Capital Acceptance Trust 2021-INV2 A11, | | | | | | |
| | US 30 Day Average SOFR + 0.9500%, 5.0000%, 8/25/51 (144A)‡ | | 10,755,666 | | | 9,856,676 | |
| | Mello Mortgage Capital Acceptance Trust 2021-INV3 A11, | | | | | | |
| | US 30 Day Average SOFR + 0.9500%, 5.0000%, 10/25/51 (144A)‡ | | 13,331,087 | | | 12,217,052 | |
| | Mello Mortgage Capital Acceptance Trust 2021-INV4 A3, | | | | | | |
| | 2.5000%, 12/25/51 (144A)‡ | | 8,152,206 | | | 6,153,263 | |
| | Mello Mortgage Capital Acceptance Trust 2022-INV1 A2, | | | | | | |
| | 3.0000%, 3/25/52 (144A)‡ | | 27,903,677 | | | 21,955,399 | |
| | Mercury Financial Credit Card Master Trust 2023-1A A, | | | | | | |
| | 8.0400%, 9/20/27 (144A) | | 18,285,000 | | | 18,396,921 | |
| | MHC Commercial Mortgage Trust 2021-MHC A, | | | | | | |
| | CME Term SOFR 1 Month + 0.9154%, 6.2474%, 4/15/38 (144A)‡ | | 25,579,981 | | | 25,238,782 | |
| | MHC Commercial Mortgage Trust 2021-MHC C, | | | | | | |
| | CME Term SOFR 1 Month + 1.4654%, 6.7974%, 4/15/38 (144A)‡ | | 14,440,023 | | | 14,171,948 | |
| | NCMF Trust 2022-MFP A, | | | | | | |
| | CME Term SOFR 1 Month + 1.7420%, 7.0742%, 3/15/39 (144A)‡ | | 9,928,000 | | | 9,820,027 | |
| | New Economy Assets Phase 1 Issuer LLC 2021-1 B1, 2.4100%, 10/20/61 (144A) | | 8,554,000 | | | 7,112,577 | |
| | New Residential Mortgage Loan Trust 2018-2, | | | | | | |
| | Refinitiv USD IBOR Consumer Cash Fallbacks 6 Months + 0.6800%, 4.5000%, 2/25/58 (144A)‡ | | 1,260,379 | | | 1,188,976 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2023 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | NRZ Excess Spread Collateralized Notes 2020-PLS1 A, | | | | | | |
| | 3.8440%, 12/25/25 (144A) | | $3,128,043 | | | $2,916,050 | |
| | NRZ Excess Spread Collateralized Notes 2021-FHT1 A, 3.1040%, 7/25/26 (144A) | | 7,740,389 | | | 6,922,267 | |
| | Oak Street Investment Grade Net Lease Fund 2020-1A A1, | | | | | | |
| | 1.8500%, 11/20/50 (144A) | | 12,909,004 | | | 11,606,393 | |
| | Oasis Securitization 2022-1A A, 4.7500%, 5/15/34 (144A) | | 2,913,613 | | | 2,885,252 | |
| | Oasis Securitization 2022-2A A, 6.8500%, 10/15/34 (144A) | | 3,688,764 | | | 3,683,432 | |
| | Oceanview Mortgage Trust 2021-5 AF, | | | | | | |
| | US 30 Day Average SOFR + 0.8500%, 5.0000%, 11/25/51 (144A)‡ | | 14,984,470 | | | 13,696,712 | |
| | Oceanview Mortgage Trust 2022-1 A1, 3.0000%, 12/25/51 (144A)‡ | | 16,516,268 | | | 13,000,996 | |
| | Oceanview Mortgage Trust 2022-2 A1, 3.0000%, 12/25/51 (144A)‡ | | 30,722,861 | | | 24,220,966 | |
| | Onslow Bay Financial LLC 2021-INV3 A3, 2.5000%, 10/25/51 (144A)‡ | | 9,324,493 | | | 7,077,062 | |
| | Onslow Bay Financial LLC 2022-INV1 A1, 3.0000%, 12/25/51 (144A)‡ | | 30,855,576 | | | 24,309,220 | |
| | Onslow Bay Financial LLC 2022-INV1 A18, 3.0000%, 12/25/51 (144A)‡ | | 13,083,864 | | | 10,020,522 | |
| | Pagaya AI Debt Selection Trust 2022-1 A, 2.0300%, 10/15/29 (144A) | | 4,300,609 | | | 4,211,227 | |
| | Preston Ridge Partners Mortgage Trust 2020-4 A1, 2.9510%, 10/25/25 (144A)Ç | | 8,557,686 | | | 8,338,475 | |
| | Preston Ridge Partners Mortgage Trust 2021-10 A1, 2.4870%, 10/25/26 (144A)Ç | | 21,518,097 | | | 20,057,888 | |
| | Preston Ridge Partners Mortgage Trust 2021-9 A1, 2.3630%, 10/25/26 (144A)Ç | | 15,724,779 | | | 14,711,272 | |
| | Preston Ridge Partners Mortgage Trust 2022-2 A1, 5.0000%, 3/25/27 (144A)Ç | | 23,077,482 | | | 22,375,709 | |
| | Reach Financial LLC 2022-2A A, 6.6300%, 5/15/30 (144A) | | 2,383,664 | | | 2,380,957 | |
| | Regatta XXIII Funding Ltd 2021-4A B, | | | | | | |
| | CME Term SOFR 3 Month + 1.9616%, 7.2878%, 1/20/35 (144A)‡ | | 5,891,224 | | | 5,811,545 | |
| | Saluda Grade Alternative Mortgage Trust 2023-FIG3 A, 7.0670%, 8/25/53‡ | | 26,074,892 | | | 26,074,553 | |
| | Saluda Grade Alternative Mortgage Trust 2023-SEQ3 A1, | | | | | | |
| | Prime Rate by Country United States + 2.3000%, 7.1620%, 6/1/53 (144A)‡ | | 6,730,205 | | | 6,709,409 | |
| | Santander Bank Auto Credit-Linked Notes 2021-1A B, 1.8330%, 12/15/31 (144A) | | 1,941,971 | | | 1,876,964 | |
| | Santander Bank Auto Credit-Linked Notes 2022-A B, 5.2810%, 5/15/32 (144A) | | 8,321,456 | | | 8,239,453 | |
| | Santander Bank Auto Credit-Linked Notes 2022-B A2, 5.5870%, 8/16/32 (144A) | | 3,857,113 | | | 3,791,841 | |
| | Santander Drive Auto Receivables Trust 2020-3 D, 1.6400%, 11/16/26 | | 21,118,521 | | | 20,664,333 | |
| | Sequoia Mortgage Trust 2013-5, 2.5000%, 5/25/43 (144A)‡ | | 2,153,611 | | | 1,782,356 | |
| | Sequoia Mortgage Trust 2020-2, 3.5000%, 3/25/50 (144A)‡ | | 890,154 | | | 729,911 | |
| | Signal Peak CLO LLC 2022-12A A1, 7.1207%, 7/10/28‡ | | 31,401,000 | | | 31,158,695 | |
| | SMRT 2022-MINI A, CME Term SOFR 1 Month + 1.0000%, 6.3330%, 1/15/39 (144A)‡ | | 10,990,000 | | | 10,714,123 | |
| | Sound Point CLO Ltd 2019-1A AR, | | | | | | |
| | CME Term SOFR 3 Month + 1.3416%, 6.6678%, 1/20/32 (144A)‡ | | 26,345,000 | | | 26,110,793 | |
| | Spruce Hill Mortgage Loan Trust 2020-SH1 A1, | | | | | | |
| | Refinitiv USD IBOR Consumer Cash Fallbacks 1 Year + 0.9500%, 2.5210%, 1/28/50 (144A)‡ | | 50,908 | | | 61,821 | |
| | Spruce Hill Mortgage Loan Trust 2020-SH1 A2, | | | | | | |
| | Refinitiv USD IBOR Consumer Cash Fallbacks 1 Year + 1.0500%, 2.6240%, 1/28/50 (144A)‡ | | 284,819 | | | 345,919 | |
| | SREIT Trust 2021-MFP A, | | | | | | |
| | CME Term SOFR 1 Month + 0.8453%, 6.1775%, 11/15/38 (144A)‡ | | 2,350,000 | | | 2,305,071 | |
| | Tesla Auto Lease Trust 2021-B A3, 0.6000%, 9/22/25 (144A) | | 8,570,000 | | | 8,355,285 | |
| | Tesla Auto Lease Trust 2021-B B, 0.9100%, 9/22/25 (144A) | | 4,395,000 | | | 4,209,883 | |
| | THL Credit Wind River CLO Ltd 2019-1A AR, | | | | | | |
| | CME Term SOFR 3 Month + 1.4216%, 6.7478%, 7/20/34 (144A)‡ | | 7,594,000 | | | 7,499,493 | |
| | Towd Point Mortgage Trust 2023-CES1 A1A, 6.7500%, 7/25/63 (144A)‡ | | 6,855,178 | | | 6,927,433 | |
| | Tricolor Auto Securitization Trust 2022-1A A, 3.3000%, 2/18/25 (144A) | | 340,830 | | | 340,122 | |
| | United Wholesale Mortgage LLC 2021-INV1 A9, | | | | | | |
| | US 30 Day Average SOFR + 0.9000%, 5.0000%, 8/25/51 (144A)‡ | | 12,701,104 | | | 11,584,739 | |
| | United Wholesale Mortgage LLC 2021-INV4 A3, 2.5000%, 12/25/51 (144A)‡ | | 6,240,077 | | | 4,703,800 | |
| | Upstart Securitization Trust 2021-4 A, 0.8400%, 9/20/31 (144A) | | 1,416,210 | | | 1,403,053 | |
| | Upstart Securitization Trust 2021-5 A, 1.3100%, 11/20/31 (144A) | | 1,366,100 | | | 1,346,536 | |
| | Upstart Securitization Trust 2022-1 A, 3.1200%, 3/20/32 (144A) | | 8,679,481 | | | 8,532,911 | |
| | Upstart Securitization Trust 2022-2 A, 4.3700%, 5/20/32 (144A) | | 10,387,588 | | | 10,308,269 | |
| | Vantage Data Centers LLC 2020-1A A2, 1.6450%, 9/15/45 (144A) | | 17,832,000 | | | 16,101,432 | |
| | Vantage Data Centers LLC 2020-2A A2, 1.9920%, 9/15/45 (144A) | | 11,511,000 | | | 9,593,117 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | VASA Trust 2021-VASA A, | | | | | | |
| | CME Term SOFR 1 Month + 1.0145%, 6.3475%, 7/15/39 (144A)‡ | | $8,418,000 | | | $7,336,267 | |
| | VCAT Asset Securitization LLC 2021-NPL1 A1, 2.2891%, 12/26/50 (144A) | | 1,827,876 | | | 1,773,328 | |
| | VMC Finance LLC 2021-HT1 A, | | | | | | |
| | CME Term SOFR 1 Month + 1.7645%, 7.0951%, 1/18/37 (144A)‡ | | 10,311,722 | | | 10,066,373 | |
| | Wells Fargo Commercial Mortgage Trust 2021-SAVE A, | | | | | | |
| | CME Term SOFR 1 Month + 1.2645%, 6.5975%, 2/15/40 (144A)‡ | | 3,699,864 | | | 3,501,181 | |
| | Westgate Resorts 2022-1A A, 1.7880%, 8/20/36 (144A) | | 3,897,819 | | | 3,665,891 | |
| | Westlake Automobile Receivable Trust 2020-1A D, 2.8000%, 6/16/25 (144A) | | 5,325,088 | | | 5,288,028 | |
| | Woodward Capital Management 2021-3 A21, | | | | | | |
| | US 30 Day Average SOFR + 0.8000%, 5.0000%, 7/25/51 (144A)‡ | | 9,490,141 | | | 8,628,291 | |
| | Woodward Capital Management 2023-CES1 A1A, 6.5150%, 6/25/43 (144A)‡ | | 13,083,642 | | | 12,977,277 | |
| | Woodward Capital Management 2023-CES2 A1A, 6.8080%, 9/25/43 (144A)‡ | | 24,674,102 | | | 24,639,504 | |
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $2,122,143,783) | | 2,035,410,697 | |
Corporate Bonds– 11.2% | | | |
Banking – 4.5% | | | |
| | American Express Co, SOFR + 1.8350%, 5.0430%, 5/1/34‡ | | 20,898,000 | | | 19,266,934 | |
| | Bank of America Corp, SOFR + 1.9900%, 6.2040%, 11/10/28‡ | | 29,671,000 | | | 29,805,005 | |
| | Bank of America Corp, SOFR + 1.5700%, 5.8190%, 9/15/29‡ | | 43,386,000 | | | 42,853,542 | |
| | Bank of America Corp, SOFR + 1.8400%, 5.8720%, 9/15/34‡ | | 41,429,000 | | | 40,317,900 | |
| | Bank of America Corp, CME Term SOFR 3 Month + 3.9666%, 6.2500%‡,µ | | 21,700,000 | | | 21,349,175 | |
| | Bank of New York Mellon Corp/The, SOFR + 1.0260%, 4.9470%, 4/26/27‡ | | 13,020,000 | | | 12,708,633 | |
| | Bank of New York Mellon Corp/The, SOFR + 1.6060%, 4.9670%, 4/26/34‡ | | 8,008,000 | | | 7,384,088 | |
| | Bank of New York Mellon/The, SOFR + 2.0740%, 5.8340%, 10/25/33‡ | | 20,941,000 | | | 20,584,888 | |
| | Bank of Montreal, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 1.4000%, 3.0880%, 1/10/37‡ | | 53,212,000 | | | 39,652,003 | |
| | Barclays PLC, SOFR + 1.8800%, 6.4960%, 9/13/27‡ | | 9,932,000 | | | 9,905,651 | |
| | Barclays PLC, SOFR + 2.2200%, 6.4900%, 9/13/29‡ | | 7,819,000 | | | 7,755,062 | |
| | Barclays PLC, SOFR + 2.6200%, 6.6920%, 9/13/34‡ | | 16,112,000 | | | 15,729,842 | |
| | BNP Paribas SA, SOFR + 1.2280%, 2.5910%, 1/20/28 (144A)‡ | | 12,805,000 | | | 11,408,001 | |
| | BNP Paribas SA, | | | | | | |
| | US Treasury Yield Curve Rate 1 Year + 1.4500%, 5.1250%, 1/13/29 (144A)‡ | | 22,678,000 | | | 21,895,155 | |
| | Capital One Financial Corp, SOFR + 2.6400%, 6.3120%, 6/8/29‡ | | 23,349,000 | | | 22,818,908 | |
| | Citigroup Inc, CME Term SOFR 3 Month + 1.8246%, 3.8870%, 1/10/28‡ | | 36,115,000 | | | 33,665,990 | |
| | Citigroup Inc, CME Term SOFR 3 Month + 4.1666%, 5.9500%‡,µ | | 8,361,000 | | | 7,977,573 | |
| | Citigroup Inc, CME Term SOFR 3 Month + 3.6846%, 6.3000%‡,µ | | 2,012,000 | | | 1,955,766 | |
| | Cooperatieve Rabobank UA, | | | | | | |
| | US Treasury Yield Curve Rate 1 Year + 1.4000%, 5.5640%, 2/28/29 (144A)‡ | | 31,140,000 | | | 30,350,154 | |
| | Deutsche Bank AG / New York, SOFR + 3.0430%, 3.5470%, 9/18/31‡ | | 3,997,000 | | | 3,222,401 | |
| | Deutsche Bank AG / New York, SOFR + 3.6500%, 7.0790%, 2/10/34‡ | | 11,594,000 | | | 10,477,980 | |
| | Goldman Sachs Group Inc, 3.5000%, 4/1/25 | | 39,166,000 | | | 37,711,820 | |
| | ING Groep NV, SOFR + 1.5600%, 6.0830%, 9/11/27‡ | | 9,068,000 | | | 9,027,703 | |
| | JPMorgan Chase & Co, SOFR + 1.4500%, 5.2990%, 7/24/29‡ | | 21,804,000 | | | 21,214,915 | |
| | JPMorgan Chase & Co, CME Term SOFR 3 Month + 2.5150%, 2.9560%, 5/13/31‡ | | 22,144,000 | | | 18,194,057 | |
| | JPMorgan Chase & Co, SOFR + 2.5800%, 5.7170%, 9/14/33‡ | | 39,262,000 | | | 37,741,811 | |
| | JPMorgan Chase & Co, SOFR + 1.8450%, 5.3500%, 6/1/34‡ | | 9,000,000 | | | 8,534,492 | |
| | JPMorgan Chase & Co, CME Term SOFR 3 Month + 3.3800%, 5.0000%‡,µ | | 7,243,000 | | | 7,000,864 | |
| | Mitsubishi UFJ Financial Group Inc, | | | | | | |
| | US Treasury Yield Curve Rate 1 Year + 1.7000%, 4.7880%, 7/18/25‡ | | 15,834,000 | | | 15,649,574 | |
| | Morgan Stanley, SOFR + 1.9900%, 2.1880%, 4/28/26‡ | | 24,836,000 | | | 23,330,754 | |
| | Morgan Stanley, 4.3500%, 9/8/26 | | 14,618,000 | | | 13,937,955 | |
| | Morgan Stanley, SOFR + 1.2950%, 5.0500%, 1/28/27‡ | | 6,743,000 | | | 6,609,701 | |
| | Morgan Stanley, SOFR + 0.8790%, 1.5930%, 5/4/27‡ | | 11,537,000 | | | 10,268,855 | |
| | Morgan Stanley, CME Term SOFR 3 Month + 1.4016%, 3.7720%, 1/24/29‡ | | 2,164,000 | | | 1,973,253 | |
| | Morgan Stanley, SOFR + 1.7300%, 5.1230%, 2/1/29‡ | | 14,927,000 | | | 14,374,935 | |
| | Morgan Stanley, SOFR + 1.5900%, 5.1640%, 4/20/29‡ | | 20,429,000 | | | 19,653,817 | |
| | Morgan Stanley, SOFR + 1.6300%, 5.4490%, 7/20/29‡ | | 9,697,000 | | | 9,449,423 | |
| | Morgan Stanley, SOFR + 1.2900%, 2.9430%, 1/21/33‡ | | 16,462,000 | | | 12,963,954 | |
| | Morgan Stanley, SOFR + 1.8700%, 5.2500%, 4/21/34‡ | | 6,492,000 | | | 6,027,692 | |
| | Morgan Stanley, SOFR + 1.8800%, 5.4240%, 7/21/34‡ | | 32,203,000 | | | 30,376,827 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2023 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Banking– (continued) | | | |
| | Morgan Stanley, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 2.4300%, 5.9480%, 1/19/38‡ | | $5,688,000 | | | $5,316,437 | |
| | National Australia Bank Ltd, 2.9900%, 5/21/31 (144A) | | 28,726,000 | | | 22,300,010 | |
| | Nordea Bank Abp, 5.3750%, 9/22/27 (144A) | | 30,280,000 | | | 29,568,807 | |
| | PNC Financial Services Group Inc/The, SOFR + 1.8410%, 5.5820%, 6/12/29‡ | | 32,645,000 | | | 31,669,361 | |
| | PNC Financial Services Group Inc/The, SOFR + 2.1400%, 6.0370%, 10/28/33‡ | | 9,079,000 | | | 8,810,913 | |
| | PNC Financial Services Group Inc/The, SOFR + 1.9330%, 5.0680%, 1/24/34‡ | | 14,040,000 | | | 12,732,161 | |
| | Royal Bank of Canada, 5.0000%, 5/2/33 | | 32,470,000 | | | 30,167,029 | |
| | State Street Corp, SOFR + 1.5670%, 4.8210%, 1/26/34‡ | | 6,668,000 | | | 6,079,838 | |
| | Sumitomo Mitsui Financial Group Inc, 5.7100%, 1/13/30 | | 19,255,000 | | | 18,839,446 | |
| | Sumitomo Mitsui Financial Group Inc, 5.8520%, 7/13/30 | | 23,583,000 | | | 23,270,190 | |
| | Sumitomo Mitsui Financial Group Inc, 5.7760%, 7/13/33 | | 4,492,000 | | | 4,390,717 | |
| | Toronto-Dominion Bank/The, 5.5230%, 7/17/28 | | 28,925,000 | | | 28,550,100 | |
| | Truist Financial Corp, SOFR + 2.0500%, 6.0470%, 6/8/27‡ | | 12,523,000 | | | 12,386,779 | |
| | US Bancorp, SOFR + 2.0200%, 5.7750%, 6/12/29‡ | | 20,094,000 | | | 19,559,101 | |
| | US Bancorp, SOFR + 1.6000%, 4.8390%, 2/1/34‡ | | 2,889,000 | | | 2,543,640 | |
| | US Bancorp, SOFR + 2.2600%, 5.8360%, 6/12/34‡ | | 6,742,000 | | | 6,358,716 | |
| | US Bancorp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 0.9500%, 2.4910%, 11/3/36‡ | | 20,457,000 | | | 14,411,863 | |
| | Westpac Banking Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 1.7500%, 2.6680%, 11/15/35‡ | | 19,870,000 | | | 14,886,207 | |
| | | 1,006,968,368 | |
Basic Industry – 0.3% | | | |
| | Celanese US Holdings LLC, 6.3500%, 11/15/28 | | 9,170,000 | | | 9,054,750 | |
| | Celanese US Holdings LLC, 6.3300%, 7/15/29 | | 9,083,000 | | | 8,903,258 | |
| | Celanese US Holdings LLC, 6.5500%, 11/15/30 | | 22,993,000 | | | 22,501,645 | |
| | Celanese US Holdings LLC, 6.7000%, 11/15/33 | | 22,403,000 | | | 21,807,403 | |
| | | 62,267,056 | |
Brokerage – 0.3% | | | |
| | Charles Schwab Corp, SOFR + 2.0100%, 6.1360%, 8/24/34‡ | | 26,952,000 | | | 26,217,737 | |
| | Nasdaq Inc, 5.3500%, 6/28/28 | | 4,627,000 | | | 4,542,467 | |
| | Nasdaq Inc, 5.5500%, 2/15/34 | | 30,957,000 | | | 29,546,987 | |
| | Nasdaq Inc, 5.9500%, 8/15/53 | | 14,615,000 | | | 13,651,599 | |
| | Nasdaq Inc, 6.1000%, 6/28/63 | | 6,206,000 | | | 5,771,502 | |
| | | 79,730,292 | |
Capital Goods – 0.2% | | | |
| | General Dynamics Corp, 3.5000%, 4/1/27 | | 7,372,000 | | | 6,954,137 | |
| | L3Harris Technologies Inc, 5.4000%, 7/31/33 | | 16,296,000 | | | 15,664,903 | |
| | Lockheed Martin Corp, 4.4500%, 5/15/28 | | 8,605,000 | | | 8,328,060 | |
| | Regal Rexnord Corp, 6.0500%, 4/15/28 (144A) | | 16,939,000 | | | 16,475,999 | |
| | | 47,423,099 | |
Communications – 0.1% | | | |
| | AT&T Inc, 3.6500%, 9/15/59 | | 2,171,000 | | | 1,320,941 | |
| | Comcast Corp, 4.5500%, 1/15/29 | | 13,994,000 | | | 13,439,005 | |
| | Comcast Corp, 4.8000%, 5/15/33 | | 10,425,000 | | | 9,780,133 | |
| | Fox Corp, 4.0300%, 1/25/24 | | 8,690,000 | | | 8,628,377 | |
| | | 33,168,456 | |
Consumer Cyclical – 0.4% | | | |
| | CBRE Services Inc, 5.9500%, 8/15/34 | | 39,681,000 | | | 37,427,547 | |
| | GLP Capital LP / GLP Financing II Inc, 5.3750%, 4/15/26 | | 9,419,000 | | | 9,132,503 | |
| | GLP Capital LP / GLP Financing II Inc, 5.3000%, 1/15/29 | | 1,226,000 | | | 1,136,527 | |
| | LKQ Corp, 5.7500%, 6/15/28 (144A) | | 20,493,000 | | | 20,019,937 | |
| | LKQ Corp, 6.2500%, 6/15/33 (144A) | | 19,272,000 | | | 18,634,921 | |
| | | 86,351,435 | |
Consumer Non-Cyclical – 1.4% | | | |
| | Albertsons Cos Inc / Safeway Inc / New Albertsons LP / Albertsons LLC, | | | | | | |
| | 6.5000%, 2/15/28 (144A) | | 14,308,000 | | | 14,141,695 | |
| | Amgen Inc, 5.1500%, 3/2/28 | | 17,500,000 | | | 17,211,175 | |
| | Amgen Inc, 5.2500%, 3/2/30 | | 13,952,000 | | | 13,630,919 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Consumer Non-Cyclical– (continued) | | | |
| | CSL Finance Ltd, 3.8500%, 4/27/27 (144A) | | $6,306,000 | | | $5,974,763 | |
| | CSL Finance Ltd, 4.0500%, 4/27/29 (144A) | | 12,756,000 | | | 11,898,523 | |
| | Diageo Capital PLC, 1.3750%, 9/29/25 | | 11,362,000 | | | 10,501,511 | |
| | GE HealthCare Technologies Inc, 5.6500%, 11/15/27 | | 22,545,000 | | | 22,508,006 | |
| | GE HealthCare Technologies Inc, 5.8570%, 3/15/30 | | 4,711,000 | | | 4,673,484 | |
| | GSK Consumer Healthcare Capital US LLC, 3.3750%, 3/24/27 | | 10,875,000 | | | 10,089,274 | |
| | GSK Consumer Healthcare Capital US LLC, 3.3750%, 3/24/29 | | 5,546,000 | | | 4,973,409 | |
| | Hasbro Inc, 3.9000%, 11/19/29 | | 34,171,000 | | | 30,228,286 | |
| | Hasbro Inc, 5.1000%, 5/15/44 | | 5,211,000 | | | 4,257,942 | |
| | HCA Inc, 5.8750%, 2/15/26 | | 4,146,000 | | | 4,123,020 | |
| | HCA Inc, 5.3750%, 9/1/26 | | 3,180,000 | | | 3,120,851 | |
| | HCA Inc, 5.2000%, 6/1/28 | | 5,579,000 | | | 5,391,929 | |
| | HCA Inc, 5.6250%, 9/1/28 | | 9,208,000 | | | 8,978,347 | |
| | HCA Inc, 5.8750%, 2/1/29 | | 6,941,000 | | | 6,828,407 | |
| | HCA Inc, 3.6250%, 3/15/32 | | 10,927,000 | | | 9,057,266 | |
| | HCA Inc, 5.5000%, 6/1/33 | | 18,299,000 | | | 17,305,793 | |
| | Illumina Inc, 5.8000%, 12/12/25 | | 11,709,000 | | | 11,633,391 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, 5.5000%, 1/15/30 | | 19,216,000 | | | 17,938,853 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, 3.6250%, 1/15/32 | | 9,318,000 | | | 7,419,089 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, 3.0000%, 5/15/32 | | 13,810,000 | | | 10,418,013 | |
| | Mondelez International Inc, 2.7500%, 4/13/30 | | 1,182,000 | | | 994,400 | |
| | Pfizer Investment Enterprises Pte Ltd, 4.4500%, 5/19/28 | | 22,867,000 | | | 22,046,425 | |
| | Pfizer Investment Enterprises Pte Ltd, 4.6500%, 5/19/30 | | 12,699,000 | | | 12,169,506 | |
| | Pilgrim's Pride Corp, 6.2500%, 7/1/33 | | 22,981,000 | | | 21,597,297 | |
| | Royalty Pharma PLC, 3.5500%, 9/2/50 | | 14,211,000 | | | 8,685,754 | |
| | | 317,797,328 | |
Electric – 0.7% | | | |
| | American Electric Power Co Inc, 5.6250%, 3/1/33 | | 21,563,000 | | | 20,865,566 | |
| | Duke Energy Corp, 4.3000%, 3/15/28 | | 15,581,000 | | | 14,773,933 | |
| | Duquesne Light Holdings Inc, 2.7750%, 1/7/32 (144A) | | 16,995,000 | | | 12,638,614 | |
| | Exelon Corp, 5.1500%, 3/15/28 | | 10,433,000 | | | 10,238,575 | |
| | Exelon Corp, 5.3000%, 3/15/33 | | 16,707,000 | | | 15,931,316 | |
| | Georgia Power Co, 4.6500%, 5/16/28 | | 11,031,000 | | | 10,641,986 | |
| | Georgia Power Co, 4.9500%, 5/17/33 | | 17,435,000 | | | 16,342,493 | |
| | National Grid PLC, 5.6020%, 6/12/28 | | 7,753,000 | | | 7,668,552 | |
| | National Grid PLC, 5.8090%, 6/12/33 | | 16,262,000 | | | 15,795,650 | |
| | Xcel Energy Inc, 5.4500%, 8/15/33 | | 36,599,000 | | | 34,927,409 | |
| | | 159,824,094 | |
Energy – 0.4% | | | |
| | Columbia Pipelines Operating Company LLC, 5.9270%, 8/15/30 (144A) | | 5,254,000 | | | 5,186,361 | |
| | Columbia Pipelines Operating Company LLC, 6.0360%, 11/15/33 (144A) | | 12,631,000 | | | 12,329,180 | |
| | Columbia Pipelines Operating Company LLC, 6.4970%, 8/15/43 (144A) | | 2,548,000 | | | 2,481,986 | |
| | Columbia Pipelines Operating Company LLC, 6.5440%, 11/15/53 (144A) | | 13,172,000 | | | 12,877,298 | |
| | Columbia Pipelines Operating Company LLC, 6.7140%, 8/15/63 (144A) | | 2,508,000 | | | 2,448,647 | |
| | Enbridge Inc, 5.7000%, 3/8/33 | | 11,565,000 | | | 11,079,254 | |
| | Energy Transfer LP, 5.5500%, 2/15/28 | | 14,575,000 | | | 14,317,280 | |
| | Energy Transfer Operating LP, 4.9500%, 6/15/28 | | 626,000 | | | 599,093 | |
| | EQT Corp, 5.7000%, 4/1/28 | | 7,749,000 | | | 7,594,679 | |
| | Hess Midstream Operations LP, 5.1250%, 6/15/28 (144A) | | 11,121,000 | | | 10,229,265 | |
| | Southwestern Energy Co, 4.7500%, 2/1/32 | | 12,491,000 | | | 10,720,879 | |
| | | 89,863,922 | |
Finance Companies – 0.4% | | | |
| | AerCap Ireland Capital DAC / AerCap Global Aviation Trust, | | | | | | |
| | 4.6250%, 10/15/27 | | 10,114,000 | | | 9,484,935 | |
| | Air Lease Corp, 1.8750%, 8/15/26 | | 17,148,000 | | | 15,235,150 | |
| | Ares Capital Corp, 2.8750%, 6/15/27 | | 10,411,000 | | | 9,083,292 | |
| | Blue Owl Credit Income Corp, 7.7500%, 9/16/27 | | 16,398,000 | | | 16,266,142 | |
| | OWL Rock Core Income Corp, 4.7000%, 2/8/27 | | 2,729,000 | | | 2,483,308 | |
| | OWL Rock Core Income Corp, 7.9500%, 6/13/28 (144A) | | 8,994,000 | | | 8,915,300 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Finance Companies– (continued) | | | |
| | Quicken Loans LLC, 3.8750%, 3/1/31 (144A) | | $12,708,000 | | | $10,132,978 | |
| | Rocket Mortgage LLC / Rocket Mortgage Co-Issuer Inc, | | | | | | |
| | 2.8750%, 10/15/26 (144A) | | 12,331,000 | | | 10,859,788 | |
| | | 82,460,893 | |
Government Sponsored – 0.1% | | | |
| | Electricite de France SA, 5.7000%, 5/23/28 (144A) | | 8,972,000 | | | 8,884,908 | |
| | Electricite de France SA, 6.2500%, 5/23/33 (144A) | | 13,964,000 | | | 13,978,525 | |
| | | 22,863,433 | |
Insurance – 0.6% | | | |
| | Athene Global Funding, 2.7170%, 1/7/29 (144A) | | 21,681,000 | | | 18,010,002 | |
| | Athene Global Funding, 2.6460%, 10/4/31 (144A) | | 17,357,000 | | | 12,851,575 | |
| | Brown & Brown Inc, 4.9500%, 3/17/52 | | 18,886,000 | | | 15,039,053 | |
| | Centene Corp, 4.2500%, 12/15/27 | | 53,971,000 | | | 49,756,405 | |
| | Centene Corp, 2.4500%, 7/15/28 | | 16,998,000 | | | 14,360,658 | |
| | Centene Corp, 3.0000%, 10/15/30 | | 18,048,000 | | | 14,557,697 | |
| | UnitedHealth Group Inc, 5.2500%, 2/15/28 | | 10,004,000 | | | 10,020,998 | |
| | | 134,596,388 | |
Real Estate Investment Trusts (REITs) – 0.3% | | | |
| | Agree LP, 2.0000%, 6/15/28 | | 11,528,000 | | | 9,535,539 | |
| | Agree LP, 2.9000%, 10/1/30 | | 7,437,000 | | | 5,985,864 | |
| | Agree LP, 2.6000%, 6/15/33 | | 8,647,000 | | | 6,314,192 | |
| | American Tower Trust I, 5.4900%, 3/15/28 (144A) | | 33,827,000 | | | 33,140,278 | |
| | Sun Communities Operating LP, 2.7000%, 7/15/31 | | 21,657,000 | | | 16,667,792 | |
| | | 71,643,665 | |
Technology – 1.4% | | | |
| | Analog Devices Inc, 2.9500%, 4/1/25 | | 10,074,000 | | | 9,697,219 | |
| | Broadcom Inc, 2.6000%, 2/15/33 (144A) | | 11,906,000 | | | 8,878,115 | |
| | Broadcom Inc, 3.4690%, 4/15/34 (144A) | | 19,242,000 | | | 15,112,883 | |
| | Broadcom Inc, 3.1370%, 11/15/35 (144A) | | 23,928,000 | | | 17,445,467 | |
| | CoStar Group Inc, 2.8000%, 7/15/30 (144A) | | 12,054,000 | | | 9,712,429 | |
| | Equinix Inc, 2.1500%, 7/15/30 | | 9,552,000 | | | 7,502,443 | |
| | Fiserv Inc, 5.4500%, 3/2/28 | | 17,859,000 | | | 17,701,998 | |
| | Fiserv Inc, 5.6250%, 8/21/33 | | 17,789,000 | | | 17,236,543 | |
| | Foundry JV Holdco LLC, 5.8750%, 1/25/34 (144A) | | 31,699,000 | | | 30,280,541 | |
| | Global Payments Inc, 2.1500%, 1/15/27 | | 11,282,000 | | | 9,946,476 | |
| | Leidos Inc, 2.3000%, 2/15/31 | | 4,088,000 | | | 3,143,786 | |
| | Leidos Inc, 5.7500%, 3/15/33 | | 13,585,000 | | | 13,019,327 | |
| | Marvell Technology Inc, 1.6500%, 4/15/26 | | 13,225,000 | | | 11,951,042 | |
| | Marvell Technology Inc, 4.8750%, 6/22/28 | | 14,717,000 | | | 14,061,350 | |
| | Micron Technology Inc, 6.7500%, 11/1/29 | | 10,141,000 | | | 10,303,712 | |
| | Micron Technology Inc, 5.8750%, 9/15/33 | | 10,984,000 | | | 10,461,762 | |
| | MSCI Inc, 4.0000%, 11/15/29 (144A) | | 1,532,000 | | | 1,345,559 | |
| | MSCI Inc, 3.6250%, 9/1/30 (144A) | | 25,762,000 | | | 21,592,194 | |
| | MSCI Inc, 3.8750%, 2/15/31 (144A) | | 21,571,000 | | | 18,275,066 | |
| | Total System Services Inc, 4.8000%, 4/1/26 | | 11,686,000 | | | 11,330,830 | |
| | Trimble Inc, 4.7500%, 12/1/24 | | 18,923,000 | | | 18,637,276 | |
| | Trimble Inc, 4.9000%, 6/15/28 | | 7,533,000 | | | 7,203,823 | |
| | Trimble Inc, 6.1000%, 3/15/33 | | 35,125,000 | | | 34,412,952 | |
| | Workday Inc, 3.5000%, 4/1/27 | | 8,410,000 | | | 7,846,823 | |
| | | 327,099,616 | |
Transportation – 0.1% | | | |
| | GXO Logistics Inc, 1.6500%, 7/15/26 | | 14,940,000 | | | 13,127,474 | |
| | GXO Logistics Inc, 2.6500%, 7/15/31 | | 2,271,000 | | | 1,723,056 | |
| | | 14,850,530 | |
Total Corporate Bonds (cost $2,730,917,690) | | 2,536,908,575 | |
Mortgage-Backed Securities– 11.4% | | | |
Fannie Mae: | | | |
| | 3.0000%, TBA, 15 Year Maturity | | 73,116,241 | | | 66,110,608 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Fannie Mae– (continued) | | | |
| | 4.0000%, TBA, 15 Year Maturity | | $65,269,000 | | | $61,564,332 | |
| | 4.0000%, TBA, 30 Year Maturity | | 13,103,414 | | | 11,664,882 | |
| | 4.5000%, TBA, 30 Year Maturity | | 9,350,338 | | | 8,581,376 | |
| | 5.5000%, TBA, 30 Year Maturity | | 9,266,721 | | | 8,952,848 | |
| | 6.0000%, TBA, 30 Year Maturity | | 22,278,028 | | | 21,983,958 | |
| | | 178,858,004 | |
Fannie Mae Pool: | | | |
| | 7.5000%, 7/1/28 | | 28,278 | | | 28,977 | |
| | 3.0000%, 10/1/34 | | 1,107,443 | | | 1,009,035 | |
| | 2.5000%, 11/1/34 | | 808,428 | | | 717,543 | |
| | 3.0000%, 11/1/34 | | 490,794 | | | 447,477 | |
| | 3.0000%, 12/1/34 | | 473,105 | | | 431,115 | |
| | 2.5000%, 12/1/36 | | 35,245,700 | | | 31,219,305 | |
| | 6.0000%, 2/1/37 | | 185,000 | | | 191,063 | |
| | 4.5000%, 11/1/42 | | 1,086,916 | | | 1,025,956 | |
| | 3.0000%, 1/1/43 | | 625,212 | | | 535,024 | |
| | 3.0000%, 2/1/43 | | 147,506 | | | 126,019 | |
| | 3.0000%, 5/1/43 | | 1,471,041 | | | 1,255,168 | |
| | 5.0000%, 7/1/44 | | 114,057 | | | 110,398 | |
| | 4.5000%, 10/1/44 | | 2,725,414 | | | 2,573,293 | |
| | 4.5000%, 3/1/45 | | 4,080,979 | | | 3,853,197 | |
| | 4.0000%, 5/1/45 | | 673,082 | | | 613,454 | |
| | 4.5000%, 6/1/45 | | 2,064,337 | | | 1,933,511 | |
| | 3.5000%, 12/1/45 | | 1,245,111 | | | 1,094,376 | |
| | 3.0000%, 1/1/46 | | 247,135 | | | 209,028 | |
| | 4.5000%, 2/1/46 | | 4,714,693 | | | 4,449,813 | |
| | 3.5000%, 7/1/46 | | 2,707,025 | | | 2,380,305 | |
| | 3.0000%, 2/1/47 | | 40,653,367 | | | 34,754,392 | |
| | 3.0000%, 3/1/47 | | 4,778,533 | | | 4,053,814 | |
| | 3.5000%, 3/1/47 | | 1,076,757 | | | 946,403 | |
| | 3.5000%, 7/1/47 | | 960,948 | | | 844,614 | |
| | 3.5000%, 8/1/47 | | 908,815 | | | 794,224 | |
| | 3.5000%, 8/1/47 | | 835,580 | | | 735,320 | |
| | 4.0000%, 10/1/47 | | 3,985,432 | | | 3,609,094 | |
| | 4.0000%, 11/1/47 | | 5,349,709 | | | 4,845,556 | |
| | 3.5000%, 12/1/47 | | 420,511 | | | 370,055 | |
| | 3.5000%, 12/1/47 | | 248,164 | | | 218,387 | |
| | 3.5000%, 1/1/48 | | 2,437,722 | | | 2,131,943 | |
| | 4.0000%, 1/1/48 | | 8,728,062 | | | 7,957,843 | |
| | 4.0000%, 1/1/48 | | 3,213,991 | | | 2,908,777 | |
| | 4.0000%, 1/1/48 | | 2,036,424 | | | 1,844,128 | |
| | 3.0000%, 2/1/48 | | 2,898,622 | | | 2,464,594 | |
| | 3.5000%, 3/1/48 | | 374,852 | | | 329,575 | |
| | 4.0000%, 3/1/48 | | 2,550,784 | | | 2,325,816 | |
| | 4.5000%, 3/1/48 | | 105,632 | | | 98,693 | |
| | 5.0000%, 5/1/48 | | 2,559,655 | | | 2,456,623 | |
| | 4.5000%, 6/1/48 | | 4,304,656 | | | 4,021,900 | |
| | 3.5000%, 7/1/48 | | 24,628,080 | | | 21,549,833 | |
| | 4.0000%, 7/1/48 | | 4,876,534 | | | 4,409,239 | |
| | 4.0000%, 8/1/48 | | 1,369,001 | | | 1,237,816 | |
| | 4.5000%, 8/1/48 | | 51,360 | | | 47,986 | |
| | 4.0000%, 9/1/48 | | 3,259,813 | | | 2,951,994 | |
| | 4.0000%, 10/1/48 | | 1,919,552 | | | 1,740,254 | |
| | 4.0000%, 11/1/48 | | 5,718,881 | | | 5,170,867 | |
| | 4.0000%, 12/1/48 | | 909,486 | | | 822,334 | |
| | 4.0000%, 2/1/49 | | 1,338,513 | | | 1,210,249 | |
| | 3.5000%, 5/1/49 | | 10,071,361 | | | 8,772,168 | |
| | 3.5000%, 6/1/49 | | 24,189,796 | | | 21,139,750 | |
| | 4.0000%, 6/1/49 | | 757,337 | | | 684,167 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2023 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Fannie Mae Pool– (continued) | | | |
| | 4.5000%, 6/1/49 | | $376,667 | | | $350,774 | |
| | 3.0000%, 8/1/49 | | 3,094,619 | | | 2,565,403 | |
| | 3.0000%, 8/1/49 | | 1,455,386 | | | 1,206,499 | |
| | 4.5000%, 8/1/49 | | 534,221 | | | 497,498 | |
| | 3.0000%, 9/1/49 | | 10,902,836 | | | 9,127,398 | |
| | 3.0000%, 9/1/49 | | 649,662 | | | 547,877 | |
| | 4.0000%, 9/1/49 | | 3,419,845 | | | 3,089,600 | |
| | 4.0000%, 11/1/49 | | 12,424,916 | | | 11,234,295 | |
| | 4.0000%, 11/1/49 | | 1,098,687 | | | 994,827 | |
| | 3.5000%, 12/1/49 | | 31,929,188 | | | 27,903,298 | |
| | 4.5000%, 1/1/50 | | 9,615,599 | | | 8,983,987 | |
| | 4.5000%, 1/1/50 | | 723,917 | | | 674,159 | |
| | 2.5000%, 3/1/50 | | 2,668,107 | | | 2,129,695 | |
| | 4.0000%, 3/1/50 | | 18,098,241 | | | 16,407,756 | |
| | 4.0000%, 3/1/50 | | 9,761,013 | | | 8,825,661 | |
| | 4.0000%, 3/1/50 | | 3,730,090 | | | 3,372,653 | |
| | 4.0000%, 4/1/50 | | 2,213,663 | | | 1,994,214 | |
| | 4.5000%, 7/1/50 | | 15,674,919 | | | 14,417,723 | |
| | 2.5000%, 8/1/50 | | 53,220,472 | | | 43,004,468 | |
| | 2.5000%, 8/1/50 | | 2,183,316 | | | 1,766,539 | |
| | 4.0000%, 8/1/50 | | 2,012,675 | | | 1,813,151 | |
| | 4.0000%, 9/1/50 | | 20,604,670 | | | 18,613,972 | |
| | 4.0000%, 10/1/50 | | 19,707,451 | | | 17,844,480 | |
| | 4.5000%, 10/1/50 | | 11,937,312 | | | 11,153,196 | |
| | 3.5000%, 2/1/51 | | 13,170,712 | | | 11,471,706 | |
| | 4.0000%, 3/1/51 | | 50,866,578 | | | 45,952,158 | |
| | 4.0000%, 3/1/51 | | 980,008 | | | 885,326 | |
| | 4.0000%, 3/1/51 | | 493,913 | | | 446,583 | |
| | 4.0000%, 8/1/51 | | 8,553,516 | | | 7,733,872 | |
| | 4.0000%, 10/1/51 | | 47,200,474 | | | 42,640,252 | |
| | 4.0000%, 10/1/51 | | 7,070,855 | | | 6,387,712 | |
| | 3.0000%, 12/1/51 | | 138,426,748 | | | 115,546,034 | |
| | 2.5000%, 1/1/52 | | 13,562,721 | | | 10,907,747 | |
| | 3.5000%, 1/1/52 | | 2,715,345 | | | 2,371,987 | |
| | 2.5000%, 2/1/52 | | 66,834,900 | | | 53,720,594 | |
| | 3.5000%, 2/1/52 | | 7,074,528 | | | 6,177,766 | |
| | 2.5000%, 3/1/52 | | 27,326,719 | | | 21,947,642 | |
| | 2.5000%, 3/1/52 | | 27,069,282 | | | 21,757,763 | |
| | 2.5000%, 3/1/52 | | 10,124,643 | | | 8,140,264 | |
| | 2.5000%, 3/1/52 | | 2,326,239 | | | 1,867,974 | |
| | 2.5000%, 3/1/52 | | 2,210,915 | | | 1,775,711 | |
| | 2.5000%, 3/1/52 | | 1,893,886 | | | 1,522,269 | |
| | 2.5000%, 3/1/52 | | 792,858 | | | 637,257 | |
| | 3.0000%, 3/1/52 | | 12,914,863 | | | 10,789,565 | |
| | 3.5000%, 3/1/52 | | 46,856,133 | | | 40,801,172 | |
| | 3.5000%, 3/1/52 | | 17,957,261 | | | 15,604,706 | |
| | 3.5000%, 3/1/52 | | 4,553,757 | | | 3,974,599 | |
| | 3.0000%, 4/1/52 | | 19,705,750 | | | 16,460,861 | |
| | 3.0000%, 4/1/52 | | 10,863,394 | | | 9,099,200 | |
| | 3.0000%, 4/1/52 | | 9,345,119 | | | 7,805,390 | |
| | 3.5000%, 4/1/52 | | 9,338,747 | | | 8,078,178 | |
| | 3.5000%, 4/1/52 | | 6,862,656 | | | 5,975,833 | |
| | 3.5000%, 4/1/52 | | 5,116,452 | | | 4,425,371 | |
| | 3.5000%, 4/1/52 | | 3,057,782 | | | 2,645,034 | |
| | 3.5000%, 4/1/52 | | 1,723,645 | | | 1,491,042 | |
| | 3.5000%, 4/1/52 | | 1,517,254 | | | 1,312,318 | |
| | 4.0000%, 4/1/52 | | 7,643,504 | | | 6,846,707 | |
| | 4.5000%, 4/1/52 | | 1,440,257 | | | 1,322,398 | |
| | 4.5000%, 4/1/52 | | 1,218,250 | | | 1,118,558 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Fannie Mae Pool– (continued) | | | |
| | 4.5000%, 4/1/52 | | $698,464 | | | $641,307 | |
| | 4.5000%, 4/1/52 | | 634,237 | | | 582,336 | |
| | 4.5000%, 4/1/52 | | 554,512 | | | 509,135 | |
| | 4.5000%, 4/1/52 | | 357,062 | | | 327,758 | |
| | 3.5000%, 5/1/52 | | 8,484,642 | | | 7,367,832 | |
| | 3.5000%, 5/1/52 | | 5,099,293 | | | 4,410,191 | |
| | 4.5000%, 5/1/52 | | 1,932,880 | | | 1,774,709 | |
| | 3.5000%, 6/1/52 | | 29,228,053 | | | 25,423,943 | |
| | 3.5000%, 6/1/52 | | 16,958,335 | | | 14,785,823 | |
| | 3.5000%, 7/1/52 | | 37,486,488 | | | 32,540,648 | |
| | 3.5000%, 7/1/52 | | 4,315,889 | | | 3,754,165 | |
| | 3.5000%, 7/1/52 | | 1,548,763 | | | 1,349,875 | |
| | 4.5000%, 7/1/52 | | 7,879,534 | | | 7,246,320 | |
| | 3.5000%, 8/1/52 | | 7,489,789 | | | 6,499,294 | |
| | 3.5000%, 8/1/52 | | 2,818,785 | | | 2,451,041 | |
| | 4.5000%, 8/1/52 | | 29,160,148 | | | 26,816,784 | |
| | 3.5000%, 9/1/52 | | 11,556,271 | | | 10,035,151 | |
| | 5.0000%, 9/1/52 | | 13,335,072 | | | 12,580,202 | |
| | 5.5000%, 9/1/52 | | 36,380,964 | | | 35,236,158 | |
| | 5.0000%, 10/1/52 | | 6,123,956 | | | 5,795,468 | |
| | 5.0000%, 10/1/52 | | 2,692,748 | | | 2,548,309 | |
| | 5.5000%, 10/1/52 | | 6,272,975 | | | 6,102,917 | |
| | 4.5000%, 11/1/52 | | 19,943,515 | | | 18,460,139 | |
| | 5.0000%, 11/1/52 | | 15,027,949 | | | 14,221,851 | |
| | 5.5000%, 11/1/52 | | 13,445,051 | | | 13,080,560 | |
| | 5.0000%, 1/1/53 | | 11,387,633 | | | 10,759,844 | |
| | 5.0000%, 1/1/53 | | 2,613,470 | | | 2,473,284 | |
| | 5.0000%, 1/1/53 | | 834,470 | | | 789,011 | |
| | 5.0000%, 2/1/53 | | 1,059,516 | | | 1,002,576 | |
| | 5.0000%, 3/1/53 | | 3,169,460 | | | 2,989,222 | |
| | 5.0000%, 3/1/53 | | 611,241 | | | 577,879 | |
| | 5.5000%, 3/1/53 | | 389,647 | | | 377,569 | |
| | 5.0000%, 4/1/53 | | 4,133,998 | | | 3,898,911 | |
| | 5.0000%, 4/1/53 | | 1,179,645 | | | 1,115,260 | |
| | 5.0000%, 4/1/53 | | 983,636 | | | 927,699 | |
| | 5.0000%, 4/1/53 | | 825,054 | | | 778,136 | |
| | 5.5000%, 4/1/53 | | 185,843 | | | 180,082 | |
| | 5.0000%, 5/1/53 | | 600,789 | | | 567,999 | |
| | 5.5000%, 5/1/53 | | 346,808 | | | 336,058 | |
| | 5.5000%, 5/1/53 | | 180,221 | | | 174,635 | |
| | 5.0000%, 6/1/53 | | 3,379,224 | | | 3,228,215 | |
| | 5.0000%, 6/1/53 | | 1,189,686 | | | 1,123,756 | |
| | 5.0000%, 6/1/53 | | 735,956 | | | 695,788 | |
| | 5.5000%, 6/1/53 | | 31,901,322 | | | 31,006,529 | |
| | 5.5000%, 6/1/53 | | 491,528 | | | 477,741 | |
| | 4.5000%, 7/1/53 | | 3,702,331 | | | 3,436,480 | |
| | 5.0000%, 7/1/53 | | 10,542,806 | | | 10,070,602 | |
| | 5.5000%, 7/1/53 | | 1,409,354 | | | 1,365,669 | |
| | 5.5000%, 7/1/53 | | 847,047 | | | 823,288 | |
| | 5.0000%, 8/1/53 | | 11,331,262 | | | 10,823,744 | |
| | 5.0000%, 8/1/53 | | 737,472 | | | 697,839 | |
| | 5.5000%, 9/1/53 | | 24,660,151 | | | 23,971,991 | |
| | 3.5000%, 8/1/56 | | 10,185,951 | | | 8,783,343 | |
| | 3.0000%, 2/1/57 | | 10,211,921 | | | 8,408,140 | |
| | 3.0000%, 6/1/57 | | 185,949 | | | 153,148 | |
| | | 1,296,369,491 | |
Freddie Mac Gold Pool: | | | |
| | 3.5000%, 1/1/47 | | 732,483 | | | 646,171 | |
| | 4.0000%, 8/1/48 | | 2,344,092 | | | 2,122,354 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2023 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Freddie Mac Gold Pool– (continued) | | | |
| | 4.0000%, 9/1/48 | | $1,583,010 | | | $1,433,215 | |
| | | 4,201,740 | |
Freddie Mac Pool: | | | |
| | 3.0000%, 5/1/31 | | 9,827,626 | | | 9,206,159 | |
| | 3.0000%, 9/1/32 | | 2,374,600 | | | 2,166,681 | |
| | 3.0000%, 10/1/32 | | 1,137,139 | | | 1,037,675 | |
| | 3.0000%, 12/1/32 | | 727,624 | | | 659,330 | |
| | 3.0000%, 1/1/33 | | 1,483,125 | | | 1,353,263 | |
| | 2.5000%, 12/1/33 | | 10,313,520 | | | 9,428,832 | |
| | 3.0000%, 10/1/34 | | 2,657,482 | | | 2,420,706 | |
| | 3.0000%, 10/1/34 | | 1,232,127 | | | 1,122,640 | |
| | 2.5000%, 11/1/34 | | 3,213,448 | | | 2,852,188 | |
| | 2.5000%, 11/1/34 | | 864,427 | | | 767,247 | |
| | 6.0000%, 4/1/40 | | 2,923,014 | | | 3,019,364 | |
| | 3.5000%, 7/1/42 | | 511,344 | | | 451,752 | |
| | 3.5000%, 8/1/42 | | 597,595 | | | 526,568 | |
| | 3.5000%, 8/1/42 | | 556,604 | | | 490,449 | |
| | 3.5000%, 2/1/43 | | 1,314,296 | | | 1,157,114 | |
| | 3.0000%, 3/1/43 | | 6,514,473 | | | 5,569,196 | |
| | 3.0000%, 6/1/43 | | 215,273 | | | 181,879 | |
| | 3.5000%, 2/1/44 | | 1,629,447 | | | 1,434,574 | |
| | 4.5000%, 5/1/44 | | 873,020 | | | 817,872 | |
| | 3.5000%, 12/1/44 | | 9,899,819 | | | 8,757,912 | |
| | 3.0000%, 1/1/45 | | 2,547,142 | | | 2,167,431 | |
| | 4.0000%, 4/1/45 | | 20,764 | | | 18,873 | |
| | 3.0000%, 1/1/46 | | 459,541 | | | 392,999 | |
| | 3.5000%, 7/1/46 | | 1,781,849 | | | 1,558,865 | |
| | 4.0000%, 3/1/47 | | 1,031,107 | | | 939,764 | |
| | 3.0000%, 4/1/47 | | 1,197,147 | | | 1,011,369 | |
| | 3.5000%, 4/1/47 | | 427,581 | | | 375,974 | |
| | 3.5000%, 9/1/47 | | 3,511,047 | | | 3,068,346 | |
| | 3.5000%, 12/1/47 | | 5,841,534 | | | 5,131,816 | |
| | 3.5000%, 2/1/48 | | 2,112,760 | | | 1,840,687 | |
| | 4.0000%, 3/1/48 | | 2,255,333 | | | 2,056,423 | |
| | 4.5000%, 3/1/48 | | 83,071 | | | 77,614 | |
| | 4.0000%, 4/1/48 | | 2,181,058 | | | 1,972,057 | |
| | 4.0000%, 4/1/48 | | 2,153,497 | | | 1,949,084 | |
| | 4.0000%, 4/1/48 | | 260,633 | | | 235,658 | |
| | 4.0000%, 5/1/48 | | 3,654,508 | | | 3,304,314 | |
| | 4.5000%, 7/1/48 | | 600,705 | | | 561,247 | |
| | 5.0000%, 9/1/48 | | 109,689 | | | 105,264 | |
| | 4.0000%, 11/1/48 | | 514,377 | | | 465,087 | |
| | 4.0000%, 12/1/48 | | 6,397,736 | | | 5,783,786 | |
| | 4.5000%, 12/1/48 | | 1,918,849 | | | 1,790,076 | |
| | 4.5000%, 6/1/49 | | 418,304 | | | 389,456 | |
| | 4.0000%, 7/1/49 | | 4,452,395 | | | 4,022,440 | |
| | 4.5000%, 7/1/49 | | 3,549,575 | | | 3,304,781 | |
| | 4.5000%, 7/1/49 | | 530,825 | | | 494,335 | |
| | 3.0000%, 8/1/49 | | 947,219 | | | 785,234 | |
| | 4.5000%, 8/1/49 | | 3,174,085 | | | 2,955,187 | |
| | 3.0000%, 12/1/49 | | 1,210,293 | | | 1,013,207 | |
| | 3.0000%, 12/1/49 | | 921,796 | | | 771,689 | |
| | 4.5000%, 1/1/50 | | 2,125,485 | | | 1,978,903 | |
| | 4.5000%, 1/1/50 | | 586,867 | | | 546,529 | |
| | 3.5000%, 3/1/50 | | 593,948 | | | 515,354 | |
| | 4.0000%, 3/1/50 | | 6,298,733 | | | 5,695,155 | |
| | 4.5000%, 3/1/50 | | 7,436,023 | | | 6,796,987 | |
| | 4.0000%, 6/1/50 | | 10,208,305 | | | 9,265,798 | |
| | 2.5000%, 8/1/50 | | 1,111,844 | | | 899,903 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Freddie Mac Pool– (continued) | | | |
| | 2.5000%, 8/1/50 | | $410,730 | | | $332,325 | |
| | 2.5000%, 9/1/50 | | 2,000,977 | | | 1,618,465 | |
| | 4.5000%, 9/1/50 | | 18,293,125 | | | 17,091,521 | |
| | 4.0000%, 10/1/50 | | 1,803,487 | | | 1,629,245 | |
| | 4.0000%, 11/1/50 | | 10,705,394 | | | 9,671,104 | |
| | 2.5000%, 6/1/51 | | 16,400,616 | | | 13,229,587 | |
| | 2.5000%, 11/1/51 | | 14,670,122 | | | 11,815,392 | |
| | 2.5000%, 1/1/52 | | 4,183,424 | | | 3,365,294 | |
| | 2.5000%, 1/1/52 | | 2,629,655 | | | 2,113,517 | |
| | 2.5000%, 2/1/52 | | 6,197,145 | | | 4,981,144 | |
| | 3.0000%, 2/1/52 | | 3,475,887 | | | 2,904,585 | |
| | 3.0000%, 2/1/52 | | 2,487,998 | | | 2,085,106 | |
| | 2.5000%, 3/1/52 | | 953,761 | | | 766,019 | |
| | 3.0000%, 3/1/52 | | 3,730,303 | | | 3,125,374 | |
| | 4.5000%, 3/1/52 | | 300,193 | | | 275,628 | |
| | 3.5000%, 4/1/52 | | 3,725,236 | | | 3,222,394 | |
| | 3.5000%, 4/1/52 | | 3,569,063 | | | 3,087,302 | |
| | 3.5000%, 4/1/52 | | 2,893,524 | | | 2,527,635 | |
| | 3.5000%, 4/1/52 | | 1,141,139 | | | 987,144 | |
| | 3.5000%, 4/1/52 | | 1,103,217 | | | 954,205 | |
| | 3.5000%, 6/1/52 | | 16,906,969 | | | 14,686,782 | |
| | 3.5000%, 6/1/52 | | 5,729,732 | | | 5,003,435 | |
| | 3.5000%, 7/1/52 | | 60,998,511 | | | 52,950,574 | |
| | 3.5000%, 8/1/52 | | 10,861,097 | | | 9,428,121 | |
| | 4.5000%, 8/1/52 | | 63,911,735 | | | 58,775,668 | |
| | 4.5000%, 8/1/52 | | 27,539,673 | | | 25,306,639 | |
| | 4.5000%, 8/1/52 | | 14,326,333 | | | 13,175,042 | |
| | 5.0000%, 8/1/52 | | 14,538,577 | | | 13,876,182 | |
| | 5.5000%, 9/1/52 | | 8,777,753 | | | 8,536,898 | |
| | 4.5000%, 10/1/52 | | 12,576,370 | | | 11,640,954 | |
| | 5.0000%, 10/1/52 | | 18,519,050 | | | 17,525,690 | |
| | 5.0000%, 10/1/52 | | 12,183,613 | | | 11,519,892 | |
| | 5.0000%, 10/1/52 | | 370,485 | | | 350,612 | |
| | 5.5000%, 10/1/52 | | 418,644 | | | 407,373 | |
| | 5.5000%, 11/1/52 | | 40,891,453 | | | 39,782,901 | |
| | 5.0000%, 1/1/53 | | 482,439 | | | 456,561 | |
| | 5.0000%, 1/1/53 | | 417,328 | | | 394,594 | |
| | 5.0000%, 3/1/53 | | 5,013,651 | | | 4,728,540 | |
| | 5.0000%, 3/1/53 | | 1,774,005 | | | 1,677,181 | |
| | 5.0000%, 3/1/53 | | 1,714,839 | | | 1,621,244 | |
| | 5.0000%, 3/1/53 | | 930,892 | | | 877,955 | |
| | 5.0000%, 4/1/53 | | 2,111,670 | | | 1,993,532 | |
| | 5.0000%, 5/1/53 | | 14,876,329 | | | 14,051,916 | |
| | 5.0000%, 5/1/53 | | 6,046,654 | | | 5,711,562 | |
| | 5.0000%, 5/1/53 | | 3,404,333 | | | 3,215,672 | |
| | 5.0000%, 5/1/53 | | 470,371 | | | 445,092 | |
| | 5.5000%, 5/1/53 | | 6,367,857 | | | 6,190,286 | |
| | 5.5000%, 5/1/53 | | 804,609 | | | 779,669 | |
| | 5.0000%, 6/1/53 | | 2,331,892 | | | 2,199,825 | |
| | 5.0000%, 6/1/53 | | 2,300,002 | | | 2,169,328 | |
| | 5.0000%, 6/1/53 | | 2,235,519 | | | 2,108,392 | |
| | 5.0000%, 6/1/53 | | 1,823,108 | | | 1,719,856 | |
| | 5.0000%, 6/1/53 | | 1,607,406 | | | 1,518,327 | |
| | 5.0000%, 6/1/53 | | 1,382,200 | | | 1,303,599 | |
| | 5.0000%, 6/1/53 | | 1,288,721 | | | 1,215,436 | |
| | 5.0000%, 6/1/53 | | 865,524 | | | 816,349 | |
| | 5.5000%, 6/1/53 | | 2,366,681 | | | 2,287,545 | |
| | 5.5000%, 6/1/53 | | 1,813,478 | | | 1,752,840 | |
| | 5.5000%, 6/1/53 | | 1,782,553 | | | 1,727,300 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2023 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Freddie Mac Pool– (continued) | | | |
| | 5.5000%, 6/1/53 | | $1,742,561 | | | $1,684,294 | |
| | 5.5000%, 6/1/53 | | 1,586,690 | | | 1,533,063 | |
| | 5.0000%, 7/1/53 | | 4,405,929 | | | 4,208,591 | |
| | 5.0000%, 7/1/53 | | 2,858,923 | | | 2,696,345 | |
| | 5.5000%, 7/1/53 | | 6,444,947 | | | 6,245,178 | |
| | 5.5000%, 7/1/53 | | 4,327,555 | | | 4,182,852 | |
| | 5.5000%, 7/1/53 | | 4,074,591 | | | 3,948,294 | |
| | | 581,874,060 | |
Ginnie Mae: | | | |
| | 2.5000%, TBA, 30 Year Maturity | | 132,884,806 | | | 108,540,310 | |
| | 3.5000%, TBA, 30 Year Maturity | | 98,258,806 | | | 86,026,764 | |
| | 4.0000%, TBA, 30 Year Maturity | | 47,949,459 | | | 43,176,714 | |
| | 4.5000%, TBA, 30 Year Maturity | | 23,627,806 | | | 21,818,081 | |
| | 5.0000%, TBA, 30 Year Maturity | | 18,848,683 | | | 17,856,394 | |
| | | 277,418,263 | |
Ginnie Mae I Pool: | | | |
| | 6.0000%, 1/15/34 | | 47,198 | | | 48,532 | |
| | 4.0000%, 1/15/45 | | 8,861,195 | | | 8,167,609 | |
| | 4.5000%, 8/15/46 | | 10,999,215 | | | 10,299,851 | |
| | 4.0000%, 7/15/47 | | 1,807,907 | | | 1,647,374 | |
| | 4.0000%, 8/15/47 | | 238,558 | | | 217,375 | |
| | 4.0000%, 11/15/47 | | 272,812 | | | 248,588 | |
| | 4.0000%, 12/15/47 | | 843,634 | | | 768,723 | |
| | | 21,398,052 | |
Ginnie Mae II Pool: | | | |
| | 3.0000%, 11/20/46 | | 32,725,891 | | | 28,199,303 | |
| | 4.0000%, 8/20/47 | | 1,106,477 | | | 1,008,314 | |
| | 4.0000%, 8/20/47 | | 194,846 | | | 177,560 | |
| | 4.0000%, 8/20/47 | | 152,502 | | | 138,973 | |
| | 4.5000%, 2/20/48 | | 1,138,370 | | | 1,067,613 | |
| | 4.5000%, 5/20/48 | | 1,710,284 | | | 1,602,238 | |
| | 4.5000%, 5/20/48 | | 405,510 | | | 379,892 | |
| | 4.0000%, 6/20/48 | | 8,728,781 | | | 7,974,815 | |
| | 5.0000%, 8/20/48 | | 3,298,668 | | | 3,178,543 | |
| | 3.5000%, 5/20/49 | | 43,806,769 | | | 38,864,422 | |
| | 2.5000%, 3/20/51 | | 41,069,717 | | | 33,701,125 | |
| | 3.0000%, 4/20/51 | | 28,543,619 | | | 24,286,646 | |
| | 3.0000%, 7/20/51 | | 22,804,923 | | | 19,382,710 | |
| | 3.0000%, 8/20/51 | | 51,485,012 | | | 43,743,048 | |
| | | 203,705,202 | |
Total Mortgage-Backed Securities (cost $2,789,066,247) | | 2,563,824,812 | |
United States Treasury Notes/Bonds– 6.5% | | | |
| | 4.6250%, 9/15/26 | | 219,542,000 | | | 218,461,441 | |
| | 4.3750%, 8/31/28 | | 224,263,100 | | | 222,037,988 | |
| | 4.6250%, 9/30/30 | | 91,684,000 | | | 91,712,651 | |
| | 3.8750%, 8/15/33 | | 300,960,400 | | | 284,360,553 | |
| | 3.8750%, 5/15/43 | | 301,996,500 | | | 262,548,207 | |
| | 4.3750%, 8/15/43 | | 147,426,000 | | | 137,543,851 | |
| | 3.6250%, 5/15/53 | | 291,192,400 | | | 241,098,207 | |
Total United States Treasury Notes/Bonds (cost $1,519,223,337) | | 1,457,762,898 | |
Common Stocks– 61.6% | | | |
Aerospace & Defense – 0.7% | | | |
| | General Dynamics Corp | | 706,663 | | | 156,151,323 | |
Air Freight & Logistics – 0.8% | | | |
| | United Parcel Service Inc | | 1,189,609 | | | 185,424,355 | |
Banks – 2.0% | | | |
| | Bank of America Corp | | 6,454,720 | | | 176,730,234 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Banks– (continued) | | | |
| | JPMorgan Chase & Co | | 1,845,231 | | | $267,595,400 | |
| | | 444,325,634 | |
Beverages – 1.5% | | | |
| | Coca-Cola Co | | 1,382,222 | | | 77,376,788 | |
| | Constellation Brands Inc - Class A | | 407,163 | | | 102,332,277 | |
| | Monster Beverage Corp | | 3,122,583 | | | 165,340,770 | |
| | | 345,049,835 | |
Biotechnology – 1.1% | | | |
| | AbbVie Inc | | 1,382,026 | | | 206,004,796 | |
| | Vertex Pharmaceuticals Inc* | | 101,181 | | | 35,184,681 | |
| | | 241,189,477 | |
Building Products – 0.4% | | | |
| | Trane Technologies PLC | | 476,712 | | | 96,729,632 | |
Capital Markets – 2.5% | | | |
| | Charles Schwab Corp | | 1,613,950 | | | 88,605,855 | |
| | CME Group Inc | | 871,633 | | | 174,518,359 | |
| | Goldman Sachs Group Inc | | 354,478 | | | 114,698,446 | |
| | Morgan Stanley | | 2,402,790 | | | 196,235,859 | |
| | | 574,058,519 | |
Chemicals – 0.9% | | | |
| | Corteva Inc | | 2,340,404 | | | 119,735,069 | |
| | Sherwin-Williams Co | | 297,806 | | | 75,955,420 | |
| | | 195,690,489 | |
Communications Equipment – 0.6% | | | |
| | Cisco Systems Inc | | 2,712,927 | | | 145,846,956 | |
Consumer Finance – 1.1% | | | |
| | American Express Co | | 1,728,728 | | | 257,908,930 | |
Diversified Financial Services – 2.4% | | | |
| | Mastercard Inc | | 1,338,602 | | | 529,965,918 | |
Electrical Equipment – 0.5% | | | |
| | Rockwell Automation Inc | | 357,860 | | | 102,301,438 | |
Electronic Equipment, Instruments & Components – 0.5% | | | |
| | TE Connectivity Ltd | | 962,293 | | | 118,872,054 | |
Energy Equipment & Services – 0.3% | | | |
| | Schlumberger Ltd | | 969,081 | | | 56,497,422 | |
Entertainment – 0.3% | | | |
| | Netflix Inc* | | 175,712 | | | 66,348,851 | |
Food & Staples Retailing – 1.7% | | | |
| | Costco Wholesale Corp | | 296,661 | | | 167,601,599 | |
| | Dollar General Corp | | 717,256 | | | 75,885,685 | |
| | Sysco Corp | | 1,971,288 | | | 130,203,572 | |
| | | 373,690,856 | |
Food Products – 0.5% | | | |
| | Hershey Co | | 526,666 | | | 105,375,333 | |
Health Care Equipment & Supplies – 1.8% | | | |
| | Abbott Laboratories | | 2,221,476 | | | 215,149,951 | |
| | Edwards Lifesciences Corp* | | 977,326 | | | 67,709,145 | |
| | Stryker Corp | | 440,962 | | | 120,501,686 | |
| | | 403,360,782 | |
Health Care Providers & Services – 2.6% | | | |
| | HCA Healthcare Inc | | 396,671 | | | 97,573,133 | |
| | UnitedHealth Group Inc | | 970,540 | | | 489,336,563 | |
| | | 586,909,696 | |
Hotels, Restaurants & Leisure – 4.1% | | | |
| | Booking Holdings Inc* | | 62,890 | | | 193,949,615 | |
| | Chipotle Mexican Grill Inc* | | 42,053 | | | 77,033,947 | |
| | Hilton Worldwide Holdings Inc | | 1,587,185 | | | 238,363,443 | |
| | McDonald's Corp | | 983,433 | | | 259,075,590 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2023 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Hotels, Restaurants & Leisure– (continued) | | | |
| | Starbucks Corp | | 1,815,592 | | | $165,709,082 | |
| | | 934,131,677 | |
Household Products – 0.9% | | | |
| | Procter & Gamble Co | | 1,418,532 | | | 206,907,078 | |
Industrial Conglomerates – 0.8% | | | |
| | Honeywell International Inc | | 1,003,980 | | | 185,475,265 | |
Information Technology Services – 1.4% | | | |
| | Accenture PLC | | 1,026,088 | | | 315,121,886 | |
Insurance – 1.5% | | | |
| | Marsh & McLennan Cos Inc | | 372,186 | | | 70,826,996 | |
| | Progressive Corp/The | | 1,907,348 | | | 265,693,576 | |
| | | 336,520,572 | |
Interactive Media & Services – 4.4% | | | |
| | Alphabet Inc - Class C* | | 4,805,442 | | | 633,597,528 | |
| | Meta Platforms Inc - Class A* | | 1,202,743 | | | 361,075,476 | |
| | | 994,673,004 | |
Life Sciences Tools & Services – 1.4% | | | |
| | Danaher Corp | | 393,468 | | | 97,619,411 | |
| | Thermo Fisher Scientific Inc | | 413,486 | | | 209,294,209 | |
| | | 306,913,620 | |
Machinery – 1.2% | | | |
| | Deere & Co | | 712,036 | | | 268,708,146 | |
Media – 1.1% | | | |
| | Comcast Corp - Class A | | 5,793,174 | | | 256,869,335 | |
Oil, Gas & Consumable Fuels – 1.8% | | | |
| | Chevron Corp | | 1,007,342 | | | 169,858,008 | |
| | ConocoPhillips | | 1,998,484 | | | 239,418,383 | |
| | | 409,276,391 | |
Pharmaceuticals – 2.4% | | | |
| | Eli Lilly & Co | | 391,895 | | | 210,498,561 | |
| | Merck & Co Inc | | 2,022,889 | | | 208,256,423 | |
| | Zoetis Inc | | 653,937 | | | 113,771,959 | |
| | | 532,526,943 | |
Professional Services – 0.7% | | | |
| | Automatic Data Processing Inc | | 642,864 | | | 154,660,221 | |
Semiconductor & Semiconductor Equipment – 4.9% | | | |
| | KLA Corp | | 292,145 | | | 133,995,226 | |
| | Lam Research Corp | | 435,108 | | | 272,712,641 | |
| | NVIDIA Corp | | 1,214,997 | | | 528,511,545 | |
| | Texas Instruments Inc | | 1,077,517 | | | 171,335,978 | |
| | | 1,106,555,390 | |
Software – 6.7% | | | |
| | Cadence Design Systems Inc* | | 284,550 | | | 66,670,065 | |
| | Intuit Inc | | 217,467 | | | 111,112,589 | |
| | Microsoft Corp | | 3,984,505 | | | 1,258,107,454 | |
| | Oracle Corp | | 739,388 | | | 78,315,977 | |
| | | 1,514,206,085 | |
Specialty Retail – 1.6% | | | |
| | Home Depot Inc | | 631,074 | | | 190,685,320 | |
| | TJX Cos Inc | | 1,912,430 | | | 169,976,778 | |
| | | 360,662,098 | |
Technology Hardware, Storage & Peripherals – 3.4% | | | |
| | Apple Inc | | 4,542,871 | | | 777,784,944 | |
Textiles, Apparel & Luxury Goods – 1.1% | | | |
| | NIKE Inc - Class B | | 2,515,648 | | | 240,546,262 | |
Total Common Stocks (cost $7,819,962,488) | | 13,887,236,417 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Investment Companies– 2.1% | | | |
Money Markets – 2.1% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $479,299,386) | | 479,249,545 | | | $479,393,319 | |
Total Investments (total cost $17,460,612,931) – 101.8% | | 22,960,536,718 | |
Liabilities, net of Cash, Receivables and Other Assets – (1.8)% | | (396,307,958) | |
Net Assets – 100% | | $22,564,228,760 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $22,518,224,065 | | 98.1 | % |
Canada | | 109,448,386 | | 0.5 | |
United Kingdom | | 67,356,268 | | 0.3 | |
Japan | | 62,149,927 | | 0.3 | |
France | | 56,166,589 | | 0.2 | |
Australia | | 55,059,503 | | 0.2 | |
Netherlands | | 39,377,857 | | 0.2 | |
Finland | | 29,568,807 | | 0.1 | |
Germany | | 13,700,381 | | 0.1 | |
Ireland | | 9,484,935 | | 0.0 | |
| | | | | | |
| | | | | | |
Total | | $22,960,536,718 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 2.1% |
Money Markets - 2.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 41,285,286 | $ | 95,019 | $ | 65,156 | $ | 479,393,319 |
| |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 2.1% |
Money Markets - 2.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 1,202,737,581 | | 4,943,240,027 | | (5,666,744,464) | | 479,393,319 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
26 | SEPTEMBER 30, 2023 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2023
Schedule of Futures
| | | | | | | | | | | | | | | |
Description | | Number of Contracts | | Expiration Date | | Notional Amount | | Value and Unrealized Appreciation/(Depreciation) | | |
Futures Long: | | | | | | | | | | |
10 Year US Treasury Note | | 1,997 | | 12/29/23 | $ | 215,800,813 | $ | (4,181,319) | |
2 Year US Treasury Note | | 12,097 | | 1/4/24 | | 2,452,194,217 | | (5,537,029) | |
5 Year US Treasury Note | | 15,508 | | 1/4/24 | | 1,633,913,188 | | (18,071,359) | |
Ultra Long Term US Treasury Bond | | 382 | | 12/29/23 | | 45,338,625 | | (3,678,394) | |
US Treasury Long Bond | | 2,782 | | 12/29/23 | | 316,539,438 | | (17,561,236) | |
Total - Futures Long | | | | | | | | (49,029,337) | |
Futures Short: | | | | | | | | | | |
Ultra 10-Year Treasury Note | | 4,598 | | 12/29/23 | | (512,964,375) | | 13,709,001 | |
Total | | | | | | | $ | (35,320,336) | | |
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, 2023.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2023 |
| | | | | |
| | | | | Interest Rate
Contracts |
Asset Derivatives: | | | |
*Futures contracts | | | $13,709,001 |
| | | | |
Liability Derivatives: | | | |
*Futures contracts | | | $49,029,337 |
| | | | |
*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). |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 27 |
Janus Henderson Balanced Fund
Schedule of Investments
September 30, 2023
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, 2023.
| | | | | | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2023 |
| | | | | | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Credit
Contracts | | Interest Rate
Contracts | | Total |
Futures contracts | | $ - | | $(109,250,347) | | $(109,250,347) |
Swap contracts | | (8,475,190) | | - | | $ (8,475,190) |
| | | | | | | | | |
Total | | $(8,475,190) | | $(109,250,347) | | $(117,725,537) |
| | | | | | | | | |
| | | | | | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Credit
Contracts | | Interest Rate
Contracts | | Total |
Futures contracts | | $ - | | $ (4,881,528) | | $ (4,881,528) |
| | | | | | | | | |
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, 2023 |
| |
| |
Futures contracts: | |
Average notional amount of contracts - long | $2,604,919,039 |
Average notional amount of contracts - short | (308,266,750) |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
28 | SEPTEMBER 30, 2023 |
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. |
| | |
IBOR | 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, 2023 is $2,432,481,922, which represents 10.8% of net assets. |
| | |
* | Non-income producing security. |
| | |
‡ | Variable or floating rate security. Rate shown is the current rate as of September 30, 2023. Certain variable rate securities are not based on a published reference rate and spread; they are determined by the issuer or agent and current market conditions. Reference rate is as of reset date and may vary by security, which may not indicate a reference rate and/or spread in their description. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
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, 2023. 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 | $ | - | $ | 2,035,410,697 | $ | - |
Corporate Bonds | | - | | 2,536,908,575 | | - |
Mortgage-Backed Securities | | - | | 2,563,824,812 | | - |
United States Treasury Notes/Bonds | | - | | 1,457,762,898 | | - |
Common Stocks | | 13,887,236,417 | | - | | - |
Investment Companies | | - | | 479,393,319 | | - |
Total Investments in Securities | $ | 13,887,236,417 | $ | 9,073,300,301 | $ | - |
Other Financial Instruments(a): | | | | | | |
Futures Contracts | | 13,709,001 | | - | | - |
Total Assets | $ | 13,900,945,418 | $ | 9,073,300,301 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Futures Contracts | $ | 49,029,337 | $ | - | $ | - |
| | | | | | | |
(a) | Other financial instruments may 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, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $16,981,313,545) | | $ | 22,481,143,399 | |
| Affiliated investments, at value (cost $479,299,386) | | | 479,393,319 | |
| Cash | | | 13,815 | |
| Deposits with brokers for futures | | | 46,180,000 | |
| Variation margin receivable on futures contracts | | | 5,152,501 | |
| Trustees' deferred compensation | | | 586,628 | |
| Receivables: | | | | |
| | Investments sold | | | 268,966,794 | |
| | Interest | | | 58,634,848 | |
| | Fund shares sold | | | 16,348,137 | |
| | Dividends | | | 7,277,428 | |
| | Dividends from affiliates | | | 2,686,061 | |
| Other assets | | | 75,472 | |
Total Assets | | | 23,366,458,402 | |
Liabilities: | | | | |
| Variation margin payable on futures contracts | | | 922,156 | |
| Payables: | | | — | |
| | TBA investments purchased | | | 466,537,061 | |
| | Investments purchased | | | 278,522,403 | |
| | Fund shares repurchased | | | 30,207,747 | |
| | Advisory fees | | | 10,830,573 | |
| | Dividends | | | 8,302,461 | |
| | Transfer agent fees and expenses | | | 3,016,434 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 2,430,301 | |
| | Trustees' deferred compensation fees | | | 586,628 | |
| | Trustees' fees and expenses | | | 121,695 | |
| | Professional fees | | | 113,264 | |
| | Affiliated fund administration fees payable | | | 49,230 | |
| | Custodian fees | | | 646 | |
| | Accrued expenses and other payables | | | 589,043 | |
Total Liabilities | | | 802,229,642 | |
Commitments and contingent liabilities (Note 4) | | | | |
Net Assets | | $ | 22,564,228,760 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 31 |
Janus Henderson Balanced Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 17,109,293,891 | |
| Total distributable earnings (loss) | | | 5,454,934,869 | |
Total Net Assets | | $ | 22,564,228,760 | |
Net Assets - Class A Shares | | $ | 1,865,079,142 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 48,074,942 | |
Net Asset Value Per Share(1) | | $ | 38.80 | |
Maximum Offering Price Per Share(2) | | $ | 41.17 | |
Net Assets - Class C Shares | | $ | 2,035,792,198 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 53,162,188 | |
Net Asset Value Per Share(1) | | $ | 38.29 | |
Net Assets - Class D Shares | | $ | 2,049,684,855 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 52,654,979 | |
Net Asset Value Per Share | | $ | 38.93 | |
Net Assets - Class I Shares | | $ | 9,681,873,732 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 248,636,133 | |
Net Asset Value Per Share | | $ | 38.94 | |
Net Assets - Class N Shares | | $ | 1,993,793,934 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 51,260,409 | |
Net Asset Value Per Share | | $ | 38.90 | |
Net Assets - Class R Shares | | $ | 378,411,928 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,824,976 | |
Net Asset Value Per Share | | $ | 38.52 | |
Net Assets - Class S Shares | | $ | 355,150,157 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,155,443 | |
Net Asset Value Per Share | | $ | 38.79 | |
Net Assets - Class T Shares | | $ | 4,204,442,814 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 108,171,066 | |
Net Asset Value Per Share | | $ | 38.87 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
32 | SEPTEMBER 30, 2023 |
Janus Henderson Balanced Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: |
| Interest | $ | 372,090,404 | |
| Dividends | | 208,346,243 | |
| Dividends from affiliates | | 41,285,286 | |
| Other income | | 1,297,969 | |
| Foreign withholding tax income | | 211,022 | |
Total Investment Income | | 623,230,924 | |
Expenses: | | | |
| Advisory fees | | 127,136,951 | |
| 12b-1 Distribution and shareholder servicing fees: |
| | Class A Shares | | 4,672,582 | |
| | Class C Shares | | 21,022,600 | |
| | Class R Shares | | 1,936,061 | |
| | Class S Shares | | 942,229 | |
| Transfer agent administrative fees and expenses: | | |
| | Class D Shares | | 2,435,086 | |
| | Class R Shares | | 968,681 | |
| | Class S Shares | | 942,710 | |
| | Class T Shares | | 10,986,968 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 1,235,249 | |
| | Class C Shares | | 1,446,996 | |
| | Class I Shares | | 9,025,427 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 110,495 | |
| | Class C Shares | | 88,980 | |
| | Class D Shares | | 211,885 | |
| | Class I Shares | | 472,074 | |
| | Class N Shares | | 73,617 | |
| | Class R Shares | | 3,787 | |
| | Class S Shares | | 3,720 | |
| | Class T Shares | | 37,047 | |
| Shareholder reports expense | | 899,958 | |
| Affiliated fund administration fees | | 742,139 | |
| Trustees’ fees and expenses | | 566,117 | |
| Professional fees | | 285,424 | |
| Custodian fees | | 247,464 | |
| Registration fees | | 234,938 | |
| Other expenses | | 1,208,704 | |
Total Expenses | | 187,937,889 | |
Less: Excess Expense Reimbursement and Waivers | | (509,182) | |
Net Expenses | | 187,428,707 | |
Net Investment Income/(Loss) | | 435,802,217 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 33 |
Janus Henderson Balanced Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | |
| Investments | $ | 166,001,371 | |
| Investments in affiliates | | 95,019 | |
| Futures contracts | | (109,250,347) | |
| Swap contracts | | (8,475,190) | |
Total Net Realized Gain/(Loss) on Investments | 48,370,853 | |
Change in Unrealized Net Appreciation/Depreciation: |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 1,938,039,032 | |
| Investments in affiliates | | 65,156 | |
| Futures contracts | | (4,881,528) | |
Total Change in Unrealized Net Appreciation/Depreciation | 1,933,222,660 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 2,417,395,730 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
34 | SEPTEMBER 30, 2023 |
Janus Henderson Balanced Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 435,802,217 | | $ | 230,064,671 | |
| Net realized gain/(loss) on investments | | 48,370,853 | | | 337,478,101 | |
| Change in unrealized net appreciation/depreciation | 1,933,222,660 | | | (4,673,512,240) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | 2,417,395,730 | | | (4,105,969,468) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (51,333,362) | | | (93,860,314) | |
| | Class C Shares | | (45,273,808) | | | (112,296,142) | |
| | Class D Shares | | (60,647,406) | | | (111,180,078) | |
| | Class I Shares | | (291,314,245) | | | (566,344,120) | |
| | Class N Shares | | (59,499,897) | | | (94,817,591) | |
| | Class R Shares | | (9,042,420) | | | (20,085,711) | |
| | Class S Shares | | (9,720,823) | | | (23,632,020) | |
| | Class T Shares | | (123,492,853) | | | (254,266,348) | |
Net Decrease from Dividends and Distributions to Shareholders | (650,324,814) | | | (1,276,482,324) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (22,591,106) | | | 201,004,623 | |
| | Class C Shares | | (320,372,986) | | | (98,921,615) | |
| | Class D Shares | | (53,162,971) | | | 41,772,637 | |
| | Class I Shares | | (528,656,731) | | | 118,058,604 | |
| | Class N Shares | | 75,881,796 | | | 577,810,669 | |
| | Class R Shares | | (19,384,888) | | | (13,564,711) | |
| | Class S Shares | | (48,245,009) | | | (96,353,423) | |
| | Class T Shares | | (427,510,912) | | | (291,459,655) | |
Net Increase/(Decrease) from Capital Share Transactions | (1,344,042,807) | | | 438,347,129 | |
Net Increase/(Decrease) in Net Assets | | 423,028,109 | | | (4,944,104,663) | |
Net Assets: | | | | | | |
| Beginning of period | | 22,141,200,651 | | | 27,085,305,314 | |
| End of period | $ | 22,564,228,760 | | $ | 22,141,200,651 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 35 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $35.92 | | | $44.26 | | | $38.77 | | | $35.45 | | | $35.22 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.70 | | | 0.34 | | | 0.34 | | | 0.49 | | | 0.60 | |
| | Net realized and unrealized gain/(loss) | | 3.25 | | | (6.67) | | | 6.02 | | | 3.75 | | | 1.82 | |
| Total from Investment Operations | | 3.95 | | | (6.33) | | | 6.36 | | | 4.24 | | | 2.42 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.75) | | | (0.33) | | | (0.41) | | | (0.53) | | | (0.60) | |
| | Distributions (from capital gains) | | (0.32) | | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | |
| Total Dividends and Distributions | | (1.07) | | | (2.01) | | | (0.87) | | | (0.92) | | | (2.19) | |
| Net Asset Value, End of Period | | $38.80 | | | $35.92 | | | $44.26 | | | $38.77 | | | $35.45 | |
| Total Return* | | 11.04% | | | (15.13)% | | | 16.58% | | | 12.14% | | | 7.73% | |
| Net Assets, End of Period (in thousands) | | $1,865,079 | | | $1,748,525 | | | $1,963,351 | | | $1,519,093 | | | $1,082,508 | |
| Average Net Assets for the Period (in thousands) | | $1,873,611 | | | $2,006,053 | | | $1,788,265 | | | $1,249,156 | | | $905,165 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.89% | | | 0.89% | | | 0.89% | | | 0.90% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.89% | | | 0.89% | | | 0.89% | | | 0.90% | | | 0.93% | |
| | Ratio of Net Investment Income/(Loss) | | 1.80% | | | 0.80% | | | 0.80% | | | 1.34% | | | 1.78% | |
| Portfolio Turnover Rate(2) | | 92% | | | 79% | | | 60% | | | 90% | | | 81% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $35.46 | | | $43.74 | | | $38.34 | | | $35.09 | | | $34.90 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.42 | | | 0.03 | | | 0.04 | | | 0.23 | | | 0.37 | |
| | Net realized and unrealized gain/(loss) | | 3.21 | | | (6.57) | | | 5.95 | | | 3.71 | | | 1.79 | |
| Total from Investment Operations | | 3.63 | | | (6.54) | | | 5.99 | | | 3.94 | | | 2.16 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.48) | | | (0.06) | | | (0.13) | | | (0.30) | | | (0.38) | |
| | Distributions (from capital gains) | | (0.32) | | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | |
| Total Dividends and Distributions | | (0.80) | | | (1.74) | | | (0.59) | | | (0.69) | | | (1.97) | |
| Net Asset Value, End of Period | | $38.29 | | | $35.46 | | | $43.74 | | | $38.34 | | | $35.09 | |
| Total Return* | | 10.25% | | | (15.75)% | | | 15.76% | | | 11.37% | | | 6.98% | |
| Net Assets, End of Period (in thousands) | | $2,035,792 | | | $2,180,941 | | | $2,817,466 | | | $2,415,890 | | | $1,992,062 | |
| Average Net Assets for the Period (in thousands) | | $2,198,102 | | | $2,683,015 | | | $2,671,210 | | | $2,207,746 | | | $1,743,474 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.59% | | | 1.60% | | | 1.60% | | | 1.61% | | | 1.62% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.59% | | | 1.60% | | | 1.60% | | | 1.61% | | | 1.62% | |
| | Ratio of Net Investment Income/(Loss) | | 1.10% | | | 0.08% | | | 0.10% | | | 0.64% | | | 1.10% | |
| Portfolio Turnover Rate(2) | | 92% | | | 79% | | | 60% | | | 90% | | | 81% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $36.04 | | | $44.40 | | | $38.89 | | | $35.54 | | | $35.30 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.78 | | | 0.41 | | | 0.42 | | | 0.56 | | | 0.68 | |
| | Net realized and unrealized gain/(loss) | | 3.26 | | | (6.68) | | | 6.04 | | | 3.77 | | | 1.82 | |
| Total from Investment Operations | | 4.04 | | | (6.27) | | | 6.46 | | | 4.33 | | | 2.50 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.83) | | | (0.41) | | | (0.49) | | | (0.59) | | | (0.67) | |
| | Distributions (from capital gains) | | (0.32) | | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | |
| Total Dividends and Distributions | | (1.15) | | | (2.09) | | | (0.95) | | | (0.98) | | | (2.26) | |
| Net Asset Value, End of Period | | $38.93 | | | $36.04 | | | $44.40 | | | $38.89 | | | $35.54 | |
| Total Return* | | 11.24% | | | (14.97)% | | | 16.80% | | | 12.39% | | | 7.95% | |
| Net Assets, End of Period (in thousands) | | $2,049,685 | | | $1,946,256 | | | $2,362,421 | | | $2,022,689 | | | $1,860,900 | |
| Average Net Assets for the Period (in thousands) | | $2,083,254 | | | $2,286,371 | | | $2,246,350 | | | $1,895,563 | | | $1,759,287 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.70% | | | 0.70% | | | 0.70% | | | 0.71% | | | 0.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.70% | | | 0.70% | | | 0.70% | | | 0.71% | | | 0.72% | |
| | Ratio of Net Investment Income/(Loss) | | 1.99% | | | 0.98% | | | 0.99% | | | 1.54% | | | 2.00% | |
| Portfolio Turnover Rate(2) | | 92% | | | 79% | | | 60% | | | 90% | | | 81% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $36.05 | | | $44.41 | | | $38.90 | | | $35.55 | | | $35.31 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.79 | | | 0.43 | | | 0.44 | | | 0.58 | | | 0.70 | |
| | Net realized and unrealized gain/(loss) | | 3.26 | | | (6.68) | | | 6.04 | | | 3.77 | | | 1.83 | |
| Total from Investment Operations | | 4.05 | | | (6.25) | | | 6.48 | | | 4.35 | | | 2.53 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.84) | | | (0.43) | | | (0.51) | | | (0.61) | | | (0.70) | |
| | Distributions (from capital gains) | | (0.32) | | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | |
| Total Dividends and Distributions | | (1.16) | | | (2.11) | | | (0.97) | | | (1.00) | | | (2.29) | |
| Net Asset Value, End of Period | | $38.94 | | | $36.05 | | | $44.41 | | | $38.90 | | | $35.55 | |
| Total Return* | | 11.28% | | | (14.93)% | | | 16.86% | | | 12.45% | | | 8.02% | |
| Net Assets, End of Period (in thousands) | | $9,681,874 | | | $9,457,091 | | | $11,674,873 | | | $7,688,726 | | | $5,225,684 | |
| Average Net Assets for the Period (in thousands) | | $9,897,885 | | | $11,504,986 | | | $9,205,809 | | | $6,311,815 | | | $4,116,708 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.66% | | | 0.66% | | | 0.65% | | | 0.65% | | | 0.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.66% | | | 0.66% | | | 0.65% | | | 0.65% | | | 0.65% | |
| | Ratio of Net Investment Income/(Loss) | | 2.03% | | | 1.02% | | | 1.04% | | | 1.59% | | | 2.07% | |
| Portfolio Turnover Rate(2) | | 92% | | | 79% | | | 60% | | | 90% | | | 81% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $36.01 | | | $44.37 | | | $38.86 | | | $35.51 | | | $35.28 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.83 | | | 0.47 | | | 0.48 | | | 0.61 | | | 0.73 | |
| | Net realized and unrealized gain/(loss) | | 3.26 | | | (6.69) | | | 6.03 | | | 3.76 | | | 1.81 | |
| Total from Investment Operations | | 4.09 | | | (6.22) | | | 6.51 | | | 4.37 | | | 2.54 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.88) | | | (0.46) | | | (0.54) | | | (0.63) | | | (0.72) | |
| | Distributions (from capital gains) | | (0.32) | | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | |
| Total Dividends and Distributions | | (1.20) | | | (2.14) | | | (1.00) | | | (1.02) | | | (2.31) | |
| Net Asset Value, End of Period | | $38.90 | | | $36.01 | | | $44.37 | | | $38.86 | | | $35.51 | |
| Total Return* | | 11.39% | | | (14.87)% | | | 16.96% | | | 12.53% | | | 8.07% | |
| Net Assets, End of Period (in thousands) | | $1,993,794 | | | $1,777,708 | | | $1,611,032 | | | $1,285,159 | | | $946,741 | |
| Average Net Assets for the Period (in thousands) | | $1,950,264 | | | $1,904,719 | | | $1,562,471 | | | $1,142,389 | | | $1,651,136 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.57% | | | 0.57% | | | 0.57% | | | 0.57% | | | 0.58% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.57% | | | 0.57% | | | 0.57% | | | 0.57% | | | 0.58% | |
| | Ratio of Net Investment Income/(Loss) | | 2.12% | | | 1.13% | | | 1.12% | | | 1.67% | | | 2.19% | |
| Portfolio Turnover Rate(2) | | 92% | | | 79% | | | 60% | | | 90% | | | 81% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $35.67 | | | $43.96 | | | $38.52 | | | $35.23 | | | $35.02 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.53 | | | 0.15 | | | 0.16 | | | 0.34 | | | 0.47 | |
| | Net realized and unrealized gain/(loss) | | 3.23 | | | (6.61) | | | 5.97 | | | 3.73 | | | 1.80 | |
| Total from Investment Operations | | 3.76 | | | (6.46) | | | 6.13 | | | 4.07 | | | 2.27 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.59) | | | (0.15) | | | (0.23) | | | (0.39) | | | (0.47) | |
| | Distributions (from capital gains) | | (0.32) | | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | |
| Total Dividends and Distributions | | (0.91) | | | (1.83) | | | (0.69) | | | (0.78) | | | (2.06) | |
| Net Asset Value, End of Period | | $38.52 | | | $35.67 | | | $43.96 | | | $38.52 | | | $35.23 | |
| Total Return* | | 10.56% | | | (15.50)% | | | 16.08% | | | 11.71% | | | 7.29% | |
| Net Assets, End of Period (in thousands) | | $378,412 | | | $368,360 | | | $473,663 | | | $404,420 | | | $366,621 | |
| Average Net Assets for the Period (in thousands) | | $388,481 | | | $456,123 | | | $450,253 | | | $375,839 | | | $347,861 | |
| 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) | | 1.31% | | | 1.32% | | | 1.31% | | | 1.32% | | | 1.32% | |
| | Ratio of Net Investment Income/(Loss) | | 1.38% | | | 0.35% | | | 0.38% | | | 0.93% | | | 1.39% | |
| Portfolio Turnover Rate(2) | | 92% | | | 79% | | | 60% | | | 90% | | | 81% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $35.91 | | | $44.24 | | | $38.76 | | | $35.43 | | | $35.20 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.63 | | | 0.25 | | | 0.27 | | | 0.43 | | | 0.55 | |
| | Net realized and unrealized gain/(loss) | | 3.25 | | | (6.65) | | | 6.00 | | | 3.76 | | | 1.82 | |
| Total from Investment Operations | | 3.88 | | | (6.40) | | | 6.27 | | | 4.19 | | | 2.37 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.68) | | | (0.25) | | | (0.33) | | | (0.47) | | | (0.55) | |
| | Distributions (from capital gains) | | (0.32) | | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | |
| Total Dividends and Distributions | | (1.00) | | | (1.93) | | | (0.79) | | | (0.86) | | | (2.14) | |
| Net Asset Value, End of Period | | $38.79 | | | $35.91 | | | $44.24 | | | $38.76 | | | $35.43 | |
| Total Return* | | 10.84% | | | (15.29)% | | | 16.35% | | | 11.99% | | | 7.56% | |
| Net Assets, End of Period (in thousands) | | $355,150 | | | $373,119 | | | $566,156 | | | $551,605 | | | $551,985 | |
| Average Net Assets for the Period (in thousands) | | $378,178 | | | $503,092 | | | $570,377 | | | $532,958 | | | $549,514 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.07% | | | 1.07% | | | 1.07% | | | 1.07% | | | 1.08% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.06% | | | 1.07% | | | 1.07% | | | 1.07% | | | 1.07% | |
| | Ratio of Net Investment Income/(Loss) | | 1.62% | | | 0.59% | | | 0.63% | | | 1.18% | | | 1.64% | |
| Portfolio Turnover Rate(2) | | 92% | | | 79% | | | 60% | | | 90% | | | 81% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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. |
| |
42 | SEPTEMBER 30, 2023 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | | $35.98 | | | $44.34 | | | $38.83 | | | $35.49 | | | $35.26 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | | 0.74 | | | 0.36 | | | 0.38 | | | 0.52 | | | 0.64 | |
| | Net realized and unrealized gain/(loss) | | | 3.26 | | | (6.68) | | | 6.02 | | | 3.76 | | | 1.82 | |
| Total from Investment Operations | | | 4.00 | | | (6.32) | | | 6.40 | | | 4.28 | | | 2.46 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | | (0.79) | | | (0.36) | | | (0.43) | | | (0.55) | | | (0.64) | |
| | Distributions (from capital gains) | | | (0.32) | | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | |
| Total Dividends and Distributions | | | (1.11) | | | (2.04) | | | (0.89) | | | (0.94) | | | (2.23) | |
| Net Asset Value, End of Period | | | $38.87 | | | $35.98 | | | $44.34 | | | $38.83 | | | $35.49 | |
| Total Return* | | | 11.14% | | | (15.09)% | | | 16.67% | | | 12.26% | | | 7.82% | |
| Net Assets, End of Period (in thousands) | | | $4,204,443 | | | $4,289,200 | | | $5,616,342 | | | $6,473,729 | | | $5,813,161 | |
| Average Net Assets for the Period (in thousands) | | | $4,407,088 | | | $5,242,961 | | | $6,945,465 | | | $6,067,333 | | | $5,475,178 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | | 0.82% | | | 0.82% | | | 0.82% | | | 0.82% | | | 0.83% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | | 0.80% | | | 0.81% | | | 0.81% | | | 0.82% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | | 1.88% | | | 0.87% | | | 0.89% | | | 1.43% | | | 1.90% | |
| Portfolio Turnover Rate(2) | | | 92% | | | 79% | | | 60% | | | 90% | | | 81% | |
| | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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. |
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See Notes to Financial Statements. |
| |
Janus Investment Fund | 43 |
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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Balanced Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Janus Henderson Balanced Fund
Notes to Financial Statements
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of September 30, 2023 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, 2023 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
Janus Henderson Balanced 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.
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
Janus Henderson Balanced Fund
Notes to Financial Statements
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.
Swaps
Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a day to more than one year to exchange one set of cash flows for another. The most significant factor in the performance of swap agreements is the change in value of the specific index, security, or currency, or other factors that determine the amounts of payments due to and from the Fund. The use of swaps is a highly specialized activity which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. Swap transactions may in some instances involve the delivery of securities or other underlying assets by the Fund or its counterparty to collateralize obligations under the swap. If the other party to a swap that is not collateralized defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. Swap agreements entail the risk that a party will default on its payment obligations to the Fund. If the other party to a swap defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If the Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return.
Swap agreements also bear the risk that the Fund will not be able to meet its obligation to the counterparty. Swap agreements are typically privately negotiated and entered into in the OTC market. However, certain swap agreements are required to be cleared through a clearinghouse and traded on an exchange or swap execution facility. Swaps that are required to be cleared are required to post initial and variation margins in accordance with the exchange requirements. Regulations enacted require the Fund to centrally clear certain interest rate and credit default index swaps through a clearinghouse or central counterparty (“CCP”). To clear a swap with a CCP, the Fund will submit the swap to, and post collateral with, a futures clearing merchant (“FCM”) that is a clearinghouse member. Alternatively, the Fund may enter into a swap with a financial institution other than the FCM (the “Executing Dealer”) and arrange for the swap to be transferred to the FCM for clearing. The Fund may also enter into a swap with the FCM itself. The CCP, the FCM, and the Executing Dealer are all subject to regulatory oversight by the U.S. Commodity Futures Trading Commission (“CFTC”). A default or failure by a CCP or an FCM, or the failure of a swap to be transferred from an Executing Dealer to the FCM for clearing, may expose the Fund to losses, increase its costs, or prevent the Fund from entering or exiting swap positions, accessing collateral, or fully implementing its investment strategies. The regulatory requirement to clear certain swaps could, either temporarily or permanently, reduce the liquidity of cleared swaps or increase the costs of entering into those swaps.
Index swaps, interest rate swaps, inflation swaps and credit default swaps are valued using an approved vendor supplied price. Basket swaps are valued using a broker supplied price. Equity swaps that consist of a single underlying
Janus Henderson Balanced Fund
Notes to Financial Statements
equity are valued either at the closing price, the latest bid price, or the last sale price on the primary market or exchange it trades. The market value of swap contracts are aggregated by positive and negative values and are disclosed separately as an asset or liability on the Fund’s Statement of Assets and Liabilities (if applicable). Realized gains and losses are reported on the Fund’s Statement of Operations (if applicable). The change in unrealized net appreciation or depreciation during the year is included in the Statement of Operations (if applicable).
The Fund’s maximum risk of loss from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to cover the Fund’s exposure to the counterparty.
The Fund may enter into various types of credit default swap agreements, including OTC credit default swap agreements, for investment purposes, to add leverage to its Fund, or to hedge against widening credit spreads on high-yield/high-risk bonds. Credit default swaps are a specific kind of counterparty agreement that allow the transfer of third party credit risk from one party to the other. One party in the swap is a lender and faces credit risk from a third party, and the counterparty in the credit default swap agrees to insure this risk in exchange for regular periodic payments. Credit default swaps could result in losses if the Fund does not correctly evaluate the creditworthiness of the company or companies on which the credit default swap is based. Credit default swap agreements may involve greater risks than if the Fund had invested in the reference obligation directly since, in addition to risks relating to the reference obligation, credit default swaps are subject to illiquidity risk, counterparty risk, and credit risk. The Fund will generally incur a greater degree of risk when it sells a credit default swap than when it purchases a credit default swap. As a buyer of a credit default swap, the Fund may lose its investment and recover nothing should no credit event occur and the swap is held to its termination date. As seller of a credit default swap, if a credit event were to occur, the value of any deliverable obligation received by the Fund, coupled with the upfront or periodic payments previously received, may be less than what it pays to the buyer, resulting in a loss of value to the Fund.
As a buyer of credit protection, the Fund is entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract in the event of a default or other credit event by a third party, such as a U.S. or foreign issuer, on the debt obligation. In return, the Fund as buyer would pay to the counterparty a periodic stream of payments over the term of the contract provided that no credit event has occurred. If no credit event occurs, the Fund would have spent the stream of payments and potentially received no benefit from the contract.
If the Fund is the seller of credit protection against a particular security, the Fund would receive an up-front or periodic payment to compensate against potential credit events. As the seller in a credit default swap contract, the Fund would be required to pay the par value (the “notional value”) (or other agreed-upon value) of a referenced debt obligation to the counterparty in the event of a default by a third party, such as a U.S. or foreign corporate issuer, on the debt obligation. In return, the Fund would receive from the counterparty a periodic stream of payments over the term of the contract provided that no event of default has occurred. If no default occurs, the Fund would keep the stream of payments and would have no payment obligations. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional value of the swap. The maximum potential amount of future payments (undiscounted) that the Fund as a seller could be required to make in a credit default transaction would be the notional amount of the agreement.
The Fund may invest in CDXs. A CDX is a swap on an index of credit default swaps. CDXs allow an investor to manage credit risk or take a position on a basket of credit entities (such as credit default swaps or commercial mortgage-backed securities) in a more efficient manner than transacting in a single-name CDS. If a credit event occurs in one of the underlying companies, the protection is paid out via the delivery of the defaulted bond by the buyer of protection in return for a payment of notional value of the defaulted bond by the seller of protection or it may be settled through a cash settlement between the two parties. The underlying company is then removed from the index. If the Fund holds a long position in a CDX, the Fund would indirectly bear its proportionate share of any expenses paid by a CDX. A Fund holding a long position in CDXs typically receives income from principal or interest paid on the underlying securities. By investing in CDXs, the Fund could be exposed to illiquidity risk, counterparty risk, and credit risk of the issuers of the underlying loan obligations and of the CDX markets. If there is a default by the CDX counterparty, the Fund will have contractual remedies pursuant to the agreements related to the transaction. CDXs also bear the risk that the Fund will not be able to meet its obligation to the counterparty.
Janus Henderson Balanced Fund
Notes to Financial Statements
During the year, the Fund purchased protection via the credit default swap market in order to reduce credit risk exposure to individual corporates, countries and/or credit indices where reducing this exposure via the cash bond market was less attractive.
There were no credit default swaps held at September 30, 2023.
3. Other Investments and Strategies
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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
Janus Henderson Balanced Fund
Notes to Financial Statements
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.
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 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. Cash collateral that has been pledged to cover the obligations of a Fund and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as Collateral for To Be Announced Transactions.
When-Issued, Delayed Delivery and Forward Commitment Transactions
The Fund may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis. When purchasing a security on a when-issued, delayed delivery, or forward commitment basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. Typically, no income accrues on securities the Fund has committed to purchase prior to the time delivery of the securities is made. Because the Fund is not required to pay for the security until the delivery date, these risks are in addition to the risks associated with the Fund’s other investments. If the other party to a transaction fails to deliver the securities, the Fund could miss a favorable price or yield opportunity. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases are outstanding, the purchases may result in a form of leverage. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases (including TBA commitments) are outstanding, the purchases may result in a form of leverage.
When the Fund has sold a security on a when-issued, delayed delivery, or forward commitment basis, the Fund does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to pay for the securities, the Fund could suffer a loss. Additionally, when selling a security on a when-issued, delayed delivery, or forward commitment basis without owning the security, the Fund will incur a loss if the security’s price appreciates in
Janus Henderson Balanced Fund
Notes to Financial Statements
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 27, 2023. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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 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.
Janus Henderson Balanced Fund
Notes to Financial Statements
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, 2023, the Distributor retained upfront sales charges of $315,835.
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, 2023, redeeming shareholders of Class A Shares paid CDSCs of $20,705 to the Distributor.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $162,301.
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, 2023 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, 2023 are included in “Trustees’ fees and expenses” on the Statement of
Janus Henderson Balanced Fund
Notes to Financial Statements
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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 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 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.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 10,263,841 | $ - | $ - | $ - | $ (543,020) | $5,445,214,048 | |
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, 2023 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) |
$17,515,322,670 | $6,155,045,755 | $(709,831,707) | $5,445,214,048 |
Information on the tax components of derivatives as of September 30, 2023 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ (35,320,336) | $ - | $ - | $ - |
Janus Henderson Balanced Fund
Notes to Financial Statements
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 459,958,770 | $ 190,366,044 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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. Capital has been adjusted by $7,014,314, all of which is long-term capital gain, for distributions in connection with Fund shares redemption (tax equalization).
Janus Henderson Balanced Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 7,984,263 | $ 311,626,980 | | 11,215,506 | $ 483,931,491 |
Reinvested dividends and distributions | 1,115,947 | 43,169,817 | | 1,748,607 | 77,348,564 |
Shares repurchased | (9,702,113) | (377,387,903) | | (8,644,941) | (360,275,432) |
Net Increase/(Decrease) | (601,903) | $ (22,591,106) | | 4,319,172 | $ 201,004,623 |
Class C Shares: | | | | | |
Shares sold | 4,100,831 | $ 157,996,733 | | 8,116,014 | $ 346,462,334 |
Reinvested dividends and distributions | 1,091,359 | 41,557,455 | | 2,307,498 | 102,685,111 |
Shares repurchased | (13,528,146) | (519,927,174) | | (13,341,146) | (548,069,060) |
Net Increase/(Decrease) | (8,335,956) | $ (320,372,986) | | (2,917,634) | $ (98,921,615) |
Class D Shares: | | | | | |
Shares sold | 1,940,443 | $ 76,037,964 | | 3,365,077 | $ 144,011,071 |
Reinvested dividends and distributions | 1,505,923 | 58,464,926 | | 2,435,454 | 107,803,525 |
Shares repurchased | (4,797,981) | (187,665,861) | | (5,003,519) | (210,041,959) |
Net Increase/(Decrease) | (1,351,615) | $ (53,162,971) | | 797,012 | $ 41,772,637 |
Class I Shares: | | | | | |
Shares sold | 41,957,709 | $1,639,492,005 | | 60,564,553 | $2,612,624,805 |
Reinvested dividends and distributions | 6,860,198 | 266,436,009 | | 11,626,166 | 514,657,671 |
Shares repurchased | (62,503,724) | (2,434,584,745) | | (72,736,618) | (3,009,223,872) |
Net Increase/(Decrease) | (13,685,817) | $ (528,656,731) | | (545,899) | $ 118,058,604 |
Class N Shares: | | | | | |
Shares sold | 9,624,806 | $ 377,003,532 | | 19,919,433 | $ 857,849,812 |
Reinvested dividends and distributions | 1,399,441 | 54,315,947 | | 1,949,229 | 85,765,840 |
Shares repurchased | (9,130,790) | (355,437,683) | | (8,813,944) | (365,804,983) |
Net Increase/(Decrease) | 1,893,457 | $ 75,881,796 | | 13,054,718 | $ 577,810,669 |
Class R Shares: | | | | | |
Shares sold | 884,073 | $ 34,398,198 | | 1,715,273 | $ 73,018,763 |
Reinvested dividends and distributions | 234,688 | 9,004,543 | | 450,411 | 20,015,516 |
Shares repurchased | (1,621,552) | (62,787,629) | | (2,613,108) | (106,598,990) |
Net Increase/(Decrease) | (502,791) | $ (19,384,888) | | (447,424) | $ (13,564,711) |
Class S Shares: | | | | | |
Shares sold | 1,281,058 | $ 49,923,833 | | 1,674,243 | $ 71,189,873 |
Reinvested dividends and distributions | 247,780 | 9,572,309 | | 525,517 | 23,439,800 |
Shares repurchased | (2,763,145) | (107,741,151) | | (4,606,241) | (190,983,096) |
Net Increase/(Decrease) | (1,234,307) | $ (48,245,009) | | (2,406,481) | $ (96,353,423) |
Class T Shares: | | | | | |
Shares sold | 6,986,634 | $ 273,030,780 | | 11,382,563 | $ 488,017,295 |
Reinvested dividends and distributions | 3,149,345 | 122,020,159 | | 5,661,980 | 251,115,612 |
Shares repurchased | (21,168,287) | (822,561,851) | | (24,520,523) | (1,030,592,562) |
Net Increase/(Decrease) | (11,032,308) | $ (427,510,912) | | (7,475,980) | $ (291,459,655) |
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$7,884,890,175 | $6,652,082,461 | $ 12,513,591,382 | $ 14,745,068,065 |
Janus Henderson Balanced Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Balanced Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Balanced Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Balanced Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Balanced Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Balanced Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Balanced Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Balanced Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Balanced Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Balanced Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Balanced Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Section 163(j) Interest Dividend | 58% |
Capital Gain Distributions | $197,380,358 |
Dividends Received Deduction Percentage | 46% |
Qualified Dividend Income Percentage | 47% |
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 48 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). | 48 | 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). | 48 | 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). | 48 | 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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). | 48 | 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. | 48 | 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). | 48 | 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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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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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 Balanced Fund
Notes
NotesPage1
Janus Henderson Balanced 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93037 11-23 |
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| | | ANNUAL REPORT September 30, 2023 |
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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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Nick Schommer portfolio manager |
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PERFORMANCE OVERVIEW
The Janus Henderson Contrarian Fund’s Class I Shares returned 19.18% over the one-year period ended September 30, 2023. The Fund’s benchmark, the S&P 500® Index, returned 21.62%.
INVESTMENT ENVIRONMENT
The stock market steadily appreciated for the first nine months of the period, driven by a combination of excitement surrounding artificial intelligence (AI), slowing inflation, and overall positive economic fundamentals. However, returns were extremely narrow in breadth, driven by a handful of large- and mega-cap stocks linked to AI developments. Bouts of volatility also occurred, most notably the March collapse of Silicon Valley Bank and other regional banks. In July, the S&P 500 Index reached an 18-month peak, but market sentiment began to shift as investors recognized that the Federal Reserve (Fed) may keep policy rates higher for longer in its fight against inflation.
PERFORMANCE DISCUSSION
As part of our contrarian investment approach, we seek to think differently than the market, not oppose it. We invest in stocks that trade at a discount to our estimate of fair value, with intrinsic value we believe will grow over time and management teams that 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.
Stocks linked to AI were among the period’s best performers, including one of the Fund’s top relative contributors, Advanced Micro Devices (AMD). The company produces a suite of semiconductor chips that we believe are aligned with a wider rollout of AI applications. AMD created a graphics processing unit (GPU) chip that should launch in 2024 and announced a partnership with Microsoft in the burgeoning generative AI industry.
Constellium, a downstream manufacturer of aluminum products for the packaging, aerospace, and auto industries, was also among the top contributors. Its products are used in diverse applications, such as electric vehicles and sustainable packaging. The company has been experiencing attractive growth in its higher profitability aerospace business. We have also begun to see a stabilization in the packaging market after a period of weakness in demand. We believe there is long-term attractive growth potential in this segment, as the market continues to favor more sustainable packing.
While we were pleased with the results of many companies in the portfolio, other holdings disappointed. The BeautyHealth Company was among the top detractors. The medical aesthetic company reported positively on revenues, however, it disappointed on gross margins in the second quarter due to the cost of maintaining excess inventory as it is in the process of relocating its manufacturing to China. Investors were already nervous that the company’s guidance for 2023 was back-half loaded, and second-quarter results did not absolve those fears. However, the company’s core business continues to do well, and we believe the company is managing well through the growing pains of being a younger public company.
Cullen Frost, a regional bank based in Texas, was also among the top detractors. The company suffered during
Janus Henderson Contrarian Fund (unaudited)
the period, as regional banks generally sold off in the wake of the failures of Silicon Valley Bank and Signature Bank. However, we believe Cullen Frost’s conservative financial position – with ample cash and liquidity – positions it well to gain market share in the medium term, as banks’ cost of funds increase, and regulation and lending standards are tightened. We also believe Cullen Frost will be a beneficiary in the long-term deglobalization trend as a key lender to companies looking to bring supply chains back to the U.S.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
Toward the end of the period, market confidence in an economic soft landing eroded, as investors increasingly embraced the expectation that the Fed will keep interest rates higher for longer. Double digit year-to-date 2023 returns for the S&P 500 Index continued to be concentrated in a handful of large-cap stocks, while the S&P 500 Equal Weight Index only produced modest positive returns. As market returns have become exceptionally narrow in breadth, we seek to generate returns based on our differentiated views.
Our portfolio construction approach allows us to navigate investment opportunities across three buckets: misunderstood business models, undervalued assets, and underappreciated growth. The core of our process always revolves around generating differentiated insights for a base of ideas in our misunderstood business model bucket. We are also finding a growing number of opportunities in our undervalued assets bucket, as investors increasingly price in a potential recession. Notably, we remain overweight to the healthcare sector given its attractive current valuations, lower economic sensitivity, and healthy backdrop for merger and acquisition activity.
Overall, we remain focused on the long term and our independent process — to seek returns not tied to an index or the broader economy. We believe our current portfolio positioning offers equity diversification for clients and the potential to unlock value through unique opportunities.
Thank you for your investment in the Janus Henderson Contrarian Fund.
Volatility measures risk using the dispersion of returns for a given investment.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Contrarian Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Advanced Micro Devices Inc | 3.19% | | 1.61% | | Beauty Health Co/The | 2.46% | | -2.44% |
| Horizon Therapeutics PLC | 1.86% | | 1.43% | | Cullen/Frost Bankers Inc | 2.55% | | -1.68% |
| Howmet Aerospace Inc | 5.60% | | 1.39% | | Teleflex Inc | 2.04% | | -1.48% |
| Constellium SE | 2.77% | | 1.28% | | Madrigal Pharmaceuticals Inc | 0.90% | | -1.04% |
| Deckers Outdoor Corp | 1.66% | | 0.91% | | Globus Medical Inc | 2.56% | | -0.98% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Industrials | | 2.84% | | 11.20% | 8.45% |
| Materials | | 1.59% | | 11.85% | 2.60% |
| Consumer Discretionary | | 1.21% | | 14.69% | 10.43% |
| Financials | | 0.52% | | 10.07% | 12.17% |
| Real Estate | | 0.11% | | 2.92% | 2.58% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | -1.63% | | 13.69% | 26.86% |
| Communication Services | | -1.55% | | 3.16% | 8.10% |
| Consumer Staples | | -1.39% | | 2.46% | 6.89% |
| Health Care | | -1.01% | | 20.09% | 14.37% |
| Energy | | -0.94% | | 3.99% | 4.73% |
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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 Contrarian Fund (unaudited)
Fund At A Glance
September 30, 2023
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5 Largest Equity Holdings - (% of Net Assets) |
Howmet Aerospace Inc | |
Aerospace & Defense | 5.9% |
Caesars Entertainment Inc | |
Hotels, Restaurants & Leisure | 5.8% |
Crown Holdings Inc | |
Containers & Packaging | 5.4% |
Teleflex Inc | |
Health Care Equipment & Supplies | 4.9% |
Catalent Inc | |
Pharmaceuticals | 4.9% |
| | 26.9% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.4% | |
Investment Companies | | 3.0% | |
Corporate Bonds | | 0.6% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.0% | |
Other | | (1.0)% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
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, 2023 | | | 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 | | 18.86% | 9.27% | 8.79% | 7.49% | | | 1.08% | 1.08% |
Class A Shares at MOP | | 12.05% | 7.98% | 8.14% | 7.22% | | | | |
Class C Shares at NAV | | 18.11% | 8.53% | 8.03% | 6.70% | | | 1.83% | 1.83% |
Class C Shares at CDSC | | 17.11% | 8.53% | 8.03% | 6.70% | | | | |
Class D Shares | | 19.15% | 9.52% | 9.02% | 7.69% | | | 0.86% | 0.86% |
Class I Shares | | 19.18% | 9.57% | 9.09% | 7.73% | | | 0.83% | 0.83% |
Class N Shares | | 19.30% | 9.67% | 9.09% | 7.70% | | | 0.73% | 0.73% |
Class R Shares | | 18.28% | 8.72% | 8.29% | 7.01% | | | 1.63% | 1.57% |
Class S Shares | | 18.64% | 9.02% | 8.58% | 7.29% | | | 1.41% | 1.31% |
Class T Shares | | 19.04% | 9.42% | 8.93% | 7.64% | | | 0.98% | 0.98% |
S&P 500 Index | | 21.62% | 9.92% | 11.91% | 6.98% | | | | |
Morningstar Quartile - Class T Shares | | 1st | 1st | 1st | 3rd | | | | |
Morningstar Ranking - based on total returns for Mid-Cap Blend Funds | | 49/422 | 18/366 | 59/295 | 82/163 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs),
Janus Henderson Contrarian 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 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.
© 2023 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 waiver, if any, contractually agreed to for at least a one-year period commencing on January 27, 2023. This contractual waiver may be terminated or modified only at the discretion of the Board of Trustees. 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.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $989.60 | $5.04 | | $1,000.00 | $1,020.00 | $5.11 | 1.01% |
Class C Shares | $1,000.00 | $986.20 | $8.56 | | $1,000.00 | $1,016.44 | $8.69 | 1.72% |
Class D Shares | $1,000.00 | $990.80 | $3.89 | | $1,000.00 | $1,021.16 | $3.95 | 0.78% |
Class I Shares | $1,000.00 | $990.80 | $3.74 | | $1,000.00 | $1,021.31 | $3.80 | 0.75% |
Class N Shares | $1,000.00 | $991.20 | $3.19 | | $1,000.00 | $1,021.86 | $3.24 | 0.64% |
Class R Shares | $1,000.00 | $987.00 | $7.37 | | $1,000.00 | $1,017.65 | $7.49 | 1.48% |
Class S Shares | $1,000.00 | $988.40 | $6.08 | | $1,000.00 | $1,018.95 | $6.17 | 1.22% |
Class T Shares | $1,000.00 | $990.40 | $4.34 | | $1,000.00 | $1,020.71 | $4.41 | 0.87% |
† | 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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– 0.6% | | | |
Personal Products – 0.6% | | | |
| | Beauty Health Co/The, 1.2500%, 10/1/26 (144A)((cost $23,534,622) | | $30,000,000 | | | $23,325,000 | |
Common Stocks– 97.4% | | | |
Aerospace & Defense – 5.9% | | | |
| | Howmet Aerospace Inc | | 5,431,567 | | | 251,209,974 | |
Banks – 5.9% | | | |
| | Cullen/Frost Bankers Inc | | 700,718 | | | 63,912,489 | |
| | PNC Financial Services Group Inc/The | | 1,072,549 | | | 131,676,841 | |
| | Western Alliance Bancorp | | 1,204,355 | | | 55,364,199 | |
| | | 250,953,529 | |
Biotechnology – 7.2% | | | |
| | AbbVie Inc | | 844,368 | | | 125,861,494 | |
| | Amicus Therapeutics Inc* | | 7,245,378 | | | 88,103,796 | |
| | Madrigal Pharmaceuticals Inc* | | 415,979 | | | 60,749,573 | |
| | Vaxcyte Inc* | | 627,534 | | | 31,991,683 | |
| | | 306,706,546 | |
Capital Markets – 0.5% | | | |
| | Patria Investments Ltd - Class A | | 1,372,637 | | | 20,013,047 | |
Consumer Finance – 3.2% | | | |
| | Capital One Financial Corp | | 864,187 | | | 83,869,348 | |
| | OneMain Holdings Inc | | 1,321,127 | | | 52,963,981 | |
| | | 136,833,329 | |
Containers & Packaging – 5.4% | | | |
| | Crown Holdings Inc | | 2,582,761 | | | 228,522,693 | |
Diversified Financial Services – 1.0% | | | |
| | Apollo Global Management Inc | | 464,943 | | | 41,733,284 | |
Electric Utilities – 1.4% | | | |
| | American Electric Power Co Inc | | 793,662 | | | 59,699,256 | |
Electrical Equipment – 0.8% | | | |
| | Vertiv Holdings Co | | 897,906 | | | 33,402,103 | |
Health Care Equipment & Supplies – 8.2% | | | |
| | Globus Medical Inc* | | 2,322,964 | | | 115,335,163 | |
| | Lantheus Holdings Inc* | | 343,747 | | | 23,883,542 | |
| | Teleflex Inc | | 1,055,246 | | | 207,260,867 | |
| | | 346,479,572 | |
Hotels, Restaurants & Leisure – 8.3% | | | |
| | Caesars Entertainment Inc* | | 5,272,456 | | | 244,388,515 | |
| | Sportradar Group AG - Class A* | | 2,726,991 | | | 27,297,180 | |
| | Wynn Resorts Ltd | | 867,224 | | | 80,140,170 | |
| | | 351,825,865 | |
Life Sciences Tools & Services – 2.3% | | | |
| | Sotera Health Co* | | 6,408,775 | | | 96,003,449 | |
Machinery – 3.0% | | | |
| | Chart Industries Inc* | | 750,387 | | | 126,905,449 | |
Metals & Mining – 6.5% | | | |
| | Constellium SE*,£ | | 7,903,948 | | | 143,851,854 | |
| | Freeport-McMoRan Inc | | 3,477,703 | | | 129,683,545 | |
| | | 273,535,399 | |
Multiline Retail – 2.8% | | | |
| | Amazon.com Inc* | | 947,323 | | | 120,423,700 | |
Multi-Utilities – 3.3% | | | |
| | Sempra Energy | | 2,066,820 | | | 140,605,765 | |
Oil, Gas & Consumable Fuels – 4.6% | | | |
| | Occidental Petroleum Corp | | 2,975,339 | | | 193,039,994 | |
Personal Products – 1.6% | | | |
| | Beauty Health Co/The*,#,£ | | 11,398,292 | | | 68,617,718 | |
Pharmaceuticals – 4.9% | | | |
| | Catalent Inc* | | 4,534,523 | | | 206,456,832 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Contrarian Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Professional Services – 1.4% | | | |
| | Ceridian HCM Holding Inc* | | 881,478 | | | $59,808,282 | |
Semiconductor & Semiconductor Equipment – 9.6% | | | |
| | Advanced Micro Devices Inc* | | 1,393,720 | | | 143,302,290 | |
| | Analog Devices Inc | | 308,057 | | | 53,937,700 | |
| | Lam Research Corp | | 101,384 | | | 63,544,450 | |
| | Marvell Technology Inc | | 2,656,271 | | | 143,783,949 | |
| | | 404,568,389 | |
Software – 2.7% | | | |
| | Workday Inc - Class A* | | 522,456 | | | 112,249,672 | |
Specialized Real Estate Investment Trusts (REITs) – 2.6% | | | |
| | VICI Properties Inc | | 3,791,871 | | | 110,343,446 | |
Trading Companies & Distributors – 2.7% | | | |
| | Core & Main Inc - Class A* | | 1,999,326 | | | 57,680,555 | |
| | Ferguson PLC | | 356,546 | | | 58,641,121 | |
| | | 116,321,676 | |
Wireless Telecommunication Services – 1.6% | | | |
| | T-Mobile US Inc* | | 468,094 | | | 65,556,565 | |
Total Common Stocks (cost $3,686,226,012) | | 4,121,815,534 | |
Investment Companies– 3.0% | | | |
Money Markets – 3.0% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $128,353,664) | | 128,330,066 | | | 128,368,565 | |
Investments Purchased with Cash Collateral from Securities Lending– 0% | | | |
Investment Companies – 0% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº,£ | | 5,000 | | | 5,000 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 5.3100%, 10/2/23 | | $1,250 | | | 1,250 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $6,250) | | 6,250 | |
Total Investments (total cost $3,838,120,548) – 101.0% | | 4,273,515,349 | |
Liabilities, net of Cash, Receivables and Other Assets – (1.0)% | | (42,707,115) | |
Net Assets – 100% | | $4,230,808,234 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $4,082,353,268 | | 95.5 | % |
Netherlands | | 143,851,854 | | 3.4 | |
Switzerland | | 27,297,180 | | 0.6 | |
Cayman Islands | | 20,013,047 | | 0.5 | |
| | | | | | |
| | | | | | |
Total | | $4,273,515,349 | | 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, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/23 |
Common Stocks - 5.0% |
Metals & Mining - 3.4% | |
| | Constellium SE* | $ | - | $ | 961,288 | $ | 63,260,695 | $ | 143,851,854 |
Personal Products - 1.6% | |
| | Beauty Health Co/The*,# | | - | | (11,597,122) | | (50,278,088) | | 68,617,718 |
Total Common Stocks | $ | - | $ | (10,635,834) | $ | 12,982,607 | $ | 212,469,572 |
Investment Companies - 3.0% |
Money Markets - 3.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 2,809,543 | | 7,334 | | 10,212 | | 128,368,565 |
Investments Purchased with Cash Collateral from Securities Lending - 0.0% |
Investment Companies - 0.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 98,928∆ | | - | | - | | 5,000 |
Total Affiliated Investments - 8.0% | $ | 2,908,471 | $ | (10,628,500) | $ | 12,992,819 | $ | 340,843,137 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2023, this column reflects amounts for the entire year ended September 30, 2023 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Common Stocks - 5.0% |
Metals & Mining - 3.4% | |
| | Constellium SE* | | 77,042,311 | | 6,810,451 | | (4,222,891) | | 143,851,854 |
Personal Products - 1.6% | |
| | Beauty Health Co/The*,# | | 124,219,782 | | 25,150,840 | | (18,877,694) | | 68,617,718 |
Investment Companies - 3.0% |
Money Markets - 3.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 108,427,823 | | 1,183,276,990 | | (1,163,353,794) | | 128,368,565 |
Investments Purchased with Cash Collateral from Securities Lending - 0.0% |
Investment Companies - 0.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 68,142,291 | | 253,490,490 | | (321,627,781) | | 5,000 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Contrarian Fund
Schedule of Investments
September 30, 2023
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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:
| | | | | | | | | | | | | | |
T-Mobile Us Inc | 2,300 | 150.00 | USD | | 11/17/23 | $ | (32,029,800) | $ | 427,800 | $ | 73,704 | $ | (354,096) |
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, 2023.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2023 |
| | | | | |
| | | | | Equity
Contracts |
| | | |
Liability Derivatives: | | | |
Options written, at value | | | $354,096 |
| | | | |
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, 2023.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2023 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Equity
Contracts |
Written options contracts | | $2,663,965 |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Equity
Contracts |
Written options contracts | | $ (479,751) |
| | | | | |
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, 2023 |
| |
| |
Options: | |
Average value of option contracts written | $(631,629) |
| | |
| |
| |
| |
| | |
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, 2023
| | | | | | | | | | |
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 | $ | 6,020 | $ | — | $ | (6,020) | $ | — |
| | | | | | | | | |
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 | $ | 354,096 | $ | — | $ | — | $ | 354,096 |
| | | | | | | | | |
(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, 2023 |
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, 2023 is $23,325,000, which represents 0.6% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2023. |
| | |
£ | 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, 2023. 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 | $ | - | $ | 23,325,000 | $ | - |
Common Stocks | | 4,121,815,534 | | - | | - |
Investment Companies | | - | | 128,368,565 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 6,250 | | - |
Total Assets | $ | 4,121,815,534 | $ | 151,699,815 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Options Written, at Value | $ | - | $ | 354,096 | $ | - |
| | | | | | | |
(a) | Other financial instruments may 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, 2023
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,489,199,379)(1) | | $ | 3,932,672,212 | |
| Affiliated investments, at value (cost $348,921,169) | | | 340,843,137 | |
| Deposits with brokers for OTC derivatives | | | 370,000 | |
| Trustees' deferred compensation | | | 110,502 | |
| Receivables: | | | | |
| | Investments sold | | | 7,553,980 | |
| | Dividends | | | 3,457,870 | |
| | Fund shares sold | | | 938,924 | |
| | Dividends from affiliates | | | 206,309 | |
| | Interest | | | 188,542 | |
| Other assets | | | 5,614 | |
Total Assets | | | 4,286,347,090 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 6,250 | |
| Options written, at value (premiums received $427,800) | | | 354,096 | |
| Payables: | | | — | |
| | Investments purchased | | | 49,980,980 | |
| | Fund shares repurchased | | | 2,092,079 | |
| | Advisory fees | | | 2,026,381 | |
| | Transfer agent fees and expenses | | | 641,770 | |
| | Trustees' deferred compensation fees | | | 110,502 | |
| | Professional fees | | | 60,062 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 31,601 | |
| | Trustees' fees and expenses | | | 23,356 | |
| | Affiliated fund administration fees payable | | | 9,313 | |
| | Custodian fees | | | 5,261 | |
| | Accrued expenses and other payables | | | 197,205 | |
Total Liabilities | | | 55,538,856 | |
Commitments and contingent liabilities (Note 4) | | | | |
Net Assets | | $ | 4,230,808,234 | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2023 |
Janus Henderson Contrarian Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,506,330,086 | |
| Total distributable earnings (loss) | | | 724,478,148 | |
Total Net Assets | | $ | 4,230,808,234 | |
Net Assets - Class A Shares | | $ | 61,193,139 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,473,264 | |
Net Asset Value Per Share(2) | | $ | 24.74 | |
Maximum Offering Price Per Share(3) | | $ | 26.25 | |
Net Assets - Class C Shares | | $ | 19,460,426 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 880,318 | |
Net Asset Value Per Share(2) | | $ | 22.11 | |
Net Assets - Class D Shares | | $ | 2,400,756,830 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 96,433,641 | |
Net Asset Value Per Share | | $ | 24.90 | |
Net Assets - Class I Shares | | $ | 730,721,354 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 29,350,309 | |
Net Asset Value Per Share | | $ | 24.90 | |
Net Assets - Class N Shares | | $ | 81,339,906 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,272,003 | |
Net Asset Value Per Share | | $ | 24.86 | |
Net Assets - Class R Shares | | $ | 1,793,953 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 76,172 | |
Net Asset Value Per Share | | $ | 23.55 | |
Net Assets - Class S Shares | | $ | 1,795,889 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 72,887 | |
Net Asset Value Per Share | | $ | 24.64 | |
Net Assets - Class T Shares | | $ | 933,746,737 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 37,565,117 | |
Net Asset Value Per Share | | $ | 24.86 | |
| |
(1) Includes $6,020 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, 2023
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 55,942,651 | |
| Interest | | 3,274,082 | |
| Dividends from affiliates | | 2,809,543 | |
| Affiliated securities lending income, net | | 98,928 | |
| Unaffiliated securities lending income, net | | 25,820 | |
| Other income | | 95 | |
Total Investment Income | | 62,151,119 | |
Expenses: | | | |
| Advisory fees | | 25,824,814 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 151,024 | |
| | Class C Shares | | 207,465 | |
| | Class R Shares | | 8,567 | |
| | Class S Shares | | 4,459 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,858,595 | |
| | Class R Shares | | 4,288 | |
| | Class S Shares | | 4,448 | |
| | Class T Shares | | 2,413,672 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 68,888 | |
| | Class C Shares | | 21,735 | |
| | Class I Shares | | 853,003 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 3,789 | |
| | Class C Shares | | 1,122 | |
| | Class D Shares | | 339,470 | |
| | Class I Shares | | 39,228 | |
| | Class N Shares | | 3,839 | |
| | Class R Shares | | 140 | |
| | Class S Shares | | 58 | |
| | Class T Shares | | 10,933 | |
| Shareholder reports expense | | 395,984 | |
| Registration fees | | 194,943 | |
| Affiliated fund administration fees | | 139,527 | |
| Trustees’ fees and expenses | | 105,691 | |
| Professional fees | | 88,766 | |
| Custodian fees | | 20,751 | |
| Other expenses | | 261,585 | |
Total Expenses | | 34,026,784 | |
Less: Excess Expense Reimbursement and Waivers | | (138,141) | |
Net Expenses | | 33,888,643 | |
Net Investment Income/(Loss) | | 28,262,476 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Contrarian Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | $ | 323,274,249 | |
| Investments in affiliates | | (10,628,500) | |
| Written options contracts | | 2,663,965 | |
Total Net Realized Gain/(Loss) on Investments | | 315,309,714 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 374,622,196 | |
| Investments in affiliates | | 12,992,819 | |
| Written options contracts | | (479,751) | |
Total Change in Unrealized Net Appreciation/Depreciation | | 387,135,264 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 730,707,454 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Contrarian Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 28,262,476 | | $ | 15,127,601 | |
| Net realized gain/(loss) on investments | | 315,309,714 | | | 26,823,065 | |
| Change in unrealized net appreciation/depreciation | | 387,135,264 | | | (1,475,668,831) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 730,707,454 | | | (1,433,718,165) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (147,675) | | | (6,096,729) | |
| | Class C Shares | | — | | | (2,439,370) | |
| | Class D Shares | | (12,243,408) | | | (269,945,160) | |
| | Class I Shares | | (4,035,161) | | | (67,446,782) | |
| | Class N Shares | | (561,120) | | | (9,363,778) | |
| | Class R Shares | | — | | | (166,324) | |
| | Class S Shares | | (2,546) | | | (163,299) | |
| | Class T Shares | | (3,822,339) | | | (112,642,510) | |
Net Decrease from Dividends and Distributions to Shareholders | | (20,812,249) | | | (468,263,952) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (3,186,206) | | | 17,894,480 | |
| | Class C Shares | | (6,142,209) | | | 11,141,869 | |
| | Class D Shares | | (115,315,196) | | | 151,564,946 | |
| | Class I Shares | | (152,356,435) | | | 410,367,339 | |
| | Class N Shares | | (17,398,009) | | | 44,703,842 | |
| | Class R Shares | | (113,805) | | | 974,674 | |
| | Class S Shares | | 135,946 | | | 1,330,650 | |
| | Class T Shares | | (91,145,150) | | | 44,527,280 | |
Net Increase/(Decrease) from Capital Share Transactions | | (385,521,064) | | | 682,505,080 | |
Net Increase/(Decrease) in Net Assets | | 324,374,141 | | | (1,219,477,037) | |
Net Assets: | | | | | | |
| Beginning of period | | 3,906,434,093 | | | 5,125,911,130 | |
| End of period | $ | 4,230,808,234 | | $ | 3,906,434,093 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2023 |
Janus Henderson Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $20.87 | | | $31.37 | | | $22.46 | | | $21.63 | | | $21.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.11 | | | 0.03 | | | 0.04 | | | 0.12 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 3.82 | | | (7.74) | | | 9.28 | | | 3.17 | | | 1.36 | |
| Total from Investment Operations | | 3.93 | | | (7.71) | | | 9.32 | | | 3.29 | | | 1.48 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | (0.05) | | | (0.10) | | | (0.14) | | | (0.04) | |
| | Distributions (from capital gains) | | — | | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | |
| Total Dividends and Distributions | | (0.06) | | | (2.79) | | | (0.41) | | | (2.46) | | | (1.46) | |
| Net Asset Value, End of Period | | $24.74 | | | $20.87 | | | $31.37 | | | $22.46 | | | $21.63 | |
| Total Return* | | 18.86% | | | (26.77)% | | | 41.82% | | | 16.01% | | | 8.76% | |
| Net Assets, End of Period (in thousands) | | $61,193 | | | $54,652 | | | $63,005 | | | $28,123 | | | $20,126 | |
| Average Net Assets for the Period (in thousands) | | $60,544 | | | $66,066 | | | $45,546 | | | $23,713 | | | $17,754 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.99% | | | 1.08% | | | 1.12% | | | 0.97% | | | 0.94% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.99% | | | 1.08% | | | 1.12% | | | 0.97% | | | 0.94% | |
| | Ratio of Net Investment Income/(Loss) | | 0.44% | | | 0.11% | | | 0.14% | | | 0.60% | | | 0.58% | |
| Portfolio Turnover Rate | | 45% | | | 48% | | | 37% | | | 68% | | | 76% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $18.72 | | | $28.59 | | | $20.55 | | | $19.98 | | | $20.16 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.05) | | | (0.15) | | | (0.14) | | | (0.03) | | | (0.02) | |
| | Net realized and unrealized gain/(loss) | | 3.44 | | | (6.98) | | | 8.49 | | | 2.92 | | | 1.26 | |
| Total from Investment Operations | | 3.39 | | | (7.13) | | | 8.35 | | | 2.89 | | | 1.24 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | — | | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | |
| Total Dividends and Distributions | | — | | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | |
| Net Asset Value, End of Period | | $22.11 | | | $18.72 | | | $28.59 | | | $20.55 | | | $19.98 | |
| Total Return* | | 18.11% | | | (27.34)% | | | 40.91% | | | 15.20% | | | 8.08% | |
| Net Assets, End of Period (in thousands) | | $19,460 | | | $21,790 | | | $21,150 | | | $7,178 | | | $10,556 | |
| Average Net Assets for the Period (in thousands) | | $21,949 | | | $24,560 | | | $12,788 | | | $9,451 | | | $12,089 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.68% | | | 1.82% | | | 1.81% | | | 1.63% | | | 1.58% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.68% | | | 1.82% | | | 1.81% | | | 1.63% | | | 1.58% | |
| | Ratio of Net Investment Income/(Loss) | | (0.24)% | | | (0.63)% | | | (0.52)% | | | (0.15)% | | | (0.10)% | |
| Portfolio Turnover Rate | | 45% | | | 48% | | | 37% | | | 68% | | | 76% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $21.01 | | | $31.54 | | | $22.56 | | | $21.70 | | | $21.65 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.17 | | | 0.09 | | | 0.10 | | | 0.17 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 3.84 | | | (7.79) | | | 9.33 | | | 3.19 | | | 1.37 | |
| Total from Investment Operations | | 4.01 | | | (7.70) | | | 9.43 | | | 3.36 | | | 1.53 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.12) | | | (0.09) | | | (0.14) | | | (0.18) | | | (0.06) | |
| | Distributions (from capital gains) | | — | | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | |
| Total Dividends and Distributions | | (0.12) | | | (2.83) | | | (0.45) | | | (2.50) | | | (1.48) | |
| Net Asset Value, End of Period | | $24.90 | | | $21.01 | | | $31.54 | | | $22.56 | | | $21.70 | |
| Total Return* | | 19.15% | | | (26.60)% | | | 42.18% | | | 16.29% | | | 8.99% | |
| Net Assets, End of Period (in thousands) | | $2,400,757 | | | $2,122,792 | | | $3,021,999 | | | $2,152,848 | | | $1,988,711 | |
| Average Net Assets for the Period (in thousands) | | $2,445,180 | | | $2,758,198 | | | $2,773,321 | | | $1,994,412 | | | $1,855,826 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.86% | | | 0.90% | | | 0.72% | | | 0.71% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.86% | | | 0.90% | | | 0.72% | | | 0.71% | |
| | Ratio of Net Investment Income/(Loss) | | 0.67% | | | 0.33% | | | 0.34% | | | 0.83% | | | 0.80% | |
| Portfolio Turnover Rate | | 45% | | | 48% | | | 37% | | | 68% | | | 76% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $21.01 | | | $31.55 | | | $22.58 | | | $21.73 | | | $21.68 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.17 | | | 0.10 | | | 0.14 | | | 0.18 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 3.85 | | | (7.79) | | | 9.30 | | | 3.20 | | | 1.37 | |
| Total from Investment Operations | | 4.02 | | | (7.69) | | | 9.44 | | | 3.38 | | | 1.54 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.11) | | | (0.16) | | | (0.21) | | | (0.07) | |
| | Distributions (from capital gains) | | — | | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | |
| Total Dividends and Distributions | | (0.13) | | | (2.85) | | | (0.47) | | | (2.53) | | | (1.49) | |
| Net Asset Value, End of Period | | $24.90 | | | $21.01 | | | $31.55 | | | $22.58 | | | $21.73 | |
| Total Return* | | 19.18% | | | (26.57)% | | | 42.18% | | | 16.37% | | | 9.05% | |
| Net Assets, End of Period (in thousands) | | $730,721 | | | $754,492 | | | $679,220 | | | $79,528 | | | $90,754 | |
| Average Net Assets for the Period (in thousands) | | $753,968 | | | $815,397 | | | $316,791 | | | $86,316 | | | $59,058 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.73% | | | 0.83% | | | 0.85% | | | 0.66% | | | 0.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.73% | | | 0.83% | | | 0.85% | | | 0.66% | | | 0.65% | |
| | Ratio of Net Investment Income/(Loss) | | 0.70% | | | 0.36% | | | 0.48% | | | 0.84% | | | 0.85% | |
| Portfolio Turnover Rate | | 45% | | | 48% | | | 37% | | | 68% | | | 76% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $20.98 | | | $31.50 | | | $22.54 | | | $21.68 | | | $21.63 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.20 | | | 0.12 | | | 0.13 | | | 0.20 | | | 0.19 | |
| | Net realized and unrealized gain/(loss) | | 3.84 | | | (7.77) | | | 9.31 | | | 3.20 | | | 1.36 | |
| Total from Investment Operations | | 4.04 | | | (7.65) | | | 9.44 | | | 3.40 | | | 1.55 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.16) | | | (0.13) | | | (0.17) | | | (0.22) | | | (0.08) | |
| | Distributions (from capital gains) | | — | | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | |
| Total Dividends and Distributions | | (0.16) | | | (2.87) | | | (0.48) | | | (2.54) | | | (1.50) | |
| Net Asset Value, End of Period | | $24.86 | | | $20.98 | | | $31.50 | | | $22.54 | | | $21.68 | |
| Total Return* | | 19.30% | | | (26.50)% | | | 42.28% | | | 16.50% | | | 9.16% | |
| Net Assets, End of Period (in thousands) | | $81,340 | | | $83,560 | | | $78,699 | | | $48,111 | | | $39,056 | |
| Average Net Assets for the Period (in thousands) | | $87,373 | | | $98,909 | | | $60,719 | | | $39,349 | | | $28,593 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.62% | | | 0.73% | | | 0.77% | | | 0.58% | | | 0.58% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.62% | | | 0.73% | | | 0.77% | | | 0.58% | | | 0.58% | |
| | Ratio of Net Investment Income/(Loss) | | 0.82% | | | 0.46% | | | 0.46% | | | 0.97% | | | 0.92% | |
| Portfolio Turnover Rate | | 45% | | | 48% | | | 37% | | | 68% | | | 76% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $19.91 | | | $30.14 | | | $21.62 | | | $20.88 | | | $20.97 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.01) | | | (0.09) | | | (0.10) | | | 0.01 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 3.65 | | | (7.40) | | | 8.93 | | | 3.05 | | | 1.32 | |
| Total from Investment Operations | | 3.64 | | | (7.49) | | | 8.83 | | | 3.06 | | | 1.33 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | — | | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | |
| Total Dividends and Distributions | | — | | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | |
| Net Asset Value, End of Period | | $23.55 | | | $19.91 | | | $30.14 | | | $21.62 | | | $20.88 | |
| Total Return* | | 18.28% | | | (27.11)% | | | 41.11% | | | 15.37% | | | 8.21% | |
| Net Assets, End of Period (in thousands) | | $1,794 | | | $1,628 | | | $1,450 | | | $410 | | | $780 | |
| Average Net Assets for the Period (in thousands) | | $1,720 | | | $1,877 | | | $1,227 | | | $804 | | | $695 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.54% | | | 1.62% | | | 1.76% | | | 1.70% | | | 1.74% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.46% | | | 1.55% | | | 1.61% | | | 1.50% | | | 1.48% | |
| | Ratio of Net Investment Income/(Loss) | | (0.03)% | | | (0.36)% | | | (0.33)% | | | 0.07% | | | 0.04% | |
| Portfolio Turnover Rate | | 45% | | | 48% | | | 37% | | | 68% | | | 76% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $20.80 | | | $31.34 | | | $22.41 | | | $21.55 | | | $21.53 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | (0.02) | | | (0.03) | | | 0.05 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 3.82 | | | (7.74) | | | 9.27 | | | 3.18 | | | 1.37 | |
| Total from Investment Operations | | 3.87 | | | (7.76) | | | 9.24 | | | 3.23 | | | 1.44 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | (0.04) | | | — | | | (0.05) | | | — | |
| | Distributions (from capital gains) | | — | | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | |
| Total Dividends and Distributions | | (0.03) | | | (2.78) | | | (0.31) | | | (2.37) | | | (1.42) | |
| Net Asset Value, End of Period | | $24.64 | | | $20.80 | | | $31.34 | | | $22.41 | | | $21.55 | |
| Total Return* | | 18.64% | | | (26.94)% | | | 41.49% | | | 15.71% | | | 8.52% | |
| Net Assets, End of Period (in thousands) | | $1,796 | | | $1,402 | | | $739 | | | $451 | | | $1,032 | |
| Average Net Assets for the Period (in thousands) | | $1,782 | | | $1,622 | | | $628 | | | $756 | | | $996 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.29% | | | 1.41% | | | 1.74% | | | 1.46% | | | 1.35% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.21% | | | 1.30% | | | 1.35% | | | 1.21% | | | 1.18% | |
| | Ratio of Net Investment Income/(Loss) | | 0.21% | | | (0.08)% | | | (0.09)% | | | 0.27% | | | 0.33% | |
| Portfolio Turnover Rate | | 45% | | | 48% | | | 37% | | | 68% | | | 76% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $20.97 | | | $31.48 | | | $22.54 | | | $21.68 | | | $21.63 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.14 | | | 0.06 | | | 0.07 | | | 0.15 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | 3.85 | | | (7.77) | | | 9.30 | | | 3.19 | | | 1.38 | |
| Total from Investment Operations | | 3.99 | | | (7.71) | | | 9.37 | | | 3.34 | | | 1.52 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.10) | | | (0.06) | | | (0.12) | | | (0.16) | | | (0.05) | |
| | Distributions (from capital gains) | | — | | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | |
| Total Dividends and Distributions | | (0.10) | | | (2.80) | | | (0.43) | | | (2.48) | | | (1.47) | |
| Net Asset Value, End of Period | | $24.86 | | | $20.97 | | | $31.48 | | | $22.54 | | | $21.68 | |
| Total Return* | | 19.04% | | | (26.66)% | | | 41.94% | | | 16.22% | | | 8.92% | |
| Net Assets, End of Period (in thousands) | | $933,747 | | | $866,118 | | | $1,259,649 | | | $773,177 | | | $730,400 | |
| Average Net Assets for the Period (in thousands) | | $967,704 | | | $1,149,894 | | | $1,076,107 | | | $731,491 | | | $652,848 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.87% | | | 0.98% | | | 1.01% | | | 0.82% | | | 0.81% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.85% | | | 0.96% | | | 1.00% | | | 0.81% | | | 0.79% | |
| | Ratio of Net Investment Income/(Loss) | | 0.58% | | | 0.23% | | | 0.24% | | | 0.73% | | | 0.72% | |
| Portfolio Turnover Rate | | 45% | | | 48% | | | 37% | | | 68% | | | 76% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
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 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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Contrarian Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Janus Henderson Contrarian Fund
Notes to Financial Statements
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of September 30, 2023 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 Contrarian 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, 2023 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 Contrarian 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.
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)
Janus Henderson Contrarian Fund
Notes to Financial Statements
"exercises" the option. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid. Upon expiration, or closing of the option transaction, a realized gain or loss is reported on the Statement of Operations (if applicable). The difference between the premium paid/received and the market value of the option is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported on the Statement of Operations (if applicable). Option contracts are typically valued using an approved vendor’s option valuation model. To the extent reliable market quotations are available, option contracts are valued using market quotations. In cases when an approved vendor cannot provide coverage for an option and there is no reliable market quotation, a broker quotation or an internal valuation using the Black-Scholes model, the Cox-Rubinstein Binomial Option Pricing Model, or other appropriate option pricing model is used. Certain options contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities as “Variation margin receivable” or “Variation margin payable” (if applicable).
The Fund may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Fund generally invests in options to hedge against adverse movements in the value of portfolio holdings. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying an option and the asset being hedged, or unexpected adverse price movements, could render the Fund’s hedging strategy unsuccessful. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased or sold. The Fund may be subject to counterparty risk, interest rate risk, liquidity risk, equity risk, commodity risk, and currency risk in the normal course of pursuing its investment objective through its investments in options contracts.
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded OTC expose the Fund to counterparty risk in the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.
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
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
Janus Henderson Contrarian Fund
Notes to Financial Statements
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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 Contrarian 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, 2023, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $6,020. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2023 is $6,250, resulting in the net amount due to the counterparty of $230.
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, 2023” 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-
Janus Henderson Contrarian Fund
Notes to Financial Statements
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, 2023, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.60%.
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 on January 27, 2023. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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
Janus Henderson Contrarian Fund
Notes to Financial Statements
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 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, 2023, the Distributor retained upfront sales charges of $16,153.
Janus Henderson Contrarian 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, 2023.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $2,829.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 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, 2023, 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 | 25 | | -* | | |
Class R Shares | - | | - | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
* | Less than 0.50% | | | | | |
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, 2023, the Fund engaged in cross trades amounting to $8,680,390 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. 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.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 17,070,975 | $ 282,857,754 | $ - | $ - | $ (21,558) | $424,570,977 | |
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, 2023 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) |
$3,848,944,372 | $748,625,907 | $(324,054,930) | $ 424,570,977 |
Janus Henderson Contrarian Fund
Notes to Financial Statements
Information on the tax components of derivatives as of September 30, 2023 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ (427,800) | $ 73,704 | $ - | $ 73,704 |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 20,812,249 | $ - | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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. Capital has been adjusted by $19,258,386, including $17,601,291 of long-term capital gain, for distributions in connection with Fund shares redemption (tax equalization).
Janus Henderson Contrarian Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 554,974 | $ 13,696,151 | | 1,152,866 | $ 31,636,833 |
Reinvested dividends and distributions | 5,300 | 120,670 | | 164,479 | 4,559,347 |
Shares repurchased | (705,723) | (17,003,027) | | (707,120) | (18,301,700) |
Net Increase/(Decrease) | (145,449) | $ (3,186,206) | | 610,225 | $ 17,894,480 |
Class C Shares: | | | | | |
Shares sold | 123,754 | $ 2,717,559 | | 617,444 | $ 15,569,116 |
Reinvested dividends and distributions | - | - | | 90,315 | 2,258,775 |
Shares repurchased | (407,137) | (8,859,768) | | (283,921) | (6,686,022) |
Net Increase/(Decrease) | (283,383) | $ (6,142,209) | | 423,838 | $ 11,141,869 |
Class D Shares: | | | | | |
Shares sold | 2,108,543 | $ 52,624,907 | | 3,662,392 | $103,307,288 |
Reinvested dividends and distributions | 516,912 | 11,821,791 | | 9,388,581 | 261,472,004 |
Shares repurchased | (7,250,314) | (179,761,894) | | (7,821,632) | (213,214,346) |
Net Increase/(Decrease) | (4,624,859) | $(115,315,196) | | 5,229,341 | $151,564,946 |
Class I Shares: | | | | | |
Shares sold | 12,046,906 | $ 297,800,842 | | 29,363,877 | $803,303,253 |
Reinvested dividends and distributions | 171,713 | 3,925,364 | | 2,326,660 | 64,774,205 |
Shares repurchased | (18,785,036) | (454,082,641) | | (17,300,101) | (457,710,119) |
Net Increase/(Decrease) | (6,566,417) | $(152,356,435) | | 14,390,436 | $410,367,339 |
Class N Shares: | | | | | |
Shares sold | 1,026,556 | $ 24,807,376 | | 2,203,210 | $ 63,036,485 |
Reinvested dividends and distributions | 24,281 | 553,853 | | 333,560 | 9,266,301 |
Shares repurchased | (1,762,087) | (42,759,238) | | (1,051,858) | (27,598,944) |
Net Increase/(Decrease) | (711,250) | $ (17,398,009) | | 1,484,912 | $ 44,703,842 |
Class R Shares: | | | | | |
Shares sold | 17,389 | $ 404,875 | | 43,552 | $ 1,187,322 |
Reinvested dividends and distributions | - | - | | 6,157 | 163,350 |
Shares repurchased | (23,015) | (518,680) | | (16,025) | (375,998) |
Net Increase/(Decrease) | (5,626) | $ (113,805) | | 33,684 | $ 974,674 |
Class S Shares: | | | | | |
Shares sold | 23,161 | $ 558,042 | | 56,730 | $ 1,672,145 |
Reinvested dividends and distributions | 112 | 2,546 | | 5,902 | 163,299 |
Shares repurchased | (17,764) | (424,642) | | (18,824) | (504,794) |
Net Increase/(Decrease) | 5,509 | $ 135,946 | | 43,808 | $ 1,330,650 |
Class T Shares: | | | | | |
Shares sold | 2,521,868 | $ 63,036,935 | | 5,894,110 | $168,434,652 |
Reinvested dividends and distributions | 164,102 | 3,749,719 | | 3,963,364 | 110,260,797 |
Shares repurchased | (6,426,888) | (157,931,804) | | (8,559,479) | (234,168,169) |
Net Increase/(Decrease) | (3,740,918) | $ (91,145,150) | | 1,297,995 | $ 44,527,280 |
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$1,933,706,460 | $2,302,760,527 | $ - | $ - |
Janus Henderson Contrarian Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Contrarian Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Contrarian Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Contrarian Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Contrarian Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Contrarian Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Contrarian Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Contrarian Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Contrarian Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Contrarian Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Contrarian Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Section 163(j) Interest Dividend | 6% |
Capital Gain Distributions | $17,601,291 |
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 48 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). | 48 | 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). | 48 | 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)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past 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). | 48 | 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)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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 | | | | |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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). | 48 | 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)
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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. | 48 | 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). | 48 | 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)
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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 |
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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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
Janus Henderson Contrarian Fund
Notes
NotesPage2
Janus Henderson Contrarian 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93038 11-23 |
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| | | ANNUAL REPORT September 30, 2023 |
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| | Janus Henderson Emerging Markets Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Emerging Markets Fund
Janus Henderson Emerging Markets Fund (unaudited)
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Matthew Culley co-portfolio manager | 
Daniel J. Graña co-portfolio manager |
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PERFORMANCE
The Janus Henderson Emerging Markets Fund Class I Shares returned 9.03% for the 12-month period ended September 30, 2023. The Fund’s benchmark, the MSCI Emerging Markets IndexSM, returned 11.70%.
INVESTMENT ENVIRONMENT
Global equities rallied in the fourth quarter of 2022 on hopes that moderating inflation might allow central banks to slow or potentially end their campaigns of interest rate hikes. Chinese authorities also announced the relaxation of zero-COVID-19 policies, which was viewed as a potential positive development for global economic growth. Equities continued to rally in the first half of 2023 despite bouts of volatility. However, while the pace of interest rate increases appeared to moderate, most developed market central banks continued to raise interest rates. These rate increases acted as a headwind for global economic growth, with implications for the emerging markets. Equities generally declined in the third quarter of 2023 amid a realization that interest rates may remain elevated due to persistent inflation and rising energy prices. Additionally, the economic recovery in China appeared to be losing steam, adding to global growth concerns. Against this backdrop, emerging markets ended the 12-month period higher but underperformed developed market equities, as measured by the MSCI indices.
PERFORMANCE DISCUSSION
While the Fund’s underweight exposure to Chinese equities aided relative performance, several individual investments in China were notable detractors. China's post-lockdown recovery has been weaker than expected, and official stimulus measures have yet to address the economic slowdown or problems in the property sector. These economic headwinds pressured the near-term business outlook for companies such as Linklogis, a provider of supply chain financing solutions for small- and medium-sized businesses in China. Linklogis also faced uncertainty because of reduced technology-related capital spending by banks, a critical consumer of its products. Given these headwinds for the business, we opted to exit the investment.
Chinese e-commerce retailer JD.Com was another detractor. JD.Com saw significant market share gains during the pandemic, supported by its differentiated logistics footprint. As China emerged from COVID lockdowns, however, these market share advantages started to narrow. This led the company to announce new advertising and promotional programs that investors worried would narrow profit margins. More recently, fears of a potential slowdown in Chinese consumer spending also weighed on the stock, and we eliminated the position.
Relative performance benefited from an investment in Structure Therapeutics, formerly known as ShouTi, as the stock has performed well since its January IPO. We were early investors in ShoutTi, even before the company went public, because of our positive view on its glucagon-like peptide 1 (GLP-1) oral medication to treat obesity and type 2 diabetes. These drugs have received increased focus from investors, which is helping support the stock performance. As the name “structure” implies, the company is focused on applying a unique structural biology method to drug development that it hopes may address a variety of metabolic and pulmonary indications. Additionally, the company has demonstrated strong governance while establishing a track record for developing, scaling, and selling biotechnology assets.
Several of our investments in India were also top contributors. Indian jewelry store chain Kalyan Jewelers continued to execute well, and it reported better-than-
Janus Henderson Emerging Markets Fund (unaudited)
expected sales and profitability. These results helped raise market sentiment around the company’s adoption of a franchise strategy for new store development, a transition it hopes will reduce the capital intensity of the business. We also believe Kalyan is well placed to capitalize on a long-term secular trend of the formalization of the jewelry retail trade.
OUTLOOK
We recognize that emerging market stocks could experience near-term volatility as investors try to assess the outlook for global economic growth, inflation, and interest rates, along with the implications of these macroeconomic headwinds for emerging market economies. Despite this uncertainty, we remain optimistic on the emerging markets relative to developed economies. Central banks in the emerging markets started to raise rates before banks in the U.S. and Europe. We believe they are further along in their efforts to contain inflation and, therefore, are closer to ending their interest rate increases. For this reason, we believe we could see rates stabilize sooner in the emerging markets, relative to the U.S. and Europe. We also continue to seek out longer-term trends, from innovation in healthcare to investments in electric vehicles and green energy, which are creating opportunities for emerging market companies. Additionally, we believe that the reshoring of manufacturing capacity may spur stronger economic growth and investment potential in emerging markets such as Vietnam and Mexico. We believe there are opportunities in the Middle East, especially in Saudi Arabia, where we see potential around the government's efforts to modernize the economy. As we look to take advantage of this broad array of opportunities, we continue to pay close attention to company and country fundamentals, as well as corporate governance. We believe this strategy may lead to favorable long-term outcomes for our investors.
Thank you for investing in the Janus Henderson Emerging Markets Fund.
Monetary tightening refers to central bank activity aimed at curbing inflation and slowing down growth in the economy by raising interest rates and reducing the supply of money.
Monetary Policy refers to the policies of a central bank, aimed at influencing the level of inflation and growth in an economy. It includes controlling interest rates and the supply of money.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Emerging Markets Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Structure Therapeutics Inc (ADR) | 0.24% | | 1.20% | | Linklogis Inc - Class B | 1.22% | | -1.02% |
| Kalyan Jewellers India Ltd | 0.70% | | 1.13% | | JD.Com Inc - Class A | 1.63% | | -0.74% |
| Accton Technology Corp | 1.20% | | 0.69% | | Masan Group Corp | 1.12% | | -0.70% |
| Meituan Dianping | 0.05% | | 0.63% | | Companhia Brasileira de Aluminio | 0.69% | | -0.65% |
| MakeMyTrip Ltd | 0.56% | | 0.61% | | Zai Lab Ltd | 0.48% | | -0.61% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Emerging Markets Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | 0.98% | | 10.12% | 13.56% |
| Financials | | 0.58% | | 22.86% | 21.91% |
| Industrials | | 0.26% | | 6.14% | 6.19% |
| Consumer Staples | | 0.26% | | 8.83% | 6.36% |
| Utilities | | 0.21% | | 1.35% | 2.76% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Emerging Markets Index |
| | | Contribution | | Average Weight | Average Weight |
| Materials | | -1.83% | | 5.97% | 8.59% |
| Information Technology | | -1.50% | | 22.45% | 20.02% |
| Energy | | -0.72% | | 1.83% | 5.00% |
| Other** | | -0.23% | | 3.00% | 0.00% |
| Communication Services | | -0.23% | | 10.05% | 9.84% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
** | Not a GICS classified sector. |
Janus Henderson Emerging Markets Fund (unaudited)
Fund At A Glance
September 30, 2023
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5 Largest Equity Holdings - (% of Net Assets) |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 8.9% |
Samsung Electronics Co Ltd | |
Technology Hardware, Storage & Peripherals | 8.8% |
HDFC Bank Ltd | |
Banks | 3.3% |
Tencent Holdings Ltd | |
Interactive Media & Services | 3.3% |
Wal-Mart de Mexico SAB de CV | |
Food & Staples Retailing | 3.0% |
| | 27.3% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 95.8% | |
Investment Companies | | 4.6% | |
Private Placements | | 0.1% | |
Other | | (0.5)% |
| | | 100.0% |
Emerging markets comprised 89.2% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
Janus Henderson Emerging Markets 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, 2023 | | | 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 | | 8.81% | -0.72% | 0.82% | -0.21% | | | 1.75% | 1.37% |
Class A Shares at MOP | | 2.56% | -1.89% | 0.23% | -0.67% | | | | |
Class C Shares at NAV | | 8.00% | -1.48% | 0.05% | -0.96% | | | 2.64% | 2.12% |
Class C Shares at CDSC | | 7.00% | -1.48% | 0.05% | -0.96% | | | | |
Class D Shares | | 9.01% | -0.54% | 0.90% | -0.15% | | | 1.55% | 1.19% |
Class I Shares | | 9.03% | -0.48% | 1.07% | 0.04% | | | 1.45% | 1.12% |
Class N Shares | | 9.14% | -0.41% | 1.05% | -0.03% | | | 1.35% | 1.03% |
Class S Shares | | 8.70% | -0.79% | 0.62% | -0.43% | | | 5.24% | 1.54% |
Class T Shares | | 9.02% | -0.64% | 0.82% | -0.23% | | | 1.72% | 1.28% |
MSCI Emerging Markets Index | | 11.70% | 0.55% | 2.07% | 0.98% | | | | |
Morningstar Quartile - Class I Shares | | 4th | 4th | 4th | 4th | | | | |
Morningstar Ranking - based on total returns for Diversified Emerging Markets Funds | | 661/822 | 547/687 | 379/492 | 310/376 | | | | |
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.
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.
© 2023 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 waiver, if any, contractually agreed to for at least a one-year period commencing on January 27, 2023. This contractual waiver may be terminated or modified only at the discretion of the Board of Trustees. 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
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $963.30 | $6.74 | | $1,000.00 | $1,018.20 | $6.93 | 1.37% |
Class C Shares | $1,000.00 | $958.60 | $10.31 | | $1,000.00 | $1,014.54 | $10.61 | 2.10% |
Class D Shares | $1,000.00 | $963.60 | $5.81 | | $1,000.00 | $1,019.15 | $5.97 | 1.18% |
Class I Shares | $1,000.00 | $963.50 | $5.51 | | $1,000.00 | $1,019.45 | $5.67 | 1.12% |
Class N Shares | $1,000.00 | $963.60 | $5.07 | | $1,000.00 | $1,019.90 | $5.22 | 1.03% |
Class S Shares | $1,000.00 | $962.60 | $7.53 | | $1,000.00 | $1,017.40 | $7.74 | 1.53% |
Class T Shares | $1,000.00 | $963.60 | $6.25 | | $1,000.00 | $1,018.70 | $6.43 | 1.27% |
† | 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, 2023
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 95.8% | | | |
Automobiles – 3.6% | | | |
| | BYD Co Ltd | | 35,500 | | | $1,092,774 | |
| | Eicher Motors Ltd | | 19,115 | | | 792,879 | |
| | | 1,885,653 | |
Banks – 15.4% | | | |
| | Bank Negara Indonesia Persero Tbk PT | | 1,635,300 | | | 1,092,406 | |
| | BDO Unibank Inc | | 497,190 | | | 1,247,698 | |
| | HDFC Bank Ltd | | 96,774 | | | 1,772,297 | |
| | ICICI Bank Ltd | | 127,338 | | | 1,456,368 | |
| | NU Holdings Ltd/Cayman Islands - Class A* | | 102,800 | | | 745,300 | |
| | Saudi British Bank | | 98,509 | | | 906,204 | |
| | Vietnam Technological & Commercial Joint Stock Bank* | | 658,400 | | | 911,526 | |
| | | 8,131,799 | |
Beverages – 4.8% | | | |
| | Becle SAB de CV | | 421,101 | | | 1,002,938 | |
| | Wuliangye Yibin Co Ltd | | 32,031 | | | 692,473 | |
| | ZJLD Group Inc (144A)* | | 552,800 | | | 845,717 | |
| | | 2,541,128 | |
Biotechnology – 2.4% | | | |
| | CANbridge Pharmaceuticals Inc* | | 597,481 | | | 108,346 | |
| | Sichuan Kelun-Biotech Biopharmaceutical Co Ltd* | | 69,400 | | | 676,827 | |
| | Zai Lab Ltd* | | 207,300 | | | 504,714 | |
| | | 1,289,887 | |
Capital Markets – 2.0% | | | |
| | CITIC Securities Co Ltd | | 516,000 | | | 1,042,318 | |
Chemicals – 1.0% | | | |
| | Fertiglobe PLC | | 544,219 | | | 517,194 | |
Communications Equipment – 1.4% | | | |
| | Accton Technology Corp | | 50,000 | | | 763,816 | |
Diversified Consumer Services – 0.9% | | | |
| | Fu Shou Yuan International Group Ltd | | 681,000 | | | 474,760 | |
Diversified Financial Services – 2.1% | | | |
| | NHN KCP Corp | | 46,397 | | | 281,208 | |
| | One 97 Communications Ltd* | | 79,128 | | | 816,754 | |
| | | 1,097,962 | |
Diversified Telecommunication Services – 2.1% | | | |
| | Telekomunikasi Indonesia Persero Tbk PT | | 4,531,000 | | | 1,099,300 | |
Electrical Equipment – 3.1% | | | |
| | Contemporary Amperex Technology Co Ltd - Class A | | 30,992 | | | 869,726 | |
| | KEI Industries Ltd | | 13,539 | | | 430,533 | |
| | Ming Yang Smart Energy Group Ltd - Class A | | 147,404 | | | 318,740 | |
| | | 1,618,999 | |
Electronic Equipment, Instruments & Components – 0.8% | | | |
| | E Ink Holdings Inc | | 78,000 | | | 436,343 | |
Food & Staples Retailing – 4.2% | | | |
| | BGF retail Co Ltd | | 6,319 | | | 660,143 | |
| | Wal-Mart de Mexico SAB de CV | | 418,504 | | | 1,575,590 | |
| | | 2,235,733 | |
Health Care Equipment & Supplies – 1.9% | | | |
| | Angelalign Technology Inc (144A) | | 55,400 | | | 342,874 | |
| | Shenzhen Mindray Bio-Medical Electronics Co Ltd - Class A | | 18,527 | | | 686,804 | |
| | | 1,029,678 | |
Health Care Providers & Services – 1.8% | | | |
| | New Horizon Health Ltd (144A)* | | 393,000 | | | 941,709 | |
Hotels, Restaurants & Leisure – 3.2% | | | |
| | H World Group Ltd* | | 222,400 | | | 877,154 | |
| | MakeMyTrip Ltd* | | 20,717 | | | 839,453 | |
| | | 1,716,607 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Emerging Markets Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Information Technology Services – 1.7% | | | |
| | Globant SA* | | 1,943 | | | $384,423 | |
| | Locaweb Servicos de Internet SA (144A) | | 393,678 | | | 500,627 | |
| | | 885,050 | |
Insurance – 4.4% | | | |
| | AIA Group Ltd | | 186,800 | | | 1,511,086 | |
| | HDFC Life Insurance Co Ltd (144A) | | 108,875 | | | 835,661 | |
| | | 2,346,747 | |
Interactive Media & Services – 3.3% | | | |
| | Tencent Holdings Ltd | | 45,100 | | | 1,747,909 | |
Life Sciences Tools & Services – 1.1% | | | |
| | Syngene International Ltd (144A) | | 58,976 | | | 570,121 | |
Machinery – 1.1% | | | |
| | Shenzhen Inovance Technology Co Ltd - Class A | | 66,224 | | | 607,356 | |
Metals & Mining – 2.8% | | | |
| | Allkem Ltd* | | 79,043 | | | 595,433 | |
| | Merdeka Battery Materials Tbk PT* | | 8,281,874 | | | 431,574 | |
| | Merdeka Copper Gold Tbk PT* | | 2,423,600 | | | 450,766 | |
| | | 1,477,773 | |
Oil, Gas & Consumable Fuels – 2.0% | | | |
| | 3R Petroleum Oleo e Gas SA* | | 169,340 | | | 1,064,251 | |
Pharmaceuticals – 2.4% | | | |
| | Structure Therapeutics Inc (ADR)* | | 20,813 | | | 1,049,391 | |
| | Zhaoke Ophthalmology Ltd (144A)* | | 516,500 | | | 235,128 | |
| | | 1,284,519 | |
Road & Rail – 2.0% | | | |
| | Full Truck Alliance Co (ADR)* | | 152,686 | | | 1,074,909 | |
Semiconductor & Semiconductor Equipment – 10.3% | | | |
| | SK Hynix Inc | | 8,485 | | | 720,801 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 292,000 | | | 4,739,264 | |
| | | 5,460,065 | |
Technology Hardware, Storage & Peripherals – 8.8% | | | |
| | Samsung Electronics Co Ltd | | 92,251 | | | 4,674,587 | |
Textiles, Apparel & Luxury Goods – 1.0% | | | |
| | Kalyan Jewellers India Ltd | | 196,119 | | | 535,836 | |
Transportation Infrastructure – 1.0% | | | |
| | International Container Terminal Services Inc | | 144,870 | | | 529,512 | |
Water Utilities – 0.7% | | | |
| | China Water Affairs Group Ltd | | 592,000 | | | 383,085 | |
Wireless Telecommunication Services – 2.5% | | | |
| | Bharti Airtel Ltd | | 116,206 | | | 1,296,707 | |
Total Common Stocks (cost $49,174,480) | | 50,761,313 | |
Private Placements– 0.1% | | | |
Health Care Providers & Services – 0.1% | | | |
| | API Holdings Private Ltd*,¢,§((cost $550,876) | | 758,340 | | | 44,202 | |
Investment Companies– 4.6% | | | |
Money Markets – 4.6% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $2,454,348) | | 2,453,854 | | | 2,454,590 | |
Total Investments (total cost $52,179,704) – 100.5% | | 53,260,105 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.5)% | | (280,489) | |
Net Assets – 100% | | $52,979,616 | |
| | |
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, 2023
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
China | | $13,523,323 | | 25.4 | % |
India | | 9,390,811 | | 17.6 | |
South Korea | | 6,336,739 | | 11.9 | |
Taiwan | | 5,939,423 | | 11.2 | |
United States | | 3,888,404 | | 7.3 | |
Indonesia | | 3,074,046 | | 5.8 | |
Mexico | | 2,578,528 | | 4.9 | |
Brazil | | 2,310,178 | | 4.3 | |
Philippines | | 1,777,210 | | 3.3 | |
Hong Kong | | 1,511,086 | | 2.8 | |
Vietnam | | 911,526 | | 1.7 | |
Saudi Arabia | | 906,204 | | 1.7 | |
Australia | | 595,433 | | 1.1 | |
United Arab Emirates | | 517,194 | | 1.0 | |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 4.6% |
Money Markets - 4.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 71,946 | $ | 113 | $ | 199 | $ | 2,454,590 |
| |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 4.6% |
Money Markets - 4.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 1,012,636 | | 35,026,667 | | (33,585,025) | | 2,454,590 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
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, 2023 is $4,271,837, which represents 8.1% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2023 is $44,202, which represents 0.1% 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. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2023) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
API Holdings Private Ltd | 9/27/21 | $ | 550,876 | $ | 44,202 | | 0.1 | % |
| | | | | | | | | |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2023. 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, 2023. 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 | $ | 745,300 | $ | 7,386,499 | $ | - |
Beverages | | 1,002,938 | | 1,538,190 | | - |
Biotechnology | | 108,346 | | 1,181,541 | | - |
Food & Staples Retailing | | 1,575,590 | | 660,143 | | - |
Hotels, Restaurants & Leisure | | 839,453 | | 877,154 | | - |
Information Technology Services | | 885,050 | | - | | - |
Oil, Gas & Consumable Fuels | | 1,064,251 | | - | | - |
Pharmaceuticals | | 1,049,391 | | 235,128 | | - |
Road & Rail | | 1,074,909 | | - | | - |
All Other | | - | | 30,537,430 | | - |
Private Placements | | - | | - | | 44,202 |
Investment Companies | | - | | 2,454,590 | | - |
Total Assets | $ | 8,345,228 | $ | 44,870,675 | $ | 44,202 |
| | | | | | | |
Janus Henderson Emerging Markets Fund
Statement of Assets and Liabilities
September 30, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $49,725,356) | | $ | 50,805,515 | |
| Affiliated investments, at value (cost $2,454,348) | | | 2,454,590 | |
| Cash | | | 27,400 | |
| Cash denominated in foreign currency (cost $25,748) | | | 25,748 | |
| Trustees' deferred compensation | | | 1,384 | |
| Receivables: | | | | |
| | Dividends | | | 83,665 | |
| | Fund shares sold | | | 18,979 | |
| | Dividends from affiliates | | | 10,718 | |
| | Foreign tax reclaims | | | 7,200 | |
| Other assets | | | 17,918 | |
Total Assets | | | 53,453,117 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Investments purchased | | | 199,521 | |
| | Foreign tax liability | | | 117,909 | |
| | Professional fees | | | 54,947 | |
| | Advisory fees | | | 31,376 | |
| | Fund shares repurchased | | | 26,822 | |
| | Custodian fees | | | 12,760 | |
| | Transfer agent fees and expenses | | | 4,520 | |
| | Trustees' deferred compensation fees | | | 1,384 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 1,193 | |
| | Trustees' fees and expenses | | | 577 | |
| | Affiliated fund administration fees payable | | | 119 | |
| | Accrued expenses and other payables | | | 22,373 | |
Total Liabilities | | | 473,501 | |
Commitments and contingent liabilities (Note 3) | | | | |
Net Assets | | $ | 52,979,616 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Emerging Markets Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 69,951,470 | |
| Total distributable earnings (loss) (includes $117,909 of foreign capital gains tax) | | | (16,971,854) | |
Total Net Assets | | $ | 52,979,616 | |
Net Assets - Class A Shares | | $ | 2,862,724 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 340,826 | |
Net Asset Value Per Share(1) | | $ | 8.40 | |
Maximum Offering Price Per Share(2) | | $ | 8.91 | |
Net Assets - Class C Shares | | $ | 640,519 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 79,031 | |
Net Asset Value Per Share(1) | | $ | 8.10 | |
Net Assets - Class D Shares | | $ | 11,793,874 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,392,297 | |
Net Asset Value Per Share | | $ | 8.47 | |
Net Assets - Class I Shares | | $ | 7,133,545 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 843,891 | |
Net Asset Value Per Share | | $ | 8.45 | |
Net Assets - Class N Shares | | $ | 28,857,565 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,401,425 | |
Net Asset Value Per Share | | $ | 8.48 | |
Net Assets - Class S Shares | | $ | 74,014 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 8,707 | |
Net Asset Value Per Share | | $ | 8.50 | |
Net Assets - Class T Shares | | $ | 1,617,375 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 191,285 | |
Net Asset Value Per Share | | $ | 8.46 | |
| |
(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, 2023 |
Janus Henderson Emerging Markets Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: |
| Dividends | $ | 1,199,655 | |
| Dividends from affiliates | | 71,946 | |
| Other income | | 4,287 | |
| Foreign tax withheld | | (136,203) | |
Total Investment Income | | 1,139,685 | |
Expenses: | | | |
| Advisory fees | | 635,098 | |
| 12b-1 Distribution and shareholder servicing fees: |
| | Class A Shares | | 7,788 | |
| | Class C Shares | | 7,924 | |
| | Class S Shares | | 203 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 14,707 | |
| | Class S Shares | | 203 | |
| | Class T Shares | | 4,008 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 2,828 | |
| | Class C Shares | | 741 | |
| | Class I Shares | | 7,750 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 260 | |
| | Class C Shares | | 63 | |
| | Class D Shares | | 5,712 | |
| | Class I Shares | | 592 | |
| | Class N Shares | | 1,923 | |
| | Class S Shares | | 8 | |
| | Class T Shares | | 61 | |
| Registration fees | | 117,666 | |
| Professional fees | | 77,872 | |
| Custodian fees | | 63,529 | |
| Non-affiliated fund administration fees | | 63,207 | |
| Shareholder reports expense | | 13,218 | |
| Affiliated fund administration fees | | 2,049 | |
| Trustees’ fees and expenses | | 1,119 | |
| Other expenses | | 21,825 | |
Total Expenses | | 1,050,354 | |
Less: Excess Expense Reimbursement and Waivers | | (337,845) | |
Net Expenses | | 712,509 | |
Net Investment Income/(Loss) | | 427,176 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Emerging Markets Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | |
| Investments and foreign currency transactions (net of foreign taxes of $259,166) | $ | (7,898,095) | |
| Investments in affiliates | | 113 | |
Total Net Realized Gain/(Loss) on Investments | (7,897,982) | |
Change in Unrealized Net Appreciation/Depreciation: |
| Investments, foreign currency translations and Trustees’ deferred compensation (net of increase in deferred foreign taxes of $66,169) | | 13,357,610 | |
| Investments in affiliates | | 199 | |
Total Change in Unrealized Net Appreciation/Depreciation | 13,357,809 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 5,887,003 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Emerging Markets Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 427,176 | | $ | 526,579 | |
| Net realized gain/(loss) on investments | | (7,897,982) | | | (6,176,703) | |
| Change in unrealized net appreciation/depreciation | 13,357,809 | | | (25,044,610) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | 5,887,003 | | | (30,694,734) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | — | | | (133,124) | |
| | Class C Shares | | — | | | (23,265) | |
| | Class D Shares | | — | | | (481,190) | |
| | Class I Shares | | — | | | (539,900) | |
| | Class N Shares | | — | | | (1,789,591) | |
| | Class S Shares | | — | | | (2,399) | |
| | Class T Shares | | — | | | (77,857) | |
Net Decrease from Dividends and Distributions to Shareholders | — | | | (3,047,326) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (755,866) | | | 44,305 | |
| | Class C Shares | | (372,877) | | | (329,265) | |
| | Class D Shares | | (382,803) | | | (936,106) | |
| | Class I Shares | | (3,614,205) | | | (3,610,108) | |
| | Class N Shares | | (11,595,670) | | | (4,367,939) | |
| | Class S Shares | | (9,629) | | | 19,488 | |
| | Class T Shares | | (192,989) | | | (325,699) | |
Net Increase/(Decrease) from Capital Share Transactions | (16,924,039) | | | (9,505,324) | |
Net Increase/(Decrease) in Net Assets | | (11,037,036) | | | (43,247,384) | |
Net Assets: | | | | | | |
| Beginning of period | | 64,016,652 | | | 107,264,036 | |
| End of period | $ | 52,979,616 | | $ | 64,016,652 | |
| | | | | | | | |
| | |
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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $7.71 | | | $11.68 | | | $10.02 | | | $8.72 | | | $9.48 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.03 | | | 0.04 | | | (0.03) | | | 0.02 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | 0.66 | | | (3.70) | | | 1.79 | | | 1.40 | | | (0.55) | |
| Total from Investment Operations | | 0.69 | | | (3.66) | | | 1.76 | | | 1.42 | | | (0.45) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.31) | | | (0.10) | | | (0.12) | | | (0.13) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | — | | | (0.18) | |
| Total Dividends and Distributions | | — | | | (0.31) | | | (0.10) | | | (0.12) | | | (0.31) | |
| Net Asset Value, End of Period | | $8.40 | | | $7.71 | | | $11.68 | | | $10.02 | | | $8.72 | |
| Total Return* | | 8.95% | | | (32.11)% | | | 17.58% | | | 16.32% | | | (4.66)%(2) | |
| Net Assets, End of Period (in thousands) | | $2,863 | | | $3,311 | | | $4,986 | | | $4,000 | | | $4,859 | |
| Average Net Assets for the Period (in thousands) | | $3,132 | | | $4,320 | | | $4,989 | | | $4,394 | | | $8,932 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.96% | | | 1.75% | | | 1.66% | | | 1.87% | | | 1.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.38% | | | 1.38% | | | 1.37% | | | 1.37% | | | 1.30% | |
| | Ratio of Net Investment Income/(Loss) | | 0.40% | | | 0.35% | | | (0.25)% | | | 0.27% | | | 1.11% | |
| Portfolio Turnover Rate | | 63% | | | 63% | | | 76% | | | 110% | | | 68% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $7.49 | | | $11.29 | | | $9.69 | | | $8.42 | | | $9.12 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.03) | | | (0.04) | | | (0.12) | | | (0.04) | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 0.64 | | | (3.60) | | | 1.74 | | | 1.35 | | | (0.55) | |
| Total from Investment Operations | | 0.61 | | | (3.64) | | | 1.62 | | | 1.31 | | | (0.50) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.16) | | | (0.02) | | | (0.04) | | | (0.02) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | — | | | (0.18) | |
| Total Dividends and Distributions | | — | | | (0.16) | | | (0.02) | | | (0.04) | | | (0.20) | |
| Net Asset Value, End of Period | | $8.10 | | | $7.49 | | | $11.29 | | | $9.69 | | | $8.42 | |
| Total Return* | | 8.14% | | | (32.66)% | | | 16.67% | | | 15.56% | | | (5.38)%(2) | |
| Net Assets, End of Period (in thousands) | | $641 | | | $938 | | | $1,802 | | | $2,573 | | | $3,432 | |
| Average Net Assets for the Period (in thousands) | | $801 | | | $1,432 | | | $2,385 | | | $2,927 | | | $4,604 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.97% | | | 2.63% | | | 2.48% | | | 2.61% | | | 2.54% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.12% | | | 2.11% | | | 2.11% | | | 2.09% | | | 2.11% | |
| | Ratio of Net Investment Income/(Loss) | | (0.34)% | | | (0.40)% | | | (1.06)% | | | (0.44)% | | | 0.56% | |
| Portfolio Turnover Rate | | 63% | | | 63% | | | 76% | | | 110% | | | 68% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $7.76 | | | $11.77 | | | $10.09 | | | $8.78 | | | $9.53 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.05 | | | (0.01) | | | 0.05 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | 0.66 | | | (3.72) | | | 1.81 | | | 1.41 | | | (0.59) | |
| Total from Investment Operations | | 0.71 | | | (3.67) | | | 1.80 | | | 1.46 | | | (0.45) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.34) | | | (0.12) | | | (0.15) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | — | | | (0.18) | |
| Total Dividends and Distributions | | — | | | (0.34) | | | (0.12) | | | (0.15) | | | (0.30) | |
| Net Asset Value, End of Period | | $8.47 | | | $7.76 | | | $11.77 | | | $10.09 | | | $8.78 | |
| Total Return* | | 9.15% | | | (32.03)% | | | 17.85% | | | 16.66% | | | (4.59)%(2) | |
| Net Assets, End of Period (in thousands) | | $11,794 | | | $11,223 | | | $17,993 | | | $10,854 | | | $10,957 | |
| Average Net Assets for the Period (in thousands) | | $12,580 | | | $14,826 | | | $20,727 | | | $10,785 | | | $12,337 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.76% | | | 1.55% | | | 1.45% | | | 1.70% | | | 1.80% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.20% | | | 1.19% | | | 1.17% | | | 1.19% | | | 1.19% | |
| | Ratio of Net Investment Income/(Loss) | | 0.61% | | | 0.53% | | | (0.07)% | | | 0.50% | | | 1.51% | |
| Portfolio Turnover Rate | | 63% | | | 63% | | | 76% | | | 110% | | | 68% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $7.74 | | | $11.74 | | | $10.07 | | | $8.78 | | | $9.52 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.06 | | | 0.06 | | | —(2) | | | 0.05 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | 0.65 | | | (3.71) | | | 1.80 | | | 1.41 | | | (0.57) | |
| Total from Investment Operations | | 0.71 | | | (3.65) | | | 1.80 | | | 1.46 | | | (0.43) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.35) | | | (0.13) | | | (0.17) | | | (0.13) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | — | | | (0.18) | |
| Total Dividends and Distributions | | — | | | (0.35) | | | (0.13) | | | (0.17) | | | (0.31) | |
| Net Asset Value, End of Period | | $8.45 | | | $7.74 | | | $11.74 | | | $10.07 | | | $8.78 | |
| Total Return* | | 9.17% | | | (31.97)% | | | 17.94% | | | 16.68% | | | (4.38)%(3) | |
| Net Assets, End of Period (in thousands) | | $7,134 | | | $9,817 | | | $19,208 | | | $19,939 | | | $34,499 | |
| Average Net Assets for the Period (in thousands) | | $8,688 | | | $15,044 | | | $21,247 | | | $25,327 | | | $71,330 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.65% | | | 1.45% | | | 1.37% | | | 1.54% | | | 1.45% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.13% | | | 1.12% | | | 1.11% | | | 1.11% | | | 1.13% | |
| | Ratio of Net Investment Income/(Loss) | | 0.66% | | | 0.58% | | | (0.02)% | | | 0.50% | | | 1.49% | |
| Portfolio Turnover Rate | | 63% | | | 63% | | | 76% | | | 110% | | | 68% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $7.76 | | | $11.77 | | | $10.09 | | | $8.79 | | | $9.53 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.06 | | | 0.07 | | | 0.01 | | | 0.06 | | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | 0.66 | | | (3.72) | | | 1.80 | | | 1.40 | | | (0.57) | |
| Total from Investment Operations | | 0.72 | | | (3.65) | | | 1.81 | | | 1.46 | | | (0.42) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.36) | | | (0.13) | | | (0.16) | | | (0.14) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | — | | | (0.18) | |
| Total Dividends and Distributions | | — | | | (0.36) | | | (0.13) | | | (0.16) | | | (0.32) | |
| Net Asset Value, End of Period | | $8.48 | | | $7.76 | | | $11.77 | | | $10.09 | | | $8.79 | |
| Total Return* | | 9.28% | | | (31.91)% | | | 18.00% | | | 16.74% | | | (4.33)%(2) | |
| Net Assets, End of Period (in thousands) | | $28,858 | | | $36,963 | | | $60,241 | | | $35,207 | | | $16,531 | |
| Average Net Assets for the Period (in thousands) | | $36,828 | | | $49,362 | | | $53,668 | | | $30,308 | | | $21,520 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.53% | | | 1.35% | | | 1.28% | | | 1.48% | | | 1.41% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.04% | | | 1.04% | | | 1.03% | | | 1.03% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | 0.75% | | | 0.69% | | | 0.10% | | | 0.68% | | | 1.65% | |
| Portfolio Turnover Rate | | 63% | | | 63% | | | 76% | | | 110% | | | 68% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $7.82 | | | $11.85 | | | $10.17 | | | $8.81 | | | $9.51 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.02 | | | 0.02 | | | (0.05) | | | 0.02 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.66 | | | (3.75) | | | 1.83 | | | 1.41 | | | (0.52) | |
| Total from Investment Operations | | 0.68 | | | (3.73) | | | 1.78 | | | 1.43 | | | (0.44) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.30) | | | (0.10) | | | (0.07) | | | (0.08) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | — | | | (0.18) | |
| Total Dividends and Distributions | | — | | | (0.30) | | | (0.10) | | | (0.07) | | | (0.26) | |
| Net Asset Value, End of Period | | $8.50 | | | $7.82 | | | $11.85 | | | $10.17 | | | $8.81 | |
| Total Return* | | 8.70% | | | (32.21)% | | | 17.47% | | | 16.26% | | | (4.49)%(2) | |
| Net Assets, End of Period (in thousands) | | $74 | | | $76 | | | $93 | | | $95 | | | $77 | |
| Average Net Assets for the Period (in thousands) | | $81 | | | $89 | | | $113 | | | $79 | | | $488 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 5.71% | | | 5.24% | | | 4.44% | | | 5.74% | | | 2.25% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.54% | | | 1.55% | | | 1.49% | | | 1.46% | | | 1.18% | |
| | Ratio of Net Investment Income/(Loss) | | 0.26% | | | 0.22% | | | (0.38)% | | | 0.27% | | | 0.89% | |
| Portfolio Turnover Rate | | 63% | | | 63% | | | 76% | | | 110% | | | 68% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $7.75 | | | $11.75 | | | $10.08 | | | $8.78 | | | $9.52 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.04 | | | (0.02) | | | 0.04 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | 0.66 | | | (3.72) | | | 1.80 | | | 1.40 | | | (0.57) | |
| Total from Investment Operations | | 0.71 | | | (3.68) | | | 1.78 | | | 1.44 | | | (0.44) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.32) | | | (0.11) | | | (0.14) | | | (0.12) | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | — | | | (0.18) | |
| Total Dividends and Distributions | | — | | | (0.32) | | | (0.11) | | | (0.14) | | | (0.30) | |
| Net Asset Value, End of Period | | $8.46 | | | $7.75 | | | $11.75 | | | $10.08 | | | $8.78 | |
| Total Return* | | 9.16% | | | (32.10)% | | | 17.69% | | | 16.43% | | | (4.56)%(2) | |
| Net Assets, End of Period (in thousands) | | $1,617 | | | $1,689 | | | $2,940 | | | $2,444 | | | $3,008 | |
| Average Net Assets for the Period (in thousands) | | $1,608 | | | $2,419 | | | $3,095 | | | $2,477 | | | $4,046 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.97% | | | 1.72% | | | 1.62% | | | 1.82% | | | 1.73% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.28% | | | 1.28% | | | 1.28% | | | 1.28% | | | 1.27% | |
| | Ratio of Net Investment Income/(Loss) | | 0.53% | | | 0.44% | | | (0.18)% | | | 0.40% | | | 1.41% | |
| Portfolio Turnover Rate | | 63% | | | 63% | | | 76% | | | 110% | | | 68% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
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 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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
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 Emerging Markets 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 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, 2023 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, 2023.
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 Emerging Markets 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
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments,
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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.
Geographic Investment Risk
To the extent the Fund invests a significant portion of its assets in a particular country or geographic region, the Fund will generally have more exposure to certain risks due to possible political, economic, social, or regulatory events in that country or region. Adverse developments in certain regions could also adversely affect securities of other countries whose economies appear to be unrelated and could have a negative impact on the Fund’s performance.
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 Emerging Markets 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 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 27, 2023. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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.
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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 0.12%.
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 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, 2023, the Distributor retained upfront sales charges of $26.
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, 2023.
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. There were no CDSCs paid by redeeming shareholders of Class C Shares during the year ended September 30, 2023.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
As of September 30, 2023, 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 | 92 | | 50 | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes (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.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 331,936 | $ - | $ (17,558,417) | $ - | $ 16,471 | $ 238,156 | |
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2023, 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, 2023 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(7,535,005) | $(10,023,412) | $ (17,558,417) | | |
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, 2023 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) |
$52,904,040 | $6,853,013 | $ (6,496,948) | $ 356,065 |
Janus Henderson Emerging Markets 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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ - | $ - | $ - | $ - | |
| | | | | |
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 | $ - | $ - | $ - | |
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.
Janus Henderson Emerging Markets Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 23,157 | $ 195,650 | | 64,466 | $ 636,436 |
Reinvested dividends and distributions | - | - | | 12,270 | 133,124 |
Shares repurchased | (111,828) | (951,516) | | (73,948) | (725,255) |
Net Increase/(Decrease) | (88,671) | $ (755,866) | | 2,788 | $ 44,305 |
Class C Shares: | | | | | |
Shares sold | 11,350 | $ 91,174 | | 12,073 | $ 116,222 |
Reinvested dividends and distributions | - | - | | 2,184 | 23,174 |
Shares repurchased | (57,449) | (464,051) | | (48,716) | (468,661) |
Net Increase/(Decrease) | (46,099) | $ (372,877) | | (34,459) | $ (329,265) |
Class D Shares: | | | | | |
Shares sold | 461,881 | $ 4,089,319 | | 294,071 | $ 3,055,369 |
Reinvested dividends and distributions | - | - | | 43,574 | 475,390 |
Shares repurchased | (515,693) | (4,472,122) | | (420,550) | (4,466,865) |
Net Increase/(Decrease) | (53,812) | $ (382,803) | | (82,905) | $ (936,106) |
Class I Shares: | | | | | |
Shares sold | 162,809 | $ 1,393,347 | | 215,855 | $ 2,137,803 |
Reinvested dividends and distributions | - | - | | 49,669 | 539,900 |
Shares repurchased | (587,470) | (5,007,552) | | (633,258) | (6,287,811) |
Net Increase/(Decrease) | (424,661) | $ (3,614,205) | | (367,734) | $(3,610,108) |
Class N Shares: | | | | | |
Shares sold | 343,798 | $ 2,952,848 | | 545,904 | $ 5,025,205 |
Reinvested dividends and distributions | - | - | | 164,333 | 1,789,591 |
Shares repurchased | (1,704,802) | (14,548,518) | | (1,065,368) | (11,182,735) |
Net Increase/(Decrease) | (1,361,004) | $(11,595,670) | | (355,131) | $(4,367,939) |
Class S Shares: | | | | | |
Shares sold | 835 | $ 7,230 | | 1,983 | $ 19,974 |
Reinvested dividends and distributions | - | - | | 218 | 2,399 |
Shares repurchased | (1,869) | (16,859) | | (304) | (2,885) |
Net Increase/(Decrease) | (1,034) | $ (9,629) | | 1,897 | $ 19,488 |
Class T Shares: | | | | | |
Shares sold | 107,343 | $ 916,969 | | 103,734 | $ 1,189,907 |
Reinvested dividends and distributions | - | - | | 7,136 | 77,857 |
Shares repurchased | (133,802) | (1,109,958) | | (143,262) | (1,593,463) |
Net Increase/(Decrease) | (26,459) | $ (192,989) | | (32,392) | $ (325,699) |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$38,413,590 | $56,087,875 | $ - | $ - |
Janus Henderson Emerging Markets 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.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 by correspondence with the custodian, transfer agent and broker; when replies were not received from broker, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
November 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Foreign Taxes Paid | $136,203 |
Foreign Source Income | $1,385,638 |
Qualified Dividend Income Percentage | 100% |
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 48 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). | 48 | 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). | 48 | 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)
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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). | 48 | 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)
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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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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 | | | | |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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)
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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). | 48 | 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)
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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. | 48 | 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). | 48 | 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)
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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 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. 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 Lead 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). |
* 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)
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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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93079 11-23 |
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| | | ANNUAL REPORT September 30, 2023 |
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| | Janus Henderson Enterprise 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 Enterprise Fund
Janus Henderson Enterprise Fund (unaudited)
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Brian Demain co-portfolio manager | 
Cody Wheaton co-portfolio manager |
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PERFORMANCE
The Janus Henderson Enterprise Fund Class I Shares returned 18.23% for the 12-month period ended September 30, 2023. The Fund’s benchmark, the Russell Midcap® Growth Index, returned 17.47%.
INVESTMENT ENVIRONMENT
Stocks rallied in the fourth quarter of 2022 on hopes that moderating inflation might allow the Federal Reserve (Fed) to slow or end its campaign of interest rate hikes. This rally extended into the first half of 2023, despite periods of market volatility. Economic growth appeared resilient, as a strong job market helped support consumer spending. However, there were signs of slowing in other areas of the economy, especially manufacturing and housing. Corporations also reduced their earnings outlooks as they faced weaker demand as well as higher input, labor, and funding costs. The Fed continued to raise rates through the first seven months of 2023, although the pace of rate hikes moderated. The Fed left rates unchanged in September, but policymakers indicated that an extended period of higher rates might be needed to bring inflation under control, especially against a backdrop of surging fuel prices. These signals put upward pressure on long-term bond yields in the third quarter, while adding to fears of a more pronounced economic slowdown. As a result, stocks suffered a broad-based sell-off in the third quarter. Despite this correction, equities still ended the 12-month performance period with strong positive performance. Mid-cap growth outperformed mid-cap value over the period, as measured by the Russell indices.
PERFORMANCE DISCUSSION
We were pleased to see many of our disciplined growth investments rewarded by investors over the period, as we continued to look to profitable companies with strong competitive positioning, experienced management teams, and valuations that we believe are supported by their fundamentals. Analog and power semiconductor producer ON Semiconductor was a top performer for the year. ON Semiconductor delivered strong revenue growth, aided by its focus on fast-growing end markets such as electric vehicles (EV). It also widened its profit margins by pursuing operational and manufacturing efficiencies and portfolio rationalization, which benefited its earnings growth. Investors have also been excited by the company’s production of silicon carbide chips, which are increasingly replacing traditional silicon in the EV market due to their ability to improve power efficiency. This technology is difficult for other companies to replicate, and we believe it provides ON Semiconductor with an additional competitive edge.
Relative performance was also assisted by our investment in Flex, a provider of contract design, manufacturing, and engineering services. Following a management change several years ago, Flex invested to support new end markets, such as healthcare and alternative energy, which have offered higher profit margins and longer product cycles. This strategy helped it deepen customer relationships and deliver robust financial performance. It also successfully listed its solar panel tracking subsidiary, NEXTracker, while retaining an ownership stake that provides Flex with the opportunity to benefit from growth in this alternative energy business.
Contract drug development and manufacturing services provider Catalent was a detractor from relative performance. The stock sold off in late 2022, as slowing demand for COVID vaccines reduced revenues from Catalent’s outsourced vaccine manufacturing business. Catalent also warned of short-term operational challenges at several facilities, while the exit of its CFO added to near-term uncertainty. Despite these challenges, we continue to see long-term potential for Catalent’s
Janus Henderson Enterprise Fund (unaudited)
diversified business model. We are particularly excited about its gene therapy manufacturing platform, an emerging therapeutic category with the potential to drive future earnings growth. We continue to see long-term potential for this company, which provides services that are critical to global pharmaceutical manufacturing.
Fidelity National Information Services, another detractor, provides software and payment solutions to the financial services industry. The stock declined in the fourth quarter of 2022 after the company reported disappointing earnings, primarily because of weakness in its card processing business. Competitive pressures also resulted in slower growth and reduced margins, adding to headwinds for the stock in the first half of 2023. The company recently underwent a management change, and we see potential around its plans to reorganize underperforming business lines. For this reason, we remain invested in the stock.
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 the outlook for the economy remains murky, given uncertainties around Fed policy and its impact on economic growth. While economic growth has remained relatively resilient, we are starting to see pockets of weakness, and a slowdown could become more pronounced as rate hikes filter through the economy with a lag. Moreover, Fed policymakers indicated that interest rates may rise further, or at least remain elevated, as long as inflation stays above target levels. We have argued for several years that we are facing a paradigm shift, as we foresee an extended period of higher interest rates, which puts upward pressure on the cost of capital and downward pressure on asset values. We are also cautious of other sources of near-term uncertainty such as slowing growth in China and global geopolitical tension, which tends to create commodity price volatility. Large federal deficits and higher interest payments on the national debt also risk crowding out private investment and spending. In the face of such risks, we believe the environment could favor fundamental stock selection and our disciplined, valuation-conscious approach to growth investing.
We continue to carefully assess the fundamentals of the companies we own, and we remain on the lookout for well-managed but reasonably valued companies with strong balance sheets, sustainable competitive advantages, and above-average earnings trajectories. We also look to companies with strong free cash flow that can fund operations without additional borrowing. We see this disciplined, risk-aware approach as the best way to navigate near-term uncertainty while pursuing strong long-term investment performance.
Thank you for investing in the Janus Henderson Enterprise Fund.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Enterprise Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| ON Semiconductor Corp | 4.06% | | 1.13% | | L3Harris Technologies Inc | 1.56% | | -0.60% |
| Constellation Software Inc/Canada | 3.24% | | 0.92% | | Fidelity National Information
Services Inc | 0.88% | | -0.54% |
| Flex Ltd | 2.31% | | 0.85% | | Catalent Inc | 0.90% | | -0.51% |
| Magellan Midstream Partners LP | 2.09% | | 0.79% | | Teleflex Inc | 2.11% | | -0.51% |
| Ferguson PLC | 1.59% | | 0.63% | | Charles Schwab Corp | 0.96% | | -0.48% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell Midcap Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | 2.37% | | 32.26% | 25.54% |
| Energy | | 0.74% | | 2.11% | 4.45% |
| Health Care | | 0.58% | | 16.77% | 18.10% |
| Industrials | | 0.53% | | 19.53% | 17.49% |
| Real Estate | | 0.05% | | 1.29% | 1.86% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell Midcap Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -1.24% | | 12.04% | 7.24% |
| Consumer Discretionary | | -1.02% | | 6.67% | 14.60% |
| Other** | | -0.25% | | 3.96% | 0.00% |
| Utilities | | -0.19% | | 0.89% | 0.29% |
| Communication Services | | -0.01% | | 2.56% | 4.30% |
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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 Enterprise Fund (unaudited)
Fund At A Glance
September 30, 2023
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5 Largest Equity Holdings - (% of Net Assets) |
Constellation Software Inc/Canada | |
Software | 3.6% |
ON Semiconductor Corp | |
Semiconductor & Semiconductor Equipment | 3.2% |
Boston Scientific Corp | |
Health Care Equipment & Supplies | 3.0% |
Intact Financial Corp | |
Insurance | 2.7% |
WEX Inc | |
Diversified Financial Services | 2.5% |
| | 15.0% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 94.8% | |
Investment Companies | | 5.1% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.1% | |
Warrants | | 0.0% | |
Other | | 0.0% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
Janus Henderson Enterprise 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, 2023 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 17.82% | 8.00% | 11.40% | 10.74% | | | 1.14% |
Class A Shares at MOP | | 11.05% | 6.73% | 10.74% | 10.53% | | | |
Class C Shares at NAV | | 17.19% | 7.41% | 10.75% | 9.99% | | | 1.74% |
Class C Shares at CDSC | | 16.19% | 7.41% | 10.75% | 9.99% | | | |
Class D Shares | | 18.20% | 8.35% | 11.75% | 10.91% | | | 0.79% |
Class I Shares | | 18.23% | 8.39% | 11.81% | 10.95% | | | 0.76% |
Class N Shares | | 18.35% | 8.49% | 11.91% | 10.97% | | | 0.66% |
Class R Shares | | 17.48% | 7.69% | 11.08% | 10.36% | | | 1.42% |
Class S Shares | | 17.77% | 7.96% | 11.36% | 10.63% | | | 1.16% |
Class T Shares | | 18.07% | 8.23% | 11.64% | 10.87% | | | 0.91% |
Russell Midcap Growth Index | | 17.47% | 6.97% | 9.94% | 9.91% | | | |
Morningstar Quartile - Class T Shares | | 1st | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Mid-Cap Growth Funds | | 74/562 | 86/519 | 30/479 | 22/126 | | | |
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.
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.
© 2023 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $993.50 | $5.55 | | $1,000.00 | $1,019.50 | $5.62 | 1.11% |
Class C Shares | $1,000.00 | $990.80 | $8.18 | | $1,000.00 | $1,016.85 | $8.29 | 1.64% |
Class D Shares | $1,000.00 | $995.00 | $3.95 | | $1,000.00 | $1,021.11 | $4.00 | 0.79% |
Class I Shares | $1,000.00 | $995.20 | $3.80 | | $1,000.00 | $1,021.26 | $3.85 | 0.76% |
Class N Shares | $1,000.00 | $995.60 | $3.30 | | $1,000.00 | $1,021.76 | $3.35 | 0.66% |
Class R Shares | $1,000.00 | $992.00 | $6.99 | | $1,000.00 | $1,018.05 | $7.08 | 1.40% |
Class S Shares | $1,000.00 | $993.20 | $5.75 | | $1,000.00 | $1,019.30 | $5.82 | 1.15% |
Class T Shares | $1,000.00 | $994.50 | $4.45 | | $1,000.00 | $1,020.61 | $4.51 | 0.89% |
† | 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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 94.8% | | | |
Aerospace & Defense – 1.3% | | | |
| | L3Harris Technologies Inc | | 1,370,643 | | | $238,656,359 | |
Airlines – 1.1% | | | |
| | Ryanair Holdings PLC (ADR)* | | 2,013,546 | | | 195,736,807 | |
Biotechnology – 2.8% | | | |
| | Argenx SE (ADR)* | | 348,377 | | | 171,272,585 | |
| | Ascendis Pharma A/S (ADR)* | | 990,871 | | | 92,785,160 | |
| | BioMarin Pharmaceutical Inc* | | 1,318,485 | | | 116,659,553 | |
| | Sarepta Therapeutics Inc* | | 1,033,849 | | | 125,323,176 | |
| | | 506,040,474 | |
Capital Markets – 3.8% | | | |
| | Cboe Global Markets Inc | | 837,984 | | | 130,901,481 | |
| | Charles Schwab Corp | | 2,572,242 | | | 141,216,086 | |
| | LPL Financial Holdings Inc | | 1,464,550 | | | 348,050,308 | |
| | MSCI Inc | | 132,930 | | | 68,203,724 | |
| | | 688,371,599 | |
Chemicals – 1.1% | | | |
| | Corteva Inc | | 3,828,331 | | | 195,857,414 | |
Commercial Services & Supplies – 3.8% | | | |
| | Cimpress PLC*,£ | | 2,136,289 | | | 149,561,593 | |
| | Clean Harbors Inc* | | 807,200 | | | 135,092,992 | |
| | RB Global Inc | | 2,403,064 | | | 150,191,500 | |
| | Rentokil Initial PLC | | 4,398,104 | | | 32,598,785 | |
| | Rentokil Initial PLC (ADR) | | 6,389,737 | | | 236,739,756 | |
| | | 704,184,626 | |
Containers & Packaging – 0.4% | | | |
| | Sealed Air Corp | | 2,091,069 | | | 68,712,527 | |
Diversified Consumer Services – 0.3% | | | |
| | Frontdoor Inc* | | 2,034,411 | | | 62,232,632 | |
Diversified Financial Services – 4.0% | | | |
| | Fidelity National Information Services Inc | | 2,246,616 | | | 124,170,466 | |
| | Global Payments Inc | | 1,220,699 | | | 140,856,458 | |
| | WEX Inc*,£ | | 2,465,621 | | | 463,758,654 | |
| | | 728,785,578 | |
Electric Utilities – 1.4% | | | |
| | Alliant Energy Corp | | 5,352,619 | | | 259,334,391 | |
Electrical Equipment – 1.9% | | | |
| | Regal Beloit Corp | | 563,624 | | | 80,530,597 | |
| | Sensata Technologies Holding PLC | | 6,977,054 | | | 263,872,182 | |
| | | 344,402,779 | |
Electronic Equipment, Instruments & Components – 6.5% | | | |
| | Flex Ltd* | | 17,175,336 | | | 463,390,565 | |
| | National Instruments Corp | | 2,938,791 | | | 175,210,719 | |
| | TE Connectivity Ltd | | 1,558,435 | | | 192,513,476 | |
| | Teledyne Technologies Inc* | | 858,414 | | | 350,730,792 | |
| | | 1,181,845,552 | |
Entertainment – 1.9% | | | |
| | Atlanta Braves Holdings Inc - Class C* | | 11,900 | | | 425,187 | |
| | Liberty Media Corp-Liberty Formula One - Class C* | | 222,312 | | | 7,136,215 | |
| | Liberty Media Corp-Liberty Formula One - Series A* | | 305,920 | | | 17,296,717 | |
| | Liberty Media Corp-Liberty Formula One - Series C* | | 5,194,201 | | | 323,598,722 | |
| | | 348,456,841 | |
Food & Staples Retailing – 0.6% | | | |
| | Dollar Tree Inc* | | 1,029,817 | | | 109,624,020 | |
Health Care Equipment & Supplies – 8.7% | | | |
| | Boston Scientific Corp* | | 10,430,138 | | | 550,711,286 | |
| | Cooper Cos Inc | | 493,131 | | | 156,820,589 | |
| | Dentsply Sirona Inc | | 4,674,940 | | | 159,695,950 | |
| | ICU Medical Inc*,£ | | 1,230,753 | | | 146,471,915 | |
| | STERIS PLC | | 868,168 | | | 190,493,423 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Enterprise Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Health Care Equipment & Supplies– (continued) | | | |
| | Teleflex Inc | | 1,940,905 | | | $381,213,151 | |
| | | 1,585,406,314 | |
Hotels, Restaurants & Leisure – 2.1% | | | |
| | Aramark | | 7,342,083 | | | 254,770,280 | |
| | Entain PLC | | 11,220,699 | | | 127,694,014 | |
| | | 382,464,294 | |
Information Technology Services – 4.6% | | | |
| | Amdocs Ltd | | 4,999,330 | | | 422,393,392 | |
| | GoDaddy Inc* | | 5,720,152 | | | 426,036,921 | |
| | | 848,430,313 | |
Insurance – 5.5% | | | |
| | Intact Financial Corp | | 3,417,236 | | | 498,255,705 | |
| | Ryan Specialty Group Holdings Inc - Class A* | | 2,376,755 | | | 115,034,942 | |
| | WR Berkley Corp | | 6,097,313 | | | 387,118,402 | |
| | | 1,000,409,049 | |
Interactive Media & Services – 0.4% | | | |
| | Ziff Davis Inc* | | 1,202,966 | | | 76,616,905 | |
Life Sciences Tools & Services – 4.9% | | | |
| | Avantor Inc* | | 9,942,880 | | | 209,595,910 | |
| | Illumina Inc* | | 899,120 | | | 123,431,194 | |
| | PerkinElmer Inc | | 3,706,082 | | | 410,263,277 | |
| | Waters Corp* | | 530,807 | | | 145,552,587 | |
| | | 888,842,968 | |
Machinery – 4.2% | | | |
| | Fortive Corp | | 2,252,855 | | | 167,071,727 | |
| | Ingersoll Rand Inc | | 5,012,646 | | | 319,405,803 | |
| | Wabtec Corp | | 2,676,153 | | | 284,394,779 | |
| | | 770,872,309 | |
Multi-Utilities – 1.1% | | | |
| | Ameren Corp | | 2,672,171 | | | 199,958,556 | |
Oil, Gas & Consumable Fuels – 1.4% | | | |
| | ONEOK Inc | | 4,027,560 | | | 255,468,131 | |
Pharmaceuticals – 0.8% | | | |
| | Catalent Inc* | | 3,341,180 | | | 152,123,925 | |
Professional Services – 6.4% | | | |
| | Broadridge Financial Solutions Inc | | 1,784,760 | | | 319,561,278 | |
| | Ceridian HCM Holding Inc* | | 3,369,070 | | | 228,591,400 | |
| | SS&C Technologies Holdings Inc | | 8,601,810 | | | 451,939,097 | |
| | TransUnion | | 2,427,979 | | | 174,304,612 | |
| | | 1,174,396,387 | |
Road & Rail – 3.4% | | | |
| | JB Hunt Transport Services Inc | | 2,127,631 | | | 401,100,996 | |
| | TFI International Inc | | 1,708,281 | | | 219,360,363 | |
| | | 620,461,359 | |
Semiconductor & Semiconductor Equipment – 8.6% | | | |
| | KLA Corp | | 372,627 | | | 170,909,100 | |
| | Lam Research Corp | | 231,878 | | | 145,334,174 | |
| | Microchip Technology Inc | | 3,857,683 | | | 301,092,158 | |
| | NXP Semiconductors NV | | 1,800,147 | | | 359,885,388 | |
| | ON Semiconductor Corp* | | 6,334,442 | | | 588,786,384 | |
| | | 1,566,007,204 | |
Software – 6.1% | | | |
| | Atlassian Corp - Class A* | | 396,439 | | | 79,886,423 | |
| | Constellation Software Inc/Canada | | 319,588 | | | 659,853,562 | |
| | Dynatrace Inc* | | 2,510,013 | | | 117,292,908 | |
| | Nice Ltd (ADR)* | | 1,210,744 | | | 205,826,480 | |
| | Topicus.com Inc* | | 849,991 | | | 56,152,855 | |
| | | 1,119,012,228 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Specialized Real Estate Investment Trusts (REITs) – 1.2% | | | |
| | Lamar Advertising Co | | 2,544,178 | | | $212,362,538 | |
Specialty Retail – 1.9% | | | |
| | Burlington Stores Inc* | | 704,259 | | | 95,286,243 | |
| | CarMax Inc* | | 3,484,996 | | | 246,493,767 | |
| | Wayfair Inc - Class A* | | 189,780 | | | 11,494,975 | |
| | | 353,274,985 | |
Textiles, Apparel & Luxury Goods – 0.8% | | | |
| | Gildan Activewear Inc# | | 5,296,535 | | | 148,355,945 | |
Trading Companies & Distributors – 1.8% | | | |
| | Ferguson PLC | | 2,034,951 | | | 334,688,391 | |
Total Common Stocks (cost $11,856,739,097) | | 17,321,393,400 | |
Warrants– 0% | | | |
Software – 0% | | | |
| | Constellation Software Inc/Canada, expires 3/31/40*((cost $0) | | 319,588 | | | 24 | |
Investment Companies– 5.1% | | | |
Money Markets – 5.1% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $942,935,681) | | 942,773,733 | | | 943,056,565 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.1% | | | |
Investment Companies – 0.1% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº,£ | | 8,793,960 | | | 8,793,960 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 5.3100%, 10/2/23 | | $2,198,490 | | | 2,198,490 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $10,992,450) | | 10,992,450 | |
Total Investments (total cost $12,810,667,228) – 100.0% | | 18,275,442,439 | |
Cash, Receivables and Other Assets, net of Liabilities – 0% | | 1,311,970 | |
Net Assets – 100% | | $18,276,754,409 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $15,480,618,898 | | 84.7 | % |
Canada | | 1,732,169,954 | | 9.5 | |
United Kingdom | | 397,032,555 | | 2.2 | |
Israel | | 205,826,480 | | 1.1 | |
Ireland | | 195,736,807 | | 1.1 | |
Belgium | | 171,272,585 | | 0.9 | |
Denmark | | 92,785,160 | | 0.5 | |
| | | | | | |
| | | | | | |
Total | | $18,275,442,439 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Enterprise Fund
Schedule of Investments
September 30, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/23 |
Common Stocks - 4.1% |
Commercial Services & Supplies - 0.8% | |
| | Cimpress PLC* | $ | - | $ | 454,783 | $ | 97,318,051 | $ | 149,561,593 |
Diversified Financial Services - 2.5% | |
| | WEX Inc* | | - | | 2,270,019 | | 143,522,629 | | 463,758,654 |
Health Care Equipment & Supplies - 0.8% | |
| | ICU Medical Inc* | | - | | 362,225 | | (39,045,727) | | 146,471,915 |
Total Common Stocks | $ | - | $ | 3,087,027 | $ | 201,794,953 | $ | 759,792,162 |
Investment Companies - 5.1% |
Money Markets - 5.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 33,364,312 | | 77,552 | | 87,207 | | 943,056,565 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 134,672∆ | | - | | - | | 8,793,960 |
Total Affiliated Investments - 9.3% | $ | 33,498,984 | $ | 3,164,579 | $ | 201,882,160 | $ | 1,711,642,687 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2023, this column reflects amounts for the entire year ended September 30, 2023 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Common Stocks - 4.1% |
Commercial Services & Supplies - 0.8% | |
| | Cimpress PLC* | | 52,748,035 | | - | | (959,276) | | 149,561,593 |
Diversified Financial Services - 2.5% | |
| | WEX Inc* | | 297,331,435 | | 24,378,689 | | (3,744,118) | | 463,758,654 |
Health Care Equipment & Supplies - 0.8% | |
| | ICU Medical Inc* | | 186,952,129 | | - | | (1,796,712) | | 146,471,915 |
Investment Companies - 5.1% |
Money Markets - 5.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 605,370,179 | | 2,397,792,319 | | (2,060,270,692) | | 943,056,565 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 22,240,695 | | 1,015,745,000 | | (1,029,191,735) | | 8,793,960 |
| | |
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, 2023
| | | | | | | |
Schedule of Forward Foreign Currency Exchange Contracts | | | | | | |
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
Bank of America, National Association: | | | | | | | | |
Canadian Dollar | 10/26/23 | 13,620,000 | $ | (10,205,757) | $ | (173,139) | | |
Euro | 10/26/23 | 19,225,000 | | (21,324,555) | | (979,914) | | |
Euro | 10/26/23 | (8,979,000) | | 9,592,665 | | 90,739 | | |
| | | | | | | | | |
| | | | | | | (1,062,314) | | |
Barclays Capital, Inc.: | | | | | | | | |
Canadian Dollar | 10/26/23 | (137,142,000) | | 104,208,395 | | 3,188,328 | | |
Euro | 10/26/23 | (60,568,000) | | 67,160,494 | | 3,065,086 | | |
| | | | | | | | | |
| | | | | | | 6,253,414 | | |
BNP Paribas: | | | | | | | | |
Euro | 10/26/23 | 4,800,000 | | (5,322,672) | | (243,126) | | |
Citibank, National Association: | | | | | | | | |
Canadian Dollar | 10/26/23 | (78,190,000) | | 59,426,291 | | 1,830,813 | | |
Euro | 10/26/23 | 8,264,000 | | (8,763,376) | | (18,091) | | |
Euro | 10/26/23 | (79,109,000) | | 87,734,420 | | 4,018,207 | | |
| | | | | | | | | |
| | | | | | | 5,830,929 | | |
Goldman Sachs & Co. LLC: | | | | | | | | |
Canadian Dollar | 10/26/23 | (8,409,000) | | 6,390,109 | | 195,962 | | |
Euro | 10/26/23 | (1,402,000) | | 1,554,706 | | 71,055 | | |
| | | | | | | | | |
| | | | | | | 267,017 | | |
HSBC Securities (USA), Inc.: | | | | | | | | |
Canadian Dollar | 10/26/23 | 14,039,000 | | (10,589,249) | | (247,992) | | |
Canadian Dollar | 10/26/23 | (125,545,000) | | 95,410,435 | | 2,932,825 | | |
Euro | 10/26/23 | 10,206,000 | | (10,744,393) | | 55,992 | | |
Euro | 10/26/23 | (51,249,000) | | 56,851,541 | | 2,617,861 | | |
| | | | | | | | | |
| | | | | | | 5,358,686 | | |
JPMorgan Chase Bank, National Association: | | | | | | | | |
Canadian Dollar | 10/26/23 | 18,194,000 | | (13,471,973) | | (70,104) | | |
Canadian Dollar | 10/26/23 | (177,917,000) | | 134,755,331 | | 3,700,021 | | |
Euro | 10/26/23 | (85,397,000) | | 94,692,463 | | 4,322,045 | | |
| | | | | | | | | |
| | | | | | | 7,951,962 | | |
Morgan Stanley & Co: | | | | | | | | |
Canadian Dollar | 10/26/23 | 1,336,000 | | (1,015,586) | | (31,476) | | |
Euro | 10/26/23 | (13,787,000) | | 15,287,343 | | 697,404 | | |
| | | | | | | | | |
| | | | | | | 665,928 | | |
State Street Bank and Trust Company: | | | | | | | | |
Canadian Dollar | 10/26/23 | 14,012,000 | | (10,317,183) | | 4,186 | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2023 |
Janus Henderson Enterprise Fund
Schedule of Investments
September 30, 2023
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | | |
Canadian Dollar | 10/26/23 | (178,008,000) | $ | 134,831,201 | | 3,708,860 | | |
Euro | 10/26/23 | 9,193,000 | | (10,171,387) | | (442,998) | | |
Euro | 10/26/23 | (130,169,000) | | 144,286,465 | | 6,536,579 | | |
| | | | | | | | |
| | | | | | | 9,806,627 | |
Total | | | | | $ | 34,829,123 | |
| | |
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, 2023
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, 2023.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2023 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $37,035,963 |
| | | | |
Liability Derivatives: | | | |
Forward foreign currency exchange contracts | | | $ 2,206,840 |
| | | | |
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, 2023.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2023 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $(18,998,810) |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ 7,015,226 |
| | | | | |
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, 2023 |
| |
| |
Forward foreign currency exchange contracts: | |
Average amounts purchased - in USD | $ 141,262,217 |
Average amounts sold - in USD | 947,818,706 |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2023 |
Janus Henderson Enterprise Fund
Schedule of Investments
September 30, 2023
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Bank of America, National Association | $ | 90,739 | $ | (90,739) | $ | — | $ | — |
Barclays Capital, Inc. | | 6,253,414 | | — | | — | | 6,253,414 |
Citibank, National Association | | 5,849,020 | | (18,091) | | — | | 5,830,929 |
Goldman Sachs & Co. LLC | | 267,017 | | — | | — | | 267,017 |
HSBC Securities (USA), Inc. | | 5,606,678 | | (247,992) | | — | | 5,358,686 |
JPMorgan Chase Bank, National Association | | 18,825,523 | | (70,104) | | (10,803,457) | | 7,951,962 |
Morgan Stanley & Co | | 697,404 | | (31,476) | | — | | 665,928 |
State Street Bank and Trust Company | | 10,249,625 | | (442,998) | | — | | 9,806,627 |
| | | | | | | | | |
Total | $ | 47,839,420 | $ | (901,400) | $ | (10,803,457) | $ | 36,134,563 |
Offsetting of Financial Liabilities and Derivative Liabilities |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Bank of America, National Association | $ | 1,153,053 | $ | (90,739) | $ | — | $ | 1,062,314 |
BNP Paribas | | 243,126 | | — | | — | | 243,126 |
Citibank, National Association | | 18,091 | | (18,091) | | — | | — |
HSBC Securities (USA), Inc. | | 247,992 | | (247,992) | | — | | — |
JPMorgan Chase Bank, National Association | | 70,104 | | (70,104) | | — | | — |
Morgan Stanley & Co | | 31,476 | | (31,476) | | — | | — |
State Street Bank and Trust Company | | 442,998 | | (442,998) | | — | | — |
| | | | | | | | | |
Total | $ | 2,206,840 | $ | (901,400) | $ | — | $ | 1,305,440 |
(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 | 15 |
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 |
PLC | Public Limited Company |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2023. |
| | |
£ | 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, 2023. 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 | $ | 671,585,841 | $ | 32,598,785 | $ | - |
Hotels, Restaurants & Leisure | | 254,770,280 | | 127,694,014 | | - |
All Other | | 16,234,744,480 | | - | | - |
Warrants | | - | | 24 | | - |
Investment Companies | | - | | 943,056,565 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 10,992,450 | | - |
Total Investments in Securities | $ | 17,161,100,601 | $ | 1,114,341,838 | $ | - |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 37,035,963 | | - |
Total Assets | $ | 17,161,100,601 | $ | 1,151,377,801 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 2,206,840 | $ | - |
| | | | | | | |
(a) | Other financial instruments may 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, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $11,179,785,855)(1) | | $ | 16,563,799,752 | |
| Affiliated investments, at value (cost $1,630,881,373) | | | 1,711,642,687 | |
| Cash | | | 7,024 | |
| Forward foreign currency exchange contracts | | | 37,035,963 | |
| Trustees' deferred compensation | | | 477,249 | |
| Receivables: | | | | |
| | Fund shares sold | | | 23,059,411 | |
| | Investments sold | | | 17,516,935 | |
| | Dividends | | | 10,968,824 | |
| | Dividends from affiliates | | | 3,913,870 | |
| Other assets | | | 48,293 | |
Total Assets | | | 18,368,470,008 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 10,992,450 | |
| Forward foreign currency exchange contracts | | | 2,206,840 | |
| Payables: | | | — | |
| | Investments purchased | | | 40,229,669 | |
| | Fund shares repurchased | | | 24,613,433 | |
| | Advisory fees | | | 10,132,720 | |
| | Transfer agent fees and expenses | | | 2,092,880 | |
| | Trustees' deferred compensation fees | | | 477,249 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 267,202 | |
| | Trustees' fees and expenses | | | 96,562 | |
| | Professional fees | | | 89,583 | |
| | Affiliated fund administration fees payable | | | 39,581 | |
| | Custodian fees | | | 32,078 | |
| | Accrued expenses and other payables | | | 445,352 | |
Total Liabilities | | | 91,715,599 | |
Commitments and contingent liabilities (Note 4) | | | | |
Net Assets | | $ | 18,276,754,409 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Enterprise Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 11,652,230,630 | |
| Total distributable earnings (loss) | | | 6,624,523,779 | |
Total Net Assets | | $ | 18,276,754,409 | |
Net Assets - Class A Shares | | $ | 388,721,347 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,154,003 | |
Net Asset Value Per Share(2) | | $ | 123.25 | |
Maximum Offering Price Per Share(3) | | $ | 130.77 | |
Net Assets - Class C Shares | | $ | 101,479,732 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 956,941 | |
Net Asset Value Per Share(2) | | $ | 106.05 | |
Net Assets - Class D Shares | | $ | 2,189,481,732 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 16,949,974 | |
Net Asset Value Per Share | | $ | 129.17 | |
Net Assets - Class I Shares | | $ | 6,792,380,882 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 52,153,195 | |
Net Asset Value Per Share | | $ | 130.24 | |
Net Assets - Class N Shares | | $ | 5,279,268,514 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 40,242,728 | |
Net Asset Value Per Share | | $ | 131.19 | |
Net Assets - Class R Shares | | $ | 75,820,101 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 657,865 | |
Net Asset Value Per Share | | $ | 115.25 | |
Net Assets - Class S Shares | | $ | 279,289,014 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,288,885 | |
Net Asset Value Per Share | | $ | 122.02 | |
Net Assets - Class T Shares | | $ | 3,170,313,087 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 24,821,711 | |
Net Asset Value Per Share | | $ | 127.72 | |
| |
(1) Includes $10,803,457 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. |
| |
18 | SEPTEMBER 30, 2023 |
Janus Henderson Enterprise Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 199,734,719 | |
| Dividends from affiliates | | 33,364,312 | |
| Affiliated securities lending income, net | | 134,672 | |
| Unaffiliated securities lending income, net | | 38,762 | |
| Other income | | 1,100 | |
| Foreign tax withheld | | (6,880,847) | |
Total Investment Income | | 226,392,718 | |
Expenses: | | | |
| Advisory fees | | 113,981,100 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 942,499 | |
| | Class C Shares | | 996,431 | |
| | Class R Shares | | 377,814 | |
| | Class S Shares | | 745,896 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,577,759 | |
| | Class R Shares | | 191,988 | |
| | Class S Shares | | 746,701 | |
| | Class T Shares | | 8,319,629 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 884,198 | |
| | Class C Shares | | 79,228 | |
| | Class I Shares | | 6,223,337 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 23,112 | |
| | Class C Shares | | 4,702 | |
| | Class D Shares | | 257,787 | |
| | Class I Shares | | 311,298 | |
| | Class N Shares | | 207,504 | |
| | Class R Shares | | 1,354 | |
| | Class S Shares | | 5,574 | |
| | Class T Shares | | 36,477 | |
| Shareholder reports expense | | 944,297 | |
| Affiliated fund administration fees | | 573,995 | |
| Trustees’ fees and expenses | | 438,918 | |
| Registration fees | | 356,121 | |
| Custodian fees | | 270,207 | |
| Professional fees | | 210,035 | |
| Other expenses | | 770,677 | |
Total Expenses | | 140,478,638 | |
Less: Excess Expense Reimbursement and Waivers | | (400,644) | |
Net Expenses | | 140,077,994 | |
Net Investment Income/(Loss) | | 86,314,724 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Enterprise Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions(1) | $ | 1,326,948,896 | |
| Investments in affiliates | | 3,164,579 | |
| Forward foreign currency exchange contracts | | (18,998,810) | |
Total Net Realized Gain/(Loss) on Investments | | 1,311,114,665 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 1,185,628,173 | |
| Investments in affiliates | | 201,882,160 | |
| Forward foreign currency exchange contracts | | 7,015,226 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 1,394,525,559 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 2,791,954,948 | |
| | | | | |
| |
(1) Includes $75,180,969 of realized gains and losses resulting from a redemption-in-kind during the year ended September 30, 2023. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2023 |
Janus Henderson Enterprise Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 86,314,724 | | $ | 24,738,619 | |
| Net realized gain/(loss) on investments | | 1,311,114,665 | | | 1,755,146,247 | |
| Change in unrealized net appreciation/depreciation | | 1,394,525,559 | | | (5,523,461,636) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 2,791,954,948 | | | (3,743,576,770) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (35,587,793) | | | (65,714,839) | |
| | Class C Shares | | (12,338,200) | | | (28,152,759) | |
| | Class D Shares | | (199,834,888) | | | (359,561,565) | |
| | Class I Shares | | (525,051,789) | | | (1,130,089,504) | |
| | Class N Shares | | (463,732,368) | | | (789,979,114) | |
| | Class R Shares | | (7,786,807) | | | (16,455,015) | |
| | Class S Shares | | (29,914,481) | | | (62,009,288) | |
| | Class T Shares | | (316,117,237) | | | (699,266,902) | |
Net Decrease from Dividends and Distributions to Shareholders | | (1,590,363,563) | | | (3,151,228,986) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 39,183,494 | | | (3,987,499) | |
| | Class C Shares | | (15,030,156) | | | (11,161,089) | |
| | Class D Shares | | 100,951,545 | | | 244,637,951 | |
| | Class I Shares | | 987,505,366 | | | (137,205,137) | |
| | Class N Shares | | 236,478,042 | | | 850,530,593 | |
| | Class R Shares | | 1,906,489 | | | (5,979,734) | |
| | Class S Shares | | (23,084,553) | | | (26,518,543) | |
| | Class T Shares | | (261,537,673) | | | (577,826,097) | |
Net Increase/(Decrease) from Capital Share Transactions | | 1,066,372,554 | | | 332,490,445 | |
Net Increase/(Decrease) in Net Assets | | 2,267,963,939 | | | (6,562,315,311) | |
Net Assets: | | | | | | |
| Beginning of period | | 16,008,790,470 | | | 22,571,105,781 | |
| End of period | $ | 18,276,754,409 | | $ | 16,008,790,470 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $116.22 | | | $168.35 | | | $137.77 | | | $136.07 | | | $131.70 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.19 | | | (0.30) | | | (0.27) | | | (0.09) | | | (0.02) | |
| | Net realized and unrealized gain/(loss) | | 19.41 | | | (27.16) | | | 43.67 | | | 7.94 | | | 11.19 | |
| Total from Investment Operations | | 19.60 | | | (27.46) | | | 43.40 | | | 7.85 | | | 11.17 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.57) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | |
| Total Dividends and Distributions | | (12.57) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | |
| Net Asset Value, End of Period | | $123.25 | | | $116.22 | | | $168.35 | | | $137.77 | | | $136.07 | |
| Total Return* | | 17.82% | | | (19.08)% | | | 32.57% | | | 5.81% | | | 9.88% | |
| Net Assets, End of Period (in thousands) | | $388,721 | | | $327,176 | | | $472,904 | | | $456,433 | | | $547,328 | |
| Average Net Assets for the Period (in thousands) | | $377,759 | | | $399,310 | | | $493,097 | | | $493,576 | | | $611,182 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.15% | | | 1.14% | | | 1.13% | | | 1.17% | | | 1.15% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.12% | | | 1.11% | | | 1.12% | | | 1.11% | |
| | Ratio of Net Investment Income/(Loss) | | 0.15% | | | (0.21)% | | | (0.17)% | | | (0.07)% | | | (0.02)% | |
| Portfolio Turnover Rate | | 14% | | | 9% | | | 12% | | | 14% | | | 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, 2023 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $102.11 | | | $151.54 | | | $125.75 | | | $125.40 | | | $122.67 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.41) | | | (0.87) | | | (1.06) | | | (0.77) | | | (0.71) | |
| | Net realized and unrealized gain/(loss) | | 16.92 | | | (23.89) | | | 39.67 | | | 7.27 | | | 10.24 | |
| Total from Investment Operations | | 16.51 | | | (24.76) | | | 38.61 | | | 6.50 | | | 9.53 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.57) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | |
| Total Dividends and Distributions | | (12.57) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | |
| Net Asset Value, End of Period | | $106.05 | | | $102.11 | | | $151.54 | | | $125.75 | | | $125.40 | |
| Total Return* | | 17.20% | | | (19.47)% | | | 31.83% | | | 5.21% | | | 9.25% | |
| Net Assets, End of Period (in thousands) | | $101,480 | | | $110,936 | | | $179,240 | | | $173,129 | | | $212,985 | |
| Average Net Assets for the Period (in thousands) | | $110,374 | | | $153,213 | | | $187,356 | | | $188,953 | | | $219,505 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.64% | | | 1.60% | | | 1.67% | | | 1.69% | | | 1.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.64% | | | 1.60% | | | 1.67% | | | 1.69% | | | 1.70% | |
| | Ratio of Net Investment Income/(Loss) | | (0.38)% | | | (0.69)% | | | (0.73)% | | | (0.64)% | | | (0.61)% | |
| Portfolio Turnover Rate | | 14% | | | 9% | | | 12% | | | 14% | | | 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 D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $120.89 | | | $174.13 | | | $142.10 | | | $139.87 | | | $134.99 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.61 | | | 0.18 | | | 0.25 | | | 0.33 | | | 0.37 | |
| | Net realized and unrealized gain/(loss) | | 20.24 | | | (28.23) | | | 45.06 | | | 8.20 | | | 11.50 | |
| Total from Investment Operations | | 20.85 | | | (28.05) | | | 45.31 | | | 8.53 | | | 11.87 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.52) | | | (0.46) | | | (0.15) | | | (0.19) | |
| | Distributions (from capital gains) | | (12.57) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | |
| Total Dividends and Distributions | | (12.57) | | | (25.19) | | | (13.28) | | | (6.30) | | | (6.99) | |
| Net Asset Value, End of Period | | $129.17 | | | $120.89 | | | $174.13 | | | $142.10 | | | $139.87 | |
| Total Return* | | 18.20% | | | (18.82)% | | | 32.99% | | | 6.15% | | | 10.22% | |
| Net Assets, End of Period (in thousands) | | $2,189,482 | | | $1,937,787 | | | $2,507,220 | | | $1,983,824 | | | $2,061,471 | |
| Average Net Assets for the Period (in thousands) | | $2,204,896 | | | $2,337,701 | | | $2,394,871 | | | $1,974,784 | | | $1,930,540 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.79% | | | 0.79% | | | 0.80% | | | 0.81% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.79% | | | 0.79% | | | 0.80% | | | 0.81% | |
| | Ratio of Net Investment Income/(Loss) | | 0.47% | | | 0.12% | | | 0.15% | | | 0.25% | | | 0.28% | |
| Portfolio Turnover Rate | | 14% | | | 9% | | | 12% | | | 14% | | | 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, 2023 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $121.76 | | | $175.21 | | | $142.89 | | | $140.62 | | | $135.69 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.67 | | | 0.23 | | | 0.32 | | | 0.40 | | | 0.45 | |
| | Net realized and unrealized gain/(loss) | | 20.38 | | | (28.42) | | | 45.33 | | | 8.24 | | | 11.55 | |
| Total from Investment Operations | | 21.05 | | | (28.19) | | | 45.65 | | | 8.64 | | | 12.00 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.59) | | | (0.51) | | | (0.22) | | | (0.27) | |
| | Distributions (from capital gains) | | (12.57) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | |
| Total Dividends and Distributions | | (12.57) | | | (25.26) | | | (13.33) | | | (6.37) | | | (7.07) | |
| Net Asset Value, End of Period | | $130.24 | | | $121.76 | | | $175.21 | | | $142.89 | | | $140.62 | |
| Total Return* | | 18.23% | | | (18.78)% | | | 33.06% | | | 6.20% | | | 10.28% | |
| Net Assets, End of Period (in thousands) | | $6,792,381 | | | $5,404,045 | | | $8,014,607 | | | $6,919,545 | | | $7,666,702 | |
| Average Net Assets for the Period (in thousands) | | $6,239,851 | | | $6,984,545 | | | $7,776,971 | | | $7,335,476 | | | $6,775,060 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.76% | | | 0.74% | | | 0.75% | | | 0.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.76% | | | 0.74% | | | 0.75% | | | 0.75% | |
| | Ratio of Net Investment Income/(Loss) | | 0.51% | | | 0.16% | | | 0.19% | | | 0.30% | | | 0.34% | |
| Portfolio Turnover Rate | | 14% | | | 9% | | | 12% | | | 14% | | | 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 N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $122.44 | | | $176.05 | | | $143.53 | | | $141.19 | | | $136.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.80 | | | 0.38 | | | 0.47 | | | 0.53 | | | 0.56 | |
| | Net realized and unrealized gain/(loss) | | 20.52 | | | (28.59) | | | 45.53 | | | 8.28 | | | 11.60 | |
| Total from Investment Operations | | 21.32 | | | (28.21) | | | 46.00 | | | 8.81 | | | 12.16 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.73) | | | (0.66) | | | (0.32) | | | (0.35) | |
| | Distributions (from capital gains) | | (12.57) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | |
| Total Dividends and Distributions | | (12.57) | | | (25.40) | | | (13.48) | | | (6.47) | | | (7.15) | |
| Net Asset Value, End of Period | | $131.19 | | | $122.44 | | | $176.05 | | | $143.53 | | | $141.19 | |
| Total Return* | | 18.36% | | | (18.71)% | | | 33.17% | | | 6.30% | | | 10.38% | |
| Net Assets, End of Period (in thousands) | | $5,279,269 | | | $4,678,462 | | | $5,636,167 | | | $4,867,667 | | | $4,860,043 | |
| Average Net Assets for the Period (in thousands) | | $5,201,960 | | | $5,415,323 | | | $5,609,015 | | | $4,941,595 | | | $4,213,287 | |
| 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) | | 0.61% | | | 0.26% | | | 0.28% | | | 0.39% | | | 0.43% | |
| Portfolio Turnover Rate | | 14% | | | 9% | | | 12% | | | 14% | | | 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, 2023 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $109.72 | | | $160.72 | | | $132.38 | | | $131.34 | | | $127.76 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.16) | | | (0.67) | | | (0.69) | | | (0.46) | | | (0.39) | |
| | Net realized and unrealized gain/(loss) | | 18.26 | | | (25.66) | | | 41.85 | | | 7.65 | | | 10.77 | |
| Total from Investment Operations | | 18.10 | | | (26.33) | | | 41.16 | | | 7.19 | | | 10.38 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.57) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | |
| Total Dividends and Distributions | | (12.57) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | |
| Net Asset Value, End of Period | | $115.25 | | | $109.72 | | | $160.72 | | | $132.38 | | | $131.34 | |
| Total Return* | | 17.48% | | | (19.32)% | | | 32.18% | | | 5.51% | | | 9.56% | |
| Net Assets, End of Period (in thousands) | | $75,820 | | | $69,756 | | | $110,802 | | | $119,190 | | | $150,860 | |
| Average Net Assets for the Period (in thousands) | | $76,974 | | | $97,291 | | | $124,162 | | | $130,918 | | | $150,191 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.40% | | | 1.41% | | | 1.40% | | | 1.41% | | | 1.41% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.40% | | | 1.41% | | | 1.40% | | | 1.41% | | | 1.41% | |
| | Ratio of Net Investment Income/(Loss) | | (0.14)% | | | (0.50)% | | | (0.45)% | | | (0.36)% | | | (0.32)% | |
| Portfolio Turnover Rate | | 14% | | | 9% | | | 12% | | | 14% | | | 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 S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $115.22 | | | $167.17 | | | $136.94 | | | $135.34 | | | $131.09 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.13 | | | (0.36) | | | (0.34) | | | (0.14) | | | (0.08) | |
| | Net realized and unrealized gain/(loss) | | 19.24 | | | (26.92) | | | 43.39 | | | 7.89 | | | 11.13 | |
| Total from Investment Operations | | 19.37 | | | (27.28) | | | 43.05 | | | 7.75 | | | 11.05 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.57) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | |
| Total Dividends and Distributions | | (12.57) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | |
| Net Asset Value, End of Period | | $122.02 | | | $115.22 | | | $167.17 | | | $136.94 | | | $135.34 | |
| Total Return* | | 17.77% | | | (19.12)% | | | 32.51% | | | 5.77% | | | 9.84% | |
| Net Assets, End of Period (in thousands) | | $279,289 | | | $283,177 | | | $442,011 | | | $465,207 | | | $589,792 | |
| Average Net Assets for the Period (in thousands) | | $299,490 | | | $375,663 | | | $480,226 | | | $538,012 | | | $592,420 | |
| 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) | | 0.11% | | | (0.25)% | | | (0.21)% | | | (0.11)% | | | (0.06)% | |
| Portfolio Turnover Rate | | 14% | | | 9% | | | 12% | | | 14% | | | 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, 2023 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | | $119.78 | | | $172.66 | | | $141.02 | | | $138.90 | | | $134.10 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | | 0.47 | | | 0.01 | | | 0.07 | | | 0.20 | | | 0.24 | |
| | Net realized and unrealized gain/(loss) | | | 20.04 | | | (27.97) | | | 44.71 | | | 8.13 | | | 11.44 | |
| Total from Investment Operations | | | 20.51 | | | (27.96) | | | 44.78 | | | 8.33 | | | 11.68 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | | — | | | (0.25) | | | (0.32) | | | (0.06) | | | (0.08) | |
| | Distributions (from capital gains) | | | (12.57) | | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | |
| Total Dividends and Distributions | | | (12.57) | | | (24.92) | | | (13.14) | | | (6.21) | | | (6.88) | |
| Net Asset Value, End of Period | | | $127.72 | | | $119.78 | | | $172.66 | | | $141.02 | | | $138.90 | |
| Total Return* | | | 18.07% | | | (18.91)% | | | 32.84% | | | 6.04% | | | 10.12% | |
| Net Assets, End of Period (in thousands) | | | $3,170,313 | | | $3,197,451 | | | $5,208,155 | | | $5,203,521 | | | $5,461,958 | |
| Average Net Assets for the Period (in thousands) | | | $3,336,877 | | | $4,131,052 | | | $5,723,820 | | | $5,246,105 | | | $5,059,206 | |
| 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) | | | 0.37% | | | 0.01% | | | 0.05% | | | 0.15% | | | 0.19% | |
| Portfolio Turnover Rate | | | 14% | | | 9% | | | 12% | | | 14% | | | 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 | 29 |
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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Enterprise Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Janus Henderson Enterprise Fund
Notes to Financial Statements
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of September 30, 2023 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, 2023 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
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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
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Notes to Financial Statements
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 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, 2023, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $10,803,457. Gross amounts of recognized liabilities for securities lending
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Notes to Financial Statements
(collateral received) as of September 30, 2023 is $10,992,450, resulting in the net amount due to the counterparty of $188,993.
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, 2023” 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 0.80% 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 27, 2023. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Enterprise Fund
Notes to Financial Statements
Janus Henderson Services US 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 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 Enterprise 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, 2023, the Distributor retained upfront sales charges of $53,533.
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, 2023.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $3,191.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 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 Enterprise Fund
Notes to Financial Statements
current market price to save costs where allowed. During the year ended September 30, 2023, the Fund engaged in cross trades amounting to $7,368,553 in sales, resulting in a net realized loss of $1,107,799. The net realized loss is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation, derivatives, and foreign currency contract adjustments. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The Fund has elected to defer qualified late-year losses as noted in the table below. These losses will be deferred for tax purposes and recognized during the next fiscal year.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ - | $ 1,176,440,235 | $ - | $ (32,285,232) | $ (466,334) | $5,480,835,110 | |
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, 2023 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) |
$ 12,794,607,329 | $6,446,168,021 | $(965,332,911) | $ 5,480,835,110 |
Information on the tax components of derivatives as of September 30, 2023 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 34,829,123 | $ - | $ - | $ - |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Janus Henderson Enterprise 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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ - | $ 1,590,363,563 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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. Capital has been adjusted by $104,189,532, all of which is long-term capital gain, for distributions in connection with Fund shares redemption (tax equalization).
Janus Henderson Enterprise Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 890,054 | $ 109,516,348 | | 837,971 | $ 116,608,375 |
Reinvested dividends and distributions | 207,036 | 23,448,932 | | 297,360 | 42,632,523 |
Shares repurchased | (758,183) | (93,781,786) | | (1,129,349) | (163,228,397) |
Net Increase/(Decrease) | 338,907 | $ 39,183,494 | | 5,982 | $ (3,987,499) |
Class C Shares: | | | | | |
Shares sold | 163,226 | $ 17,635,315 | | 62,501 | $ 7,928,856 |
Reinvested dividends and distributions | 125,243 | 12,253,752 | | 217,666 | 27,523,875 |
Shares repurchased | (417,974) | (44,919,223) | | (376,526) | (46,613,820) |
Net Increase/(Decrease) | (129,505) | $ (15,030,156) | | (96,359) | $ (11,161,089) |
Class D Shares: | | | | | |
Shares sold | 537,212 | $ 69,871,221 | | 478,632 | $ 70,710,123 |
Reinvested dividends and distributions | 1,627,079 | 192,646,089 | | 2,340,660 | 348,173,218 |
Shares repurchased | (1,243,202) | (161,565,765) | | (1,188,599) | (174,245,390) |
Net Increase/(Decrease) | 921,089 | $ 100,951,545 | | 1,630,693 | $ 244,637,951 |
Class I Shares: | | | | | |
Shares sold | 18,594,841 | $2,442,117,663 | | 11,811,951 | $1,707,347,149 |
Reinvested dividends and distributions | 3,988,150 | 475,985,691 | | 6,230,188 | 933,095,224 |
Shares repurchased | (14,813,538) | (1,930,597,988) | | (19,402,149) | (2,777,647,510) |
Net Increase/(Decrease) | 7,769,453 | $ 987,505,366 | | (1,360,010) | $ (137,205,137) |
Class N Shares: | | | | | |
Shares sold | 8,348,598 | $1,103,009,292 | | 10,969,680 | $1,521,926,877 |
Reinvested dividends and distributions | 3,462,685 | 415,937,740 | | 5,161,986 | 776,930,572 |
Shares repurchased | (9,777,260) | (1,282,468,990) | | (9,937,540) | (1,448,326,856) |
Net Increase/(Decrease) | 2,034,023 | $ 236,478,042 | | 6,194,126 | $ 850,530,593 |
Class R Shares: | | | | | |
Shares sold | 132,166 | $ 15,472,984 | | 110,709 | $ 14,873,704 |
Reinvested dividends and distributions | 72,303 | 7,674,941 | | 119,781 | 16,249,554 |
Shares repurchased | (182,353) | (21,241,436) | | (284,150) | (37,102,992) |
Net Increase/(Decrease) | 22,116 | $ 1,906,489 | | (53,660) | $ (5,979,734) |
Class S Shares: | | | | | |
Shares sold | 234,323 | $ 28,929,878 | | 280,458 | $ 39,604,865 |
Reinvested dividends and distributions | 265,955 | 29,832,192 | | 435,205 | 61,877,468 |
Shares repurchased | (669,012) | (81,846,623) | | (902,055) | (128,000,876) |
Net Increase/(Decrease) | (168,734) | $ (23,084,553) | | (186,392) | $ (26,518,543) |
Class T Shares: | | | | | |
Shares sold | 3,870,196 | $ 493,483,626 | | 5,573,071 | $ 777,199,170 |
Reinvested dividends and distributions | 2,657,848 | 311,420,091 | | 4,668,938 | 688,715,006 |
Shares repurchased | (8,400,159) | (1,066,441,390) | | (13,712,032) | (2,043,740,273) |
Net Increase/(Decrease) | (1,872,115) | $ (261,537,673) | | (3,470,023) | $ (577,826,097) |
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$ 2,465,602,228 | $ 3,094,914,222 | $ - | $ - |
Janus Henderson Enterprise Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Enterprise Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Enterprise Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Enterprise Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Enterprise Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Enterprise Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Enterprise Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Enterprise Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Enterprise Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Enterprise Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Enterprise Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Capital Gain Distributions | $1,694,553,095 |
Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income 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 48 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). | 48 | 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). | 48 | 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)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past 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). | 48 | 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)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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 | | | | |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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). | 48 | 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. | 48 | 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). | 48 | 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)
| | | | |
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 Lead 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). |
* 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 |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93040 11-23 |
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| | | |
| | | ANNUAL REPORT September 30, 2023 |
| | |
| | Janus Henderson European Focus 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 European Focus Fund
Janus Henderson European Focus Fund (unaudited)
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Robert Schramm-Fuchs Portfolio Manager |
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PERFORMANCE OVERVIEW
The Janus Henderson European Focus Fund Class I Shares returned 25.80% for the 12-month period ended September 30, 2023, underperforming its benchmark, the MSCI Europe IndexSM, which returned 28.85%.
INVESTMENT ENVIRONMENT
The period started with a relief rally as an unseasonably warm winter in 2022 removed the tail risk of energy blackouts and rationing in Europe. Since then, the market has been range-bound as it grapples with tighter monetary policy1 and the potential for recession. The truth is that no one knows if or when a contraction might come or how deep it might be. Moreover, while we have started to see some cracks in the hitherto resilient U.S. consumer – causing share price weakness in areas such as clothing, luxury goods, and spirits – economic activity generally has surprised positively. Accordingly, the market has had to regularly recalibrate its view of the likely duration of high inflation levels and correspondingly elevated interest rates (elevated relative only to recent history, that is).
PERFORMANCE DISCUSSION
The 12-month period has been a frustrating one for the Fund, with returns adversely impacted primarily by a lackluster Chinese recovery, destocking, and the financials sector. We owned a number of materials/mining stocks, such as Anglo American and UPM-Kymmene, that we thought would benefit from a Chinese reopening, but recovery faltered and, in fact, barely got started from an infrastructure point of view. A number of our holdings also suffered from destocking (i.e., where the end client has reduced inventories ahead of the feared recession), most notably with Nordic Semiconductor. We continue to like its low-energy Bluetooth technology and continue to hold the stock. In financials, our underweight allocation negatively impacted relative returns in a rising rate environment. Despite the higher rates, we remain cautious in the sector as we expect further deposit flight will limit earnings upgrades.
On the positive side, stock selection in information technology – semiconductors in particular – was the largest contributor to relative performance over the period. BE Semiconductor (BESI) and ASM International were top individual contributors, with both benefiting from unique technological advantages and direct exposure to the growth in artificial intelligence. Another large individual contributor was industrial valve manufacturer VAT Group.
The most recent activity involved adding to our energy exposure in response to the structural mismatch between oil supply and demand after a decade of disincentivizing capital expenditure to develop new reserves – a mismatch exacerbated by political shifts to a multi-polar world. We also added to aerospace stocks, where we are attracted by the sector’s late-cycle nature, with huge order book visibility and a sweet spot in after-market services as a lot of the relatively young engine fleet moves into the window for first shop visits. Finally, our technology exposure is driven by software names exhibiting high recurring revenue share, and, more recently, by an again-increased exposure to semiconductors following a sharp share price correction in the space.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
At the time of writing, the stock market correction extends into October. Much has been written about the technical selling pressures potentially abating soon, but for us the crux remains the same: The monetary supply picture
Janus Henderson European Focus Fund (unaudited)
across the Group of Seven (G7) and Emerging Seven (E7) economies remains bleak. The absolute of the real narrow money creation (i.e., liquid financial assets such as physical currency, coins, demand deposits, etc. held by the central bank) remains at a deeply negative rate on a year-over-year basis, and the rate of change of the second derivative remains downward-sloping and making new lows for this tightening2 cycle. Money supply is still falling faster than the real economy as indicated by the rate of change in industrial production, i.e., the real economy is likely to still catch down to its money lead indicators.
Historically, this monetary setup has been the worst environment for stock market returns and has been associated with the highest volatility3 in equity markets. Let us not forget that we are coming off the lowest-volatility stretch, which only ended in July, in the post-COVID-19 period. Thus, risk remains for volatility to become more elevated in what would be a shift after 18 months of volatility crush. Very near term, a lot will depend on the upcoming macro data points, especially U.S. payroll figures and the U.S. Consumer Price Index (CPI)4. Recent indications point to a still reasonably strong job market and potential for CPI improvements to stall. Housing market price indicators and energy prices have clearly picked up again in recent months and may begin to filter through to reduce the disinflationary speed that had helped stock markets over the prior 12 months.
Thank you for investing in the Janus Henderson European Focus Fund.
1 Monetary Policy refers to the policies of a central bank, aimed at influencing the level of inflation and growth in an economy. It includes controlling interest rates and the supply of money.
2 Monetary tightening refers to central bank activity aimed at curbing inflation and slowing down growth in the economy by raising interest rates and reducing the supply of money.
3 Volatility measures risk using the dispersion of returns for a given investment.
4 Consumer Price Index (CPI) is an unmanaged index representing the rate of inflation of the U.S. consumer prices as determined by the U.S. Department of Labor Statistics
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson European Focus Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| BE Semiconductor Industries NV | 1.68% | | 1.47% | | Nordic Semiconductor ASA | 1.69% | | -1.02% |
| ASM International NV | 1.66% | | 0.97% | | Anglo American PLC | 1.38% | | -0.82% |
| UBS Group AG | 2.60% | | 0.92% | | RWE AG | 2.21% | | -0.65% |
| VAT Group AG | 1.72% | | 0.75% | | BP PLC | 1.89% | | -0.58% |
| KION Group AG | 0.30% | | 0.59% | | UPM-Kymmene Oyj | 2.19% | | -0.54% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Europe Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | 1.10% | | 11.79% | 6.94% |
| Industrials | | 0.92% | | 17.87% | 14.74% |
| Health Care | | 0.70% | | 11.15% | 15.79% |
| Real Estate | | 0.23% | | 0.26% | 0.83% |
| Communication Services | | 0.08% | | 0.13% | 3.32% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Europe Index |
| | | Contribution | | Average Weight | Average Weight |
| Materials | | -1.98% | | 9.00% | 7.14% |
| Energy | | -1.17% | | 5.83% | 6.17% |
| Financials | | -1.15% | | 13.79% | 16.98% |
| Utilities | | -0.47% | | 2.68% | 4.26% |
| Other** | | -0.43% | | 2.51% | 0.00% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
** | Not a GICS classified sector. |
Janus Henderson European Focus Fund (unaudited)
Fund At A Glance
September 30, 2023
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Shell PLC | |
Oil, Gas & Consumable Fuels | 4.2% |
LVMH Moet Hennessy Louis Vuitton SE | |
Textiles, Apparel & Luxury Goods | 3.8% |
Novartis AG | |
Pharmaceuticals | 3.4% |
UBS Group AG | |
Capital Markets | 3.4% |
Nestle SA (REG) | |
Food Products | 3.3% |
| | 18.1% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 95.9% | |
Investment Companies | | 5.1% | |
Investments Purchased with Cash Collateral from Securities Lending | | 1.8% | |
Other | | (2.8)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
Janus Henderson European Focus Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended September 30, 2023 | | | 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 | | 25.48% | 6.34% | 3.83% | 10.80% | | | 1.42% | 1.30% |
Class A Shares at MOP | | 18.28% | 5.08% | 3.22% | 10.50% | | | | |
Class C Shares at NAV | | 24.54% | 5.53% | 3.04% | 9.97% | | | 2.20% | 2.07% |
Class C Shares at CDSC | | 23.54% | 5.53% | 3.04% | 9.97% | | | | |
Class D Shares | | 25.72% | 6.55% | 3.95% | 10.86% | | | 1.30% | 1.11% |
Class I Shares | | 25.80% | 6.63% | 4.10% | 10.99% | | | 1.16% | 1.03% |
Class N Shares | | 25.87% | 6.70% | 4.08% | 10.92% | | | 1.11% | 0.96% |
Class S Shares | | 25.45% | 6.46% | 3.83% | 10.80% | | | 4.77% | 1.47% |
Class T Shares | | 25.57% | 6.45% | 3.89% | 10.83% | | | 1.37% | 1.22% |
MSCI Europe Index | | 28.85% | 3.96% | 3.83% | 5.19% | | | | |
Morningstar Quartile - Class A Shares | | 3rd | 1st | 2nd | 1st | | | | |
Morningstar Ranking - based on total returns for Europe Stock Funds | | 49/89 | 10/87 | 25/66 | 9/50 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
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.
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson European Focus Fund (the “Predecessor Fund”), which merged into the Fund after the close of business on June 2, 2017. The Predecessor Fund was advised by Henderson Global Investors (North America) Inc. and subadvised by Henderson Investment Management Limited. Class A Shares, Class C Shares, Class I Shares, and Class R6 Shares of the Predecessor Fund were reorganized into Class A Shares, Class C Shares, Class I Shares, and Class N Shares, respectively, of the Fund. In connection with this reorganization, certain shareholders of the Predecessor Fund who held shares directly with the Predecessor Fund and not through an intermediary had the Class A Shares, Class C Shares, Class I Shares, and Class N Shares of the Fund received in the reorganization automatically exchanged for Class D Shares of the Fund following the reorganization. Class A Shares and Class C Shares of the Predecessor Fund commenced operations with the Predecessor Fund’s inception on August 31, 2001. Class I Shares and Class R6 Shares of the Predecessor Fund commenced operations on March 31, 2009 and November 30, 2015, respectively. Class D Shares, Class S Shares, and Class T Shares commenced operations on June 5, 2017.
Performance of Class A Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class C Shares shown for periods prior to June 5, 2017, reflects the performance of Class C Shares of the Predecessor Fund, calculated using the fees and expenses of Class C Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class I Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the fees and expenses of Class I Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to March 31, 2009, performance for Class I Shares reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class N Shares shown for periods prior to June 5, 2017, reflects the performance of Class R6 Shares of the Predecessor Fund, calculated using the fees and expenses of Class R6 Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to November 30, 2015, performance for Class N Shares reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class S Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class T Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class D Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2023 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 important disclosures on the next page.
Janus Henderson European Focus Fund (unaudited)
Performance
See “Useful Information About Your Fund Report.”
*The Predecessor Fund’s inception date – August 31, 2001
‡ As stated in the prospectus. Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on January 27, 2023. This contractual waiver may be terminated or modified only at the discretion of the Board of Trustees. 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
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $954.00 | $6.07 | | $1,000.00 | $1,018.85 | $6.28 | 1.24% |
Class C Shares | $1,000.00 | $950.50 | $9.53 | | $1,000.00 | $1,015.29 | $9.85 | 1.95% |
Class D Shares | $1,000.00 | $954.90 | $5.19 | | $1,000.00 | $1,019.75 | $5.37 | 1.06% |
Class I Shares | $1,000.00 | $955.40 | $4.95 | | $1,000.00 | $1,020.00 | $5.11 | 1.01% |
Class N Shares | $1,000.00 | $955.30 | $4.36 | | $1,000.00 | $1,020.61 | $4.51 | 0.89% |
Class S Shares | $1,000.00 | $953.90 | $6.32 | | $1,000.00 | $1,018.60 | $6.53 | 1.29% |
Class T Shares | $1,000.00 | $954.60 | $5.63 | | $1,000.00 | $1,019.30 | $5.82 | 1.15% |
† | 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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 95.9% | | | |
Aerospace & Defense – 4.2% | | | |
| | Airbus SE | | 63,931 | | | $8,551,669 | |
| | Safran SA | | 63,143 | | | 9,871,304 | |
| | | 18,422,973 | |
Auto Components – 0% | | | |
| | Faurecia SE* | | 11,069 | | | 228,342 | |
Automobiles – 2.0% | | | |
| | Ferrari NV | | 29,584 | | | 8,717,680 | |
Banks – 7.4% | | | |
| | BNP Paribas SA | | 197,327 | | | 12,560,691 | |
| | ING Groep NV | | 548,828 | | | 7,249,146 | |
| | Nordea Bank Abp | | 1,125,119 | | | 12,367,757 | |
| | | 32,177,594 | |
Biotechnology – 2.8% | | | |
| | argenx SE* | | 24,962 | | | 12,133,884 | |
Building Products – 1.3% | | | |
| | Cie de Saint-Gobain | | 91,401 | | | 5,474,947 | |
Capital Markets – 5.9% | | | |
| | Deutsche Boerse AG | | 63,625 | | | 10,995,770 | |
| | UBS Group AG | | 597,391 | | | 14,770,201 | |
| | | 25,765,971 | |
Commercial Services & Supplies – 1.3% | | | |
| | SPIE SA | | 190,678 | | | 5,544,839 | |
Construction Materials – 2.2% | | | |
| | CRH PLC | | 173,141 | | | 9,548,045 | |
Electrical Equipment – 2.7% | | | |
| | Nordex AG*,# | | 613,557 | | | 7,546,140 | |
| | Schneider Electric SE | | 26,493 | | | 4,367,109 | |
| | | 11,913,249 | |
Food Products – 5.8% | | | |
| | Chocoladefabriken Lindt & Spruengli AG (PC) | | 470 | | | 5,229,208 | |
| | Danone SA | | 97,413 | | | 5,366,321 | |
| | Nestle SA (REG) | | 129,414 | | | 14,617,601 | |
| | | 25,213,130 | |
Hotels, Restaurants & Leisure – 1.9% | | | |
| | Compass Group PLC | | 336,806 | | | 8,203,827 | |
Independent Power and Renewable Electricity Producers – 1.8% | | | |
| | RWE AG | | 214,021 | | | 7,952,293 | |
Insurance – 1.2% | | | |
| | Allianz SE (REG) | | 22,336 | | | 5,325,543 | |
Machinery – 5.1% | | | |
| | Atlas Copco AB - Class A | | 410,690 | | | 5,504,162 | |
| | FLSmidth & Company A/S | | 149,738 | | | 6,770,581 | |
| | VAT Group AG (144A) | | 12,473 | | | 4,442,772 | |
| | Volvo AB | | 260,256 | | | 5,359,020 | |
| | | 22,076,535 | |
Marine – 1.5% | | | |
| | Kuehne + Nagel International AG | | 22,419 | | | 6,358,671 | |
Metals & Mining – 2.0% | | | |
| | Rio Tinto PLC | | 137,119 | | | 8,612,003 | |
Multi-Utilities – 1.5% | | | |
| | E.ON SE | | 546,860 | | | 6,476,965 | |
Oil, Gas & Consumable Fuels – 6.2% | | | |
| | Shell PLC | | 571,799 | | | 18,151,639 | |
| | TotalEnergies SE | | 138,076 | | | 9,085,168 | |
| | | 27,236,807 | |
Paper & Forest Products – 2.5% | | | |
| | UPM-Kymmene Oyj | | 318,553 | | | 10,894,253 | |
Personal Products – 3.2% | | | |
| | L'Oreal SA | | 34,215 | | | 14,167,831 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Pharmaceuticals – 7.8% | | | |
| | AstraZeneca PLC | | 41,296 | | | $5,556,568 | |
| | Novartis AG | | 144,849 | | | 14,784,998 | |
| | Novo Nordisk A/S - Class B | | 149,745 | | | 13,624,094 | |
| | | 33,965,660 | |
Professional Services – 2.2% | | | |
| | RELX PLC | | 288,438 | | | 9,725,857 | |
Semiconductor & Semiconductor Equipment – 8.0% | | | |
| | AIXTRON SE | | 174,139 | | | 6,403,950 | |
| | ASM International NV | | 13,096 | | | 5,468,128 | |
| | ASML Holding NV | | 5,200 | | | 3,053,224 | |
| | BE Semiconductor Industries NV | | 56,496 | | | 5,523,383 | |
| | Infineon Technologies AG | | 164,972 | | | 5,470,533 | |
| | Nordic Semiconductor ASA* | | 429,220 | | | 4,405,862 | |
| | STMicroelectronics NV | | 102,443 | | | 4,413,098 | |
| | | 34,738,178 | |
Software – 4.5% | | | |
| | Dassault Systemes SE | | 183,295 | | | 6,813,739 | |
| | SAP SE | | 98,707 | | | 12,811,001 | |
| | | 19,624,740 | |
Specialty Retail – 1.1% | | | |
| | JD Sports Fashion PLC | | 2,638,848 | | | 4,806,621 | |
Textiles, Apparel & Luxury Goods – 7.5% | | | |
| | adidas AG | | 30,986 | | | 5,454,766 | |
| | Cie Financiere Richemont SA (REG) | | 55,406 | | | 6,752,647 | |
| | Hugo Boss AG | | 65,566 | | | 4,150,268 | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 21,828 | | | 16,465,363 | |
| | | 32,823,044 | |
Trading Companies & Distributors – 1.0% | | | |
| | Ashtead Group PLC | | 70,314 | | | 4,273,164 | |
Wireless Telecommunication Services – 1.3% | | | |
| | Tele2 AB# | | 743,043 | | | 5,680,545 | |
Total Common Stocks (cost $396,647,676) | | 418,083,191 | |
Investment Companies– 5.1% | | | |
Money Markets – 5.1% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $22,353,501) | | 22,348,723 | | | 22,355,427 | |
Investments Purchased with Cash Collateral from Securities Lending– 1.8% | | | |
Investment Companies – 1.4% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº,£ | | 6,078,302 | | | 6,078,302 | |
Time Deposits – 0.4% | | | |
| | Royal Bank of Canada, 5.3100%, 10/2/23 | | $1,519,575 | | | 1,519,575 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $7,597,877) | | 7,597,877 | |
Total Investments (total cost $426,599,054) – 102.8% | | 448,036,495 | |
Liabilities, net of Cash, Receivables and Other Assets – (2.8)% | | (12,098,868) | |
Net Assets – 100% | | $435,937,627 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson European Focus Fund
Schedule of Investments
September 30, 2023
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
France | | $98,497,323 | | 22.0 | % |
Germany | | 72,587,229 | | 16.2 | |
Switzerland | | 66,956,098 | | 14.9 | |
United Kingdom | | 41,178,040 | | 9.2 | |
Netherlands | | 39,445,520 | | 8.8 | |
United States | | 29,953,304 | | 6.7 | |
Finland | | 23,262,010 | | 5.2 | |
Denmark | | 20,394,675 | | 4.6 | |
Sweden | | 16,543,727 | | 3.7 | |
Belgium | | 12,133,884 | | 2.7 | |
Ireland | | 9,548,045 | | 2.1 | |
Italy | | 8,717,680 | | 1.9 | |
Singapore | | 4,413,098 | | 1.0 | |
Norway | | 4,405,862 | | 1.0 | |
| | | | | | |
| | | | | | |
Total | | $448,036,495 | | 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, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 5.1% |
Money Markets - 5.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 537,122 | $ | 993 | $ | 1,926 | $ | 22,355,427 |
Investments Purchased with Cash Collateral from Securities Lending - 1.4% |
Investment Companies - 1.4% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 23,785∆ | | - | | - | | 6,078,302 |
Total Affiliated Investments - 6.5% | $ | 560,907 | $ | 993 | $ | 1,926 | $ | 28,433,729 |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 5.1% |
Money Markets - 5.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 10,391,302 | | 320,785,733 | | (308,824,527) | | 22,355,427 |
Investments Purchased with Cash Collateral from Securities Lending - 1.4% |
Investment Companies - 1.4% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 1,136,698 | | 44,110,999 | | (39,169,395) | | 6,078,302 |
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, 2023.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2023 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Equity
Contracts |
Futures contracts | | $ (282,331) |
Purchased options contracts | | (2,154,317) |
Written options contracts | | 837,581 |
| | | | | |
Total | | $(1,599,067) |
| | | | | |
| | | | | |
| | | | | |
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. |
| |
12 | SEPTEMBER 30, 2023 |
Janus Henderson European Focus Fund
Schedule of Investments
September 30, 2023
| | |
Average Ending Monthly Value of Derivative Instruments During the Year Ended September 30, 2023 |
| |
| |
Options: | |
Average value of option contracts purchased | $248,361 |
Average value of option contracts written | (98,536) |
| | |
| |
| |
| |
| | | | | | | | | | |
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 | $ | 7,389,770 | $ | — | $ | (7,389,770) | $ | — |
| | | | | | | | | |
(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 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, 2023 is $4,442,772, which represents 1.0% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2023. |
| | |
£ | 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, 2023. 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 | $ | - | $ | 418,083,191 | $ | - |
Investment Companies | | - | | 22,355,427 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 7,597,877 | | - |
Total Assets | $ | - | $ | 448,036,495 | $ | - |
| | | | | | | |
Janus Henderson European Focus Fund
Statement of Assets and Liabilities
September 30, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $398,167,251)(1) | | $ | 419,602,766 | |
| Affiliated investments, at value (cost $28,431,803) | | | 28,433,729 | |
| Cash denominated in foreign currency (cost $173,025) | | | 173,025 | |
| Trustees' deferred compensation | | | 11,420 | |
| Receivables: | | | | |
| | Investments sold | | | 9,629,566 | |
| | Foreign tax reclaims | | | 3,466,787 | |
| | Fund shares sold | | | 115,358 | |
| | Dividends from affiliates | | | 100,551 | |
| | Dividends | | | 92,747 | |
| Other assets | | | 1,519 | |
Total Assets | | | 461,627,468 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 7,597,877 | |
| Payables: | | | — | |
| | Investments purchased | | | 14,607,314 | |
| | Fund shares repurchased | | | 1,413,831 | |
| | Foreign withholding tax reclaim fee (Note 1) | | | 1,332,240 | |
| | Advisory fees | | | 347,473 | |
| | Professional fees | | | 60,616 | |
| | Transfer agent fees and expenses | | | 55,161 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 30,875 | |
| | Custodian fees | | | 13,326 | |
| | Trustees' deferred compensation fees | | | 11,420 | |
| | Trustees' fees and expenses | | | 2,516 | |
| | Affiliated fund administration fees payable | | | 950 | |
| | Accrued expenses and other payables | | | 216,242 | |
Total Liabilities | | | 25,689,841 | |
Commitments and contingent liabilities (Note 4) | | | | |
Net Assets | | $ | 435,937,627 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson European Focus Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 846,663,276 | |
| Total distributable earnings (loss) | | | (410,725,649) | |
Total Net Assets | | $ | 435,937,627 | |
Net Assets - Class A Shares | | $ | 116,476,408 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,924,521 | |
Net Asset Value Per Share(2) | | $ | 39.83 | |
Maximum Offering Price Per Share(3) | | $ | 42.26 | |
Net Assets - Class C Shares | | $ | 5,957,213 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 159,040 | |
Net Asset Value Per Share(2) | | $ | 37.46 | |
Net Assets - Class D Shares | | $ | 9,385,764 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 237,201 | |
Net Asset Value Per Share | | $ | 39.57 | |
Net Assets - Class I Shares | | $ | 273,922,395 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,916,318 | |
Net Asset Value Per Share | | $ | 39.61 | |
Net Assets - Class N Shares | | $ | 16,922,442 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 430,036 | |
Net Asset Value Per Share | | $ | 39.35 | |
Net Assets - Class S Shares | | $ | 246,109 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,505 | |
Net Asset Value Per Share | | $ | 37.83 | |
Net Assets - Class T Shares | | $ | 13,027,296 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 329,732 | |
Net Asset Value Per Share | | $ | 39.51 | |
| |
(1) Includes $7,389,770 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, 2023 |
Janus Henderson European Focus Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: |
| Dividends | $ | 11,813,274 | |
| Dividends from affiliates | | 537,122 | |
| Affiliated securities lending income, net | | 23,785 | |
| Unaffiliated securities lending income, net | | 6,148 | |
| Other income | | 15,054 | |
| Foreign withholding tax income (net of foreign withholding tax reclaim fee of $1,332,240 (Note 1)) | | 2,708,383 | |
Total Investment Income | | 15,103,766 | |
Expenses: | | | |
| Advisory fees | | 4,413,173 | |
| 12b-1 Distribution and shareholder servicing fees: |
| | Class A Shares | | 300,120 | |
| | Class C Shares | | 89,400 | |
| | Class S Shares | | 456 | |
| Transfer agent administrative fees and expenses: | | |
| | Class D Shares | | 10,665 | |
| | Class S Shares | | 592 | |
| | Class T Shares | | 31,348 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 95,510 | |
| | Class C Shares | | 9,828 | |
| | Class I Shares | | 220,882 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 7,814 | |
| | Class C Shares | | 476 | |
| | Class D Shares | | 2,870 | |
| | Class I Shares | | 14,141 | |
| | Class N Shares | | 770 | |
| | Class S Shares | | 7 | |
| | Class T Shares | | 873 | |
| Professional fees | | 448,833 | |
| Registration fees | | 121,640 | |
| Custodian fees | | 57,265 | |
| Shareholder reports expense | | 37,718 | |
| Affiliated fund administration fees | | 14,421 | |
| Trustees’ fees and expenses | | 10,850 | |
| Other expenses | | 117,663 | |
Total Expenses | | 6,007,315 | |
Less: Excess Expense Reimbursement and Waivers | | (964,739) | |
Net Expenses | | 5,042,576 | |
Net Investment Income/(Loss) | | 10,061,190 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson European Focus Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | |
| Investments and foreign currency transactions | $ | 17,565,689 | |
| Investments in affiliates | | 993 | |
| Purchased options contracts | | (2,154,317) | |
| Futures contracts | | (282,331) | |
| Written options contracts | | 837,581 | |
Total Net Realized Gain/(Loss) on Investments | 15,967,615 | |
Change in Unrealized Net Appreciation/Depreciation: |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 57,715,056 | |
| Investments in affiliates | | 1,926 | |
Total Change in Unrealized Net Appreciation/Depreciation | 57,716,982 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 83,745,787 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2023 |
Janus Henderson European Focus Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 10,061,190 | | $ | 10,557,741 | |
| Net realized gain/(loss) on investments | | 15,967,615 | | | (54,183,652) | |
| Change in unrealized net appreciation/depreciation | 57,716,982 | | | (83,142,037) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | 83,745,787 | | | (126,767,948) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (2,750,434) | | | (199,461) | |
| | Class C Shares | | (115,973) | | | — | |
| | Class D Shares | | (208,349) | | | (33,496) | |
| | Class I Shares | | (6,270,228) | | | (1,094,982) | |
| | Class N Shares | | (560,867) | | | (45,092) | |
| | Class S Shares | | (5,786) | | | (279) | |
| | Class T Shares | | (225,828) | | | (34,594) | |
Net Decrease from Dividends and Distributions to Shareholders | (10,137,465) | | | (1,407,904) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (2,535,464) | | | (8,375,717) | |
| | Class C Shares | | (6,225,514) | | | (9,044,345) | |
| | Class D Shares | | 988,487 | | | (467,101) | |
| | Class I Shares | | 35,680,934 | | | (26,183,219) | |
| | Class N Shares | | (1,042,434) | | | 8,572,500 | |
| | Class S Shares | | 113,325 | | | 46,405 | |
| | Class T Shares | | 4,032,805 | | | (77,072) | |
Net Increase/(Decrease) from Capital Share Transactions | 31,012,139 | | | (35,528,549) | |
Net Increase/(Decrease) in Net Assets | | 104,620,461 | | | (163,704,401) | |
Net Assets: | | | | | | |
| Beginning of period | | 331,317,166 | | | 495,021,567 | |
| End of period | $ | 435,937,627 | | $ | 331,317,166 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $32.52 | | | $44.48 | | | $34.23 | | | $27.21 | | | $31.73 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.83(2) | | | 0.90 | | | 0.16 | | | 0.11 | | | 0.41 | |
| | Net realized and unrealized gain/(loss) | | 7.40 | | | (12.80) | | | 10.20 | | | 7.22 | | | (3.91) | |
| Total from Investment Operations | | 8.23 | | | (11.90) | | | 10.36 | | | 7.33 | | | (3.50) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.92) | | | (0.06) | | | (0.11) | | | (0.31) | | | (1.02) | |
| Total Dividends and Distributions | | (0.92) | | | (0.06) | | | (0.11) | | | (0.31) | | | (1.02) | |
| Net Asset Value, End of Period | | $39.83 | | | $32.52 | | | $44.48 | | | $34.23 | | | $27.21 | |
| Total Return* | | 25.45% | | | (26.79)% | | | 30.31% | | | 27.04% | | | (10.61)% | |
| Net Assets, End of Period (in thousands) | | $116,476 | | | $96,858 | | | $141,908 | | | $116,047 | | | $112,110 | |
| Average Net Assets for the Period (in thousands) | | $120,262 | | | $128,933 | | | $136,809 | | | $109,879 | | | $135,260 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.51%(3) | | | 1.42% | | | 1.41% | | | 1.45% | | | 1.46% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.30% | | | 1.30% | | | 1.30% | | | 1.31% | | | 1.32% | |
| | Ratio of Net Investment Income/(Loss) | | 2.05%(2) | | | 2.17% | | | 0.37% | | | 0.38% | | | 1.49% | |
| Portfolio Turnover Rate | | 169% | | | 145% | | | 184% | | | 160% | | | 145% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 during the fiscal year ended 2023. 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 $0.31 and 0.76%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received during the fiscal year ended 2023. The impact of the additional professional fees to Ratio of Gross Expenses is 0.09%. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2023 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $30.43 | | | $41.90 | | | $32.40 | | | $25.69 | | | $29.66 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.48(2) | | | 0.57 | | | (0.18) | | | (0.11) | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 6.96 | | | (12.04) | | | 9.68 | | | 6.82 | | | (3.57) | |
| Total from Investment Operations | | 7.44 | | | (11.47) | | | 9.50 | | | 6.71 | | | (3.41) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.41) | | | — | | | — | | | — | | | (0.56) | |
| Total Dividends and Distributions | | (0.41) | | | — | | | — | | | — | | | (0.56) | |
| Net Asset Value, End of Period | | $37.46 | | | $30.43 | | | $41.90 | | | $32.40 | | | $25.69 | |
| Total Return* | | 24.51% | | | (27.37)% | | | 29.32% | | | 26.12% | | | (11.26)% | |
| Net Assets, End of Period (in thousands) | | $5,957 | | | $9,829 | | | $23,302 | | | $29,652 | | | $43,110 | |
| Average Net Assets for the Period (in thousands) | | $9,115 | | | $17,189 | | | $27,919 | | | $37,468 | | | $62,633 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.30%(3) | | | 2.20% | | | 2.17% | | | 2.19% | | | 2.19% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.06% | | | 2.07% | | | 2.05% | | | 2.06% | | | 2.06% | |
| | Ratio of Net Investment Income/(Loss) | | 1.28%(2) | | | 1.44% | | | (0.46)% | | | (0.40)% | | | 0.62% | |
| Portfolio Turnover Rate | | 169% | | | 145% | | | 184% | | | 160% | | | 145% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 during the fiscal year ended 2023. 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 $0.29 and 0.76%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received during the fiscal year ended 2023. 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 European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $32.32 | | | $44.21 | | | $34.01 | | | $27.05 | | | $31.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.91(2) | | | 0.98 | | | 0.24 | | | 0.18 | | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | 7.34 | | | (12.73) | | | 10.13 | | | 7.16 | | | (3.92) | |
| Total from Investment Operations | | 8.25 | | | (11.75) | | | 10.37 | | | 7.34 | | | (3.43) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.00) | | | (0.14) | | | (0.17) | | | (0.38) | | | (1.13) | |
| Total Dividends and Distributions | | (1.00) | | | (0.14) | | | (0.17) | | | (0.38) | | | (1.13) | |
| Net Asset Value, End of Period | | $39.57 | | | $32.32 | | | $44.21 | | | $34.01 | | | $27.05 | |
| Total Return* | | 25.69% | | | (26.66)% | | | 30.57% | | | 27.27% | | | (10.39)% | |
| Net Assets, End of Period (in thousands) | | $9,386 | | | $6,899 | | | $10,102 | | | $3,510 | | | $2,293 | |
| Average Net Assets for the Period (in thousands) | | $9,120 | | | $9,366 | | | $6,844 | | | $2,636 | | | $2,421 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.41%(3) | | | 1.30% | | | 1.28% | | | 1.40% | | | 1.59% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.11% | | | 1.11% | | | 1.10% | | | 1.11% | | | 1.14% | |
| | Ratio of Net Investment Income/(Loss) | | 2.26%(2) | | | 2.39% | | | 0.57% | | | 0.60% | | | 1.81% | |
| Portfolio Turnover Rate | | 169% | | | 145% | | | 184% | | | 160% | | | 145% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 during the fiscal year ended 2023. 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 $0.31 and 0.76%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received during the fiscal year ended 2023. The impact of the additional professional fees to Ratio of Gross Expenses is 0.09%. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2023 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $32.36 | | | $44.25 | | | $34.03 | | | $27.07 | | | $31.59 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.96(2) | | | 1.02 | | | 0.26 | | | 0.19 | | | 0.42 | |
| | Net realized and unrealized gain/(loss) | | 7.32 | | | (12.75) | | | 10.15 | | | 7.17 | | | (3.82) | |
| Total from Investment Operations | | 8.28 | | | (11.73) | | | 10.41 | | | 7.36 | | | (3.40) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.03) | | | (0.16) | | | (0.19) | | | (0.40) | | | (1.12) | |
| Total Dividends and Distributions | | (1.03) | | | (0.16) | | | (0.19) | | | (0.40) | | | (1.12) | |
| Net Asset Value, End of Period | | $39.61 | | | $32.36 | | | $44.25 | | | $34.03 | | | $27.07 | |
| Total Return* | | 25.77% | | | (26.60)% | | | 30.66% | | | 27.35% | | | (10.30)% | |
| Net Assets, End of Period (in thousands) | | $273,922 | | | $196,068 | | | $299,272 | | | $208,159 | | | $220,722 | |
| Average Net Assets for the Period (in thousands) | | $274,009 | | | $272,758 | | | $263,587 | | | $204,753 | | | $353,101 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.26%(3) | | | 1.16% | | | 1.14% | | | 1.17% | | | 1.16% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.05% | | | 1.04% | | | 1.03% | | | 1.04% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | 2.39%(2) | | | 2.47% | | | 0.62% | | | 0.64% | | | 1.53% | |
| Portfolio Turnover Rate | | 169% | | | 145% | | | 184% | | | 160% | | | 145% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 during the fiscal year ended 2023. 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 $0.31 and 0.76%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received during the fiscal year ended 2023. 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 European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $32.15 | | | $43.95 | | | $33.80 | | | $26.86 | | | $31.64 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 1.01(2) | | | 0.95 | | | 0.35 | | | 0.34 | | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | 7.24 | | | (12.56) | | | 10.01 | | | 7.01 | | | (3.91) | |
| Total from Investment Operations | | 8.25 | | | (11.61) | | | 10.36 | | | 7.35 | | | (3.42) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.05) | | | (0.19) | | | (0.21) | | | (0.41) | | | (1.36) | |
| Total Dividends and Distributions | | (1.05) | | | (0.19) | | | (0.21) | | | (0.41) | | | (1.36) | |
| Net Asset Value, End of Period | | $39.35 | | | $32.15 | | | $43.95 | | | $33.80 | | | $26.86 | |
| Total Return* | | 25.84% | | | (26.54)% | | | 30.72% | | | 27.51% | | | (10.25)% | |
| Net Assets, End of Period (in thousands) | | $16,922 | | | $14,170 | | | $9,763 | | | $4,371 | | | $139 | |
| Average Net Assets for the Period (in thousands) | | $16,655 | | | $13,374 | | | $9,327 | | | $3,114 | | | $207 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.21%(3) | | | 1.11% | | | 1.11% | | | 1.20% | | | 2.56% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.97% | | | 0.97% | | | 0.96% | | | 0.96% | | | 0.97% | |
| | Ratio of Net Investment Income/(Loss) | | 2.54%(2) | | | 2.40% | | | 0.85% | | | 1.17% | | | 1.82% | |
| Portfolio Turnover Rate | | 169% | | | 145% | | | 184% | | | 160% | | | 145% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 during the fiscal year ended 2023. 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 $0.30 and 0.76%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received during the fiscal year ended 2023. The impact of the additional professional fees to Ratio of Gross Expenses is 0.09%. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2023 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $31.03 | | | $42.42 | | | $32.57 | | | $25.98 | | | $31.53 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.82(2) | | | 0.88 | | | 0.23 | | | 0.11 | | | 0.45 | |
| | Net realized and unrealized gain/(loss) | | 7.00 | | | (12.13) | | | 9.73 | | | 6.85 | | | (3.98) | |
| Total from Investment Operations | | 7.82 | | | (11.25) | | | 9.96 | | | 6.96 | | | (3.53) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.02) | | | (0.14) | | | (0.11) | | | (0.37) | | | (2.02) | |
| Total Dividends and Distributions | | (1.02) | | | (0.14) | | | (0.11) | | | (0.37) | | | (2.02) | |
| Net Asset Value, End of Period | | $37.83 | | | $31.03 | | | $42.42 | | | $32.57 | | | $25.98 | |
| Total Return* | | 25.38% | | | (26.61)% | | | 30.63% | | | 26.93% | | | (10.35)% | |
| Net Assets, End of Period (in thousands) | | $246 | | | $101 | | | $85 | | | $54 | | | $43 | |
| Average Net Assets for the Period (in thousands) | | $237 | | | $95 | | | $68 | | | $48 | | | $43 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.89%(3) | | | 4.51% | | | 5.71% | | | 7.83% | | | 8.50% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.34% | | | 1.10% | | | 1.07% | | | 1.34% | | | 1.17% | |
| | Ratio of Net Investment Income/(Loss) | | 2.13%(2) | | | 2.27% | | | 0.58% | | | 0.40% | | | 1.73% | |
| Portfolio Turnover Rate | | 169% | | | 145% | | | 184% | | | 160% | | | 145% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 during the fiscal year ended 2023. 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 $0.29 and 0.76%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received during the fiscal year ended 2023. 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 European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $32.27 | | | $44.17 | | | $34.02 | | | $27.06 | | | $31.57 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.93(2) | | | 0.93 | | | 0.20 | | | 0.12 | | | 0.47 | |
| | Net realized and unrealized gain/(loss) | | 7.26 | | | (12.70) | | | 10.12 | | | 7.20 | | | (3.90) | |
| Total from Investment Operations | | 8.19 | | | (11.77) | | | 10.32 | | | 7.32 | | | (3.43) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.95) | | | (0.13) | | | (0.17) | | | (0.36) | | | (1.08) | |
| Total Dividends and Distributions | | (0.95) | | | (0.13) | | | (0.17) | | | (0.36) | | | (1.08) | |
| Net Asset Value, End of Period | | $39.51 | | | $32.27 | | | $44.17 | | | $34.02 | | | $27.06 | |
| Total Return* | | 25.54% | | | (26.73)% | | | 30.41% | | | 27.20% | | | (10.43)% | |
| Net Assets, End of Period (in thousands) | | $13,027 | | | $7,392 | | | $10,590 | | | $1,579 | | | $676 | |
| Average Net Assets for the Period (in thousands) | | $12,544 | | | $10,408 | | | $5,237 | | | $839 | | | $762 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.46%(3) | | | 1.37% | | | 1.38% | | | 1.70% | | | 1.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.22% | | | 1.22% | | | 1.21% | | | 1.19% | | | 1.18% | |
| | Ratio of Net Investment Income/(Loss) | | 2.31%(2) | | | 2.25% | | | 0.47% | | | 0.41% | | | 1.74% | |
| Portfolio Turnover Rate | | 169% | | | 145% | | | 184% | | | 160% | | | 145% | |
| | | | | | | | | | | | | | | | | | | |
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* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received during the fiscal year ended 2023. 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 $0.31 and 0.76%, respectively. (3) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received during the fiscal year ended 2023. The impact of the additional professional fees to Ratio of Gross Expenses is 0.09%. |
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See Notes to Financial Statements. |
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26 | SEPTEMBER 30, 2023 |
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 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 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 (the “Distributor”) including, but not limited to,
Janus Henderson European Focus Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
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 European Focus 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, 2023 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 European Focus 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.
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 $5,087,595 of tax reclaims received as well as $379,625 of professional fees and $1,332,240 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, 2023 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes
Janus Henderson European Focus Fund
Notes to Financial Statements
(to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to
Janus Henderson European Focus Fund
Notes to Financial Statements
cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on 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 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 futures on equity indices to increase exposure to equity risk.
During the year, the Fund sold futures on equity indices to decrease exposure to equity risk.
There were no futures held at September 30, 2023.
Options Contracts
An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed upon price on or before a specified date. The purchaser pays a premium to the seller for this right. The seller has the corresponding obligation to sell or buy a financial instrument if the purchaser (owner) "exercises" the option. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid. Upon expiration, or closing of the option transaction, a realized gain or loss is reported on the Statement of Operations (if applicable). The difference between the premium paid/received and the market value of the option is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported on the Statement of Operations (if applicable). Option contracts are typically valued using an approved vendor’s option valuation model. To the extent reliable market quotations are available, option contracts are valued using market quotations. In cases when an approved vendor cannot provide coverage for an option and there is no reliable market quotation, a broker quotation or an internal valuation using the Black-Scholes model, the Cox-Rubinstein Binomial Option Pricing Model, or other appropriate option pricing model is used. Certain options contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities as “Variation margin receivable” or “Variation margin payable” (if applicable).
The Fund may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Fund generally invests in options to hedge against adverse movements in the value of portfolio holdings. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying an option and the asset being hedged, or
Janus Henderson European Focus Fund
Notes to Financial Statements
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 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, 2023.
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 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, 2023.
3. Other Investments and Strategies
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or
Janus Henderson European Focus Fund
Notes to Financial Statements
economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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
Janus Henderson European Focus Fund
Notes to Financial Statements
liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Henderson Cash Collateral Fund LLC, 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, 2023, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $7,389,770. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2023 is $7,597,877, resulting in the net amount due to the counterparty of $208,107.
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.
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 $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
Janus Henderson European Focus Fund
Notes to Financial Statements
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 27, 2023. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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
Janus Henderson European Focus Fund
Notes to Financial Statements
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, 2023, the Distributor retained upfront sales charges of $5,363.
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, 2023.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $66.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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
Janus Henderson European Focus Fund
Notes to Financial Statements
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, 2023 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
As of September 30, 2023, 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 | 88 | | 3 | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
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.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 10,987,541 | $ - | $(437,143,032) | $ - | $(1,525,749) | $ 16,955,591 | |
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2023, 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, 2023 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(244,076,400) | $(193,066,632) | $ (437,143,032) | | |
During the year ended September 30, 2023, capital loss carryovers of $10,382,087 were utilized by the Fund.
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, 2023 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) |
$ 431,080,904 | $30,908,553 | $(13,952,962) | $ 16,955,591 |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 10,137,465 | $ - | $ - | $ - | |
| | | | | |
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 | $ - | $ - | $ - | |
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.
Janus Henderson European Focus Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 327,948 | $ 12,892,968 | | 331,159 | $ 13,680,666 |
Reinvested dividends and distributions | 62,865 | 2,387,003 | | 3,908 | 175,228 |
Shares repurchased | (444,760) | (17,815,435) | | (546,754) | (22,231,611) |
Net Increase/(Decrease) | (53,947) | $ (2,535,464) | | (211,687) | $ (8,375,717) |
Class C Shares: | | | | | |
Shares sold | 12,054 | $ 461,406 | | 30,784 | $ 1,227,701 |
Reinvested dividends and distributions | 3,048 | 109,477 | | - | - |
Shares repurchased | (179,032) | (6,796,397) | | (263,979) | (10,272,046) |
Net Increase/(Decrease) | (163,930) | $ (6,225,514) | | (233,195) | $ (9,044,345) |
Class D Shares: | | | | | |
Shares sold | 76,955 | $ 3,150,771 | | 66,649 | $ 2,930,962 |
Reinvested dividends and distributions | 5,309 | 199,943 | | 731 | 32,517 |
Shares repurchased | (58,518) | (2,362,227) | | (82,413) | (3,430,580) |
Net Increase/(Decrease) | 23,746 | $ 988,487 | | (15,033) | $ (467,101) |
Class I Shares: | | | | | |
Shares sold | 2,986,700 | $121,377,228 | | 1,838,037 | $ 73,103,509 |
Reinvested dividends and distributions | 157,404 | 5,930,996 | | 22,853 | 1,017,664 |
Shares repurchased | (2,287,046) | (91,627,290) | | (2,565,510) | (100,304,392) |
Net Increase/(Decrease) | 857,058 | $ 35,680,934 | | (704,620) | $(26,183,219) |
Class N Shares: | | | | | |
Shares sold | 330,279 | $ 13,078,328 | | 280,620 | $ 11,023,913 |
Reinvested dividends and distributions | 14,988 | 560,867 | | 1,020 | 45,092 |
Shares repurchased | (355,978) | (14,681,629) | | (63,038) | (2,496,505) |
Net Increase/(Decrease) | (10,711) | $ (1,042,434) | | 218,602 | $ 8,572,500 |
Class S Shares: | | | | | |
Shares sold | 5,050 | $ 185,227 | | 1,249 | $ 46,126 |
Reinvested dividends and distributions | 160 | 5,786 | | 7 | 279 |
Shares repurchased | (1,976) | (77,688) | | - | - |
Net Increase/(Decrease) | 3,234 | $ 113,325 | | 1,256 | $ 46,405 |
Class T Shares: | | | | | |
Shares sold | 234,640 | $ 9,505,308 | | 217,630 | $ 9,367,473 |
Reinvested dividends and distributions | 5,981 | 225,143 | | 773 | 34,381 |
Shares repurchased | (139,975) | (5,697,646) | | (229,049) | (9,478,926) |
Net Increase/(Decrease) | 100,646 | $ 4,032,805 | | (10,646) | $ (77,072) |
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$734,781,717 | $715,104,108 | $ - | $ - |
Janus Henderson European Focus Fund
Notes to Financial Statements
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson European Focus Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson European Focus Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson European Focus Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson European Focus Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson European Focus Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson European Focus Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson European Focus Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson European Focus Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson European Focus Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson European Focus Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Qualified Dividend Income Percentage | 92% |
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 48 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). | 48 | 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). | 48 | 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). | 48 | 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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). | 48 | 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. | 48 | 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). | 48 | 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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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 | 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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 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 |
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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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
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Janus Henderson European Focus Fund
Notes
NotesPage2
Janus Henderson European Focus 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93080 11-23 |
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| | | ANNUAL REPORT September 30, 2023 |
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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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Brian Recht co-portfolio manager | 
Doug Rao co-portfolio manager | 
Nick Schommer co-portfolio manager |
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PERFORMANCE OVERVIEW
The Janus Henderson Forty Fund I Shares returned 30.30% for the 12-month period ended September 30, 2023, versus a return of 27.72% for the Fund’s primary benchmark, the Russell 1000® Growth Index. The Fund’s secondary benchmark, the S&P 500® Index, returned 21.62% for the period.
INVESTMENT ENVIRONMENT
The stock market steadily appreciated for the first nine months of the period, driven by a combination of excitement surrounding artificial intelligence (AI), slowing inflation, and overall positive economic fundamentals. However, returns were extremely narrow in breadth, driven by a handful of large- and mega-cap stocks linked to AI developments. Bouts of volatility also occurred, most notably the March collapse of Silicon Valley Bank and other regional banks. In July, the S&P 500 Index reached an 18-month peak, but market sentiment began to shift as investors recognized that the Federal Reserve (Fed) may keep policy rates higher for longer in its fight against inflation.
PERFORMANCE DISCUSSION
As part of our investment strategy, we seek out 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, and 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.
The technology sector rallied in the period, outperforming broader equities. The prospect of a slowing economy sent many investors toward the perceived safety of some technology companies’ stable cash flows, while others were attracted to the excitement surrounding the expanding deployment of AI.
Stocks linked to AI were among the period’s best performers, including one of the Fund’s top relative contributors, Advanced Micro Devices (AMD). The company produces a suite of semiconductor chips that could be aligned with a wider rollout of AI applications. AMD created a graphics processing unit (GPU) chip that should launch in 2024 and announced a partnership with Microsoft in the burgeoning generative AI industry.
Another contributor was Facebook's parent company, Meta. Meta enjoyed a rerating of its stock during the period, as investors acknowledged the steps management has taken to increase efficiencies after overextended operations in the wake of the pandemic. The company continued to benefit from its cost rationalization program following a year in which it faced headwinds from Apple’s iOS privacy changes and a slowing online advertising market. Investors also perceived that AI initiatives could buttress advertising revenues despite a tougher macroeconomic backdrop.
Illumina, a leader in advanced tools used for genetic sequencing, was among the top detractors for the period. In August, management reduced its 2023 revenue growth forecast, as the company experienced a challenging life science end-market alongside other tool companies. In addition, about 10% of the company’s revenue has been
Janus Henderson Forty Fund (unaudited)
derived from China, which was experiencing weakness amid a slow COVID-19 recovery.
American Tower, a real estate investment trust (REIT) that owns and operates wireless and broadcast infrastructure in several different countries, was also among the top detractors. During the first quarter of 2023, the company reported results that were generally ahead of expectations, but it guided toward lower funds from operations (FFO). The company’s business model has been relatively defensive and resilient in a volatile environment, and its contracts with customers are inflation-protected. However, as interest rates rose during the period, American Tower faced interest rate and debt concerns, particularly around its variable rate debt.
OUTLOOK
We believe there are significant and novel macroeconomic trends taking place today, presenting both opportunities and pressures for companies.
One notable challenge is the prospect of higher structural inflation. Should we enter a period of sustained higher inflation, equity market multiples may come under pressure due to a higher discount rate when valuing stocks. Historically, equities have served as an effective hedge against inflation for long-term investors. Still, it is important to recognize that not all stocks perform equally during inflationary environments. Our focus remains on companies with strong fundamentals, wide competitive moats, and pricing power. This is especially important in market segments where lower-growth companies may experience the impact more acutely, such as the consumer staples sector. The housing market is another area currently under pressure, with inflation driving up borrowing costs for consumers.
Additionally, we are cautious regarding the consumer’s ongoing role as the core driver of U.S. economic growth. There are signs of abating consumer tailwinds, with the potential for increased unemployment rates and a normalization of wage growth. In the near term, consumer spending may face headwinds due to higher energy costs, the resumption of student loan payments, and depleted pandemic-era household savings.
From an opportunity standpoint, we believe the trend of reinvestment within the U.S. has the potential to be a core driver of economic growth. This trend is evident through the Inflation Reduction Act, onshoring of China manufacturing, and substantial capital expenditures in semiconductors, data centers, and battery technology. We do not expect growth to be linear and smooth, but we believe this trend can create opportunities along the way as reinvestment gains traction, capacity is built, and revenue is generated.
While we are acutely aware of these macroeconomic trends, as bottom-up fundamental investors, our primary focus remains on evaluating companies’ business models. We look for competitively advantaged companies in healthy, growing end markets that could thrive regardless of the economic backdrop.
Thank you for your investment in the Janus Henderson Forty Fund.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Forty Fund (unaudited)
Fund At A Glance
September 30, 2023
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Meta Platforms Inc - Class A | 2.94% | | 2.41% | | Illumina Inc | 1.20% | | -1.45% |
| Advanced Micro Devices Inc | 3.04% | | 1.26% | | American Tower Corp | 2.45% | | -1.23% |
| Booking Holdings Inc | 2.44% | | 1.01% | | Danaher Corp | 2.63% | | -0.74% |
| ASML Holding NV | 2.85% | | 0.69% | | Atlassian Corp - Class A | 1.79% | | -0.73% |
| DexCom Inc | 0.41% | | 0.61% | | Charles Schwab Corp | 1.62% | | -0.72% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | 3.04% | | 15.63% | 15.13% |
| Communication Services | | 1.62% | | 6.19% | 8.30% |
| Consumer Staples | | 1.28% | | 1.11% | 5.42% |
| Information Technology | | 0.88% | | 40.15% | 43.01% |
| Energy | | 0.36% | | 0.00% | 1.26% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | -1.86% | | 10.84% | 11.94% |
| Real Estate | | -1.27% | | 3.05% | 1.35% |
| Other** | | -0.57% | | 2.69% | 0.00% |
| Financials | | -0.31% | | 9.36% | 5.00% |
| Materials | | -0.13% | | 3.60% | 1.19% |
| | | | | | | |
| 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, 2023
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 10.8% |
Amazon.com Inc | |
Multiline Retail | 6.8% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 6.4% |
Mastercard Inc | |
Diversified Financial Services | 6.3% |
Meta Platforms Inc - Class A | |
Interactive Media & Services | 4.9% |
| | 35.2% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.5% | |
Investment Companies | | 4.4% | |
Other | | (0.9)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
Janus Henderson Forty Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2023 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 29.97% | 10.05% | 12.99% | 11.41% | | | 0.89% |
Class A Shares at MOP | | 22.48% | 8.76% | 12.32% | 11.17% | | | |
Class C Shares at NAV | | 29.07% | 9.33% | 12.28% | 10.72% | | | 1.64% |
Class C Shares at CDSC | | 28.07% | 9.33% | 12.28% | 10.72% | | | |
Class D Shares | | 30.23% | 10.29% | 13.14% | 11.39% | | | 0.69% |
Class I Shares | | 30.30% | 10.34% | 13.32% | 11.61% | | | 0.64% |
Class N Shares | | 30.38% | 10.42% | 13.40% | 11.52% | | | 0.57% |
Class R Shares | | 29.44% | 9.61% | 12.57% | 11.03% | | | 1.32% |
Class S Shares | | 29.79% | 9.89% | 12.86% | 11.29% | | | 1.07% |
Class T Shares | | 30.12% | 10.17% | 13.14% | 11.44% | | | 0.81% |
Russell 1000 Growth Index | | 27.72% | 12.42% | 14.48% | 8.97% | | | |
S&P 500 Index | | 21.62% | 9.92% | 11.91% | 8.56% | | | |
Morningstar Quartile - Class S Shares | | 1st | 2nd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Large Growth Funds | | 168/1,223 | 417/1,106 | 285/1,015 | 23/501 | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and
Janus Henderson Forty Fund (unaudited)
Performance
potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class 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.
© 2023 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Predecessor Fund’s inception date – May 1, 1997
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Forty Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectus. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $1,076.80 | $4.22 | | $1,000.00 | $1,021.01 | $4.10 | 0.81% |
Class C Shares | $1,000.00 | $1,073.00 | $8.11 | | $1,000.00 | $1,017.25 | $7.89 | 1.56% |
Class D Shares | $1,000.00 | $1,078.10 | $3.23 | | $1,000.00 | $1,021.96 | $3.14 | 0.62% |
Class I Shares | $1,000.00 | $1,078.10 | $2.97 | | $1,000.00 | $1,022.21 | $2.89 | 0.57% |
Class N Shares | $1,000.00 | $1,078.50 | $2.55 | | $1,000.00 | $1,022.61 | $2.48 | 0.49% |
Class R Shares | $1,000.00 | $1,074.70 | $6.40 | | $1,000.00 | $1,018.90 | $6.23 | 1.23% |
Class S Shares | $1,000.00 | $1,076.10 | $5.10 | | $1,000.00 | $1,020.16 | $4.96 | 0.98% |
Class T Shares | $1,000.00 | $1,077.50 | $3.75 | | $1,000.00 | $1,021.46 | $3.65 | 0.72% |
† | 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, 2023
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 96.5% | | | |
Aerospace & Defense – 2.0% | | | |
| | Howmet Aerospace Inc | | 7,139,330 | | | $330,194,012 | |
Automobiles – 0.6% | | | |
| | Rivian Automotive Inc - Class A* | | 4,261,047 | | | 103,458,221 | |
Banks – 1.6% | | | |
| | JPMorgan Chase & Co | | 1,870,525 | | | 271,263,536 | |
Biotechnology – 3.5% | | | |
| | AbbVie Inc | | 2,561,432 | | | 381,807,054 | |
| | Argenx SE (ADR)* | | 225,963 | | | 111,090,190 | |
| | Madrigal Pharmaceuticals Inc* | | 637,684 | | | 93,127,371 | |
| | | 586,024,615 | |
Capital Markets – 1.7% | | | |
| | Blackstone Group Inc | | 2,677,812 | | | 286,900,778 | |
Chemicals – 2.9% | | | |
| | Linde PLC | | 786,164 | | | 292,728,165 | |
| | Sherwin-Williams Co | | 725,720 | | | 185,094,886 | |
| | | 477,823,051 | |
Diversified Financial Services – 6.2% | | | |
| | Mastercard Inc | | 2,610,359 | | | 1,033,467,232 | |
Electrical Equipment – 0.8% | | | |
| | Eaton Corp PLC | | 579,879 | | | 123,676,593 | |
Health Care Providers & Services – 3.4% | | | |
| | UnitedHealth Group Inc | | 1,125,313 | | | 567,371,561 | |
Hotels, Restaurants & Leisure – 3.5% | | | |
| | Booking Holdings Inc* | | 135,742 | | | 418,621,541 | |
| | Caesars Entertainment Inc* | | 3,308,675 | | | 153,357,086 | |
| | | 571,978,627 | |
Household Products – 1.0% | | | |
| | Procter & Gamble Co | | 1,184,856 | | | 172,823,096 | |
Insurance – 2.1% | | | |
| | Progressive Corp/The | | 2,451,970 | | | 341,559,421 | |
Interactive Media & Services – 9.8% | | | |
| | Alphabet Inc - Class C* | | 6,145,486 | | | 810,282,329 | |
| | Meta Platforms Inc - Class A* | | 2,718,778 | | | 816,204,343 | |
| | | 1,626,486,672 | |
Life Sciences Tools & Services – 4.5% | | | |
| | Danaher Corp | | 1,945,622 | | | 482,708,818 | |
| | Illumina Inc* | | 1,939,534 | | | 266,259,228 | |
| | | 748,968,046 | |
Machinery – 2.7% | | | |
| | Deere & Co | | 1,203,496 | | | 454,175,320 | |
Metals & Mining – 1.0% | | | |
| | Freeport-McMoRan Inc | | 4,296,175 | | | 160,204,366 | |
Multiline Retail – 6.8% | | | |
| | Amazon.com Inc* | | 8,900,690 | | | 1,131,455,713 | |
Real Estate Management & Development – 2.2% | | | |
| | CoStar Group Inc* | | 4,638,121 | | | 356,625,124 | |
Semiconductor & Semiconductor Equipment – 10.6% | | | |
| | Advanced Micro Devices Inc* | | 2,536,624 | | | 260,815,680 | |
| | ASML Holding NV | | 510,288 | | | 300,386,134 | |
| | Marvell Technology Inc | | 3,233,736 | | | 175,042,130 | |
| | NVIDIA Corp | | 1,706,285 | | | 742,216,912 | |
| | Texas Instruments Inc | | 1,679,032 | | | 266,982,878 | |
| | | 1,745,443,734 | |
Software – 18.0% | | | |
| | Adobe Inc* | | 517,911 | | | 264,082,819 | |
| | Atlassian Corp - Class A* | | 1,481,995 | | | 298,636,812 | |
| | Microsoft Corp | | 5,676,577 | | | 1,792,379,188 | |
| | Workday Inc - Class A* | | 2,874,726 | | | 617,634,881 | |
| | | 2,972,733,700 | |
| | |
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, 2023
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Specialized Real Estate Investment Trusts (REITs) – 1.6% | | | |
| | American Tower Corp | | 1,558,186 | | | $256,243,688 | |
Specialty Retail – 1.9% | | | |
| | TJX Cos Inc | | 3,459,785 | | | 307,505,691 | |
Technology Hardware, Storage & Peripherals – 6.4% | | | |
| | Apple Inc | | 6,213,010 | | | 1,063,729,442 | |
Textiles, Apparel & Luxury Goods – 1.7% | | | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 370,226 | | | 279,270,005 | |
Total Common Stocks (cost $9,877,181,663) | | 15,969,382,244 | |
Investment Companies– 4.4% | | | |
Money Markets – 4.4% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $736,530,426) | | 736,386,350 | | | 736,607,266 | |
Total Investments (total cost $10,613,712,089) – 100.9% | | 16,705,989,510 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.9)% | | (156,019,116) | |
Net Assets – 100% | | $16,549,970,394 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $16,015,243,181 | | 95.9 | % |
Netherlands | | 300,386,134 | | 1.8 | |
France | | 279,270,005 | | 1.7 | |
Belgium | | 111,090,190 | | 0.6 | |
| | | | | | |
| | | | | | |
Total | | $16,705,989,510 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Forty Fund
Schedule of Investments
September 30, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 4.4% |
Money Markets - 4.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 18,276,445 | $ | 36,649 | $ | 68,229 | $ | 736,607,266 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 14,330∆ | | - | | - | | - |
Total Affiliated Investments - 4.4% | $ | 18,290,775 | $ | 36,649 | $ | 68,229 | $ | 736,607,266 |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 4.4% |
Money Markets - 4.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 572,169,354 | | 3,711,474,441 | | (3,547,141,407) | | 736,607,266 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 46,190,522 | | 148,655,559 | | (194,846,081) | | - |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Forty Fund
Notes to Schedule of Investments and Other Information
| | |
Russell 1000® Growth Index | Russell 1000® Growth Index reflects the performance of U.S. large-cap equities with higher price-to-book ratios and higher forecasted growth values. |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
£ | 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, 2023. 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 | $ | - | $ | 279,270,005 | $ | - |
All Other | | 15,690,112,239 | | - | | - |
Investment Companies | | - | | 736,607,266 | | - |
Total Assets | $ | 15,690,112,239 | $ | 1,015,877,271 | $ | - |
| | | | | | | |
Janus Henderson Forty Fund
Statement of Assets and Liabilities
September 30, 2023
| |
See footnotes at the end of the Statement |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $9,877,181,663) | | $ | 15,969,382,244 | |
| Affiliated investments, at value (cost $736,530,426) | | | 736,607,266 | |
| Trustees' deferred compensation | | | 432,276 | |
| Receivables: | | | | |
| | Investments sold | | | 45,312,468 | |
| | Fund shares sold | | | 4,412,976 | |
| | Dividends from affiliates | | | 2,078,631 | |
| | Dividends | | | 1,624,720 | |
| | Foreign tax reclaims | | | 32,114 | |
| Other assets | | | 28,566 | |
Total Assets | | | 16,759,911,261 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Investments purchased | | | 191,150,845 | |
| | Fund shares repurchased | | | 8,157,638 | |
| | Advisory fees | | | 7,065,142 | |
| | Transfer agent fees and expenses | | | 2,251,388 | |
| | Trustees' deferred compensation fees | | | 432,276 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 285,439 | |
| | Trustees' fees and expenses | | | 86,182 | |
| | Professional fees | | | 81,183 | |
| | Affiliated fund administration fees payable | | | 36,376 | |
| | Custodian fees | | | 20,462 | |
| | Accrued expenses and other payables | | | 373,936 | |
Total Liabilities | | | 209,940,867 | |
Commitments and contingent liabilities (Note 3) | | | | |
Net Assets | | $ | 16,549,970,394 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Forty Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 9,196,014,524 | |
| Total distributable earnings (loss) | | | 7,353,955,870 | |
Total Net Assets | | $ | 16,549,970,394 | |
Net Assets - Class A Shares | | $ | 377,707,714 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 8,631,774 | |
Net Asset Value Per Share(1) | | $ | 43.76 | |
Maximum Offering Price Per Share(2) | | $ | 46.43 | |
Net Assets - Class C Shares | | $ | 97,762,846 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,025,272 | |
Net Asset Value Per Share(1) | | $ | 32.32 | |
Net Assets - Class D Shares | | $ | 9,953,140,744 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 235,548,863 | |
Net Asset Value Per Share | | $ | 42.26 | |
Net Assets - Class I Shares | | $ | 1,826,123,160 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 39,357,206 | |
Net Asset Value Per Share | | $ | 46.40 | |
Net Assets - Class N Shares | | $ | 490,179,333 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,489,906 | |
Net Asset Value Per Share | | $ | 46.73 | |
Net Assets - Class R Shares | | $ | 70,645,408 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,918,121 | |
Net Asset Value Per Share | | $ | 36.83 | |
Net Assets - Class S Shares | | $ | 381,718,644 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,272,822 | |
Net Asset Value Per Share | | $ | 41.17 | |
Net Assets - Class T Shares | | $ | 3,352,692,545 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 78,325,381 | |
Net Asset Value Per Share | | $ | 42.80 | |
| |
(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, 2023 |
Janus Henderson Forty Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 130,314,767 | |
| Dividends from affiliates | | 18,276,445 | |
| Affiliated securities lending income, net | | 14,330 | |
| Unaffiliated securities lending income, net | | 4,208 | |
| Other income | | 648,667 | |
| Foreign tax withheld | | (1,396,167) | |
Total Investment Income | | 147,862,250 | |
Expenses: | | | |
| Advisory fees | | 73,093,999 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 904,242 | |
| | Class C Shares | | 919,166 | |
| | Class R Shares | | 334,285 | |
| | Class S Shares | | 929,931 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 10,978,822 | |
| | Class R Shares | | 169,333 | |
| | Class S Shares | | 930,543 | |
| | Class T Shares | | 7,890,041 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 270,539 | |
| | Class C Shares | | 81,289 | |
| | Class I Shares | | 1,325,783 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 20,960 | |
| | Class C Shares | | 3,802 | |
| | Class D Shares | | 656,580 | |
| | Class I Shares | | 80,587 | |
| | Class N Shares | | 16,386 | |
| | Class R Shares | | 814 | |
| | Class S Shares | | 4,332 | |
| | Class T Shares | | 24,085 | |
| Shareholder reports expense | | 709,924 | |
| Affiliated fund administration fees | | 501,697 | |
| Trustees’ fees and expenses | | 379,811 | |
| Professional fees | | 185,929 | |
| Registration fees | | 183,373 | |
| Custodian fees | | 74,256 | |
| Other expenses | | 655,044 | |
Total Expenses | | 101,325,553 | |
Less: Excess Expense Reimbursement and Waivers | | (636,376) | |
Net Expenses | | 100,689,177 | |
Net Investment Income/(Loss) | | 47,173,073 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Forty Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 1,359,991,645 | |
| Investments in affiliates | | 36,649 | |
Total Net Realized Gain/(Loss) on Investments | | 1,360,028,294 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 2,566,224,428 | |
| Investments in affiliates | | 68,229 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 2,566,292,657 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 3,973,494,024 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Forty Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 47,173,073 | | $ | (1,008,711) | |
| Net realized gain/(loss) on investments | | 1,360,028,294 | | | 140,237,182 | |
| Change in unrealized net appreciation/depreciation | | 2,566,292,657 | | | (7,259,946,829) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 3,973,494,024 | | | (7,120,718,358) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (196,773) | | | (48,616,877) | |
| | Class C Shares | | (71,294) | | | (18,893,463) | |
| | Class D Shares | | (5,170,450) | | | (1,230,067,488) | |
| | Class I Shares | | (868,455) | | | (212,301,037) | |
| | Class N Shares | | (222,907) | | | (53,508,841) | |
| | Class R Shares | | (43,018) | | | (10,782,896) | |
| | Class S Shares | | (214,505) | | | (54,847,467) | |
| | Class T Shares | | (1,723,379) | | | (420,959,121) | |
Net Decrease from Dividends and Distributions to Shareholders | | (8,510,781) | | | (2,049,977,190) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (40,869,131) | | | 23,871,855 | |
| | Class C Shares | | (15,253,300) | | | (2,036,149) | |
| | Class D Shares | | (500,234,809) | | | 668,279,371 | |
| | Class I Shares | | (162,569,461) | | | 207,944,828 | |
| | Class N Shares | | 5,843,035 | | | 44,485,275 | |
| | Class R Shares | | (6,275,623) | | | (392,706) | |
| | Class S Shares | | (44,772,518) | | | (18,253,964) | |
| | Class T Shares | | (207,149,805) | | | 174,769,965 | |
Net Increase/(Decrease) from Capital Share Transactions | | (971,281,612) | | | 1,098,668,475 | |
Net Increase/(Decrease) in Net Assets | | 2,993,701,631 | | | (8,072,027,073) | |
Net Assets: | | | | | | |
| Beginning of period | | 13,556,268,763 | | | 21,628,295,836 | |
| End of period | $ | 16,549,970,394 | | $ | 13,556,268,763 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $33.69 | | | $56.20 | | | $46.81 | | | $37.16 | | | $37.42 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.06 | | | (0.08) | | | (0.26) | | | (0.08) | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | 10.03 | | | (17.22) | | | 13.50 | | | 12.27 | | | 2.25 | |
| Total from Investment Operations | | 10.09 | | | (17.30) | | | 13.24 | | | 12.19 | | | 2.27 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | (0.01) | | | — | |
| | Distributions (from capital gains) | | (0.02) | | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | |
| Total Dividends and Distributions | | (0.02) | | | (5.21) | | | (3.85) | | | (2.54) | | | (2.53) | |
| Net Asset Value, End of Period | | $43.76 | | | $33.69 | | | $56.20 | | | $46.81 | | | $37.16 | |
| Total Return* | | 29.97% | | | (34.00)% | | | 29.72% | | | 34.62% | | | 7.77% | |
| Net Assets, End of Period (in thousands) | | $377,708 | | | $326,566 | | | $525,208 | | | $411,899 | | | $303,070 | |
| Average Net Assets for the Period (in thousands) | | $362,489 | | | $456,270 | | | $483,419 | | | $339,815 | | | $268,921 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.81% | | | 0.89% | | | 1.02% | | | 1.01% | | | 1.01% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.81% | | | 0.89% | | | 1.02% | | | 1.01% | | | 0.98% | |
| | Ratio of Net Investment Income/(Loss) | | 0.14% | | | (0.17)% | | | (0.50)% | | | (0.21)% | | | 0.05% | |
| Portfolio Turnover Rate | | 39% | | | 39% | | | 31% | | | 42% | | | 44% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $25.06 | | | $43.38 | | | $37.15 | | | $30.17 | | | $31.11 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.17) | | | (0.28) | | | (0.47) | | | (0.28) | | | (0.16) | |
| | Net realized and unrealized gain/(loss) | | 7.45 | | | (12.83) | | | 10.55 | | | 9.79 | | | 1.75 | |
| Total from Investment Operations | | 7.28 | | | (13.11) | | | 10.08 | | | 9.51 | | | 1.59 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (0.02) | | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | |
| Total Dividends and Distributions | | (0.02) | | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | |
| Net Asset Value, End of Period | | $32.32 | | | $25.06 | | | $43.38 | | | $37.15 | | | $30.17 | |
| Total Return* | | 29.07% | | | (34.43)% | | | 28.88% | | | 33.67% | | | 7.11% | |
| Net Assets, End of Period (in thousands) | | $97,763 | | | $89,166 | | | $160,133 | | | $137,952 | | | $126,726 | |
| Average Net Assets for the Period (in thousands) | | $96,304 | | | $129,956 | | | $153,590 | | | $128,357 | | | $154,535 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.53% | | | 1.51% | | | 1.68% | | | 1.68% | | | 1.63% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.53% | | | 1.51% | | | 1.68% | | | 1.68% | | | 1.58% | |
| | Ratio of Net Investment Income/(Loss) | | (0.57)% | | | (0.80)% | | | (1.15)% | | | (0.87)% | | | (0.58)% | |
| Portfolio Turnover Rate | | 39% | | | 39% | | | 31% | | | 42% | | | 44% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $32.47 | | | $54.28 | | | $45.24 | | | $35.99 | | | $36.25 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.13 | | | 0.01 | | | (0.15) | | | —(2) | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | 9.68 | | | (16.58) | | | 13.04 | | | 11.86 | | | 2.18 | |
| Total from Investment Operations | | 9.81 | | | (16.57) | | | 12.89 | | | 11.86 | | | 2.27 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.03) | | | — | | | (0.08) | | | — | |
| | Distributions (from capital gains) | | (0.02) | | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | |
| Total Dividends and Distributions | | (0.02) | | | (5.24) | | | (3.85) | | | (2.61) | | | (2.53) | |
| Net Asset Value, End of Period | | $42.26 | | | $32.47 | | | $54.28 | | | $45.24 | | | $35.99 | |
| Total Return* | | 30.23% | | | (33.86)% | | | 30.00% | | | 34.88% | | | 8.03% | |
| Net Assets, End of Period (in thousands) | | $9,953,141 | | | $8,069,316 | | | $12,846,210 | | | $10,287,828 | | | $8,018,389 | |
| Average Net Assets for the Period (in thousands) | | $9,391,893 | | | $11,038,490 | | | $11,890,281 | | | $8,759,841 | | | $7,517,796 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.61% | | | 0.69% | | | 0.82% | | | 0.80% | | | 0.79% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.61% | | | 0.69% | | | 0.82% | | | 0.80% | | | 0.75% | |
| | Ratio of Net Investment Income/(Loss) | | 0.33% | | | 0.03% | | | (0.29)% | | | 0.00%(3) | | | 0.27% | |
| Portfolio Turnover Rate | | 39% | | | 39% | | | 31% | | | 42% | | | 44% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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. |
| |
20 | SEPTEMBER 30, 2023 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $35.63 | | | $59.06 | | | $48.89 | | | $38.69 | | | $38.74 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.16 | | | 0.04 | | | (0.13) | | | 0.03 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 10.63 | | | (18.21) | | | 14.15 | | | 12.80 | | | 2.36 | |
| Total from Investment Operations | | 10.79 | | | (18.17) | | | 14.02 | | | 12.83 | | | 2.48 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.05) | | | — | | | (0.10) | | | — | |
| | Distributions (from capital gains) | | (0.02) | | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | |
| Total Dividends and Distributions | | (0.02) | | | (5.26) | | | (3.85) | | | (2.63) | | | (2.53) | |
| Net Asset Value, End of Period | | $46.40 | | | $35.63 | | | $59.06 | | | $48.89 | | | $38.69 | |
| Total Return* | | 30.30% | | | (33.84)% | | | 30.07% | | | 34.97% | | | 8.06% | |
| Net Assets, End of Period (in thousands) | | $1,826,123 | | | $1,547,668 | | | $2,360,269 | | | $1,783,057 | | | $1,178,733 | |
| Average Net Assets for the Period (in thousands) | | $1,722,496 | | | $2,082,585 | | | $2,119,223 | | | $1,416,287 | | | $1,081,498 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.56% | | | 0.64% | | | 0.76% | | | 0.74% | | | 0.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.56% | | | 0.64% | | | 0.76% | | | 0.74% | | | 0.68% | |
| | Ratio of Net Investment Income/(Loss) | | 0.39% | | | 0.08% | | | (0.24)% | | | 0.06% | | | 0.34% | |
| Portfolio Turnover Rate | | 39% | | | 39% | | | 31% | | | 42% | | | 44% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $35.86 | | | $59.38 | | | $49.11 | | | $38.85 | | | $38.86 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.20 | | | 0.07 | | | (0.10) | | | 0.05 | | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | 10.69 | | | (18.30) | | | 14.22 | | | 12.86 | | | 2.37 | |
| Total from Investment Operations | | 10.89 | | | (18.23) | | | 14.12 | | | 12.91 | | | 2.52 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.08) | | | — | | | (0.12) | | | — | |
| | Distributions (from capital gains) | | (0.02) | | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | |
| Total Dividends and Distributions | | (0.02) | | | (5.29) | | | (3.85) | | | (2.65) | | | (2.53) | |
| Net Asset Value, End of Period | | $46.73 | | | $35.86 | | | $59.38 | | | $49.11 | | | $38.85 | |
| Total Return* | | 30.38% | | | (33.78)% | | | 30.15% | | | 35.06% | | | 8.15% | |
| Net Assets, End of Period (in thousands) | | $490,179 | | | $371,702 | | | $581,225 | | | $511,465 | | | $273,438 | |
| Average Net Assets for the Period (in thousands) | | $448,660 | | | $516,542 | | | $533,647 | | | $384,360 | | | $212,223 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.49% | | | 0.56% | | | 0.70% | | | 0.67% | | | 0.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.49% | | | 0.56% | | | 0.70% | | | 0.67% | | | 0.62% | |
| | Ratio of Net Investment Income/(Loss) | | 0.46% | | | 0.15% | | | (0.17)% | | | 0.12% | | | 0.40% | |
| Portfolio Turnover Rate | | 39% | | | 39% | | | 31% | | | 42% | | | 44% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $28.48 | | | $48.48 | | | $41.01 | | | $32.97 | | | $33.65 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.09) | | | (0.23) | | | (0.40) | | | (0.21) | | | (0.10) | |
| | Net realized and unrealized gain/(loss) | | 8.46 | | | (14.56) | | | 11.72 | | | 10.78 | | | 1.95 | |
| Total from Investment Operations | | 8.37 | | | (14.79) | | | 11.32 | | | 10.57 | | | 1.85 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (0.02) | | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | |
| Total Dividends and Distributions | | (0.02) | | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | |
| Net Asset Value, End of Period | | $36.83 | | | $28.48 | | | $48.48 | | | $41.01 | | | $32.97 | |
| Total Return* | | 29.41% | | | (34.26)% | | | 29.21% | | | 34.05% | | | 7.36% | |
| Net Assets, End of Period (in thousands) | | $70,645 | | | $60,027 | | | $103,653 | | | $101,440 | | | $106,843 | |
| Average Net Assets for the Period (in thousands) | | $67,874 | | | $84,882 | | | $106,256 | | | $101,751 | | | $113,204 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.23% | | | 1.31% | | | 1.43% | | | 1.41% | | | 1.40% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.23% | | | 1.30% | | | 1.42% | | | 1.41% | | | 1.36% | |
| | Ratio of Net Investment Income/(Loss) | | (0.28)% | | | (0.59)% | | | (0.90)% | | | (0.60)% | | | (0.34)% | |
| Portfolio Turnover Rate | | 39% | | | 39% | | | 31% | | | 42% | | | 44% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $31.75 | | | $53.33 | | | $44.67 | | | $35.61 | | | $36.02 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.01) | | | (0.15) | | | (0.33) | | | (0.13) | | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | 9.45 | | | (16.22) | | | 12.84 | | | 11.72 | | | 2.15 | |
| Total from Investment Operations | | 9.44 | | | (16.37) | | | 12.51 | | | 11.59 | | | 2.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (0.02) | | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | |
| Total Dividends and Distributions | | (0.02) | | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | |
| Net Asset Value, End of Period | | $41.17 | | | $31.75 | | | $53.33 | | | $44.67 | | | $35.61 | |
| Total Return* | | 29.75% | | | (34.09)% | | | 29.50% | | | 34.40% | | | 7.65% | |
| Net Assets, End of Period (in thousands) | | $381,719 | | | $331,903 | | | $586,481 | | | $546,341 | | | $475,553 | |
| Average Net Assets for the Period (in thousands) | | $373,026 | | | $480,481 | | | $571,789 | | | $491,995 | | | $468,610 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.98% | | | 1.07% | | | 1.20% | | | 1.17% | | | 1.15% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.97% | | | 1.05% | | | 1.19% | | | 1.16% | | | 1.10% | |
| | Ratio of Net Investment Income/(Loss) | | (0.02)% | | | (0.34)% | | | (0.66)% | | | (0.36)% | | | (0.08)% | |
| Portfolio Turnover Rate | | 39% | | | 39% | | | 31% | | | 42% | | | 44% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $32.92 | | | $54.99 | | | $45.83 | | | $36.44 | | | $36.70 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.09 | | | (0.03) | | | (0.21) | | | (0.04) | | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | 9.81 | | | (16.83) | | | 13.22 | | | 12.01 | | | 2.21 | |
| Total from Investment Operations | | 9.90 | | | (16.86) | | | 13.01 | | | 11.97 | | | 2.27 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | (0.05) | | | — | |
| | Distributions (from capital gains) | | (0.02) | | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | |
| Total Dividends and Distributions | | (0.02) | | | (5.21) | | | (3.85) | | | (2.58) | | | (2.53) | |
| Net Asset Value, End of Period | | $42.80 | | | $32.92 | | | $54.99 | | | $45.83 | | | $36.44 | |
| Total Return* | | 30.09% | | | (33.94)% | | | 29.86% | | | 34.71% | | | 7.93% | |
| Net Assets, End of Period (in thousands) | | $3,352,693 | | | $2,759,921 | | | $4,465,117 | | | $3,621,078 | | | $2,914,481 | |
| Average Net Assets for the Period (in thousands) | | $3,162,259 | | | $3,817,603 | | | $4,169,739 | | | $3,138,440 | | | $2,750,999 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.73% | | | 0.81% | | | 0.95% | | | 0.92% | | | 0.90% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.71% | | | 0.79% | | | 0.93% | | | 0.91% | | | 0.85% | |
| | Ratio of Net Investment Income/(Loss) | | 0.23% | | | (0.07)% | | | (0.41)% | | | (0.10)% | | | 0.17% | |
| Portfolio Turnover Rate | | 39% | | | 39% | | | 31% | | | 42% | | | 44% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Forty Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Janus Henderson Forty Fund
Notes to Financial Statements
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal 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, 2023 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
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments,
Janus Henderson Forty Fund
Notes to Financial Statements
the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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
Janus Henderson Forty Fund
Notes to Financial Statements
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.
There were no securities on loan as of September 30, 2023.
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 ±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, 2023, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.47%.
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,
Janus Henderson Forty Fund
Notes to Financial Statements
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 27, 2023. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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 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
Janus Henderson Forty Fund
Notes to Financial Statements
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, 2023, the Distributor retained upfront sales charges of $37,997.
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, 2023.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $9,182.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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
Janus Henderson Forty Fund
Notes to Financial Statements
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, 2023 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, 2023, the Fund engaged in cross trades amounting to $2,511,356 in purchases.
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 31,207,214 | $ 1,282,103,476 | $ - | $ - | $ (422,887) | $6,041,068,067 | |
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, 2023 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) |
$ 10,664,921,443 | $6,323,999,107 | $(282,931,040) | $ 6,041,068,067 |
Janus Henderson Forty 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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ - | $ 8,510,781 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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. Capital has been adjusted by $53,875,851, including $52,595,643 of long-term capital gain, for distributions in connection with Fund shares redemption (tax equalization).
Janus Henderson Forty Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 973,760 | $ 39,469,905 | | 1,824,221 | $ 88,895,333 |
Reinvested dividends and distributions | 4,397 | 156,612 | | 753,582 | 38,854,683 |
Shares repurchased | (2,039,413) | (80,495,648) | | (2,230,354) | (103,878,161) |
Net Increase/(Decrease) | (1,061,256) | $ (40,869,131) | | 347,449 | $ 23,871,855 |
Class C Shares: | | | | | |
Shares sold | 424,946 | $ 12,639,431 | | 624,052 | $ 22,361,504 |
Reinvested dividends and distributions | 2,409 | 63,735 | | 436,951 | 16,848,831 |
Shares repurchased | (959,594) | (27,956,466) | | (1,195,072) | (41,246,484) |
Net Increase/(Decrease) | (532,239) | $ (15,253,300) | | (134,069) | $ (2,036,149) |
Class D Shares: | | | | | |
Shares sold | 4,261,535 | $ 168,343,952 | | 5,936,260 | $ 273,175,986 |
Reinvested dividends and distributions | 143,905 | 4,941,689 | | 23,777,109 | 1,179,582,360 |
Shares repurchased | (17,381,060) | (673,520,450) | | (17,863,300) | (784,478,975) |
Net Increase/(Decrease) | (12,975,620) | $(500,234,809) | | 11,850,069 | $ 668,279,371 |
Class I Shares: | | | | | |
Shares sold | 8,985,742 | $ 383,712,063 | | 15,427,444 | $ 742,458,563 |
Reinvested dividends and distributions | 19,504 | 735,303 | | 3,292,138 | 179,158,152 |
Shares repurchased | (13,080,119) | (547,016,827) | | (15,253,091) | (713,671,887) |
Net Increase/(Decrease) | (4,074,873) | $(162,569,461) | | 3,466,491 | $ 207,944,828 |
Class N Shares: | | | | | |
Shares sold | 2,232,891 | $ 96,479,547 | | 2,274,992 | $ 118,148,906 |
Reinvested dividends and distributions | 5,460 | 207,142 | | 907,966 | 49,702,045 |
Shares repurchased | (2,113,884) | (90,843,654) | | (2,605,013) | (123,365,676) |
Net Increase/(Decrease) | 124,467 | $ 5,843,035 | | 577,945 | $ 44,485,275 |
Class R Shares: | | | | | |
Shares sold | 300,295 | $ 10,349,206 | | 303,952 | $ 11,770,800 |
Reinvested dividends and distributions | 1,409 | 42,380 | | 242,433 | 10,599,178 |
Shares repurchased | (491,436) | (16,667,209) | | (576,615) | (22,762,684) |
Net Increase/(Decrease) | (189,732) | $ (6,275,623) | | (30,230) | $ (392,706) |
Class S Shares: | | | | | |
Shares sold | 1,219,085 | $ 46,340,311 | | 1,203,621 | $ 53,277,110 |
Reinvested dividends and distributions | 6,372 | 213,788 | | 1,123,563 | 54,650,126 |
Shares repurchased | (2,407,455) | (91,326,617) | | (2,869,276) | (126,181,200) |
Net Increase/(Decrease) | (1,181,998) | $ (44,772,518) | | (542,092) | $ (18,253,964) |
Class T Shares: | | | | | |
Shares sold | 6,217,217 | $ 247,752,509 | | 6,709,598 | $ 309,462,841 |
Reinvested dividends and distributions | 48,396 | 1,685,165 | | 8,122,878 | 408,986,887 |
Shares repurchased | (11,765,880) | (456,587,479) | | (12,209,097) | (543,679,763) |
Net Increase/(Decrease) | (5,500,267) | $(207,149,805) | | 2,623,379 | $ 174,769,965 |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$5,933,212,845 | $6,831,840,566 | $ - | $ - |
Janus Henderson Forty Fund
Notes to Financial Statements
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
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Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Forty Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Forty Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Forty Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Forty Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Forty Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Forty Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Forty Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Forty Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Forty Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Capital Gain Distributions | $61,106,424 |
Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income Percentage | 100% |
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 48 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). | 48 | 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). | 48 | 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). | 48 | 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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). | 48 | 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. | 48 | 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). | 48 | 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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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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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
Janus Henderson Forty Fund
Notes
NotesPage2
Janus Henderson Forty 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93041 11-23 |
| | | | |
| | | |
| | | ANNUAL REPORT September 30, 2023 |
| | |
| | Janus Henderson Global Equity Income Fund |
| | |
| | Janus Investment Fund |
| |
| | | 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)
| | | | | | |
| | | 
Ben Lofthouse co-portfolio manager | 
Job Curtis co-portfolio manager | 
Alex Crooke co-portfolio manager |
| | | |
PERFORMANCE OVERVIEW
The Janus Henderson Global Equity Income Fund Class I Shares returned 18.08% for the 12-month period ended September 30, 2023. The Fund’s primary benchmark, the MSCI World IndexSM, returned 21.95%, and the Fund’s secondary benchmark, the 85% MSCI ACWI ex-US High Dividend Yield / 15% MSCI USA High Dividend Yield Index, returned 24.67%.
INVESTMENT ENVIRONMENT
Global equity markets rallied strongly for most of the 12-month period, only retreating toward period-end as concerns mounted about sticky inflation, monetary policy1, and a continued hawkish tone from the Federal Reserve. Equity market breadth was low, with a relatively small number of perceived artificial intelligence (AI) beneficiaries driving most of the market gains during the period. Inflation continued to cool, and investors hoped that major central banks were close to the end of their aggressive interest rate-hiking campaigns.
Strength of the U.S. dollar dampened international returns. In local currency terms, the strongest-performing regions were Japan and the UK. Japan continued to benefit from a weak yen and more constructive investor sentiment toward the region due to reforms to corporate governance and shareholder return policies. The UK benefited from higher exposure to the energy sector and faster-than-expected declines in core inflation data, suggesting the rate cycle may be peaking for the country.
PERFORMANCE DISCUSSION
Despite continuing to meet its high-income objectives and delivering a strong return for the 12-month period, the Fund lagged both its primary and secondary benchmarks. The Fund's focus on reasonable valuations, attractive dividends, strong cash flows, and conservative balance sheets was not rewarded as strongly as lower-yielding, cyclical, and U.S. technology names. That said, equity leadership broadened out at the end of the period and the Fund’s defensive bias there provided some downside relief relative to the global market.
Unsurprisingly, the largest detractor to relative performance was the Fund’s lack of exposure to both the communication services and information technology sectors, where names that led the market over the period are not in the Fund’s investible universe – as all are low-/no-yielding names.
The Fund’s overweight exposure to the consumer staples sector also detracted. The sector underperformed on concerns about risks to pricing as volumes continued to be more subdued across the industry; tobacco names Imperial Brands and British American Tobacco in particular weighed on relative returns.
The largest positive contributor to relative performance was the Fund’s underweight position in financials, particularly banks. The sector lagged the broader market due to concerns about a global banking crisis. We had reduced banking exposure earlier in the period to take profits, then increased exposure as the crisis began to wane and it was clear that a U.S. regional banking rescue was underway in the most troubled areas. This was beneficial to performance, most notably in March when banking stocks underperformed the broader sector. The Fund’s holdings in financial services company Sumitomo Mitsui and private equity company 3i Group were top contributors to relative performance over 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.
Janus Henderson Global Equity Income Fund (unaudited)
OUTLOOK
While it is difficult to have a strong economic view until the interest rate cycle has run its course, rate increases are nearer the end than the start. However, recent announcements from several central banks show that the process is not yet complete. Inflation data has been easing, while share price reactions to profit warnings in some areas of the market indicate that expectations now are more realistic. We believe that the companies held in the Fund can weather the current conditions and that management teams share our confidence in the long-term outlooks for their companies; higher costs of debt appear manageable at this stage.
Thank you for investing in the Janus Henderson Global Equity Income Fund.
Monetary Policy refers to the policies of a central bank, aimed at influencing the level of inflation and growth in an economy. It includes controlling interest rates and the supply of money.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Global Equity Income Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| TotalEnergies SE | 2.12% | | 0.62% | | British American Tobacco PLC | 3.06% | | -0.94% |
| Enel SpA | 1.68% | | 0.42% | | Roche Holding AG | 2.64% | | -0.76% |
| Tokyo Electron Ltd | 1.29% | | 0.42% | | Anglo American PLC | 1.80% | | -0.57% |
| Sumitomo Mitsui Financial Group Inc | 0.56% | | 0.39% | | Imperial Brands PLC | 2.60% | | -0.55% |
| 3i Group PLC | 0.33% | | 0.35% | | OCI NV | 0.57% | | -0.39% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | 1.68% | | 16.46% | 14.52% |
| Utilities | | 1.15% | | 7.89% | 2.93% |
| Industrials | | 1.02% | | 5.81% | 10.74% |
| Health Care | | 0.91% | | 13.48% | 13.49% |
| Consumer Discretionary | | 0.61% | | 4.69% | 10.68% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | -2.25% | | 7.09% | 21.12% |
| Communication Services | | -1.84% | | 5.20% | 6.89% |
| Consumer Staples | | -1.62% | | 18.71% | 7.61% |
| Materials | | -1.45% | | 7.58% | 4.31% |
| Other** | | -0.56% | | 2.80% | 0.00% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
** | Not a GICS classified sector. |
Janus Henderson Global Equity Income Fund (unaudited)
Fund At A Glance
September 30, 2023
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Unilever PLC | |
Personal Products | 4.0% |
British American Tobacco PLC | |
Tobacco | 3.1% |
Merck & Co Inc | |
Pharmaceuticals | 2.9% |
Cie Financiere Richemont SA (REG) | |
Textiles, Apparel & Luxury Goods | 2.9% |
Taiwan Semiconductor Manufacturing Co Ltd (ADR) | |
Semiconductor & Semiconductor Equipment | 2.5% |
| | 15.4% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 92.0% | |
Investment Companies | | 5.3% | |
Preferred Stocks | | 1.5% | |
Other | | 1.2% |
| | | 100.0% |
Emerging markets comprised 6.8% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
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, 2023 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 17.55% | 3.13% | 3.60% | 3.75% | | | 1.25% |
Class A Shares at MOP | | 10.81% | 1.91% | 2.98% | 3.39% | | | |
Class C Shares at NAV | | 16.83% | 2.44% | 2.86% | 3.01% | | | 1.87% |
Class C Shares at CDSC | | 15.83% | 2.44% | 2.86% | 3.01% | | | |
Class D Shares | | 17.89% | 3.33% | 3.73% | 3.83% | | | 0.95% |
Class I Shares | | 18.08% | 3.46% | 3.90% | 4.01% | | | 0.87% |
Class N Shares | | 18.18% | 3.54% | 3.91% | 3.94% | | | 0.78% |
Class S Shares | | 17.47% | 2.98% | 3.46% | 3.67% | | | 1.30% |
Class T Shares | | 17.82% | 3.30% | 3.70% | 3.82% | | | 1.02% |
MSCI World Index | | 21.95% | 7.26% | 8.26% | 6.13% | | | |
85% MSCI ACWI ex-US High Div Yld/15% MSCI USA High Div Yld Index | | 24.67% | 3.82% | 3.95% | 3.74% | | | |
Morningstar Quartile - Class A Shares | | 4th | 2nd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Foreign Large Value Funds | | 369/382 | 153/338 | 92/282 | 25/177 | | | |
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.
Janus Henderson Global Equity Income 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 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.
© 2023 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
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $977.60 | $5.85 | | $1,000.00 | $1,019.15 | $5.97 | 1.18% |
Class C Shares | $1,000.00 | $974.70 | $8.66 | | $1,000.00 | $1,016.29 | $8.85 | 1.75% |
Class D Shares | $1,000.00 | $978.60 | $4.61 | | $1,000.00 | $1,020.41 | $4.71 | 0.93% |
Class I Shares | $1,000.00 | $979.20 | $4.12 | | $1,000.00 | $1,020.91 | $4.20 | 0.83% |
Class N Shares | $1,000.00 | $981.20 | $3.63 | | $1,000.00 | $1,021.41 | $3.70 | 0.73% |
Class S Shares | $1,000.00 | $977.20 | $6.10 | | $1,000.00 | $1,018.90 | $6.23 | 1.23% |
Class T Shares | $1,000.00 | $979.90 | $4.76 | | $1,000.00 | $1,020.26 | $4.86 | 0.96% |
† | 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, 2023
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 92.0% | | | |
Aerospace & Defense – 1.1% | | | |
| | BAE Systems PLC | | 5,220,118 | | | $63,355,868 | |
Automobiles – 0.9% | | | |
| | Daimler AG | | 776,386 | | | 54,069,490 | |
Banks – 5.0% | | | |
| | ABN AMRO Bank NV CVA (144A) | | 5,641,978 | | | 79,878,264 | |
| | HSBC Holdings PLC | | 7,975,224 | | | 62,467,867 | |
| | Sumitomo Mitsui Financial Group Inc | | 1,731,700 | | | 84,904,807 | |
| | United Overseas Bank Ltd | | 2,885,800 | | | 60,087,572 | |
| | | 287,338,510 | |
Beverages – 1.7% | | | |
| | Ambev SA (ADR) | | 671,278 | | | 1,731,897 | |
| | Coca-Cola Co | | 1,704,715 | | | 95,429,946 | |
| | | 97,161,843 | |
Building Products – 0.2% | | | |
| | Xinyi Glass Holdings Ltd | | 10,795,000 | | | 14,026,163 | |
Capital Markets – 4.1% | | | |
| | CME Group Inc | | 660,266 | | | 132,198,459 | |
| | IG Group Holdings PLC | | 2,059,750 | | | 16,094,989 | |
| | Intermediate Capital Group PLC | | 354,351 | | | 5,969,665 | |
| | Macquarie Group Ltd | | 730,174 | | | 78,548,119 | |
| | | 232,811,232 | |
Chemicals – 1.2% | | | |
| | OCI NV* | | 557,177 | | | 15,495,752 | |
| | Shin-Etsu Chemical Co Ltd | | 1,922,400 | | | 55,803,973 | |
| | | 71,299,725 | |
Communications Equipment – 1.2% | | | |
| | Cisco Systems Inc | | 1,229,317 | | | 66,088,082 | |
Diversified Financial Services – 1.1% | | | |
| | M&G PLC | | 25,083,106 | | | 60,060,512 | |
Diversified Telecommunication Services – 2.5% | | | |
| | Telstra Group Ltd | | 34,423,810 | | | 85,106,034 | |
| | TELUS Corp | | 3,502,028 | | | 57,193,860 | |
| | | 142,299,894 | |
Electric Utilities – 4.8% | | | |
| | Endesa SA | | 2,023,566 | | | 41,123,207 | |
| | Enel SpA | | 14,605,636 | | | 89,611,243 | |
| | Iberdrola SA | | 4,867,880 | | | 54,344,442 | |
| | SSE PLC | | 4,666,974 | | | 91,433,611 | |
| | | 276,512,503 | |
Electronic Equipment, Instruments & Components – 1.2% | | | |
| | Hon Hai Precision Industry Co Ltd | | 21,017,000 | | | 67,761,381 | |
Food & Staples Retailing – 2.0% | | | |
| | Koninklijke Ahold Delhaize NV | | 1,867,808 | | | 56,312,470 | |
| | Tesco PLC | | 18,852,212 | | | 60,606,693 | |
| | | 116,919,163 | |
Food Products – 2.5% | | | |
| | Conagra Brands Inc | | 2,423,715 | | | 66,458,265 | |
| | Nestle SA (REG) | | 654,843 | | | 73,965,983 | |
| | | 140,424,248 | |
Health Care Equipment & Supplies – 1.0% | | | |
| | Medtronic PLC | | 720,203 | | | 56,435,107 | |
Household Durables – 0.5% | | | |
| | Persimmon PLC | | 2,058,193 | | | 26,940,949 | |
Household Products – 1.5% | | | |
| | Reckitt Benckiser Group PLC | | 1,231,890 | | | 87,043,812 | |
Industrial Conglomerates – 0.1% | | | |
| | SK Square Co Ltd* | | 130,739 | | | 4,100,438 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Global Equity Income Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Insurance – 7.2% | | | |
| | ASR Nederland NV | | 1,450,011 | | | $54,415,811 | |
| | Aviva PLC | | 8,964,067 | | | 42,377,633 | |
| | AXA SA | | 1,377,212 | | | 40,787,865 | |
| | Legal & General Group PLC | | 30,579,165 | | | 82,602,451 | |
| | NN Group NV | | 396,725 | | | 12,712,065 | |
| | Phoenix Group Holdings PLC | | 7,919,136 | | | 46,375,299 | |
| | Tokio Marine Holdings Inc | | 3,669,000 | | | 84,590,427 | |
| | Zurich Insurance Group AG | | 109,129 | | | 50,020,649 | |
| | | 413,882,200 | |
Machinery – 2.1% | | | |
| | AGCO Corp | | 513,567 | | | 60,744,705 | |
| | Daimler Truck Holding AG | | 819,411 | | | 28,413,668 | |
| | Sandvik AB | | 1,543,585 | | | 28,309,388 | |
| | | 117,467,761 | |
Marine – 0.2% | | | |
| | Evergreen Marine Corp Taiwan Ltd | | 2,890,000 | | | 10,396,595 | |
Metals & Mining – 5.7% | | | |
| | Anglo American PLC | | 4,323,742 | | | 119,688,861 | |
| | BHP Group Ltd | | 4,015,061 | | | 113,823,062 | |
| | Norsk Hydro ASA | | 5,796,211 | | | 36,390,308 | |
| | Rio Tinto PLC | | 944,207 | | | 59,302,604 | |
| | | 329,204,835 | |
Multi-Utilities – 2.8% | | | |
| | National Grid PLC | | 9,752,084 | | | 116,388,999 | |
| | Sempra Energy | | 621,954 | | | 42,311,531 | |
| | | 158,700,530 | |
Office Real Estate Investment Trusts (REITs) – 0.8% | | | |
| | Dexus | | 9,791,457 | | | 46,023,954 | |
Oil, Gas & Consumable Fuels – 10.9% | | | |
| | Eni SpA | | 3,946,180 | | | 63,372,679 | |
| | Equinor ASA | | 3,279,112 | | | 107,540,611 | |
| | Keyera Corp | | 1,293,584 | | | 30,375,078 | |
| | Pioneer Natural Resources Co | | 518,149 | | | 118,941,103 | |
| | Repsol SA | | 1,323,010 | | | 21,775,866 | |
| | TotalEnergies SE | | 1,438,256 | | | 94,634,820 | |
| | Williams Cos Inc | | 3,728,075 | | | 125,598,847 | |
| | Woodside Energy Group Ltd | | 2,748,396 | | | 64,018,773 | |
| | | 626,257,777 | |
Paper & Forest Products – 1.5% | | | |
| | UPM-Kymmene Oyj | | 2,586,483 | | | 88,455,609 | |
Personal Products – 4.0% | | | |
| | Unilever PLC | | 4,690,000 | | | 232,148,767 | |
Pharmaceuticals – 8.8% | | | |
| | Astellas Pharma Inc | | 3,933,200 | | | 54,334,220 | |
| | AstraZeneca PLC | | 451,776 | | | 60,788,553 | |
| | Johnson & Johnson | | 293,494 | | | 45,711,691 | |
| | Merck & Co Inc | | 1,618,966 | | | 166,672,550 | |
| | Roche Holding AG | | 203,721 | | | 55,583,176 | |
| | Sanofi | | 1,116,391 | | | 119,774,731 | |
| | | 502,864,921 | |
Professional Services – 0.4% | | | |
| | Hays PLC | | 18,976,509 | | | 25,181,973 | |
Real Estate Management & Development – 0.3% | | | |
| | Swire Pacific Ltd | | 2,675,500 | | | 18,064,289 | |
Semiconductor & Semiconductor Equipment – 4.2% | | | |
| | Qualcomm Inc | | 529,287 | | | 58,782,614 | |
| | Taiwan Semiconductor Manufacturing Co Ltd (ADR) | | 1,650,013 | | | 143,386,130 | |
| | Tokyo Electron Ltd | | 287,400 | | | 39,116,006 | |
| | | 241,284,750 | |
| | |
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, 2023
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Textiles, Apparel & Luxury Goods – 2.9% | | | |
| | Cie Financiere Richemont SA (REG) | | 1,351,355 | | | $164,697,376 | |
Tobacco – 5.4% | | | |
| | British American Tobacco PLC | | 5,650,868 | | | 177,363,090 | |
| | Imperial Brands PLC | | 6,632,303 | | | 134,658,993 | |
| | | 312,022,083 | |
Wireless Telecommunication Services – 2.2% | | | |
| | SK Telecom Co Ltd | | 1,574,545 | | | 60,621,990 | |
| | Tele2 AB | | 8,863,551 | | | 67,761,624 | |
| | | 128,383,614 | |
Total Common Stocks (cost $5,626,387,906) | | 5,279,685,954 | |
Preferred Stocks– 1.5% | | | |
Technology Hardware, Storage & Peripherals – 1.5% | | | |
| | Samsung Electronics Co Ltd((cost $95,504,722) | | 2,196,868 | | | 88,706,531 | |
Investment Companies– 5.3% | | | |
Money Markets – 5.3% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $302,282,294) | | 302,218,009 | | | 302,308,674 | |
Total Investments (total cost $6,024,174,922) – 98.8% | | 5,670,701,159 | |
Cash, Receivables and Other Assets, net of Liabilities – 1.2% | | 70,648,282 | |
Net Assets – 100% | | $5,741,349,441 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United Kingdom | | $1,338,702,422 | | 23.6 | % |
United States | | 1,337,681,574 | | 23.6 | |
Netherlands | | 450,963,129 | | 8.0 | |
Australia | | 387,519,942 | | 6.8 | |
Switzerland | | 344,267,184 | | 6.1 | |
Japan | | 318,749,433 | | 5.6 | |
France | | 255,197,416 | | 4.5 | |
Taiwan | | 221,544,106 | | 3.9 | |
South Korea | | 153,428,959 | | 2.7 | |
Italy | | 152,983,922 | | 2.7 | |
Norway | | 143,930,919 | | 2.5 | |
Spain | | 117,243,515 | | 2.1 | |
Sweden | | 96,071,012 | | 1.7 | |
Finland | | 88,455,609 | | 1.6 | |
Canada | | 87,568,938 | | 1.5 | |
Germany | | 82,483,158 | | 1.5 | |
Singapore | | 60,087,572 | | 1.1 | |
Hong Kong | | 18,064,289 | | 0.3 | |
China | | 14,026,163 | | 0.2 | |
Brazil | | 1,731,897 | | 0.0 | |
| | | | | | |
| | | | | | |
Total | | $5,670,701,159 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Global Equity Income Fund
Schedule of Investments
September 30, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 5.3% |
Money Markets - 5.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 6,556,940 | $ | 307 | $ | 26,380 | $ | 302,308,674 |
| |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 5.3% |
Money Markets - 5.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | - | | 3,601,854,060 | | (3,299,572,073) | | 302,308,674 |
| | | | | | | |
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 | 10/18/23 | (249,062,606) | $ | 310,588,423 | $ | 6,728,372 | | |
Euro | 10/18/23 | (457,066,387) | | 491,860,941 | | 8,355,963 | | |
Total | | | | | $ | 15,084,335 | | |
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, 2023.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2023 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $15,084,335 |
| | | | |
| | |
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, 2023
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, 2023.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2023 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $(45,285,982) |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ (3,530,881) |
| | | | | |
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, 2023 |
| |
| |
Forward foreign currency exchange contracts: | |
Average amounts sold - in USD | $856,942,939 |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2023 |
Janus Henderson Global Equity Income Fund
Schedule of Investments
September 30, 2023
| | | | | | | | | | |
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 | $ | 15,084,335 | $ | — | $ | — | $ | 15,084,335 |
| | | | | | | | | |
(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 |
CVA | Certificate Van Aandelen (Bearer) |
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, 2023 is $79,878,264, which represents 1.4% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
£ | 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 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, 2023. 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 | $ | 97,161,843 | $ | - | $ | - |
Capital Markets | | 132,198,459 | | 100,612,773 | | - |
Communications Equipment | | 66,088,082 | | - | | - |
Diversified Telecommunication Services | | 57,193,860 | | 85,106,034 | | - |
Food Products | | 66,458,265 | | 73,965,983 | | - |
Health Care Equipment & Supplies | | 56,435,107 | | - | | - |
Machinery | | 60,744,705 | | 56,723,056 | | - |
Multi-Utilities | | 42,311,531 | | 116,388,999 | | - |
Oil, Gas & Consumable Fuels | | 274,915,028 | | 351,342,749 | | - |
Pharmaceuticals | | 212,384,241 | | 290,480,680 | | - |
Semiconductor & Semiconductor Equipment | | 202,168,744 | | 39,116,006 | | - |
All Other | | - | | 2,897,889,809 | | - |
Preferred Stocks | | - | | 88,706,531 | | - |
Investment Companies | | - | | 302,308,674 | | - |
Total Investments in Securities | $ | 1,268,059,865 | $ | 4,402,641,294 | $ | - |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 15,084,335 | | - |
Total Assets | $ | 1,268,059,865 | $ | 4,417,725,629 | $ | - |
| | | | | | | |
(a) | Other financial instruments may 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, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $5,721,892,628) | | $ | 5,368,392,485 | |
| Affiliated investments, at value (cost $302,282,294) | | | 302,308,674 | |
| Forward foreign currency exchange contracts | | | 15,084,335 | |
| Cash denominated in foreign currency (cost $7,099,021) | | | 7,099,021 | |
| Trustees' deferred compensation | | | 148,148 | |
| Receivables: | | | | |
| | Investments sold | | | 79,174,402 | |
| | Foreign tax reclaims | | | 51,124,074 | |
| | Dividends | | | 26,593,611 | |
| | Fund shares sold | | | 13,218,523 | |
| | Dividends from affiliates | | | 610,045 | |
| Other assets | | | 6,219 | |
Total Assets | | | 5,863,759,537 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Investments purchased | | | 57,116,715 | |
| | Fund shares repurchased | | | 43,955,286 | |
| | Dividends | | | 11,129,828 | |
| | Foreign withholding tax reclaim fee (Note 1) | | | 4,064,011 | |
| | Advisory fees | | | 3,273,172 | |
| | Transfer agent fees and expenses | | | 878,274 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 412,006 | |
| | Trustees' deferred compensation fees | | | 148,148 | |
| | Custodian fees | | | 83,809 | |
| | Professional fees | | | 56,423 | |
| | Trustees' fees and expenses | | | 31,844 | |
| | Affiliated fund administration fees payable | | | 12,577 | |
| | Accrued expenses and other payables | | | 1,248,003 | |
Total Liabilities | | | 122,410,096 | |
Commitments and contingent liabilities (Note 4) | | | | |
Net Assets | | $ | 5,741,349,441 | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Global Equity Income Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 7,640,739,033 | |
| Total distributable earnings (loss) | | | (1,899,389,592) | |
Total Net Assets | | $ | 5,741,349,441 | |
Net Assets - Class A Shares | | $ | 653,602,123 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 114,467,570 | |
Net Asset Value Per Share(1) | | $ | 5.71 | |
Maximum Offering Price Per Share(2) | | $ | 6.06 | |
Net Assets - Class C Shares | | $ | 301,865,726 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 53,789,800 | |
Net Asset Value Per Share(1) | | $ | 5.61 | |
Net Assets - Class D Shares | | $ | 24,238,214 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,257,936 | |
Net Asset Value Per Share | | $ | 5.69 | |
Net Assets - Class I Shares | | $ | 4,337,577,775 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 757,225,820 | |
Net Asset Value Per Share | | $ | 5.73 | |
Net Assets - Class N Shares | | $ | 314,463,944 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 54,904,758 | |
Net Asset Value Per Share | | $ | 5.73 | |
Net Assets - Class S Shares | | $ | 16,745,867 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,963,693 | |
Net Asset Value Per Share | | $ | 5.65 | |
Net Assets - Class T Shares | | $ | 92,855,792 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 16,325,005 | |
Net Asset Value Per Share | | $ | 5.69 | |
| |
(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, 2023
| | | | | | |
| | | | | |
Investment Income: |
| Dividends | $ | 550,835,714 | |
| Dividends from affiliates | | 6,556,940 | |
| Other income | | 10,389,683 | |
| Foreign tax withheld | | (49,707,733) | |
Total Investment Income | | 518,074,604 | |
Expenses: | | | |
| Advisory fees | | 38,715,831 | |
| 12b-1 Distribution and shareholder servicing fees: |
| | Class A Shares | | 1,654,455 | |
| | Class C Shares | | 3,226,146 | |
| | Class S Shares | | 43,164 | |
| Transfer agent administrative fees and expenses: | | |
| | Class D Shares | | 29,208 | |
| | Class S Shares | | 43,461 | |
| | Class T Shares | | 312,886 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 1,486,922 | |
| | Class C Shares | | 255,611 | |
| | Class I Shares | | 4,228,140 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 40,940 | |
| | Class C Shares | | 14,704 | |
| | Class D Shares | | 5,566 | |
| | Class I Shares | | 222,640 | |
| | Class N Shares | | 14,181 | |
| | Class S Shares | | 214 | |
| | Class T Shares | | 1,671 | |
| Professional fees | | 1,895,521 | |
| Shareholder reports expense | | 449,725 | |
| Custodian fees | | 416,435 | |
| Registration fees | | 350,708 | |
| Affiliated fund administration fees | | 192,746 | |
| Trustees’ fees and expenses | | 146,073 | |
| Other expenses | | 1,096,540 | |
Total Expenses | | 54,843,488 | |
Less: Excess Expense Reimbursement and Waivers | | (155,506) | |
Net Expenses | | 54,687,982 | |
Net Investment Income/(Loss) | | 463,386,622 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2023 |
Janus Henderson Global Equity Income Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | |
| Investments and foreign currency transactions | $ | (135,491,322) | |
| Investments in affiliates | | 307 | |
| Forward foreign currency exchange contracts | | (45,285,982) | |
Total Net Realized Gain/(Loss) on Investments | (180,776,997) | |
Change in Unrealized Net Appreciation/Depreciation: |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 633,511,529 | |
| Investments in affiliates | | 26,380 | |
| Forward foreign currency exchange contracts | | (3,530,881) | |
Total Change in Unrealized Net Appreciation/Depreciation | 630,007,028 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 912,616,653 | |
| | | | | |
| | |
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, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 463,386,622 | | $ | 391,249,899 | |
| Net realized gain/(loss) on investments | | (180,776,997) | | | (146,325,582) | |
| Change in unrealized net appreciation/depreciation | 630,007,028 | | | (1,027,941,957) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | 912,616,653 | | | (783,017,640) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (53,070,063) | | | (49,466,615) | |
| | Class C Shares | | (24,996,817) | | | (28,085,172) | |
| | Class D Shares | | (2,008,779) | | | (1,719,590) | |
| | Class I Shares | | (371,524,222) | | | (309,759,436) | |
| | Class N Shares | | (26,898,065) | | | (20,170,604) | |
| | Class S Shares | | (1,383,133) | | | (1,241,114) | |
| | Class T Shares | | (9,256,037) | | | (9,040,877) | |
Net Decrease from Dividends and Distributions to Shareholders | (489,137,116) | | | (419,483,408) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 45,818,201 | | | 35,171,613 | |
| | Class C Shares | | (44,298,527) | | | (43,202,804) | |
| | Class D Shares | | 543,765 | | | 14,558,070 | |
| | Class I Shares | | 480,432,346 | | | 714,146,923 | |
| | Class N Shares | | 37,491,625 | | | 184,097,489 | |
| | Class S Shares | | 898,046 | | | 1,593,179 | |
| | Class T Shares | | (43,658,317) | | | 81,086,096 | |
Net Increase/(Decrease) from Capital Share Transactions | 477,227,139 | | | 987,450,566 | |
Net Increase/(Decrease) in Net Assets | | 900,706,676 | | | (215,050,482) | |
Net Assets: | | | | | | |
| Beginning of period | | 4,840,642,765 | | | 5,055,693,247 | |
| End of period | $ | 5,741,349,441 | | $ | 4,840,642,765 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2023 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $5.22 | | | $6.54 | | | $5.90 | | | $6.58 | | | $7.16 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.45 | | | 0.45(2) | | | 0.49 | | | 0.51 | | | 0.46 | |
| | Net realized and unrealized gain/(loss) | | 0.52 | | | (1.29) | | | 0.64 | | | (0.72) | | | (0.56) | |
| Total from Investment Operations | | 0.97 | | | (0.84) | | | 1.13 | | | (0.21) | | | (0.10) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.48) | | | (0.48) | | | (0.49) | | | (0.47) | | | (0.48) | |
| Total Dividends and Distributions | | (0.48) | | | (0.48) | | | (0.49) | | | (0.47) | | | (0.48) | |
| Net Asset Value, End of Period | | $5.71 | | | $5.22 | | | $6.54 | | | $5.90 | | | $6.58 | |
| Total Return* | | 18.45% | | | (13.71)% | | | 19.08% | | | (2.98)% | | | (1.22)% | |
| Net Assets, End of Period (in thousands) | | $653,602 | | | $558,995 | | | $662,514 | | | $610,106 | | | $684,235 | |
| Average Net Assets for the Period (in thousands) | | $663,101 | | | $671,651 | | | $666,761 | | | $639,082 | | | $695,276 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.20% | | | 1.25%(3) | | | 1.14% | | | 1.14% | | | 1.12% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.18% | | | 1.24% | | | 1.14% | | | 1.14% | | | 1.12% | |
| | Ratio of Net Investment Income/(Loss) | | 7.50% | | | 6.86%(2) | | | 7.28% | | | 8.15% | | | 6.91% | |
| Portfolio Turnover Rate | | 152% | | | 86% | | | 123% | | | 227% | | | 142% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $5.14 | | | $6.46 | | | $5.83 | | | $6.53 | | | $7.11 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.41 | | | 0.40(2) | | | 0.44 | | | 0.47 | | | 0.42 | |
| | Net realized and unrealized gain/(loss) | | 0.51 | | | (1.27) | | | 0.64 | | | (0.73) | | | (0.56) | |
| Total from Investment Operations | | 0.92 | | | (0.87) | | | 1.08 | | | (0.26) | | | (0.14) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.45) | | | (0.45) | | | (0.45) | | | (0.44) | | | (0.44) | |
| Total Dividends and Distributions | | (0.45) | | | (0.45) | | | (0.45) | | | (0.44) | | | (0.44) | |
| Net Asset Value, End of Period | | $5.61 | | | $5.14 | | | $6.46 | | | $5.83 | | | $6.53 | |
| Total Return* | | 17.74% | | | (14.29)% | | | 18.54% | | | (3.92)% | | | (1.88)% | |
| Net Assets, End of Period (in thousands) | | $301,866 | | | $314,778 | | | $437,512 | | | $469,891 | | | $677,303 | |
| Average Net Assets for the Period (in thousands) | | $340,169 | | | $410,449 | | | $478,215 | | | $579,718 | | | $804,713 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.75% | | | 1.80%(3) | | | 1.72% | | | 1.75% | | | 1.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.75% | | | 1.80% | | | 1.72% | | | 1.75% | | | 1.76% | |
| | Ratio of Net Investment Income/(Loss) | | 6.92% | | | 6.22%(2) | | | 6.66% | | | 7.49% | | | 6.24% | |
| Portfolio Turnover Rate | | 152% | | | 86% | | | 123% | | | 227% | | | 142% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $5.21 | | | $6.52 | | | $5.88 | | | $6.57 | | | $7.15 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.46 | | | 0.50(2) | | | 0.51 | | | 0.54 | | | 0.48 | |
| | Net realized and unrealized gain/(loss) | | 0.51 | | | (1.31) | | | 0.63 | | | (0.74) | | | (0.57) | |
| Total from Investment Operations | | 0.97 | | | (0.81) | | | 1.14 | | | (0.20) | | | (0.09) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.49) | | | (0.50) | | | (0.50) | | | (0.49) | | | (0.49) | |
| Total Dividends and Distributions | | (0.49) | | | (0.50) | | | (0.50) | | | (0.49) | | | (0.49) | |
| Net Asset Value, End of Period | | $5.69 | | | $5.21 | | | $6.52 | | | $5.88 | | | $6.57 | |
| Total Return* | | 18.57% | | | (13.38)% | | | 19.43% | | | (2.92)% | | | (1.06)% | |
| Net Assets, End of Period (in thousands) | | $24,238 | | | $21,653 | | | $13,132 | | | $8,277 | | | $8,028 | |
| Average Net Assets for the Period (in thousands) | | $24,977 | | | $20,449 | | | $11,156 | | | $8,001 | | | $7,928 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.95%(3) | | | 0.89% | | | 0.92% | | | 0.99% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.91% | | | 0.95% | | | 0.89% | | | 0.92% | | | 0.99% | |
| | Ratio of Net Investment Income/(Loss) | | 7.57% | | | 7.72%(2) | | | 7.60% | | | 8.59% | | | 7.17% | |
| Portfolio Turnover Rate | | 152% | | | 86% | | | 123% | | | 227% | | | 142% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $5.24 | | | $6.55 | | | $5.91 | | | $6.60 | | | $7.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.48 | | | 0.48(2) | | | 0.52 | | | 0.54 | | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | 0.51 | | | (1.29) | | | 0.63 | | | (0.73) | | | (0.57) | |
| Total from Investment Operations | | 0.99 | | | (0.81) | | | 1.15 | | | (0.19) | | | (0.08) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.50) | | | (0.50) | | | (0.51) | | | (0.50) | | | (0.50) | |
| Total Dividends and Distributions | | (0.50) | | | (0.50) | | | (0.51) | | | (0.50) | | | (0.50) | |
| Net Asset Value, End of Period | | $5.73 | | | $5.24 | | | $6.55 | | | $5.91 | | | $6.60 | |
| Total Return* | | 18.75% | | | (13.27)% | | | 19.43% | | | (2.78)% | | | (0.89)% | |
| Net Assets, End of Period (in thousands) | | $4,337,578 | | | $3,552,771 | | | $3,719,987 | | | $2,830,699 | | | $3,008,858 | |
| Average Net Assets for the Period (in thousands) | | $4,475,460 | | | $3,964,612 | | | $3,469,535 | | | $2,946,792 | | | $2,998,950 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.82% | | | 0.87%(3) | | | 0.78% | | | 0.78% | | | 0.79% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.82% | | | 0.87% | | | 0.78% | | | 0.78% | | | 0.79% | |
| | Ratio of Net Investment Income/(Loss) | | 7.87% | | | 7.33%(2) | | | 7.70% | | | 8.62% | | | 7.30% | |
| Portfolio Turnover Rate | | 152% | | | 86% | | | 123% | | | 227% | | | 142% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $5.24 | | | $6.55 | | | $5.91 | | | $6.60 | | | $7.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.48 | | | 0.50(2) | | | 0.53 | | | 0.51 | | | 0.50 | |
| | Net realized and unrealized gain/(loss) | | 0.51 | | | (1.31) | | | 0.62 | | | (0.70) | | | (0.57) | |
| Total from Investment Operations | | 0.99 | | | (0.81) | | | 1.15 | | | (0.19) | | | (0.07) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.50) | | | (0.50) | | | (0.51) | | | (0.50) | | | (0.51) | |
| Total Dividends and Distributions | | (0.50) | | | (0.50) | | | (0.51) | | | (0.50) | | | (0.51) | |
| Net Asset Value, End of Period | | $5.73 | | | $5.24 | | | $6.55 | | | $5.91 | | | $6.60 | |
| Total Return* | | 18.85% | | | (13.20)% | | | 19.51% | | | (2.71)% | | | (0.82)% | |
| Net Assets, End of Period (in thousands) | | $314,464 | | | $255,001 | | | $134,486 | | | $68,993 | | | $12,886 | |
| Average Net Assets for the Period (in thousands) | | $318,472 | | | $239,690 | | | $106,437 | | | $27,720 | | | $10,817 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.73% | | | 0.78%(3) | | | 0.70% | | | 0.72% | | | 0.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.73% | | | 0.78% | | | 0.70% | | | 0.72% | | | 0.75% | |
| | Ratio of Net Investment Income/(Loss) | | 7.91% | | | 7.69%(2) | | | 7.85% | | | 8.37% | | | 7.53% | |
| Portfolio Turnover Rate | | 152% | | | 86% | | | 123% | | | 227% | | | 142% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $5.17 | | | $6.49 | | | $5.86 | | | $6.56 | | | $7.15 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.45 | | | 0.44(2) | | | 0.49 | | | 0.59 | | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | 0.51 | | | (1.28) | | | 0.62 | | | (0.82) | | | (0.60) | |
| Total from Investment Operations | | 0.96 | | | (0.84) | | | 1.11 | | | (0.23) | | | (0.11) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.48) | | | (0.48) | | | (0.48) | | | (0.47) | | | (0.48) | |
| Total Dividends and Distributions | | (0.48) | | | (0.48) | | | (0.48) | | | (0.47) | | | (0.48) | |
| Net Asset Value, End of Period | | $5.65 | | | $5.17 | | | $6.49 | | | $5.86 | | | $6.56 | |
| Total Return* | | 18.38% | | | (13.85)% | | | 19.01% | | | (3.30)% | | | (1.31)% | |
| Net Assets, End of Period (in thousands) | | $16,746 | | | $14,587 | | | $16,510 | | | $10,825 | | | $2,470 | |
| Average Net Assets for the Period (in thousands) | | $17,419 | | | $16,811 | | | $14,755 | | | $6,983 | | | $1,805 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.24% | | | 1.30%(3) | | | 1.21% | | | 1.25% | | | 1.38% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.24% | | | 1.30% | | | 1.21% | | | 1.25% | | | 1.34% | |
| | Ratio of Net Investment Income/(Loss) | | 7.46% | | | 6.81%(2) | | | 7.31% | | | 9.83% | | | 7.35% | |
| Portfolio Turnover Rate | | 152% | | | 86% | | | 123% | | | 227% | | | 142% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $5.21 | | | $6.52 | | | $5.88 | | | $6.57 | | | $7.15 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.46 | | | 0.50(2) | | | 0.52 | | | 0.52 | | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | 0.51 | | | (1.32) | | | 0.62 | | | (0.72) | | | (0.58) | |
| Total from Investment Operations | | 0.97 | | | (0.82) | | | 1.14 | | | (0.20) | | | (0.09) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.49) | | | (0.49) | | | (0.50) | | | (0.49) | | | (0.49) | |
| Total Dividends and Distributions | | (0.49) | | | (0.49) | | | (0.50) | | | (0.49) | | | (0.49) | |
| Net Asset Value, End of Period | | $5.69 | | | $5.21 | | | $6.52 | | | $5.88 | | | $6.57 | |
| Total Return* | | 18.50% | | | (13.41)% | | | 19.35% | | | (2.94)% | | | (1.04)% | |
| Net Assets, End of Period (in thousands) | | $92,856 | | | $122,858 | | | $71,551 | | | $70,408 | | | $70,735 | |
| Average Net Assets for the Period (in thousands) | | $125,587 | | | $103,061 | | | $85,441 | | | $71,828 | | | $65,061 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.98% | | | 1.02%(3) | | | 0.94% | | | 0.95% | | | 0.97% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.97% | | | 1.01% | | | 0.94% | | | 0.94% | | | 0.95% | |
| | Ratio of Net Investment Income/(Loss) | | 7.63% | | | 7.76%(2) | | | 7.70% | | | 8.29% | | | 7.41% | |
| Portfolio Turnover Rate | | 152% | | | 86% | | | 123% | | | 227% | | | 142% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 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 (the “Distributor”) including, but not limited to,
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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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
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, 2023 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.
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, 2023 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the
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Notes to Financial Statements
securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on 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
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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
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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
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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. 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.
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, 2023” table located in the Fund’s Schedule of Investments.The Fund generally does not exchange collateral on its
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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).
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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 0.65% 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 assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 27, 2023. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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.
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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 0.12%.
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 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, 2023, the Distributor retained upfront sales charges of $179,337.
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, 2023, redeeming shareholders of Class A Shares paid CDSCs of $1,825 to the Distributor.
Janus Henderson Global Equity Income 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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $18,750.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 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.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 29,667,258 | $ - | $(1,491,865,004) | $ - | $(5,303,116) | $(431,888,730) | |
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2023, 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, 2023 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(1,182,618,517) | $(309,246,487) | $(1,491,865,004) | | |
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, 2023 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) |
$6,102,589,889 | $162,721,929 | $(594,610,659) | $(431,888,730) |
Information on the tax components of derivatives as of September 30, 2023 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$15,084,335 | $ - | $ - | $ - |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 489,137,116 | $ - | $ - | $ - | |
| | | | | |
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 | $ - | $ - | $ - | |
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.
Janus Henderson Global Equity Income Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 28,844,173 | $ 175,404,626 | | 26,042,246 | $ 170,106,039 |
Reinvested dividends and distributions | 6,978,214 | 41,629,294 | | 6,460,032 | 39,274,744 |
Shares repurchased | (28,388,744) | (171,215,719) | | (26,724,082) | (174,209,170) |
Net Increase/(Decrease) | 7,433,643 | $ 45,818,201 | | 5,778,196 | $ 35,171,613 |
Class C Shares: | | | | | |
Shares sold | 9,690,059 | $ 58,036,840 | | 9,693,945 | $ 62,699,198 |
Reinvested dividends and distributions | 4,106,761 | 24,103,217 | | 4,414,963 | 26,529,716 |
Shares repurchased | (21,251,653) | (126,438,584) | | (20,632,456) | (132,431,718) |
Net Increase/(Decrease) | (7,454,833) | $ (44,298,527) | | (6,523,548) | $ (43,202,804) |
Class D Shares: | | | | | |
Shares sold | 1,438,340 | $ 8,738,695 | | 3,469,211 | $ 23,220,470 |
Reinvested dividends and distributions | 318,105 | 1,891,262 | | 274,746 | 1,638,772 |
Shares repurchased | (1,651,568) | (10,086,192) | | (1,604,948) | (10,301,172) |
Net Increase/(Decrease) | 104,877 | $ 543,765 | | 2,139,009 | $ 14,558,070 |
Class I Shares: | | | | | |
Shares sold | 280,073,011 | $1,697,776,163 | | 263,428,202 | $1,716,422,281 |
Reinvested dividends and distributions | 57,394,261 | 343,388,085 | | 46,766,003 | 284,016,160 |
Shares repurchased | (258,475,155) | (1,560,731,902) | | (199,588,995) | (1,286,291,518) |
Net Increase/(Decrease) | 78,992,117 | $ 480,432,346 | | 110,605,210 | $ 714,146,923 |
Class N Shares: | | | | | |
Shares sold | 27,778,436 | $ 169,180,983 | | 37,175,265 | $ 243,821,876 |
Reinvested dividends and distributions | 2,757,726 | 16,486,941 | | 1,766,310 | 10,605,934 |
Shares repurchased | (24,277,379) | (148,176,299) | | (10,822,569) | (70,330,321) |
Net Increase/(Decrease) | 6,258,783 | $ 37,491,625 | | 28,119,006 | $ 184,097,489 |
Class S Shares: | | | | | |
Shares sold | 590,775 | $ 3,557,300 | | 640,634 | $ 4,058,722 |
Reinvested dividends and distributions | 234,211 | 1,383,133 | | 206,259 | 1,241,114 |
Shares repurchased | (680,433) | (4,042,387) | | (572,985) | (3,706,657) |
Net Increase/(Decrease) | 144,553 | $ 898,046 | | 273,908 | $ 1,593,179 |
Class T Shares: | | | | | |
Shares sold | 7,752,291 | $ 46,765,708 | | 17,541,703 | $ 113,127,786 |
Reinvested dividends and distributions | 1,532,271 | 9,127,508 | | 1,497,548 | 8,905,613 |
Shares repurchased | (16,529,432) | (99,551,533) | | (6,446,732) | (40,947,303) |
Net Increase/(Decrease) | (7,244,870) | $ (43,658,317) | | 12,592,519 | $ 81,086,096 |
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$8,778,564,689 | $8,667,266,039 | $ - | $ - |
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, 2023 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements other than the following:
On October 12, 2023, the Fund received additional payment of $6,685,471 from the French tax authority relating to recovery of previously withheld taxes. The receipt of this payment is not a guarantee of future payments and the Adviser continues to evaluate developments from European courts for potential impacts to filed claims and associated professional and foreign withholding tax reclaims fees, if any.
Janus Henderson Global Equity Income Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson Global Equity Income Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Janus Henderson Global Equity Income Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Foreign Taxes Paid | $39,479,567 |
Foreign Source Income | $389,053,420 |
Dividends Received Deduction Percentage | 11% |
Qualified Dividend Income Percentage | 95% |
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 48 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). | 48 | 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). | 48 | 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). | 48 | 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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). | 48 | 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. | 48 | 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). | 48 | 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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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) | Portfolio Manager for other Janus Henderson accounts. |
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) | 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.
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Janus Henderson Global Equity Income Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93081 11-23 |
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| | | ANNUAL REPORT September 30, 2023 |
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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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Daniel Lyons co-portfolio manager | 
Andy Acker co-portfolio manager |
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PERFORMANCE
Janus Henderson Global Life Sciences Fund Class I Shares returned 13.06% for the 12-month period ended September 30, 2023, outperforming its primary benchmark, the MSCI World Health Care IndexSM, which delivered 10.88%. However, the Fund underperformed its secondary benchmark, the S&P 500® Index, which gained 21.62% during the period.
INVESTMENT ENVIRONMENT
Healthcare stocks finished the period higher, but underperformed a broader market rally led by a narrow band of large technology stocks. Healthcare facilities and suppliers were among the top-performing industries in the sector, benefiting from pent-up demand for routine medical care following the pandemic and moderating input costs. Pharmaceuticals also outperformed on enthusiasm for GLP-1 receptor agonists, a new class of anti-obesity drugs with the potential to deliver unprecedented health benefits. Meanwhile, healthcare services and tools declined due to factors such as weak demand in China and post-COVID inventory destocking. Managed healthcare also underperformed, having entered the period with elevated valuations and facing rising costs and regulatory headwinds.
PERFORMANCE DISCUSSION
The Fund’s positioning in biotechnology contributed most to relative performance, while an overweight to managed care weighed on returns.
Looking at individual holdings, ImmunoGen was the top contributor. During the period, the company reported highly positive confirmatory trial data for its ovarian cancer drug, Elahere, an antibody-drug conjugate (ADC) that targets folate receptor alpha, a protein expressed at high levels in 35% to 40% of all ovarian cancer cases. One can think of an ADC as a precision-guided missile that brings chemotherapy directly to cancer cells. The ADC tricks the cancer cell into allowing it inside (internalization), where it releases a cytotoxin that kills the cell and neighboring tumor cells. Patients in the confirmatory trial saw a 33% reduction in the risk of death compared to chemotherapy, the first time an overall survival benefit was achieved in chemo-resistant patients. ImmunoGen also delivered a positive update to phase 2 trial data for another ADC in patients with a rare and aggressive blood cancer, suggesting the firm may be on track to building a winning platform of ADC therapies.
Our underweight to Pfizer also aided performance. The stock struggled in 2023 due to a lack of clarity around future COVID-19 revenues (with a precipitous decline in 2023 vaccine and treatment sales due to the end of the pandemic Public Health Emergency). Pfizer appears to have been too optimistic with guidance, which disappointed investors. Although we like the large-cap biopharma's defensive characteristics and strong balance sheet, given the near-term uncertainty, we exited the stock.
Other holdings detracted from performance, including PTC Therapeutics. The biotech is a specialist in small molecules that regulate ribonucleic acid (RNA) splicing—that is, operating at the key “in-between” stage after genes have been decoded to messenger RNA but before protein translation. PTC has leveraged this platform to create Evrysdi, a leading treatment for spinal muscular atrophy, and Translarna, a medication conditionally approved in Europe for Duchenne muscular dystrophy. In September, however, regulators threatened to remove access after Translarna missed the primary endpoint in a trial designed to confirm benefit in a subset of the population (despite showing a statistically significant result in the overall trial population). PTC will appeal the
Janus Henderson Global Life Sciences Fund (unaudited)
decision and has shifted into cost-cutting mode. Meanwhile, we’re cautiously optimistic about its other drug candidates for phenylketonuria and Huntington’s disease.
Travere Therapeutics also weighed on performance. The stock declined after the company delivered data showing that its treatment for IgA nephropathy, a chronic kidney condition that can lead to end-stage renal disease, narrowly missed its primary endpoint in a late-stage confirmatory trial. The drug, marketed under the name Filspari, received accelerated approval from the Food and Drug Administration (FDA) based on earlier phase 3 data. But the miss now raises doubts about whether the FDA will grant full approval or, worse, pull the drug from market. We believe Travere is more a victim of being first to market: Had the company extended the duration of the trial, for example, or enrolled more patients, the outcome may have been different. But for now, we decided to exit the stock.
OUTLOOK
After a year in which artificial intelligence-related stocks dominated, healthcare now trades at a discount to the broader market. We believe that could add to healthcare’s appeal in 2024 should higher interest rates persist and economic growth slow – a risk we think remains elevated.
Thankfully, an economic slowdown is not the only reason to invest in healthcare. Innovation continues to accelerate, with more than 50 new drugs approved by the FDA so far in 2023 and dozens more still pending review. These therapies – some of which target large disease categories such as obesity, autoimmune disease, and Alzheimer’s – could represent the start of major product cycles, driving revenue growth for a decade or more. Pandemic-caused supply/demand imbalances have also started to normalize in areas such as managed care, biopharmaceuticals, and bioprocessing, which we expect will lead to improved growth prospects in 2024.
With our excitement about industry innovation and concerns for a slowing economy, we continue to take a barbell approach, seeking to balance the sector’s defensive qualities with potential new growth opportunities. To that end, we favor large-cap biopharma and managed care firms that generate strong free cash flows and can hold up well in a recession. We are also overweight small- and mid-cap biotechs with newly launching products or exciting late-stage development opportunities, which we believe offer growth potential with reduced clinical risk. Furthermore, many of these companies have been able to raise capital regardless of the macroeconomic environment or have been the beneficiaries of mergers and acquisitions, more than a dozen of which have been valued at $1 billion or more so far in 2023. In our view, these acquisitions will likely continue given looming patent expirations for large-cap biopharma – potentially favoring our overweight to smaller innovative firms addressing high, unmet medical needs.
Thank you for your continued investment in Janus Henderson Global Life Sciences Fund.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Global Life Sciences Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Immunogen Inc | 0.62% | | 1.38% | | PTC Therapeutics Inc | 0.79% | | -0.77% |
| Pfizer Inc | 1.03% | | 0.84% | | Travere Therapeutics Inc | 0.58% | | -0.69% |
| Johnson & Johnson | 0.99% | | 0.68% | | Novo Nordisk A/S - Class B | 2.22% | | -0.67% |
| Horizon Therapeutics PLC | 0.38% | | 0.55% | | Eli Lilly & Co | 3.37% | | -0.62% |
| Argenx SE (ADR) | 1.77% | | 0.52% | | Madrigal Pharmaceuticals Inc | 0.46% | | -0.60% |
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| 3 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Health Care Index |
| | | Contribution | | Average Weight | Average Weight |
| Biotechnology | | 1.49% | | 31.28% | 14.35% |
| Devices & Medical Tech. | | 0.79% | | 22.52% | 28.70% |
| Pharmaceuticals | | 0.42% | | 31.28% | 40.79% |
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| 2 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Health Care Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care Services | | -0.32% | | 14.23% | 16.16% |
| Other** | | -0.07% | | 0.69% | 0.00% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
** | Not a GICS classified sector. |
Janus Henderson Global Life Sciences Fund (unaudited)
Fund At A Glance
September 30, 2023
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5 Largest Equity Holdings - (% of Net Assets) |
UnitedHealth Group Inc | |
Health Care Providers & Services | 6.8% |
Eli Lilly & Co | |
Pharmaceuticals | 4.8% |
AstraZeneca PLC | |
Pharmaceuticals | 4.1% |
Novo Nordisk A/S - Class B | |
Pharmaceuticals | 3.7% |
Sanofi | |
Pharmaceuticals | 3.1% |
| | 22.5% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.8% | |
Private Placements | | 1.8% | |
Investment Companies | | 1.0% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.6% | |
Private Investment in Public Equity (PIPES) | | 0.6% | |
Warrants | | 0.0% | |
Rights | | 0.0% | |
Other | | (0.8)% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
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Janus Henderson Global Life Sciences 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, 2023 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 12.82% | 7.53% | 11.47% | 10.88% | | | 0.98% |
Class A Shares at MOP | | 6.34% | 6.27% | 10.81% | 10.62% | | | |
Class C Shares at NAV | | 11.99% | 6.77% | 10.66% | 10.07% | | | 1.76% |
Class C Shares at CDSC | | 10.99% | 6.77% | 10.66% | 10.07% | | | |
Class D Shares | | 13.00% | 7.72% | 11.67% | 11.06% | | | 0.80% |
Class I Shares | | 13.06% | 7.77% | 11.73% | 11.10% | | | 0.76% |
Class N Shares | | 13.16% | 7.86% | 11.71% | 11.06% | | | 0.67% |
Class S Shares | | 12.59% | 7.32% | 11.28% | 10.71% | | | 1.18% |
Class T Shares | | 12.90% | 7.61% | 11.57% | 11.00% | | | 0.92% |
MSCI World Health Care Index | | 10.88% | 7.07% | 9.32% | 6.55% | | | |
S&P 500 Index | | 21.62% | 9.92% | 11.91% | 7.16% | | | |
Morningstar Quartile - Class T Shares | | 1st | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Health Funds | | 21/174 | 16/137 | 15/125 | 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.
© 2023 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
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $1,002.80 | $4.92 | | $1,000.00 | $1,020.16 | $4.96 | 0.98% |
Class C Shares | $1,000.00 | $998.80 | $8.82 | | $1,000.00 | $1,016.24 | $8.90 | 1.76% |
Class D Shares | $1,000.00 | $1,003.60 | $4.02 | | $1,000.00 | $1,021.06 | $4.05 | 0.80% |
Class I Shares | $1,000.00 | $1,003.90 | $3.87 | | $1,000.00 | $1,021.21 | $3.90 | 0.77% |
Class N Shares | $1,000.00 | $1,004.40 | $3.37 | | $1,000.00 | $1,021.71 | $3.40 | 0.67% |
Class S Shares | $1,000.00 | $1,001.90 | $5.87 | | $1,000.00 | $1,019.20 | $5.92 | 1.17% |
Class T Shares | $1,000.00 | $1,003.20 | $4.52 | | $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 Global Life Sciences Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 96.8% | | | |
Biotechnology – 30.1% | | | |
| | 4D Molecular Therapeutics Inc* | | 904,192 | | | $11,510,364 | |
| | 89bio Inc* | | 952,621 | | | 14,708,468 | |
| | AbbVie Inc | | 805,351 | | | 120,045,620 | |
| | Akero Therapeutics Inc* | | 1,136,292 | | | 57,473,649 | |
| | Alnylam Pharmaceuticals Inc* | | 114,519 | | | 20,281,315 | |
| | Amgen Inc | | 212,950 | | | 57,232,442 | |
| | Amicus Therapeutics Inc* | | 2,623,890 | | | 31,906,502 | |
| | Arcellx Inc* | | 502,499 | | | 18,029,664 | |
| | Ardelyx Inc* | | 4,986,572 | | | 20,345,214 | |
| | Argenx SE (ADR)* | | 163,862 | | | 80,559,475 | |
| | Ascendis Pharma A/S (ADR)* | | 580,463 | | | 54,354,555 | |
| | Bicycle Therapeutics Ltd (ADR)*,# | | 385,754 | | | 7,749,798 | |
| | Biohaven Ltd* | | 1,379,119 | | | 35,870,885 | |
| | BioMarin Pharmaceutical Inc* | | 560,075 | | | 49,555,436 | |
| | Biomea Fusion Inc*,# | | 866,547 | | | 11,923,687 | |
| | Cytokinetics Inc* | | 853,418 | | | 25,141,694 | |
| | Disc Medicine Inc* | | 118,870 | | | 5,584,513 | |
| | Gilead Sciences Inc | | 317,985 | | | 23,829,796 | |
| | IDEAYA Biosciences Inc* | | 415,750 | | | 11,216,935 | |
| | Immunogen Inc* | | 3,681,372 | | | 58,423,374 | |
| | Insmed Inc* | | 530,927 | | | 13,405,907 | |
| | Janux Therapeutics Inc* | | 569,676 | | | 5,742,334 | |
| | Legend Biotech Corp (ADR)* | | 506,548 | | | 34,024,829 | |
| | Madrigal Pharmaceuticals Inc* | | 348,339 | | | 50,871,428 | |
| | Mirum Pharmaceuticals Inc* | | 59,097 | | | 1,867,465 | |
| | Moderna Inc* | | 154,261 | | | 15,933,619 | |
| | Neurocrine Biosciences Inc* | | 409,020 | | | 46,014,750 | |
| | Prothena Corp PLC* | | 470,203 | | | 22,687,295 | |
| | PTC Therapeutics Inc* | | 1,106,311 | | | 24,792,429 | |
| | Regeneron Pharmaceuticals Inc* | | 34,863 | | | 28,690,854 | |
| | Replimune Group Inc* | | 638,889 | | | 10,931,391 | |
| | Revolution Medicines Inc* | | 717,031 | | | 19,847,418 | |
| | Rhythm Pharmaceuticals Inc* | | 499,999 | | | 11,462,477 | |
| | Roivant Sciences Ltd*,# | | 1,244,370 | | | 14,534,242 | |
| | Sarepta Therapeutics Inc* | | 921,031 | | | 111,647,378 | |
| | Soleno Therapeutics Inc* | | 254,205 | | | 7,501,590 | |
| | United Therapeutics Corp* | | 200,563 | | | 45,301,165 | |
| | Vaxcyte Inc* | | 1,088,038 | | | 55,468,177 | |
| | Vertex Pharmaceuticals Inc* | | 319,057 | | | 110,948,881 | |
| | Zai Lab Ltd (ADR)* | | 1,365,656 | | | 33,199,097 | |
| | | 1,380,616,112 | |
Health Care Equipment & Supplies – 16.2% | | | |
| | Abbott Laboratories | | 1,229,282 | | | 119,055,962 | |
| | Align Technology Inc* | | 72,058 | | | 22,000,749 | |
| | Baxter International Inc | | 780,123 | | | 29,441,842 | |
| | Boston Scientific Corp* | | 2,058,587 | | | 108,693,394 | |
| | Cooper Cos Inc | | 121,465 | | | 38,627,085 | |
| | Dentsply Sirona Inc | | 583,747 | | | 19,940,797 | |
| | DexCom Inc* | | 350,835 | | | 32,732,905 | |
| | Edwards Lifesciences Corp* | | 655,180 | | | 45,390,870 | |
| | Globus Medical Inc* | | 834,492 | | | 41,432,528 | |
| | ICU Medical Inc* | | 66,858 | | | 7,956,771 | |
| | Intuitive Surgical Inc* | | 149,139 | | | 43,591,838 | |
| | Lantheus Holdings Inc* | | 568,717 | | | 39,514,457 | |
| | Medtronic PLC | | 547,946 | | | 42,937,049 | |
| | Penumbra Inc* | | 108,455 | | | 26,236,349 | |
| | STERIS PLC | | 164,617 | | | 36,120,262 | |
| | Stryker Corp | | 273,797 | | | 74,820,506 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Global Life Sciences Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Health Care Equipment & Supplies– (continued) | | | |
| | Tandem Diabetes Care Inc* | | 673,843 | | | $13,995,719 | |
| | | 742,489,083 | |
Health Care Providers & Services – 14.2% | | | |
| | AmerisourceBergen Corp | | 345,889 | | | 62,249,643 | |
| | Anthem Inc | | 171,069 | | | 74,486,864 | |
| | Centene Corp* | | 678,396 | | | 46,727,916 | |
| | HCA Healthcare Inc | | 219,066 | | | 53,885,855 | |
| | Humana Inc | | 130,744 | | | 63,609,571 | |
| | NeoGenomics Inc* | | 1,265,622 | | | 15,567,151 | |
| | New Horizon Health Ltd (144A)* | | 7,319,000 | | | 17,537,840 | |
| | Privia Health Group Inc* | | 360,932 | | | 8,301,436 | |
| | UnitedHealth Group Inc | | 614,144 | | | 309,645,263 | |
| | | 652,011,539 | |
Life Sciences Tools & Services – 6.2% | | | |
| | Danaher Corp | | 404,964 | | | 100,471,568 | |
| | ICON PLC* | | 64,964 | | | 15,997,385 | |
| | Illumina Inc* | | 302,842 | | | 41,574,150 | |
| | IQVIA Holdings Inc* | | 107,585 | | | 21,167,349 | |
| | Thermo Fisher Scientific Inc | | 209,263 | | | 105,922,653 | |
| | | 285,133,105 | |
Pharmaceuticals – 30.1% | | | |
| | Astellas Pharma Inc | | 2,813,000 | | | 38,859,494 | |
| | AstraZeneca PLC | | 1,408,459 | | | 189,514,681 | |
| | Avadel Pharmaceuticals PLC (ADR)*,# | | 2,920,198 | | | 30,078,039 | |
| | Bayer AG | | 692,019 | | | 33,233,045 | |
| | Catalent Inc* | | 538,447 | | | 24,515,492 | |
| | Collegium Pharmaceutical Inc* | | 412,490 | | | 9,219,151 | |
| | CymaBay Therapeutics Inc* | | 1,674,253 | | | 24,963,112 | |
| | Eli Lilly & Co | | 409,136 | | | 219,759,220 | |
| | Intra-Cellular Therapies Inc* | | 152,712 | | | 7,954,768 | |
| | Johnson & Johnson | | 248,174 | | | 38,653,100 | |
| | Merck & Co Inc | | 1,250,688 | | | 128,758,330 | |
| | Novartis AG (ADR) | | 1,083,587 | | | 110,374,172 | |
| | Novo Nordisk A/S - Class B | | 1,857,157 | | | 168,967,784 | |
| | Roche Holding AG | | 296,414 | | | 80,873,507 | |
| | Royalty Pharma PLC - Class A | | 933,083 | | | 25,323,873 | |
| | Sanofi | | 1,322,845 | | | 141,924,652 | |
| | Structure Therapeutics Inc (ADR)*,# | | 265,158 | | | 13,369,266 | |
| | Takeda Pharmaceutical Co Ltd | | 713,136 | | | 22,150,075 | |
| | Ventyx Biosciences Inc* | | 579,038 | | | 20,109,990 | |
| | Zoetis Inc | | 282,445 | | | 49,139,781 | |
| | | 1,377,741,532 | |
Total Common Stocks (cost $3,081,910,560) | | 4,437,991,371 | |
Private Investment in Public Equity (PIPES)– 0.6% | | | |
Biotechnology – 0.5% | | | |
| | Bridgebio Pharma Inc*,§ | | 355,702 | | | 9,379,862 | |
| | Mirum Pharmaceuticals Inc*,§ | | 362,742 | | | 11,462,647 | |
| | | 20,842,509 | |
Pharmaceuticals – 0.1% | | | |
| | Structure Therapeutics Inc*,§ | | 476,703 | | | 5,954,020 | |
Total Private Investment in Public Equity (PIPES) (cost $25,175,991) | | 26,796,529 | |
Private Placements– 1.8% | | | |
Biotechnology – 1.1% | | | |
| | ACELYRIN Inc*,§ | | 501,410 | | | 4,844,373 | |
| | ACELYRIN Inc (Indemnity Holdback Shares)*,¢,§ | | 60,929 | | | 294,333 | |
| | Arbor Biotechnologies Inc*,¢,§ | | 156,426 | | | 1,800,463 | |
| | Asher Biotherapeutics Inc*,¢,§ | | 1,214,301 | | | 1,833,594 | |
| | Attralus Inc*,¢,§ | | 669,935 | | | 6,759,644 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Private Placements– (continued) | | | |
Biotechnology– (continued) | | | |
| | Curevo Inc*,¢,§ | | 2,031,087 | | | $5,195,724 | |
| | Element Biosciences Inc*,¢,§ | | 425,023 | | | 6,553,855 | |
| | HemoShear Therapeutics LLC*,¢,§ | | 289,280 | | | 2,081,485 | |
| | Leap Therapeutics Inc (Indemnity Holdback Shares)*,¢,§ | | 47,500 | | | 32,775 | |
| | LEXEO Therapeutics Inc - Series A*,¢,§ | | 3,643,715 | | | 3,795,111 | |
| | LEXEO Therapeutics Inc - Series B*,¢,§ | | 883,469 | | | 920,177 | |
| | Shoreline Biosciences Inc*,¢,§ | | 747,187 | | | 4,886,603 | |
| | Sonoma Biotherapeutics Inc - Series B*,¢,§ | | 1,924,628 | | | 6,274,287 | |
| | Synthekine Inc*,¢,§ | | 2,192,937 | | | 5,661,001 | |
| | TwinStrand Biosciences Inc*,¢,§ | | 344,314 | | | 1,380,527 | |
| | | 52,313,952 | |
Health Care Providers & Services – 0.4% | | | |
| | Bigfoot Biomedical Inc - Series B*,¢,§ | | 1,035,873 | | | 7,736,210 | |
| | Bigfoot Biomedical Inc - Series C-1*,¢,§ | | 168,418 | | | 1,071,677 | |
| | Freenome Holdings Inc - Series C*,¢,§ | | 337,474 | | | 3,938,322 | |
| | Freenome Holdings Inc - Series D*,¢,§ | | 342,803 | | | 4,000,511 | |
| | | 16,746,720 | |
Health Care Technology – 0.1% | | | |
| | Magnolia Medical Technologies Inc - Series D*,¢,§ | | 1,821,717 | | | 3,092,693 | |
Pharmaceuticals – 0.1% | | | |
| | Neurogene Inc*,¢,§ | | 1,336,317 | | | 2,326,277 | |
| | Neurogene Inc - Series B*,¢,§ | | 1,486,727 | | | 2,588,113 | |
| | | 4,914,390 | |
Software – 0.1% | | | |
| | HeartFlow Inc - Series F*,¢,§ | | 1,934,015 | | | 5,512,910 | |
Total Private Placements (cost $92,356,206) | | 82,580,665 | |
Rights– 0% | | | |
Pharmaceuticals – 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 12/31/32*,¢,§((cost $0) | | 1 | | | 0 | |
Investment Companies– 1.0% | | | |
Money Markets – 1.0% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $45,336,617) | | 45,327,471 | | | 45,341,069 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.6% | | | |
Investment Companies – 0.5% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº,£ | | 22,129,732 | | | 22,129,732 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 5.3100%, 10/2/23 | | $5,430,433 | | | 5,430,433 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $27,560,165) | | 27,560,165 | |
Total Investments (total cost $3,273,519,859) – 100.8% | | 4,620,269,799 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.8)% | | (38,271,923) | |
Net Assets – 100% | | $4,581,997,876 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Global Life Sciences Fund
Schedule of Investments
September 30, 2023
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $3,624,974,239 | | 78.5 | % |
Denmark | | 223,322,339 | | 4.8 | |
United Kingdom | | 197,264,479 | | 4.3 | |
Switzerland | | 191,247,679 | | 4.1 | |
France | | 141,924,652 | | 3.1 | |
Belgium | | 80,559,475 | | 1.7 | |
Japan | | 61,009,569 | | 1.3 | |
China | | 50,736,937 | | 1.1 | |
Germany | | 33,233,045 | | 0.7 | |
Ireland | | 15,997,385 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $4,620,269,799 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 1.0% |
Money Markets - 1.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 849,558 | $ | 2,682 | $ | 4,217 | $ | 45,341,069 |
Investments Purchased with Cash Collateral from Securities Lending - 0.5% |
Investment Companies - 0.5% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 252,585∆ | | - | | - | | 22,129,732 |
Total Affiliated Investments - 1.5% | $ | 1,102,143 | $ | 2,682 | $ | 4,217 | $ | 67,470,801 |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 1.0% |
Money Markets - 1.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 5,298,938 | | 668,079,206 | | (628,043,974) | | 45,341,069 |
Investments Purchased with Cash Collateral from Securities Lending - 0.5% |
Investment Companies - 0.5% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 21,402,690 | | 289,799,925 | | (289,072,883) | | 22,129,732 |
| | |
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, 2023
| | | | | | | | | | |
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 | $ | 29,584,866 | $ | — | $ | (29,584,866) | $ | — |
| | | | | | | | | |
(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, 2023 |
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 |
| | |
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, 2023 is $17,537,840, which represents 0.4% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2023. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2023 is $77,736,292, which represents 1.7% of net assets. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
Janus Henderson Global Life Sciences Fund
Notes to Schedule of Investments and Other Information
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2023) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
ACELYRIN Inc | 1/12/23 | $ | 5,878,086 | $ | 4,844,373 | | 0.1 | % |
ACELYRIN Inc (Indemnity Holdback Shares) | 1/12/23 | | 357,190 | | 294,333 | | 0.0 | |
Arbor Biotechnologies Inc | 10/29/21 | | 2,591,979 | | 1,800,463 | | 0.0 | |
Asher Biotherapeutics Inc | 8/23/21 | | 2,438,924 | | 1,833,594 | | 0.0 | |
Attralus Inc | 8/31/21 | | 5,198,696 | | 6,759,644 | | 0.2 | |
Bigfoot Biomedical Inc - Series B | 11/21/17 | | 9,808,940 | | 7,736,210 | | 0.2 | |
Bigfoot Biomedical Inc - Series C-1 | 12/27/19 | | 1,355,580 | | 1,071,677 | | 0.0 | |
Bridgebio Pharma Inc | 9/27/23 | | 9,699,994 | | 9,379,862 | | 0.2 | |
Curevo Inc | 11/10/22 | | 5,330,344 | | 5,195,724 | | 0.1 | |
Element Biosciences Inc | 6/21/21 | | 8,737,070 | | 6,553,855 | | 0.1 | |
Freenome Holdings Inc - Series C | 8/14/20 | | 2,231,817 | | 3,938,322 | | 0.1 | |
Freenome Holdings Inc - Series D | 11/22/21 | | 2,585,523 | | 4,000,511 | | 0.1 | |
HeartFlow Inc - Series F | 3/24/23 | | 5,512,910 | | 5,512,910 | | 0.1 | |
HemoShear Therapeutics LLC | 2/5/21 | | 3,839,496 | | 2,081,485 | | 0.1 | |
Leap Therapeutics Inc (Indemnity Holdback Shares) | 1/30/23 | | 317,613 | | 32,775 | | 0.0 | |
LEXEO Therapeutics Inc - Series A | 11/20/20 - 7/30/21 | | 3,643,715 | | 3,795,111 | | 0.1 | |
LEXEO Therapeutics Inc - Series B | 8/10/21 | | 1,520,000 | | 920,177 | | 0.0 | |
Magnolia Medical Technologies Inc - Series D, 12/31/32 | 1/10/22 | | 0 | | 0 | | 0.0 | |
Magnolia Medical Technologies Inc - Series D | 1/10/22 | | 3,092,693 | | 3,092,693 | | 0.1 | |
Mirum Pharmaceuticals Inc | 8/31/23 | | 9,521,977 | | 11,462,647 | | 0.3 | |
Neurogene Inc | 12/15/20 - 9/22/21 | | 3,260,613 | | 2,326,277 | | 0.0 | |
Neurogene Inc - Series B | 3/4/22 | | 3,627,614 | | 2,588,113 | | 0.1 | |
Shoreline Biosciences Inc | 10/28/21 | | 7,522,230 | | 4,886,603 | | 0.1 | |
Sonoma Biotherapeutics Inc - Series B | 7/23/2021 - 12/14/22 | | 4,465,171 | | 6,274,287 | | 0.2 | |
Structure Therapeutics Inc | 9/29/23 | | 5,954,020 | | 5,954,020 | | 0.1 | |
Synthekine Inc | 6/3/21 | | 6,290,001 | | 5,661,001 | | 0.1 | |
TwinStrand Biosciences Inc | 4/30/21 | | 2,750,001 | | 1,380,527 | | 0.0 | |
Total | | $ | 117,532,197 | $ | 109,377,194 | | 2.4 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2023. The issuer incurs all registration costs. | |
Janus Henderson Global Life Sciences Fund
Notes to Schedule of Investments and Other Information
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of September 30, 2023. 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 | | | | | | |
Health Care Providers & Services | $ | 634,473,699 | $ | 17,537,840 | $ | - |
Pharmaceuticals | | 724,368,369 | | 653,373,163 | | - |
All Other | | 2,408,238,300 | | - | | - |
Private Investment in Public Equity (PIPES) | | 5,954,020 | | 20,842,509 | | - |
Private Placements | | - | | 4,844,373 | | 77,736,292 |
Rights | | - | | - | | 0 |
Warrants | | - | | - | | 0 |
Investment Companies | | - | | 45,341,069 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 27,560,165 | | - |
Total Assets | $ | 3,773,034,388 | $ | 769,499,119 | $ | 77,736,292 |
| | | | | | | |
| | | | | | | | |
Level 3 Valuation Reconciliation of Assets (for the year ended September 30, 2023) |
| | | | | | | |
| Balance
as of
September 30, 2022 | 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, 2023 |
Investment in Securities: | | | | | | | |
Private Placements | | | | | | | |
Biotechnology | $ 48,792,119 | $ - | $ (1,522,191) | $7,989,666(b) | $ (6,020,760)(b) | $ (1,769,255) | $ 47,469,579 |
Health Care Providers & Services | 17,751,998 | - | (1,005,278) | - | - | - | 16,746,720 |
Health Care Technology | 3,092,693 | - | - | - | - | - | 3,092,693 |
Pharmaceuticals | 13,123,503 | - | (1,973,837) | - | (6,235,276)(b) | - | 4,914,390 |
Software | - | - | - | 5,512,910 | - | - | 5,512,910 |
Rights | | | | | | | |
Pharmaceuticals | - | - | - | - | - | - | - |
Warrants | | | | | | | |
Health Care Technology | - | - | - | - | - | - | - |
Total | $ 82,760,313 | $ - | $ (4,501,306) | $13,502,576 | $(12,256,036) | $ (1,769,255) | $ 77,736,292 |
(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, 2023
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,206,053,510)(1) | | $ | 4,552,798,998 | |
| Affiliated investments, at value (cost $67,466,349) | | | 67,470,801 | |
| Cash | | | 92,819 | |
| Trustees' deferred compensation | | | 119,702 | |
| Receivables: | | | | |
| | Investments sold | | | 7,331,522 | |
| | Foreign tax reclaims | | | 6,588,508 | |
| | Dividends | | | 2,885,481 | |
| | Fund shares sold | | | 1,814,978 | |
| | Dividends from affiliates | | | 123,424 | |
| Other assets | | | 20,702 | |
Total Assets | | | 4,639,246,935 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 27,560,165 | |
| Payables: | | | — | |
| | Investments purchased | | | 22,517,246 | |
| | Fund shares repurchased | | | 3,427,312 | |
| | Advisory fees | | | 2,555,275 | |
| | Transfer agent fees and expenses | | | 645,552 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 138,938 | |
| | Trustees' deferred compensation fees | | | 119,702 | |
| | Professional fees | | | 62,006 | |
| | Trustees' fees and expenses | | | 24,749 | |
| | Custodian fees | | | 12,996 | |
| | Affiliated fund administration fees payable | | | 9,981 | |
| | Accrued expenses and other payables | | | 175,137 | |
Total Liabilities | | | 57,249,059 | |
Commitments and contingent liabilities (Note 3) | | | | |
Net Assets | | $ | 4,581,997,876 | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Global Life Sciences Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,112,130,945 | |
| Total distributable earnings (loss) | | | 1,469,866,931 | |
Total Net Assets | | $ | 4,581,997,876 | |
Net Assets - Class A Shares | | $ | 276,512,774 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,250,889 | |
Net Asset Value Per Share(2) | | $ | 65.05 | |
Maximum Offering Price Per Share(3) | | $ | 69.02 | |
Net Assets - Class C Shares | | $ | 82,025,109 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,430,709 | |
Net Asset Value Per Share(2) | | $ | 57.33 | |
Net Assets - Class D Shares | | $ | 1,649,817,545 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 24,781,679 | |
Net Asset Value Per Share | | $ | 66.57 | |
Net Assets - Class I Shares | | $ | 1,047,057,465 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 15,694,036 | |
Net Asset Value Per Share | | $ | 66.72 | |
Net Assets - Class N Shares | | $ | 289,362,899 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,352,585 | |
Net Asset Value Per Share | | $ | 66.48 | |
Net Assets - Class S Shares | | $ | 28,027,231 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 441,592 | |
Net Asset Value Per Share | | $ | 63.47 | |
Net Assets - Class T Shares | | $ | 1,209,194,853 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 18,275,154 | |
Net Asset Value Per Share | | $ | 66.17 | |
| |
(1) Includes $29,584,866 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Life Sciences Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: |
| Dividends | $ | 58,606,097 | |
| Dividends from affiliates | | 849,558 | |
| Affiliated securities lending income, net | | 252,585 | |
| Unaffiliated securities lending income, net | | 67,160 | |
| Other income | | 91,879 | |
| Foreign tax withheld | | (2,808,991) | |
Total Investment Income | | 57,058,288 | |
Expenses: | | | |
| Advisory fees | | 29,798,352 | |
| 12b-1 Distribution and shareholder servicing fees: |
| | Class A Shares | | 684,410 | |
| | Class C Shares | | 949,017 | |
| | Class S Shares | | 71,304 | |
| Transfer agent administrative fees and expenses: | | |
| | Class D Shares | | 2,000,929 | |
| | Class S Shares | | 71,276 | |
| | Class T Shares | | 3,078,256 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 153,947 | |
| | Class C Shares | | 93,436 | |
| | Class I Shares | | 937,319 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 16,936 | |
| | Class C Shares | | 4,410 | |
| | Class D Shares | | 204,541 | |
| | Class I Shares | | 49,758 | |
| | Class N Shares | | 12,201 | |
| | Class S Shares | | 373 | |
| | Class T Shares | | 12,343 | |
| Shareholder reports expense | | 305,793 | |
| Professional fees | | 282,248 | |
| Registration fees | | 175,127 | |
| Affiliated fund administration fees | | 149,398 | |
| Custodian fees | | 128,851 | |
| Trustees’ fees and expenses | | 116,007 | |
| Other expenses | | 327,105 | |
Total Expenses | | 39,623,337 | |
Less: Excess Expense Reimbursement and Waivers | | (196,881) | |
Net Expenses | | 39,426,456 | |
Net Investment Income/(Loss) | | 17,631,832 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2023 |
Janus Henderson Global Life Sciences Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | |
| Investments and foreign currency transactions | $ | 190,812,336 | |
| Investments in affiliates | | 2,682 | |
Total Net Realized Gain/(Loss) on Investments | 190,815,018 | |
Change in Unrealized Net Appreciation/Depreciation: |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 313,975,885 | |
| Investments in affiliates | | 4,217 | |
Total Change in Unrealized Net Appreciation/Depreciation | 313,980,102 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 522,426,952 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Life Sciences Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 17,631,832 | | $ | 8,506,078 | |
| Net realized gain/(loss) on investments | | 190,815,018 | | | (1,926,607) | |
| Change in unrealized net appreciation/depreciation | 313,980,102 | | | (563,450,193) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | 522,426,952 | | | (556,870,722) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (204,832) | | | (26,218,234) | |
| | Class C Shares | | — | | | (14,503,583) | |
| | Class D Shares | | (4,425,702) | | | (168,341,359) | |
| | Class I Shares | | (2,945,592) | | | (98,682,706) | |
| | Class N Shares | | (1,369,727) | | | (17,490,827) | |
| | Class S Shares | | — | | | (2,696,808) | |
| | Class T Shares | | (1,747,688) | | | (124,306,069) | |
Net Decrease from Dividends and Distributions to Shareholders | (10,693,541) | | | (452,239,586) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 7,763,880 | | | 12,473,104 | |
| | Class C Shares | | (37,936,829) | | | (18,489,015) | |
| | Class D Shares | | (84,776,123) | | | 67,853,188 | |
| | Class I Shares | | 102,693,770 | | | (21,496,544) | |
| | Class N Shares | | 125,825,299 | | | (128,226) | |
| | Class S Shares | | 784,832 | | | 2,804,530 | |
| | Class T Shares | | (34,796,528) | | | 3,892,712 | |
Net Increase/(Decrease) from Capital Share Transactions | 79,558,301 | | | 46,909,749 | |
Net Increase/(Decrease) in Net Assets | | 591,291,712 | | | (962,200,559) | |
Net Assets: | | | | | | |
| Beginning of period | | 3,990,706,164 | | | 4,952,906,723 | |
| End of period | $ | 4,581,997,876 | | $ | 3,990,706,164 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2023 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $57.73 | | | $72.24 | | | $66.20 | | | $53.89 | | | $64.96 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.16 | | | 0.04 | | | 0.07 | | | 0.41(2) | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 7.21 | | | (7.84) | | | 11.44 | | | 15.62 | | | (4.52) | |
| Total from Investment Operations | | 7.37 | | | (7.80) | | | 11.51 | | | 16.03 | | | (4.35) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | (0.76) | | | (0.66) | | | (0.40) | | | — | |
| | Distributions (from capital gains) | | — | | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | |
| Total Dividends and Distributions | | (0.05) | | | (6.71) | | | (5.47) | | | (3.72) | | | (6.72) | |
| Net Asset Value, End of Period | | $65.05 | | | $57.73 | | | $72.24 | | | $66.20 | | | $53.89 | |
| Total Return* | | 12.77% | | | (11.96)% | | | 17.70% | | | 30.58% | | | (5.85)% | |
| Net Assets, End of Period (in thousands) | | $276,513 | | | $238,774 | | | $285,239 | | | $228,005 | | | $177,862 | |
| Average Net Assets for the Period (in thousands) | | $274,319 | | | $260,738 | | | $264,335 | | | $198,807 | | | $182,919 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.98% | | | 0.98% | | | 0.97% | | | 0.98% | | | 1.00% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.98% | | | 0.98% | | | 0.97% | | | 0.98% | | | 1.00% | |
| | Ratio of Net Investment Income/(Loss) | | 0.24% | | | 0.07% | | | 0.10% | | | 0.69%(2) | | | 0.30% | |
| Portfolio Turnover Rate | | 34% | | | 21% | | | 32% | | | 43% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | 21 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $51.22 | | | $64.73 | | | $59.83 | | | $49.00 | | | $60.16 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.29) | | | (0.35) | | | (0.39) | | | —(2)(3) | | | (0.21) | |
| | Net realized and unrealized gain/(loss) | | 6.40 | | | (6.96) | | | 10.32 | | | 14.15 | | | (4.23) | |
| Total from Investment Operations | | 6.11 | | | (7.31) | | | 9.93 | | | 14.15 | | | (4.44) | |
| 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) | |
| Total Dividends and Distributions | | — | | | (6.20) | | | (5.03) | | | (3.32) | | | (6.72) | |
| Net Asset Value, End of Period | | $57.33 | | | $51.22 | | | $64.73 | | | $59.83 | | | $49.00 | |
| Total Return* | | 11.93% | | | (12.55)% | | | 16.86% | | | 29.66% | | | (6.53)% | |
| Net Assets, End of Period (in thousands) | | $82,025 | | | $106,819 | | | $157,110 | | | $155,599 | | | $148,147 | |
| Average Net Assets for the Period (in thousands) | | $101,369 | | | $134,801 | | | $165,379 | | | $156,935 | | | $163,407 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.70% | | | 1.65% | | | 1.69% | | | 1.69% | | | 1.71% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.70% | | | 1.65% | | | 1.69% | | | 1.69% | | | 1.71% | |
| | Ratio of Net Investment Income/(Loss) | | (0.50)% | | | (0.61)% | | | (0.61)% | | | (0.01)%(2) | | | (0.42)% | |
| Portfolio Turnover Rate | | 34% | | | 21% | | | 32% | | | 43% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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. |
| |
22 | SEPTEMBER 30, 2023 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $59.09 | | | $73.77 | | | $67.47 | | | $54.86 | | | $65.89 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.28 | | | 0.16 | | | 0.20 | | | 0.53(2) | | | 0.27 | |
| | Net realized and unrealized gain/(loss) | | 7.37 | | | (8.02) | | | 11.66 | | | 15.90 | | | (4.58) | |
| Total from Investment Operations | | 7.65 | | | (7.86) | | | 11.86 | | | 16.43 | | | (4.31) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.17) | | | (0.87) | | | (0.75) | | | (0.50) | | | — | |
| | Distributions (from capital gains) | | — | | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | |
| Total Dividends and Distributions | | (0.17) | | | (6.82) | | | (5.56) | | | (3.82) | | | (6.72) | |
| Net Asset Value, End of Period | | $66.57 | | | $59.09 | | | $73.77 | | | $67.47 | | | $54.86 | |
| Total Return* | | 12.95% | | | (11.81)% | | | 17.91% | | | 30.80% | | | (5.69)% | |
| Net Assets, End of Period (in thousands) | | $1,649,818 | | | $1,538,660 | | | $1,848,983 | | | $1,653,849 | | | $1,372,808 | |
| Average Net Assets for the Period (in thousands) | | $1,711,452 | | | $1,704,598 | | | $1,837,079 | | | $1,526,148 | | | $1,449,521 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.80% | | | 0.80% | | | 0.80% | | | 0.81% | | | 0.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | | | 0.80% | | | 0.80% | | | 0.81% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | 0.42% | | | 0.24% | | | 0.28% | | | 0.87%(2) | | | 0.48% | |
| Portfolio Turnover Rate | | 34% | | | 21% | | | 32% | | | 43% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $59.22 | | | $73.93 | | | $67.61 | | | $54.96 | | | $65.96 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.31 | | | 0.18 | | | 0.23 | | | 0.57(2) | | | 0.30 | |
| | Net realized and unrealized gain/(loss) | | 7.39 | | | (8.03) | | | 11.69 | | | 15.93 | | | (4.58) | |
| Total from Investment Operations | | 7.70 | | | (7.85) | | | 11.92 | | | 16.50 | | | (4.28) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.20) | | | (0.91) | | | (0.79) | | | (0.53) | | | — | |
| | Distributions (from capital gains) | | — | | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | |
| Total Dividends and Distributions | | (0.20) | | | (6.86) | | | (5.60) | | | (3.85) | | | (6.72) | |
| Net Asset Value, End of Period | | $66.72 | | | $59.22 | | | $73.93 | | | $67.61 | | | $54.96 | |
| Total Return* | | 13.01% | | | (11.77)% | | | 17.96% | | | 30.89% | | | (5.63)% | |
| Net Assets, End of Period (in thousands) | | $1,047,057 | | | $839,582 | | | $1,079,081 | | | $911,963 | | | $692,575 | |
| Average Net Assets for the Period (in thousands) | | $1,002,715 | | | $963,599 | | | $1,033,591 | | | $790,645 | | | $719,800 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.77% | | | 0.76% | | | 0.75% | | | 0.75% | | | 0.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.77% | | | 0.76% | | | 0.75% | | | 0.75% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | 0.46% | | | 0.28% | | | 0.32% | | | 0.93%(2) | | | 0.53% | |
| Portfolio Turnover Rate | | 34% | | | 21% | | | 32% | | | 43% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Allergan PLC in May 2020. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.30 and 0.49%, respectively. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2023 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $59.02 | | | $73.69 | | | $67.41 | | | $54.81 | | | $65.76 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.39 | | | 0.24 | | | 0.31 | | | 0.66(2) | | | 0.36 | |
| | Net realized and unrealized gain/(loss) | | 7.34 | | | (7.99) | | | 11.62 | | | 15.85 | | | (4.59) | |
| Total from Investment Operations | | 7.73 | | | (7.75) | | | 11.93 | | | 16.51 | | | (4.23) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.27) | | | (0.97) | | | (0.84) | | | (0.59) | | | — | |
| | Distributions (from capital gains) | | — | | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | |
| Total Dividends and Distributions | | (0.27) | | | (6.92) | | | (5.65) | | | (3.91) | | | (6.72) | |
| Net Asset Value, End of Period | | $66.48 | | | $59.02 | | | $73.69 | | | $67.41 | | | $54.81 | |
| Total Return* | | 13.10% | | | (11.68)% | | | 18.04% | | | 30.99% | | | (5.57)% | |
| Net Assets, End of Period (in thousands) | | $289,363 | | | $138,495 | | | $176,576 | | | $144,543 | | | $90,958 | |
| Average Net Assets for the Period (in thousands) | | $312,929 | | | $165,129 | | | $176,137 | | | $110,308 | | | $99,924 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.67% | | | 0.67% | | | 0.67% | | | 0.67% | | | 0.68% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.67% | | | 0.67% | | | 0.67% | | | 0.68% | |
| | Ratio of Net Investment Income/(Loss) | | 0.58% | | | 0.37% | | | 0.43% | | | 1.08%(2) | | | 0.63% | |
| Portfolio Turnover Rate | | 34% | | | 21% | | | 32% | | | 43% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | 25 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $56.40 | | | $70.72 | | | $64.93 | | | $52.94 | | | $64.07 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.03 | | | (0.08) | | | (0.07) | | | 0.31(2) | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 7.04 | | | (7.66) | | | 11.21 | | | 15.31 | | | (4.48) | |
| Total from Investment Operations | | 7.07 | | | (7.74) | | | 11.14 | | | 15.62 | | | (4.41) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.63) | | | (0.54) | | | (0.31) | | | — | |
| | Distributions (from capital gains) | | — | | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | |
| Total Dividends and Distributions | | — | | | (6.58) | | | (5.35) | | | (3.63) | | | (6.72) | |
| Net Asset Value, End of Period | | $63.47 | | | $56.40 | | | $70.72 | | | $64.93 | | | $52.94 | |
| Total Return* | | 12.54% | | | (12.13)% | | | 17.46% | | | 30.33% | | | (6.04)% | |
| Net Assets, End of Period (in thousands) | | $28,027 | | | $24,128 | | | $27,575 | | | $24,287 | | | $18,981 | |
| Average Net Assets for the Period (in thousands) | | $28,567 | | | $26,974 | | | $27,694 | | | $22,312 | | | $19,870 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.18% | | | 1.18% | | | 1.17% | | | 1.18% | | | 1.19% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.18% | | | 1.18% | | | 1.17% | | | 1.18% | | | 1.18% | |
| | Ratio of Net Investment Income/(Loss) | | 0.05% | | | (0.13)% | | | (0.09)% | | | 0.52%(2) | | | 0.14% | |
| Portfolio Turnover Rate | | 34% | | | 21% | | | 32% | | | 43% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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. |
| |
26 | SEPTEMBER 30, 2023 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $58.72 | | | $73.33 | | | $67.11 | | | $54.59 | | | $65.66 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.21 | | | 0.09 | | | 0.12 | | | 0.46(2) | | | 0.22 | |
| | Net realized and unrealized gain/(loss) | | 7.33 | | | (7.96) | | | 11.60 | | | 15.82 | | | (4.57) | |
| Total from Investment Operations | | 7.54 | | | (7.87) | | | 11.72 | | | 16.28 | | | (4.35) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.09) | | | (0.79) | | | (0.69) | | | (0.44) | | | — | |
| | Distributions (from capital gains) | | — | | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | |
| Total Dividends and Distributions | | (0.09) | | | (6.74) | | | (5.50) | | | (3.76) | | | (6.72) | |
| Net Asset Value, End of Period | | $66.17 | | | $58.72 | | | $73.33 | | | $67.11 | | | $54.59 | |
| Total Return* | | 12.85% | | | (11.89)% | | | 17.78% | | | 30.66% | | | (5.78)% | |
| Net Assets, End of Period (in thousands) | | $1,209,195 | | | $1,104,248 | | | $1,378,342 | | | $1,268,796 | | | $1,102,667 | |
| Average Net Assets for the Period (in thousands) | | $1,234,070 | | | $1,244,923 | | | $1,394,446 | | | $1,191,342 | | | $1,180,068 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.92% | | | 0.91% | | | 0.92% | | | 0.92% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.91% | | | 0.90% | | | 0.91% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | 0.32% | | | 0.14% | | | 0.17% | | | 0.76%(2) | | | 0.38% | |
| Portfolio Turnover Rate | | 34% | | | 21% | | | 32% | | | 43% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | 27 |
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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
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 Global Life Sciences 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. 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.
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
| | | | | | | |
Asset | Fair Value at September 30, 2023 | Valuation Technique | Unobservable Input | Input Amount or Range | Weighted Average(1) | Impact to Valuation from an Increase in Input |
Private Placements | | | | | | |
Biotechnology | $327,108 | Market Approach | Discount | 50-55% | 54% | Decrease |
| | $12,237,252 | Market Approach | Transaction Price | $2.56 - $4.01 | $2.73 | Increase |
| | $1,800,463 | Market Approach | Last Financing Price | $16.57 | $16.57 | Increase |
| | | | Adjustment based on Market Comparables | (40)% - (20)% | (30)% | Decrease |
| | $1,833,594 | Market Approach | Last Financing Price | $2.01 | $2.01 | Increase |
| | | | Adjustment based on Market Comparables | (35)% – (15)% | (25)% | Decrease |
| | $6,553,855 | Market Approach | Last Financing Price | $20.56 | $20.56 | Increase |
| | | | Adjustment based on Market Comparables | (35)% – (15)% | (25)% | Decrease |
| | $2,081,485 | Market Approach | Last Financing Price | $13.27 | $13.27 | Increase |
| | | | Adjustment based on Market Comparables | (77)% – 3% | (46)% | Decrease |
| | $4,886,603 | Market Approach | Last Financing Price | $10.07 | $10.07 | Increase |
| | | | Adjustment based on Market Comparables | (45)% – (25)% | (35)% | Decrease |
| | $6,274,287 | Market Approach | Last Financing Price | $2.96 | $2.96 | Increase |
| | | | Adjustment based on Market Comparables | 0% – 20% | 10% | Increase |
| | $11,474,932 | Other Valuation Techniques(2) | -- | -- | -- | -- |
Health Care Providers & Services | $8,807,887 | Market Approach | Pending Transaction Price | $12.73 - $14.94 | $14.67 | Increase |
| | | | Discount | 50% | 50% | Decrease |
| | $7,938,833 | Market Approach | Last Financing Price | $11.67 | $11.67 | Increase |
Health Care Technology | $3,092,693 | Market Approach | Last Financing Price | $1.70 | $1.70 | Increase |
Pharmaceuticals | $4,914,390 | Market Approach | Merger Ratio | $2.45 | $2.45 | Increase |
| | | | Discount | (10)% | (10)% | Decrease |
Software | $5,512,910 | Market Approach | Last Financing Price | $2.85 | $2.85 | Increase |
(1) Unobservable inputs were weighted by the relative fair value of securities.
(2) Securities values using such techniques are not considered significant to the Fund.
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, 2023 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” and "Level 3 Valuation Reconciliation of Assets" in the Notes to Schedule of Investments and Other Information.
The following describes the amounts of transfers into or out of Level 3 of the fair value hierarchy during the year.
Financial assets of $1,769,255 were transferred out of Level 3 to Level 1 since certain securities prices were determined using other significant observable inputs at the end of the current fiscal year and significant unobservable inputs at the end of the prior fiscal year.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of
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.
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.
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
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
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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.
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, 2023, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $29,584,866. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2023 is $27,560,165, resulting in the net amount due from the counterparty of $2,024,701.
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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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%.
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, 2023, the Distributor retained upfront sales charges of $64,535.
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, 2023.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $2,354.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 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, 2023, the Fund engaged in cross trades amounting to $5,061,988 in purchases and $1,194,806 in sales, resulting in a net realized gain of $922,496. The net realized gain is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 5,295,400 | $ 172,016,137 | $ - | $ - | $ (144,192) | $1,292,699,586 | |
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, 2023 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) |
$3,327,570,213 | $1,498,168,459 | $(205,468,873) | $1,292,699,586 |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 10,693,541 | $ - | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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. Capital has been adjusted by $10,878,573, including $10,380,680 of long-term capital gain, for distributions in connection with Fund shares redemption (tax equalization).
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 819,225 | $ 53,949,962 | | 735,975 | $ 46,852,292 |
Reinvested dividends and distributions | 2,213 | 143,406 | | 283,164 | 18,688,820 |
Shares repurchased | (706,420) | (46,329,488) | | (831,936) | (53,068,008) |
Net Increase/(Decrease) | 115,018 | $ 7,763,880 | | 187,203 | $ 12,473,104 |
Class C Shares: | | | | | |
Shares sold | 182,628 | $ 10,733,572 | | 145,429 | $ 8,363,484 |
Reinvested dividends and distributions | - | - | | 229,759 | 13,525,931 |
Shares repurchased | (837,405) | (48,670,401) | | (716,737) | (40,378,430) |
Net Increase/(Decrease) | (654,777) | $(37,936,829) | | (341,549) | $(18,489,015) |
Class D Shares: | | | | | |
Shares sold | 841,254 | $ 56,364,520 | | 824,955 | $ 53,865,569 |
Reinvested dividends and distributions | 64,477 | 4,270,307 | | 2,417,153 | 163,061,184 |
Shares repurchased | (2,162,741) | (145,410,950) | | (2,268,686) | (149,073,565) |
Net Increase/(Decrease) | (1,257,010) | $(84,776,123) | | 973,422 | $ 67,853,188 |
Class I Shares: | | | | | |
Shares sold | 5,192,746 | $350,799,771 | | 3,435,132 | $224,972,692 |
Reinvested dividends and distributions | 36,192 | 2,401,366 | | 1,185,696 | 80,141,190 |
Shares repurchased | (3,711,584) | (250,507,367) | | (5,041,043) | (326,610,426) |
Net Increase/(Decrease) | 1,517,354 | $102,693,770 | | (420,215) | $(21,496,544) |
Class N Shares: | | | | | |
Shares sold | 3,722,870 | $242,022,686 | | 756,520 | $ 50,543,407 |
Reinvested dividends and distributions | 20,622 | 1,362,480 | | 259,287 | 17,452,575 |
Shares repurchased | (1,737,392) | (117,559,867) | | (1,065,372) | (68,124,208) |
Net Increase/(Decrease) | 2,006,100 | $125,825,299 | | (49,565) | $ (128,226) |
Class S Shares: | | | | | |
Shares sold | 94,092 | $ 6,021,884 | | 106,733 | $ 6,976,861 |
Reinvested dividends and distributions | - | - | | 41,766 | 2,696,808 |
Shares repurchased | (80,322) | (5,237,052) | | (110,603) | (6,869,139) |
Net Increase/(Decrease) | 13,770 | $ 784,832 | | 37,896 | $ 2,804,530 |
Class T Shares: | | | | | |
Shares sold | 1,560,705 | $104,557,447 | | 1,010,460 | $ 65,704,756 |
Reinvested dividends and distributions | 26,018 | 1,713,815 | | 1,809,837 | 121,421,995 |
Shares repurchased | (2,117,502) | (141,067,790) | | (2,810,104) | (183,234,039) |
Net Increase/(Decrease) | (530,779) | $(34,796,528) | | 10,193 | $ 3,892,712 |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$1,672,340,773 | $1,557,870,478 | $ - | $ - |
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.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 by correspondence with the custodian, transfer agent, investee companies and brokers; when replies were not received from brokers and investee companies, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
November 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Capital Gain Distributions | $10,380,680 |
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 48 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). | 48 | 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). | 48 | 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)
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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). | 48 | 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)
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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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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 | | | | |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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)
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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). | 48 | 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)
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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. | 48 | 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). | 48 | 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)
| | | | |
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 |
Andy Acker
151 Detroit Street
Denver, CO 80206
DOB: 1972 | Executive Vice President and Lead Portfolio Manager
Janus Henderson Global Life Sciences Fund | 5/07-Present | Head of Healthcare Sector Team at Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Daniel Lyons
151 Detroit Street
Denver, CO 80206
DOB: 1969 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Life Sciences Fund | 1/23-Present | Portfolio Manager for other Janus Henderson accounts and Analyst for the Adviser. Formerly, research analyst for Janus Henderson Investors (2000-2023). |
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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 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 |
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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93043 11-23 |
| | | | |
| | | |
| | | ANNUAL REPORT September 30, 2023 |
| | |
| | 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)
| | | | | | |
| | | 
Greg Kuhl co-portfolio manager | 
Tim Gibson co-portfolio manager | 
Guy Barnard co-portfolio manager |
| | | |
PERFORMANCE OVERVIEW
The Janus Henderson Global Real Estate Fund Class I Shares returned 1.42% for the 12-month period ended September 30, 2023. The Fund’s primary benchmark, the FTSE EPRA Nareit Global Index, returned 2.78%, while its secondary benchmark, the FTSE EPRA Nareit Global Net Index, returned 1.76%.
INVESTMENT ENVIRONMENT
Global equity markets posted positive returns for the 12-month period, amid falling inflation, stronger-than-expected economic data, and hopes that the Federal Reserve (Fed) would pause interest rate hikes sooner than anticipated. This was despite the Fed’s tightening campaign resulting in signs of stress in the banking system, with the second- and third-largest bank failures in U.S. history and the end of Credit Suisse, a 165-year-old global banking institution. Gains largely were driven by the information technology sector, which soared on news that artificial intelligence (AI) development had reached a turning point. However, toward period-end, stocks began to give back some of the gains as fears of rates staying higher for longer weighed on sentiment.
Global property stocks, as measured by the FTSE EPRA NAREIT Global Index, climbed 2.78% over the period, underperforming wider equity markets, which returned 22.58%, as measured by the MSCI World IndexSM. Global property equities made marginal gains over the past 12 months, underperforming broader equities on concerns that tightening lending standards would disproportionately impact the real estate sector. Despite these concerns, we saw evidence of the advantages of lower-leveraged public real estate investment trusts (REITs) that continue to have access to capital, with U.S. REITs accessing the unsecured bond market (post-Silicon Valley Bank fallout). Pleasingly, we are seeing listed REITs begin to make accretive investments in high-quality assets, where in recent years they would have been outbid by more leveraged private investors.
European property stocks saw considerable volatility but advanced, led by German, French, and Spanish names. Asia Pacific property stocks posted a decline, with Australian REITs outperforming in the region, offset by notable weakness from Hong Kong-/China-exposed property stocks, which suffered on concerns that ongoing debt issues engulfing several Chinese property companies may spread.
In the U.S, there was a wide range in sub-sector performance. Data center REITs rallied on hopes that AI developments will greatly improve long-term leasing prospects, with healthcare and industrial REITs also gaining on strong fundamentals. Lagging areas of the market included office, given continued occupancy pressure as technology-focused tenants downsize space requirements due to hybrid work preferences, as well as economic uncertainty and concerns related to more highly levered balance sheets. Apartments and self-storage also lagged on decelerating growth following two years of record demand.
On the operational front, earnings reports generally supported the view that REITs can deliver strong results in 2023, with marginally lower but still solid growth into 2024 as contractual rental uplifts support continued revenue gains, and as supply growth is set to remain muted in most property types, indicative of incumbent landlord pricing power.
PERFORMANCE DISCUSSION
Stock selection-driven results were mixed over the period. Our underweight allocation to data center REITs detracted from relative performance, as did as our overweight
Janus Henderson Global Real Estate Fund (unaudited)
allocation to life science REITs, while our exposure to U.S. healthcare and global industrial developer/owners proved beneficial.
At the individual stock level, data center REIT Equinix was our top detractor from relative performance for the period. Data center REITs rallied on positive news about AI development earlier in the year, as investors speculated on long-term demand impacts. We initiated a new position in Equinix toward period-end following an intervening sell-off in the stock.
Our top contributor to relative performance was healthcare REIT Welltower. The company benefited from multiple tailwinds, including an aging population, dwindling new supply, and ongoing recovery in occupancy and rental levels for senior living properties following a prolonged period of COVID-19-induced weakness. The portfolio also benefited from positions in industrial/logistics holdings STAG Industrial and Goodman Group.
OUTLOOK
Real estate markets are facing headwinds from more restrictive financial conditions and an uncertain economic outlook. Against this backdrop, the importance of management, asset, and balance sheet quality is paramount. 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. In our view, therefore, it is crucial to remain selective.
While the private equity commercial real estate market dominates media headlines and is slow to adjust reported values to the challenging macroeconomic landscape, the listed market has reacted already. Shares are trading at historically wide discounts to private asset values and “pricing in” a highly uncertain environment. Public REITs continue to offer reliable and growing income streams, strong balance sheets, demonstrated access to capital, high-quality properties, and astute management teams. From pricing levels that we believe reflect today’s economic reality, these characteristics historically have rewarded investors with current income and growth over time, and we believe they will reward investors yet again.
Thank you for investing in the Janus Henderson Global Real Estate Fund.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Global Real Estate Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Welltower Inc | 3.97% | | 0.50% | | Equinix Inc | 0.92% | | -0.91% |
| Mitsui Fudosan Co Ltd | 3.24% | | 0.45% | | UDR Inc | 1.59% | | -0.60% |
| STAG Industrial Inc | 2.45% | | 0.42% | | Essex Property Trust Inc | 0.39% | | -0.56% |
| Goodman Group | 1.41% | | 0.41% | | Digital Realty Trust Inc | 1.63% | | -0.48% |
| Chartwell Retirement Residences | 1.06% | | 0.37% | | Alexandria Real Estate Equities Inc | 2.67% | | -0.47% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | FTSE EPRA Nareit Global Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | 0.37% | | 1.06% | 0.10% |
| Consumer Discretionary | | 0.32% | | 0.91% | 0.58% |
| Communication Services | | 0.10% | | 1.02% | 0.00% |
| Other** | | 0.06% | | 1.13% | 0.04% |
| Information Technology | | 0.05% | | 0.00% | 0.08% |
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| | | | | | |
| 1 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | FTSE EPRA Nareit Global Index |
| | | Contribution | | Average Weight | Average Weight |
| Real Estate | | -0.99% | | 95.88% | 99.20% |
| | | | | | | |
| 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, 2023
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Prologis Inc | |
Industrial Real Estate Investment Trusts (REITs) | 8.6% |
Equinix Inc | |
Specialized Real Estate Investment Trusts (REITs) | 5.7% |
VICI Properties Inc | |
Specialized Real Estate Investment Trusts (REITs) | 4.9% |
Mitsui Fudosan Co Ltd | |
Real Estate Management & Development | 4.0% |
Welltower Inc | |
Health Care Real Estate Investment Trusts (REITs) | 3.8% |
| | 27.0% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.8% | |
Investments Purchased with Cash Collateral from Securities Lending | | 1.2% | |
Investment Companies | | 0.4% | |
Other | | (1.4)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
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, 2023 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 1.08% | 1.36% | 4.39% | 3.97% | | | 1.27% |
Class A Shares at MOP | | -4.71% | 0.17% | 3.77% | 3.58% | | | |
Class C Shares at NAV | | 0.36% | 0.56% | 3.60% | 3.22% | | | 2.06% |
Class C Shares at CDSC | | -0.63% | 0.56% | 3.60% | 3.22% | | | |
Class D Shares | | 1.26% | 1.54% | 4.57% | 3.55% | | | 1.08% |
Class I Shares | | 1.42% | 1.61% | 4.67% | 4.24% | | | 1.03% |
Class N Shares | | 1.45% | 1.70% | 4.72% | 4.27% | | | 0.93% |
Class S Shares | | 1.02% | 1.17% | 4.21% | 3.81% | | | 1.46% |
Class T Shares | | 1.19% | 1.46% | 4.50% | 3.74% | | | 1.17% |
FTSE EPRA Nareit Global Index | | 2.78% | -0.79% | 2.63% | 1.94% | | | |
FTSE EPRA Nareit Global Net Index | | 1.76% | -1.67% | 1.76% | N/A** | | | |
Morningstar Quartile - Class I Shares | | 4th | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Global Real Estate Funds | | 146/195 | 30/183 | 11/151 | 5/106 | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Janus Henderson Global Real Estate 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 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.
© 2023 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.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $938.80 | $5.01 | | $1,000.00 | $1,019.90 | $5.22 | 1.03% |
Class C Shares | $1,000.00 | $935.00 | $8.88 | | $1,000.00 | $1,015.89 | $9.25 | 1.83% |
Class D Shares | $1,000.00 | $940.20 | $4.18 | | $1,000.00 | $1,020.76 | $4.36 | 0.86% |
Class I Shares | $1,000.00 | $940.50 | $3.79 | | $1,000.00 | $1,021.16 | $3.95 | 0.78% |
Class N Shares | $1,000.00 | $941.10 | $3.26 | | $1,000.00 | $1,021.71 | $3.40 | 0.67% |
Class S Shares | $1,000.00 | $938.70 | $5.83 | | $1,000.00 | $1,019.05 | $6.07 | 1.20% |
Class T Shares | $1,000.00 | $939.80 | $4.43 | | $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 Real Estate Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 99.8% | | | |
Diversified Telecommunication Services – 1.0% | | | |
| | Cellnex Telecom SA (144A)* | | 135,500 | | | $4,710,878 | |
Equity Real Estate Investment Trusts (REITs) – 4.0% | | | |
| | British Land Co PLC | | 650,000 | | | 2,496,732 | |
| | Merlin Properties Socimi SA | | 614,295 | | | 5,154,857 | |
| | Mirvac Group | | 5,126,816 | | | 7,042,963 | |
| | United Urban Investment Corp | | 3,494 | | | 3,638,312 | |
| | | 18,332,864 | |
Health Care Providers & Services – 2.1% | | | |
| | Chartwell Retirement Residences | | 1,306,051 | | | 9,886,020 | |
Health Care Real Estate Investment Trusts (REITs) – 9.2% | | | |
| | Aedifica SA | | 46,000 | | | 2,612,738 | |
| | Healthpeak Properties Inc | | 668,246 | | | 12,268,997 | |
| | Sabra Health Care Inc | | 733,950 | | | 10,231,263 | |
| | Welltower Inc | | 212,785 | | | 17,431,347 | |
| | | 42,544,345 | |
Hotel & Resort Real Estate Investment Trusts (REITs) – 1.5% | | | |
| | Japan Hotel Investment Corp | | 12,758 | | | 6,680,273 | |
Household Durables – 1.5% | | | |
| | NVR Inc* | | 1,162 | | | 6,929,355 | |
Industrial Real Estate Investment Trusts (REITs) – 20.3% | | | |
| | Americold Realty Trust | | 455,837 | | | 13,862,003 | |
| | Ascendas | | 3,420,500 | | | 6,876,757 | |
| | Frasers Logistics & Industrial Trust | | 5,330,300 | | | 4,167,892 | |
| | Goodman Group | | 472,692 | | | 6,546,798 | |
| | Industrial & Infrastructure Fund Investment Corp | | 4,759 | | | 4,400,417 | |
| | Prologis Inc | | 354,359 | | | 39,762,623 | |
| | Segro PLC | | 875,000 | | | 7,631,641 | |
| | STAG Industrial Inc | | 299,768 | | | 10,344,994 | |
| | | 93,593,125 | |
Office Real Estate Investment Trusts (REITs) – 3.8% | | | |
| | Helical PLC | | 801,037 | | | 2,065,383 | |
| | Kenedix Office Investment Corp | | 2,974 | | | 6,885,243 | |
| | Orix JREIT Inc | | 4,691 | | | 5,631,234 | |
| | Workspace Group PLC | | 505,000 | | | 3,002,818 | |
| | | 17,584,678 | |
Real Estate Management & Development – 21.2% | | | |
| | Ayala Land Inc | | 10,516,500 | | | 5,407,717 | |
| | Capitaland Investment Ltd/Singapore | | 2,466,600 | | | 5,577,071 | |
| | CBRE Group Inc* | | 161,087 | | | 11,897,886 | |
| | China Resources Land Ltd | | 2,946,000 | | | 11,610,528 | |
| | CK Asset Holdings Ltd | | 454,000 | | | 2,388,040 | |
| | CTP NV (144A) | | 271,000 | | | 3,878,563 | |
| | Fastighets AB Balder - Class B* | | 735,556 | | | 3,294,251 | |
| | LEG Immobilien AG* | | 44,000 | | | 3,038,997 | |
| | Mitsui Fudosan Co Ltd | | 836,900 | | | 18,435,530 | |
| | Sun Hung Kai Properties Ltd | | 598,500 | | | 6,365,978 | |
| | Swire Properties Ltd | | 2,045,200 | | | 4,267,413 | |
| | Tricon Residential Inc# | | 1,427,982 | | | 10,556,615 | |
| | VGP NV | | 47,288 | | | 4,388,779 | |
| | Vonovia SE | | 280,000 | | | 6,747,513 | |
| | | 97,854,881 | |
Residential Real Estate Investment Trusts (REITs) – 7.2% | | | |
| | Camden Property Trust | | 163,242 | | | 15,439,428 | |
| | UDR Inc | | 382,183 | | | 13,632,468 | |
| | UNITE Group PLC | | 403,416 | | | 4,394,701 | |
| | | 33,466,597 | |
Retail Real Estate Investment Trusts (REITs) – 16.7% | | | |
| | Agree Realty Corp | | 235,274 | | | 12,996,536 | |
| | Brixmor Property Group Inc | | 651,528 | | | 13,538,752 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Global Real Estate Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Retail Real Estate Investment Trusts (REITs)– (continued) | | | |
| | Japan Retail Fund Investment Corp | | 6,453 | | | $4,188,338 | |
| | Link | | 892,900 | | | 4,352,621 | |
| | National Retail Properties Inc | | 380,170 | | | 13,435,208 | |
| | Scentre Group | | 3,155,483 | | | 5,018,630 | |
| | SITE Centers Corp | | 930,939 | | | 11,478,478 | |
| | Spirit Realty Capital Inc | | 360,353 | | | 12,082,636 | |
| | | 77,091,199 | |
Specialized Real Estate Investment Trusts (REITs) – 11.3% | | | |
| | Equinix Inc | | 36,337 | | | 26,390,110 | |
| | Safestore Holdings PLC | | 379,779 | | | 3,407,361 | |
| | VICI Properties Inc | | 774,070 | | | 22,525,437 | |
| | | 52,322,908 | |
Total Common Stocks (cost $494,316,728) | | 460,997,123 | |
Investment Companies– 0.4% | | | |
Money Markets – 0.4% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $1,792,001) | | 1,791,642 | | | 1,792,180 | |
Investments Purchased with Cash Collateral from Securities Lending– 1.2% | | | |
Investment Companies – 1.0% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº,£ | | 4,557,000 | | | 4,557,000 | |
Time Deposits – 0.2% | | | |
| | Royal Bank of Canada, 5.3100%, 10/2/23 | | $1,139,250 | | | 1,139,250 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $5,696,250) | | 5,696,250 | |
Total Investments (total cost $501,804,979) – 101.4% | | 468,485,553 | |
Liabilities, net of Cash, Receivables and Other Assets – (1.4)% | | (6,479,364) | |
Net Assets – 100% | | $462,006,189 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $271,735,951 | | 58.0 | % |
Japan | | 49,859,347 | | 10.6 | |
United Kingdom | | 22,998,636 | | 4.9 | |
Canada | | 20,442,635 | | 4.4 | |
Australia | | 18,608,391 | | 4.0 | |
Hong Kong | | 17,374,052 | | 3.7 | |
Singapore | | 16,621,720 | | 3.5 | |
China | | 11,610,528 | | 2.5 | |
Spain | | 9,865,735 | | 2.1 | |
Germany | | 9,786,510 | | 2.1 | |
Belgium | | 7,001,517 | | 1.5 | |
Philippines | | 5,407,717 | | 1.2 | |
Netherlands | | 3,878,563 | | 0.8 | |
Sweden | | 3,294,251 | | 0.7 | |
| | | | | | |
| | | | | | |
Total | | $468,485,553 | | 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, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 0.4% |
Money Markets - 0.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 198,370 | $ | (317) | $ | 179 | $ | 1,792,180 |
Investments Purchased with Cash Collateral from Securities Lending - 1.0% |
Investment Companies - 1.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 7,505∆ | | - | | - | | 4,557,000 |
Total Affiliated Investments - 1.4% | $ | 205,875 | $ | (317) | $ | 179 | $ | 6,349,180 |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 0.4% |
Money Markets - 0.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 8,309,444 | | 140,249,559 | | (146,766,685) | | 1,792,180 |
Investments Purchased with Cash Collateral from Securities Lending - 1.0% |
Investment Companies - 1.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 55,187 | | 38,100,646 | | (33,598,833) | | 4,557,000 |
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 5,433,621 | $ | — | $ | (5,433,621) | $ | — |
| | | | | | | | | |
(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, 2023 |
Janus Henderson Global Real Estate Fund
Notes to Schedule of Investments and Other Information
| | |
FTSE EPRA Nareit Global Index | FTSE EPRA Nareit Global Index reflects 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, 2023 is $8,589,441, which represents 1.9% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2023. |
| | |
£ | 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, 2023. 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 | | | | | | |
Health Care Providers & Services | $ | 9,886,020 | $ | - | $ | - |
Health Care Real Estate Investment Trusts (REITs) | | 39,931,607 | | 2,612,738 | | - |
Household Durables | | 6,929,355 | | - | | - |
Industrial Real Estate Investment Trusts (REITs) | | 63,969,620 | | 29,623,505 | | - |
Real Estate Management & Development | | 22,454,501 | | 75,400,380 | | - |
Residential Real Estate Investment Trusts (REITs) | | 29,071,896 | | 4,394,701 | | - |
Retail Real Estate Investment Trusts (REITs) | | 63,531,610 | | 13,559,589 | | - |
Specialized Real Estate Investment Trusts (REITs) | | 48,915,547 | | 3,407,361 | | - |
All Other | | - | | 47,308,693 | | - |
Investment Companies | | - | | 1,792,180 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 5,696,250 | | - |
Total Assets | $ | 284,690,156 | $ | 183,795,397 | $ | - |
| | | | | | | |
Janus Henderson Global Real Estate Fund
Statement of Assets and Liabilities
September 30, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $495,455,978)(1) | | $ | 462,136,373 | |
| Affiliated investments, at value (cost $6,349,001) | | | 6,349,180 | |
| Cash denominated in foreign currency (cost $13,417) | | | 13,417 | |
| Trustees' deferred compensation | | | 12,053 | |
| Receivables: | | | | |
| | Dividends | | | 1,873,704 | |
| | Fund shares sold | | | 392,836 | |
| | Foreign tax reclaims | | | 350,634 | |
| | Investments sold | | | 114,921 | |
| | Dividends from affiliates | | | 13,479 | |
| Other assets | | | 1,579 | |
Total Assets | | | 471,258,176 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 5,696,250 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 2,737,618 | |
| | Dividends | | | 342,538 | |
| | Advisory fees | | | 221,666 | |
| | Transfer agent fees and expenses | | | 70,033 | |
| | Professional fees | | | 65,992 | |
| | Trustees' deferred compensation fees | | | 12,053 | |
| | Custodian fees | | | 9,900 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 6,842 | |
| | Trustees' fees and expenses | | | 2,832 | |
| | Affiliated fund administration fees payable | | | 1,041 | |
| | Accrued expenses and other payables | | | 85,222 | |
Total Liabilities | | | 9,251,987 | |
Commitments and contingent liabilities (Note 3) | | | | |
Net Assets | | $ | 462,006,189 | |
| | |
See Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2023 |
Janus Henderson Global Real Estate Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 561,864,166 | |
| Total distributable earnings (loss) | | | (99,857,977) | |
Total Net Assets | | $ | 462,006,189 | |
Net Assets - Class A Shares | | $ | 9,944,419 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 953,501 | |
Net Asset Value Per Share(2) | | $ | 10.43 | |
Maximum Offering Price Per Share(3) | | $ | 11.07 | |
Net Assets - Class C Shares | | $ | 3,249,181 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 318,935 | |
Net Asset Value Per Share(2) | | $ | 10.19 | |
Net Assets - Class D Shares | | $ | 37,676,506 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,581,784 | |
Net Asset Value Per Share | | $ | 10.52 | |
Net Assets - Class I Shares | | $ | 241,438,856 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 22,982,962 | |
Net Asset Value Per Share | | $ | 10.51 | |
Net Assets - Class N Shares | | $ | 96,342,052 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,169,080 | |
Net Asset Value Per Share | | $ | 10.51 | |
Net Assets - Class S Shares | | $ | 7,084,820 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 682,181 | |
Net Asset Value Per Share | | $ | 10.39 | |
Net Assets - Class T Shares | | $ | 66,270,355 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,311,044 | |
Net Asset Value Per Share | | $ | 10.50 | |
| |
(1) Includes $5,433,621 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, 2023
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 17,464,274 | |
| Dividends from affiliates | | 198,370 | |
| Affiliated securities lending income, net | | 7,505 | |
| Unaffiliated securities lending income, net | | 1,924 | |
| Other income | | 20,289 | |
| Foreign tax withheld | | (576,004) | |
Total Investment Income | | 17,116,358 | |
Expenses: | | | |
| Advisory fees | | 4,391,977 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 29,114 | |
| | Class C Shares | | 40,173 | |
| | Class S Shares | | 18,995 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 52,679 | |
| | Class S Shares | | 19,029 | |
| | Class T Shares | | 205,330 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 9,515 | |
| | Class C Shares | | 4,214 | |
| | Class I Shares | | 366,542 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 897 | |
| | Class C Shares | | 218 | |
| | Class D Shares | | 14,695 | |
| | Class I Shares | | 19,182 | |
| | Class N Shares | | 4,219 | |
| | Class S Shares | | 282 | |
| | Class T Shares | | 1,450 | |
| Registration fees | | 126,987 | |
| Shareholder reports expense | | 87,877 | |
| Professional fees | | 78,852 | |
| Custodian fees | | 47,535 | |
| Affiliated fund administration fees | | 18,255 | |
| Trustees’ fees and expenses | | 13,544 | |
| Other expenses | | 112,295 | |
Total Expenses | | 5,663,856 | |
Less: Excess Expense Reimbursement and Waivers | | (4,124) | |
Net Expenses | | 5,659,732 | |
Net Investment Income/(Loss) | | 11,456,626 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2023 |
Janus Henderson Global Real Estate Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | (42,618,412) | |
| Investments in affiliates | | (317) | |
Total Net Realized Gain/(Loss) on Investments | | (42,618,729) | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 49,017,248 | |
| Investments in affiliates | | 179 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 49,017,427 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 17,855,324 | |
| | | | | |
| | |
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, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 11,456,626 | | $ | 14,731,330 | |
| Net realized gain/(loss) on investments | | (42,618,729) | | | (13,010,038) | |
| Change in unrealized net appreciation/depreciation | | 49,017,427 | | | (205,235,857) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 17,855,324 | | | (203,514,565) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (225,745) | | | (839,084) | |
| | Class C Shares | | (48,188) | | | (330,381) | |
| | Class D Shares | | (943,835) | | | (3,281,953) | |
| | Class I Shares | | (6,948,738) | | | (30,872,396) | |
| | Class N Shares | | (2,192,375) | | | (6,399,486) | |
| | Class S Shares | | (138,053) | | | (485,221) | |
| | Class T Shares | | (1,655,740) | | | (6,552,609) | |
Net Decrease from Dividends and Distributions to Shareholders | | (12,152,674) | | | (48,761,130) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (1,582,808) | | | 904,085 | |
| | Class C Shares | | (1,337,251) | | | (306,068) | |
| | Class D Shares | | (7,066,110) | | | 3,842,929 | |
| | Class I Shares | | (148,381,631) | | | (9,479,268) | |
| | Class N Shares | | 15,608,515 | | | (434,386) | |
| | Class S Shares | | (101,876) | | | 971,554 | |
| | Class T Shares | | (22,376,999) | | | 414,322 | |
Net Increase/(Decrease) from Capital Share Transactions | | (165,238,160) | | | (4,086,832) | |
Net Increase/(Decrease) in Net Assets | | (159,535,510) | | | (256,362,527) | |
Net Assets: | | | | | | |
| Beginning of period | | 621,541,699 | | | 877,904,226 | |
| End of period | $ | 462,006,189 | | $ | 621,541,699 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $10.53 | | | $14.65 | | | $12.18 | | | $13.00 | | | $11.68 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.20 | | | 0.21 | | | 0.32 | | | 0.18 | | | 0.18 | |
| | Net realized and unrealized gain/(loss) | | (0.08)(2) | | | (3.55) | | | 2.38 | | | (0.49) | | | 1.72 | |
| Total from Investment Operations | | 0.12 | | | (3.34) | | | 2.70 | | | (0.31) | | | 1.90 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.22) | | | (0.38) | | | (0.23) | | | (0.37) | | | (0.36) | |
| | Distributions (from capital gains) | | — | | | (0.40) | | | — | | | (0.14) | | | (0.22) | |
| Total Dividends and Distributions | | (0.22) | | | (0.78) | | | (0.23) | | | (0.51) | | | (0.58) | |
| Net Asset Value, End of Period | | $10.43 | | | $10.53 | | | $14.65 | | | $12.18 | | | $13.00 | |
| Total Return* | | 1.08% | | | (24.19)% | | | 22.32% | | | (2.53)% | | | 17.12% | |
| Net Assets, End of Period (in thousands) | | $9,944 | | | $11,566 | | | $15,294 | | | $9,857 | | | $9,167 | |
| Average Net Assets for the Period (in thousands) | | $11,681 | | | $15,160 | | | $12,864 | | | $11,509 | | | $7,245 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.20% | | | 1.27% | | | 1.23% | | | 1.25% | | | 1.36% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.20% | | | 1.27% | | | 1.23% | | | 1.25% | | | 1.35% | |
| | Ratio of Net Investment Income/(Loss) | | 1.80% | | | 1.56% | | | 2.25% | | | 1.42% | | | 1.46% | |
| Portfolio Turnover Rate | | 66% | | | 68% | | | 77% | | | 69% | | | 61% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) The amount shown does not correlate with the change in the aggregate gains and losses in the Fund's securities for the year or period due to the timing of sales and repurchases of the Fund's shares in relation to fluctuating market values for the Fund's securities. |
| | |
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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $10.28 | | | $14.34 | | | $11.98 | | | $12.81 | | | $11.53 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.11 | | | 0.10 | | | 0.18 | | | 0.08 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | (0.07)(2) | | | (3.46) | | | 2.37 | | | (0.49) | | | 1.69 | |
| Total from Investment Operations | | 0.04 | | | (3.36) | | | 2.55 | | | (0.41) | | | 1.78 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.30) | | | (0.19) | | | (0.28) | | | (0.28) | |
| | Distributions (from capital gains) | | — | | | (0.40) | | | — | | | (0.14) | | | (0.22) | |
| Total Dividends and Distributions | | (0.13) | | | (0.70) | | | (0.19) | | | (0.42) | | | (0.50) | |
| Net Asset Value, End of Period | | $10.19 | | | $10.28 | | | $14.34 | | | $11.98 | | | $12.81 | |
| Total Return* | | 0.36% | | | (24.81)% | | | 21.34% | | | (3.33)% | | | 16.19% | |
| Net Assets, End of Period (in thousands) | | $3,249 | | | $4,548 | | | $6,766 | | | $5,908 | | | $8,020 | |
| Average Net Assets for the Period (in thousands) | | $4,165 | | | $6,321 | | | $6,420 | | | $7,522 | | | $7,211 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.99% | | | 2.00% | | | 2.03% | | | 2.03% | | | 2.09% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.99% | | | 2.00% | | | 2.03% | | | 2.03% | | | 2.09% | |
| | Ratio of Net Investment Income/(Loss) | | 1.00% | | | 0.75% | | | 1.31% | | | 0.65% | | | 0.73% | |
| Portfolio Turnover Rate | | 66% | | | 68% | | | 77% | | | 69% | | | 61% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) The amount shown does not correlate with the change in the aggregate gains and losses in the Fund's securities for the year or period due to the timing of sales and repurchases of the Fund's shares in relation to fluctuating market values for the Fund's securities. |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2023 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $10.62 | | | $14.77 | | | $12.26 | | | $13.09 | | | $11.76 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.22 | | | 0.24 | | | 0.34 | | | 0.20 | | | 0.20 | |
| | Net realized and unrealized gain/(loss) | | (0.08)(2) | | | (3.58) | | | 2.41 | | | (0.50) | | | 1.73 | |
| Total from Investment Operations | | 0.14 | | | (3.34) | | | 2.75 | | | (0.30) | | | 1.93 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.24) | | | (0.41) | | | (0.24) | | | (0.39) | | | (0.38) | |
| | Distributions (from capital gains) | | — | | | (0.40) | | | — | | | (0.14) | | | (0.22) | |
| Total Dividends and Distributions | | (0.24) | | | (0.81) | | | (0.24) | | | (0.53) | | | (0.60) | |
| Net Asset Value, End of Period | | $10.52 | | | $10.62 | | | $14.77 | | | $12.26 | | | $13.09 | |
| Total Return* | | 1.26% | | | (24.05)% | | | 22.59% | | | (2.39)% | | | 17.31% | |
| Net Assets, End of Period (in thousands) | | $37,677 | | | $44,666 | | | $58,872 | | | $42,584 | | | $46,239 | |
| Average Net Assets for the Period (in thousands) | | $45,076 | | | $58,433 | | | $49,730 | | | $47,764 | | | $39,590 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.03% | | | 1.08% | | | 1.06% | | | 1.08% | | | 1.16% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.03% | | | 1.08% | | | 1.06% | | | 1.08% | | | 1.16% | |
| | Ratio of Net Investment Income/(Loss) | | 1.98% | | | 1.74% | | | 2.41% | | | 1.62% | | | 1.65% | |
| Portfolio Turnover Rate | | 66% | | | 68% | | | 77% | | | 69% | | | 61% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) The amount shown does not correlate with the change in the aggregate gains and losses in the Fund’s securities for the year or period due to the timing of sales and repurchases of the Fund’s shares in relation to fluctuating market values for the Fund’s securities. |
| | |
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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $10.60 | | | $14.75 | | | $12.25 | | | $13.08 | | | $11.75 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.23 | | | 0.24 | | | 0.34 | | | 0.22 | | | 0.20 | |
| | Net realized and unrealized gain/(loss) | | (0.07)(2) | | | (3.58) | | | 2.41 | | | (0.51) | | | 1.74 | |
| Total from Investment Operations | | 0.16 | | | (3.34) | | | 2.75 | | | (0.29) | | | 1.94 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.25) | | | (0.41) | | | (0.25) | | | (0.40) | | | (0.39) | |
| | Distributions (from capital gains) | | — | | | (0.40) | | | — | | | (0.14) | | | (0.22) | |
| Total Dividends and Distributions | | (0.25) | | | (0.81) | | | (0.25) | | | (0.54) | | | (0.61) | |
| Net Asset Value, End of Period | | $10.51 | | | $10.60 | | | $14.75 | | | $12.25 | | | $13.08 | |
| Total Return* | | 1.42% | | | (24.04)% | | | 22.56% | | | (2.31)% | | | 17.41% | |
| Net Assets, End of Period (in thousands) | | $241,439 | | | $383,144 | | | $551,129 | | | $408,928 | | | $211,998 | |
| Average Net Assets for the Period (in thousands) | | $329,234 | | | $531,316 | | | $484,077 | | | $291,765 | | | $186,262 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.97% | | | 1.03% | | | 1.00% | | | 1.02% | | | 1.09% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.97% | | | 1.03% | | | 1.00% | | | 1.02% | | | 1.09% | |
| | Ratio of Net Investment Income/(Loss) | | 2.00% | | | 1.77% | | | 2.44% | | | 1.83% | | | 1.68% | |
| Portfolio Turnover Rate | | 66% | | | 68% | | | 77% | | | 69% | | | 61% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) The amount shown does not correlate with the change in the aggregate gains and losses in the Fund’s securities for the year or period due to the timing of sales and repurchases of the Fund’s shares in relation to fluctuating market values for the Fund’s securities. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2023 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $10.61 | | | $14.76 | | | $12.24 | | | $13.07 | | | $11.75 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.25 | | | 0.26 | | | 0.35 | | | 0.23 | | | 0.27 | |
| | Net realized and unrealized gain/(loss) | | (0.09)(2) | | | (3.58) | | | 2.42 | | | (0.51) | | | 1.67 | |
| Total from Investment Operations | | 0.16 | | | (3.32) | | | 2.77 | | | (0.28) | | | 1.94 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.26) | | | (0.43) | | | (0.25) | | | (0.41) | | | (0.40) | |
| | Distributions (from capital gains) | | — | | | (0.40) | | | — | | | (0.14) | | | (0.22) | |
| Total Dividends and Distributions | | (0.26) | | | (0.83) | | | (0.25) | | | (0.55) | | | (0.62) | |
| Net Asset Value, End of Period | | $10.51 | | | $10.61 | | | $14.76 | | | $12.24 | | | $13.07 | |
| Total Return* | | 1.45% | | | (23.94)% | | | 22.80% | | | (2.22)% | | | 17.43% | |
| Net Assets, End of Period (in thousands) | | $96,342 | | | $82,484 | | | $114,928 | | | $88,550 | | | $71,472 | |
| Average Net Assets for the Period (in thousands) | | $91,630 | | | $106,338 | | | $104,011 | | | $80,627 | | | $34,671 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.84% | | | 0.92% | | | 0.90% | | | 0.92% | | | 0.99% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.84% | | | 0.92% | | | 0.90% | | | 0.92% | | | 0.99% | |
| | Ratio of Net Investment Income/(Loss) | | 2.22% | | | 1.88% | | | 2.49% | | | 1.84% | | | 2.28% | |
| Portfolio Turnover Rate | | 66% | | | 68% | | | 77% | | | 69% | | | 61% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) The amount shown does not correlate with the change in the aggregate gains and losses in the Fund’s securities for the year or period due to the timing of sales and repurchases of the Fund’s shares in relation to fluctuating market values for the Fund’s securities. |
| | |
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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $10.48 | | | $14.59 | | | $12.15 | | | $12.97 | | | $11.66 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.19 | | | 0.19 | | | 0.29 | | | 0.16 | | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | (0.08)(2) | | | (3.54) | | | 2.37 | | | (0.49) | | | 1.72 | |
| Total from Investment Operations | | 0.11 | | | (3.35) | | | 2.66 | | | (0.33) | | | 1.87 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.20) | | | (0.36) | | | (0.22) | | | (0.35) | | | (0.34) | |
| | Distributions (from capital gains) | | — | | | (0.40) | | | — | | | (0.14) | | | (0.22) | |
| Total Dividends and Distributions | | (0.20) | | | (0.76) | | | (0.22) | | | (0.49) | | | (0.56) | |
| Net Asset Value, End of Period | | $10.39 | | | $10.48 | | | $14.59 | | | $12.15 | | | $12.97 | |
| Total Return* | | 1.02% | | | (24.37)% | | | 22.03% | | | (2.69)% | | | 16.86% | |
| Net Assets, End of Period (in thousands) | | $7,085 | | | $7,238 | | | $9,178 | | | $6,692 | | | $5,177 | |
| Average Net Assets for the Period (in thousands) | | $7,631 | | | $9,305 | | | $7,647 | | | $6,265 | | | $3,433 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.38% | | | 1.46% | | | 1.43% | | | 1.46% | | | 1.57% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.37% | | | 1.45% | | | 1.43% | | | 1.46% | | | 1.53% | |
| | Ratio of Net Investment Income/(Loss) | | 1.66% | | | 1.38% | | | 2.06% | | | 1.30% | | | 1.28% | |
| Portfolio Turnover Rate | | 66% | | | 68% | | | 77% | | | 69% | | | 61% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) The amount shown does not correlate with the change in the aggregate gains and losses in the Fund’s securities for the year or period due to the timing of sales and repurchases of the Fund’s shares in relation to fluctuating market values for the Fund’s securities. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2023 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $10.60 | | | $14.75 | | | $12.25 | | | $13.08 | | | $11.75 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.22 | | | 0.23 | | | 0.32 | | | 0.19 | | | 0.19 | |
| | Net realized and unrealized gain/(loss) | | (0.09)(2) | | | (3.59) | | | 2.42 | | | (0.50) | | | 1.74 | |
| Total from Investment Operations | | 0.13 | | | (3.36) | | | 2.74 | | | (0.31) | | | 1.93 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.23) | | | (0.39) | | | (0.24) | | | (0.38) | | | (0.38) | |
| | Distributions (from capital gains) | | — | | | (0.40) | | | — | | | (0.14) | | | (0.22) | |
| Total Dividends and Distributions | | (0.23) | | | (0.79) | | | (0.24) | | | (0.52) | | | (0.60) | |
| Net Asset Value, End of Period | | $10.50 | | | $10.60 | | | $14.75 | | | $12.25 | | | $13.08 | |
| Total Return* | | 1.19% | | | (24.15)% | | | 22.49% | | | (2.47)% | | | 17.27% | |
| Net Assets, End of Period (in thousands) | | $66,270 | | | $87,895 | | | $121,737 | | | $91,313 | | | $80,573 | |
| Average Net Assets for the Period (in thousands) | | $82,426 | | | $114,716 | | | $107,523 | | | $95,019 | | | $54,353 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.10% | | | 1.17% | | | 1.14% | | | 1.16% | | | 1.23% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.10% | | | 1.17% | | | 1.14% | | | 1.16% | | | 1.23% | |
| | Ratio of Net Investment Income/(Loss) | | 1.91% | | | 1.65% | | | 2.30% | | | 1.57% | | | 1.59% | |
| Portfolio Turnover Rate | | 66% | | | 68% | | | 77% | | | 69% | | | 61% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) The amount shown does not correlate with the change in the aggregate gains and losses in the Fund’s securities for the year or period due to the timing of sales and repurchases of the Fund’s shares in relation to fluctuating market values for the Fund’s securities. |
| | |
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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
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 Global Real Estate 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 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, 2023 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 Global Real Estate Fund
Notes to Financial Statements
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends of net investment income are generally declared and distributed quarterly, and realized capital gains (if any) are distributed annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments,
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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 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
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
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, 2023, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $5,433,621. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2023 is $5,696,250, resulting in the net amount due to the counterparty of $262,629.
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-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
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
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, 2023, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.77%.
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 27, 2023. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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 Global Real Estate 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 0.12%.
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 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, 2023, the Distributor retained upfront sales charges of $2,915.
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, 2023.
Janus Henderson Global Real Estate 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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $308.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 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.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 3,166,586 | $ - | $ (59,937,512) | $ - | $ (44,834) | $(43,042,217) | |
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2023, 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, 2023 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(47,611,541) | $(12,325,971) | $ (59,937,512) | | |
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, 2023 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) |
$ 511,527,770 | $24,980,706 | $(68,022,923) | $ (43,042,217) |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 12,152,674 | $ - | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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.
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 168,443 | $ 1,902,931 | | 222,130 | $ 3,085,637 |
Reinvested dividends and distributions | 17,846 | 194,636 | | 49,083 | 705,517 |
Shares repurchased | (331,519) | (3,680,375) | | (216,286) | (2,887,069) |
Net Increase/(Decrease) | (145,230) | $ (1,582,808) | | 54,927 | $ 904,085 |
Class C Shares: | | | | | |
Shares sold | 22,294 | $ 250,762 | | 59,826 | $ 815,647 |
Reinvested dividends and distributions | 4,051 | 43,189 | | 20,592 | 294,979 |
Shares repurchased | (149,786) | (1,631,202) | | (109,948) | (1,416,694) |
Net Increase/(Decrease) | (123,441) | $ (1,337,251) | | (29,530) | $ (306,068) |
Class D Shares: | | | | | |
Shares sold | 260,998 | $ 2,994,705 | | 870,256 | $ 12,510,701 |
Reinvested dividends and distributions | 82,770 | 911,461 | | 222,584 | 3,212,973 |
Shares repurchased | (969,552) | (10,972,276) | | (870,874) | (11,880,745) |
Net Increase/(Decrease) | (625,784) | $ (7,066,110) | | 221,966 | $ 3,842,929 |
Class I Shares: | | | | | |
Shares sold | 8,679,365 | $ 98,540,628 | | 10,806,963 | $149,882,756 |
Reinvested dividends and distributions | 572,151 | 6,302,570 | | 1,919,517 | 27,671,302 |
Shares repurchased | (22,409,036) | (253,224,829) | | (13,943,994) | (187,033,326) |
Net Increase/(Decrease) | (13,157,520) | $(148,381,631) | | (1,217,514) | $ (9,479,268) |
Class N Shares: | | | | | |
Shares sold | 3,125,805 | $ 35,447,260 | | 1,590,545 | $ 21,781,419 |
Reinvested dividends and distributions | 140,563 | 1,540,223 | | 294,697 | 4,241,519 |
Shares repurchased | (1,875,133) | (21,378,968) | | (1,894,627) | (26,457,324) |
Net Increase/(Decrease) | 1,391,235 | $ 15,608,515 | | (9,385) | $ (434,386) |
Class S Shares: | | | | | |
Shares sold | 104,100 | $ 1,150,547 | | 198,787 | $ 2,799,261 |
Reinvested dividends and distributions | 12,723 | 138,053 | | 33,774 | 485,221 |
Shares repurchased | (125,025) | (1,390,476) | | (171,061) | (2,312,928) |
Net Increase/(Decrease) | (8,202) | $ (101,876) | | 61,500 | $ 971,554 |
Class T Shares: | | | | | |
Shares sold | 679,178 | $ 7,718,304 | | 1,502,556 | $ 20,495,414 |
Reinvested dividends and distributions | 149,201 | 1,640,171 | | 448,196 | 6,474,103 |
Shares repurchased | (2,811,852) | (31,735,474) | | (1,912,303) | (26,555,195) |
Net Increase/(Decrease) | (1,983,473) | $ (22,376,999) | | 38,449 | $ 414,322 |
Janus Henderson Global Real Estate Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$372,497,302 | $525,271,291 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 by correspondence with the custodian, transfer agent and broker; when replies were not received from broker, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
November 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Qualified Dividend Income Percentage | 23% |
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 48 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). | 48 | 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). | 48 | 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)
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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). | 48 | 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)
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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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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 | | | | |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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)
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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). | 48 | 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. | 48 | 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). | 48 | 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)
| | | | |
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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Global Real Estate Fund
Notes
NotesPage1
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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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93044 11-23 |
| | | | |
| | | |
| | | ANNUAL REPORT September 30, 2023 |
| | |
| | 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)
| | | | | | |
| | | | | Team-Based Approach Led by Matthew Peron, Director of Centralized Equity Research |
| | | |
PERFORMANCE
The Janus Henderson Global Research Fund Class I Shares returned 25.31% for the 12-month period ended September 30, 2023, while its primary benchmark, the MSCI World IndexSM, returned 21.95%, and its secondary benchmark, the MSCI All Country World IndexSM, returned 20.80%.
INVESTMENT ENVIRONMENT
Global equities rallied in the fourth quarter of 2022 on hopes that moderating inflation might allow central banks to slow their interest rate hikes. Chinese authorities also announced the relaxation of zero COVID-19 policies, which was viewed as a potential positive development for global economic growth. Equities continued to rally in the first half of 2023 despite periods of volatility. While the pace of interest rate increases appeared to moderate, most developed market central banks remained in tightening mode. Equities generally declined in the third quarter of 2023 as investors grew more concerned about the outlook for economic growth, inflation, and interest rates. Hopes for a near-term shift in central bank policies also gave way to a realization that interest rates may remain higher for longer given persistent inflation and rising energy prices. While U.S. economic growth appeared resilient, there were signs of slowing activity in Europe and other markets. A weaker-than-expected recovery in China added to global economic uncertainty. Despite the third-quarter market decline, global stocks still ended the twelve-month performance period with strong positive performance.
PERFORMANCE DISCUSSION
We were pleased that the Fund outperformed both benchmarks for the reporting period. At the same time, our primary focus remains on the long view. We continue to look for opportunities to capitalize on long-term trends that may play out over the next three to five years, creating above-average earnings growth potential for disciplined and innovative companies. To take advantage of these long-term opportunities, we remain focused on what we view to be our strengths: picking stocks and avoiding macroeconomic risks. We continue to rely on the stock-picking expertise of our seven global sector teams that employ a bottom-up, fundamental approach to identify what we consider the best long-term global growth opportunities.
On an individual stock basis, relative contributors included materials companies such as Ferguson, a leading distributor of plumbing and building products to the residential and commercial markets. The company reported solid financial performance, exhibiting resilience in both its revenue growth and margins despite economic headwinds for construction. It continued to gain share and grow at a faster pace than its end markets. Additionally, Ferguson has used its strong free cash flow to return money to shareholders through stock repurchases.
Information technology holding Nvidia was another standout performer. The graphics chipmaker has benefited from its diverse portfolio of new products targeting the gaming and data center markets. In particular, it has experienced accelerating demand for its data center graphics processing units (GPUs), which are in high demand to support generative artificial intelligence (AI) applications. As a result, Nvidia reported revenue growth that well exceeded analyst targets, assisted by surging demand for its products from data centers, cloud service providers, consumer internet companies, and AI startups. Nvidia’s management indicated they expect data center demand to accelerate into 2024, as technology companies rush to deploy AI-related capabilities. Moreover, it reported strength in its gaming business, fueled by robust demand for its RTX 40x Ada Lovelace GPUs.
On a negative note, economic uncertainty pressured equity performance for U.S.-based global spirits company Pernod Ricard, which owns brands such as Absolut Vodka and G.H. Mumm Champagne. While the company’s
Janus Henderson Global Research Fund (unaudited)
financial results have been relatively resilient, the stock sold off in the third quarter after it warned that economic headwinds might dampen beverage sales in the U.S. It also expressed caution about its near-term business outlook in China, given signs of slowing consumer spending. On a positive note, the company reported market share gains in other countries, notably India. We remain invested in Pernod Ricard due to its strong market positioning and diversified product portfolio, as well as the management team’s focus on margin improvement.
Signs of slowing Chinese economic growth also weighed on share price performance for e-commerce retailer JD.com, another detractor. JD.com saw significant market share gains during the pandemic, supported by its differentiated logistics footprint. As China emerged from COVID-19 lockdowns, however, these market share advantages started to narrow. This led the company to announce new advertising and promotional programs that investors worried would narrow its profit margins. Despite near-term uncertainty, we believe JD.com is well positioned within China's retail space, and we continue to own the position.
OUTLOOK
While overall economic growth has remained relatively resilient, we have seen pockets of weakness, especially in manufacturing. This weakness may broaden out, as consumer spending is showing early signs of softening due to higher living costs and the ending of fiscal support. We recognize that we have yet to see the full impact of central bank rate hikes, which can take 18 months to affect the economy. Policymakers have also indicated that we are likely to see an extended period of higher rates with implications for economic growth, corporate earnings, and equity market performance.
Our response to this environment is the same risk-conscious investment approach we have always followed. We continue to seek out companies with high-quality business models, robust cash flow, and proven management teams. We also pay close attention to the quality of corporate balance sheets and capital allocation, favoring companies that continue to reinvest in the business and pursue innovation. Adhering to this fundamentals-driven approach, we are seeking out longer-term secular growth opportunities in sectors such as healthcare and information technology. We remain opportunistic in other sectors, where we can identify improving business models and economic conditions. We also continue to limit exposure to markets, such as China, where we see higher economic and market risks. Through this disciplined, fundamentals-driven investment approach, we will continue to pursue our goal of long-term growth of capital.
Thank you for your investment in Janus Henderson Global Research Fund.
Monetary tightening refers to central bank activity aimed at curbing inflation and slowing down growth in the economy by raising interest rates and reducing the supply of money.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Global Research Fund (unaudited)
Fund At A Glance
September 30, 2023
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| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Ferguson PLC | 1.97% | | 0.70% | | Pernod Ricard SA | 1.78% | | -0.54% |
| NVIDIA Corp | 1.72% | | 0.53% | | JD.Com Inc - Class A | 0.49% | | -0.53% |
| Booking Holdings Inc | 1.14% | | 0.50% | | T-Mobile US Inc | 1.82% | | -0.35% |
| ASML Holding NV | 2.11% | | 0.46% | | Charles Schwab Corp | 0.84% | | -0.33% |
| Vistra Energy Corp | 1.18% | | 0.45% | | Hexagon AB - Class B | 1.04% | | -0.30% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Industrials | | 1.59% | | 17.32% | 17.17% |
| Energy | | 0.91% | | 8.08% | 8.08% |
| Financials | | 0.88% | | 17.82% | 17.74% |
| Technology | | 0.69% | | 19.31% | 19.38% |
| Consumer | | 0.21% | | 15.83% | 15.73% |
| | | | | | |
| | | | | | |
| 3 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Communications | | -0.82% | | 7.94% | 8.25% |
| Other** | | -0.05% | | 0.16% | 0.09% |
| Healthcare | | 0.07% | | 13.54% | 13.55% |
| | | | | | | |
| 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, 2023
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 5.2% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 4.4% |
Alphabet Inc - Class C | |
Interactive Media & Services | 3.0% |
NVIDIA Corp | |
Semiconductor & Semiconductor Equipment | 2.6% |
Amazon.com Inc | |
Multiline Retail | 2.5% |
| | 17.7% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 98.8% | |
Preferred Stocks | | 0.7% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.5% | |
Investment Companies | | 0.1% | |
Private Placements | | 0.0% | |
Warrants | | 0.0% | |
Other | | (0.1)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
Janus Henderson Global Research Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended September 30, 2023 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 24.93% | 7.17% | 8.27% | 8.60% | | | 1.03% |
Class A Shares at MOP | | 17.75% | 5.91% | 7.63% | 8.26% | | | |
Class C Shares at NAV | | 23.99% | 6.45% | 7.53% | 7.81% | | | 1.76% |
Class C Shares at CDSC | | 22.99% | 6.45% | 7.53% | 7.81% | | | |
Class D Shares | | 25.21% | 7.48% | 8.56% | 8.80% | | | 0.75% |
Class I Shares | | 25.31% | 7.56% | 8.65% | 8.87% | | | 0.68% |
Class N Shares | | 25.38% | 7.63% | 8.62% | 8.81% | | | 0.62% |
Class R Shares | | 24.43% | 6.79% | 7.90% | 8.22% | | | 1.39% |
Class S Shares | | 24.76% | 7.10% | 8.19% | 8.44% | | | 1.13% |
Class T Shares | | 25.10% | 7.38% | 8.47% | 8.73% | | | 0.86% |
MSCI World Index | | 21.95% | 7.26% | 8.26% | 6.93% | | | |
MSCI All Country World Index | | 20.80% | 6.46% | 7.56% | 6.65% | | | |
Morningstar Quartile - Class T Shares | | 1st | 2nd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | 65/359 | 90/300 | 108/240 | 33/148 | | | |
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.
Janus Henderson Global 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.
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on August 4, 2017. Performance shown for periods prior to August 4, 2017, reflects the performance for the Fund’s Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers.
Class R Shares commenced operations on March 15, 2013. Performance shown for periods prior to March 15, 2013 reflects the historical performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class R Shares, without the effect of any fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2023 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
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $1,038.80 | $4.50 | | $1,000.00 | $1,020.66 | $4.46 | 0.88% |
Class C Shares | $1,000.00 | $1,034.80 | $8.52 | | $1,000.00 | $1,016.70 | $8.44 | 1.67% |
Class D Shares | $1,000.00 | $1,040.00 | $3.38 | | $1,000.00 | $1,021.76 | $3.35 | 0.66% |
Class I Shares | $1,000.00 | $1,040.40 | $3.07 | | $1,000.00 | $1,022.06 | $3.04 | 0.60% |
Class N Shares | $1,000.00 | $1,040.70 | $2.71 | | $1,000.00 | $1,022.41 | $2.69 | 0.53% |
Class R Shares | $1,000.00 | $1,036.70 | $6.69 | | $1,000.00 | $1,018.50 | $6.63 | 1.31% |
Class S Shares | $1,000.00 | $1,038.10 | $5.31 | | $1,000.00 | $1,019.85 | $5.27 | 1.04% |
Class T Shares | $1,000.00 | $1,039.50 | $3.89 | | $1,000.00 | $1,021.26 | $3.85 | 0.76% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 98.8% | | | |
Aerospace & Defense – 3.0% | | | |
| | Airbus SE | | 224,951 | | | $30,090,355 | |
| | BAE Systems PLC | | 3,561,972 | | | 43,231,174 | |
| | General Dynamics Corp | | 74,958 | | | 16,563,469 | |
| | | 89,884,998 | |
Air Freight & Logistics – 1.1% | | | |
| | United Parcel Service Inc | | 215,556 | | | 33,598,714 | |
Airlines – 0.4% | | | |
| | Ryanair Holdings PLC (ADR)* | | 130,192 | | | 12,655,964 | |
Automobiles – 0.3% | | | |
| | Tesla Inc* | | 36,896 | | | 9,232,117 | |
Banks – 5.9% | | | |
| | Bank of America Corp | | 839,129 | | | 22,975,352 | |
| | BNP Paribas SA | | 470,742 | | | 29,964,703 | |
| | HDFC Bank Ltd | | 822,944 | | | 15,071,210 | |
| | JPMorgan Chase & Co | | 386,644 | | | 56,071,113 | |
| | Natwest Group PLC | | 8,109,750 | | | 23,201,017 | |
| | UniCredit SpA | | 1,080,483 | | | 25,851,629 | |
| | | 173,135,024 | |
Beverages – 4.0% | | | |
| | Constellation Brands Inc - Class A | | 191,235 | | | 48,063,093 | |
| | Monster Beverage Corp | | 559,137 | | | 29,606,304 | |
| | Pernod Ricard SA | | 244,252 | | | 40,652,812 | |
| | | 118,322,209 | |
Biotechnology – 2.0% | | | |
| | Amgen Inc | | 24,939 | | | 6,702,606 | |
| | Argenx SE (ADR)* | | 13,313 | | | 6,545,070 | |
| | Ascendis Pharma A/S (ADR)* | | 56,531 | | | 5,293,563 | |
| | Madrigal Pharmaceuticals Inc* | | 38,340 | | | 5,599,174 | |
| | Sarepta Therapeutics Inc* | | 112,970 | | | 13,694,223 | |
| | Vertex Pharmaceuticals Inc* | | 61,644 | | | 21,436,085 | |
| | | 59,270,721 | |
Capital Markets – 2.9% | | | |
| | Ares Management Corp - Class A | | 18,285 | | | 1,880,978 | |
| | Blackstone Group Inc | | 192,725 | | | 20,648,556 | |
| | Charles Schwab Corp | | 442,798 | | | 24,309,610 | |
| | LPL Financial Holdings Inc | | 85,385 | | | 20,291,745 | |
| | Morgan Stanley | | 227,527 | | | 18,582,130 | |
| | | 85,713,019 | |
Chemicals – 2.9% | | | |
| | Linde PLC | | 156,192 | | | 58,158,091 | |
| | Sherwin-Williams Co | | 104,930 | | | 26,762,396 | |
| | | 84,920,487 | |
Consumer Finance – 1.0% | | | |
| | Capital One Financial Corp | | 205,231 | | | 19,917,669 | |
| | OneMain Holdings Inc | | 235,056 | | | 9,423,395 | |
| | | 29,341,064 | |
Diversified Financial Services – 4.4% | | | |
| | Apollo Global Management Inc | | 243,574 | | | 21,863,202 | |
| | Global Payments Inc | | 124,358 | | | 14,349,670 | |
| | Mastercard Inc | | 126,140 | | | 49,940,087 | |
| | Visa Inc | | 192,314 | | | 44,234,143 | |
| | | 130,387,102 | |
Electric Utilities – 0.2% | | | |
| | NextEra Energy Inc | | 77,893 | | | 4,462,490 | |
Electronic Equipment, Instruments & Components – 0.9% | | | |
| | Hexagon AB - Class B | | 3,154,144 | | | 26,853,397 | |
Entertainment – 2.0% | | | |
| | Liberty Media Corp-Liberty Formula One - Class C* | | 19,148 | | | 614,651 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Global Research Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Entertainment– (continued) | | | |
| | Liberty Media Corp-Liberty Formula One - Series C* | | 483,459 | | | $30,119,496 | |
| | Netflix Inc* | | 47,179 | | | 17,814,790 | |
| | Nexon Co Ltd | | 633,600 | | | 11,249,656 | |
| | | 59,798,593 | |
Health Care Equipment & Supplies – 2.0% | | | |
| | Abbott Laboratories | | 149,655 | | | 14,494,087 | |
| | Boston Scientific Corp* | | 439,882 | | | 23,225,770 | |
| | Edwards Lifesciences Corp* | | 160,564 | | | 11,123,874 | |
| | Stryker Corp | | 37,338 | | | 10,203,355 | |
| | | 59,047,086 | |
Health Care Providers & Services – 1.6% | | | |
| | HCA Healthcare Inc | | 59,411 | | | 14,613,918 | |
| | UnitedHealth Group Inc | | 63,332 | | | 31,931,361 | |
| | | 46,545,279 | |
Hotels, Restaurants & Leisure – 3.1% | | | |
| | Booking Holdings Inc* | | 10,109 | | | 31,175,651 | |
| | Entain PLC | | 1,457,924 | | | 16,591,495 | |
| | McDonald's Corp | | 172,350 | | | 45,403,884 | |
| | | 93,171,030 | |
Independent Power and Renewable Electricity Producers – 1.7% | | | |
| | RWE AG | | 201,205 | | | 7,476,094 | |
| | Vistra Energy Corp | | 1,313,212 | | | 43,572,374 | |
| | | 51,048,468 | |
Insurance – 3.0% | | | |
| | AIA Group Ltd | | 1,851,300 | | | 14,975,767 | |
| | Aon PLC - Class A | | 52,543 | | | 17,035,491 | |
| | Beazley PLC | | 1,494,059 | | | 10,046,837 | |
| | Intact Financial Corp | | 53,181 | | | 7,754,143 | |
| | Progressive Corp/The | | 284,260 | | | 39,597,418 | |
| | | 89,409,656 | |
Interactive Media & Services – 5.0% | | | |
| | Alphabet Inc - Class C* | | 676,335 | | | 89,174,770 | |
| | Meta Platforms Inc - Class A* | | 197,405 | | | 59,262,955 | |
| | | 148,437,725 | |
Life Sciences Tools & Services – 1.2% | | | |
| | Danaher Corp | | 57,694 | | | 14,313,881 | |
| | Thermo Fisher Scientific Inc | | 40,207 | | | 20,351,577 | |
| | | 34,665,458 | |
Machinery – 3.3% | | | |
| | Atlas Copco AB - Class A | | 2,441,479 | | | 32,721,265 | |
| | Deere & Co | | 79,381 | | | 29,956,802 | |
| | Parker-Hannifin Corp | | 86,972 | | | 33,877,333 | |
| | | 96,555,400 | |
Metals & Mining – 2.4% | | | |
| | Freeport-McMoRan Inc | | 479,110 | | | 17,866,012 | |
| | Rio Tinto PLC | | 233,259 | | | 14,650,247 | |
| | Teck Resources Ltd | | 864,001 | | | 37,191,295 | |
| | | 69,707,554 | |
Multiline Retail – 3.0% | | | |
| | Amazon.com Inc* | | 584,583 | | | 74,312,191 | |
| | JD.Com Inc - Class A | | 912,978 | | | 13,270,451 | |
| | | 87,582,642 | |
Oil, Gas & Consumable Fuels – 6.7% | | | |
| | Canadian Natural Resources Ltd | | 524,575 | | | 33,928,774 | |
| | Cheniere Energy Inc | | 74,560 | | | 12,373,978 | |
| | ConocoPhillips | | 270,766 | | | 32,437,767 | |
| | EOG Resources Inc | | 193,684 | | | 24,551,384 | |
| | Marathon Petroleum Corp | | 277,497 | | | 41,996,396 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Oil, Gas & Consumable Fuels– (continued) | | | |
| | Suncor Energy Inc | | 614,643 | | | $21,139,809 | |
| | TC Energy Corp# | | 576,201 | | | 19,817,649 | |
| | TotalEnergies SE | | 202,378 | | | 13,316,131 | |
| | | 199,561,888 | |
Personal Products – 1.9% | | | |
| | Unilever PLC | | 1,133,850 | | | 56,124,068 | |
Pharmaceuticals – 6.0% | | | |
| | AstraZeneca PLC | | 204,788 | | | 27,555,174 | |
| | Catalent Inc* | | 110,704 | | | 5,040,353 | |
| | Eli Lilly & Co | | 30,591 | | | 16,431,344 | |
| | Merck & Co Inc | | 288,246 | | | 29,674,926 | |
| | Novartis AG | | 217,733 | | | 22,224,400 | |
| | Novo Nordisk A/S - Class B | | 281,350 | | | 25,597,774 | |
| | Organon & Co | | 216,841 | | | 3,764,360 | |
| | Roche Holding AG | | 68,690 | | | 18,741,359 | |
| | Sanofi | | 178,703 | | | 19,172,587 | |
| | Zoetis Inc | | 51,290 | | | 8,923,434 | |
| | | 177,125,711 | |
Road & Rail – 0.5% | | | |
| | Uber Technologies Inc* | | 333,112 | | | 15,319,821 | |
Semiconductor & Semiconductor Equipment – 7.4% | | | |
| | Advanced Micro Devices Inc* | | 165,584 | | | 17,025,347 | |
| | ASML Holding NV | | 66,878 | | | 39,267,981 | |
| | Broadcom Inc | | 18,011 | | | 14,959,576 | |
| | Lam Research Corp | | 28,163 | | | 17,651,723 | |
| | Marvell Technology Inc | | 191,463 | | | 10,363,892 | |
| | NVIDIA Corp | | 175,146 | | | 76,186,758 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 1,906,000 | | | 30,935,056 | |
| | Texas Instruments Inc | | 75,531 | | | 12,010,184 | |
| | | 218,400,517 | |
Software – 9.0% | | | |
| | Adobe Inc* | | 39,213 | | | 19,994,709 | |
| | Atlassian Corp - Class A* | | 28,215 | | | 5,685,605 | |
| | Constellation Software Inc/Canada | | 5,441 | | | 11,234,036 | |
| | Microsoft Corp | | 484,935 | | | 153,118,226 | |
| | Palo Alto Networks Inc* | | 67,554 | | | 15,837,360 | |
| | ServiceNow Inc* | | 16,655 | | | 9,309,479 | |
| | Synopsys Inc* | | 66,750 | | | 30,636,247 | |
| | Workday Inc - Class A* | | 94,556 | | | 20,315,357 | |
| | | 266,131,019 | |
Specialty Retail – 1.2% | | | |
| | O'Reilly Automotive Inc* | | 39,433 | | | 35,839,076 | |
Technology Hardware, Storage & Peripherals – 4.4% | | | |
| | Apple Inc | | 762,637 | | | 130,571,081 | |
Textiles, Apparel & Luxury Goods – 1.1% | | | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 28,680 | | | 21,633,985 | |
| | Moncler SpA | | 166,824 | | | 9,682,057 | |
| | | 31,316,042 | |
Trading Companies & Distributors – 1.8% | | | |
| | Ferguson PLC | | 326,133 | | | 53,615,793 | |
Wireless Telecommunication Services – 1.5% | | | |
| | T-Mobile US Inc* | | 325,674 | | | 45,610,644 | |
Total Common Stocks (cost $2,030,795,008) | | 2,923,361,857 | |
Preferred Stocks– 0.7% | | | |
Automobiles – 0.7% | | | |
| | Dr Ing hc F Porsche AG (144A)((cost $17,143,205) | | 213,395 | | | 20,067,403 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Global Research Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Private Placements– 0% | | | |
Health Care Providers & Services – 0% | | | |
| | API Holdings Private Ltd*,¢,§((cost $9,401,252) | | 12,941,830 | | | $754,351 | |
Warrants– 0% | | | |
Software – 0% | | | |
| | Constellation Software Inc/Canada, expires 3/31/40*((cost $0) | | 5,441 | | | 0 | |
Investment Companies– 0.1% | | | |
Money Markets – 0.1% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $2,122,444) | | 2,122,014 | | | 2,122,650 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.5% | | | |
Investment Companies – 0.4% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº,£ | | 12,504,400 | | | 12,504,400 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 5.3100%, 10/2/23 | | $3,126,100 | | | 3,126,100 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $15,630,500) | | 15,630,500 | |
Total Investments (total cost $2,075,092,409) – 100.1% | | 2,961,936,761 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | | (2,446,541) | |
Net Assets – 100% | | $2,959,490,220 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $2,145,406,023 | | 72.4 | % |
France | | 154,830,573 | | 5.2 | |
United Kingdom | | 135,275,944 | | 4.6 | |
Canada | | 131,065,706 | | 4.4 | |
Netherlands | | 95,392,049 | | 3.2 | |
Sweden | | 59,574,662 | | 2.0 | |
Switzerland | | 40,965,759 | | 1.4 | |
Italy | | 35,533,686 | | 1.2 | |
Taiwan | | 30,935,056 | | 1.1 | |
Denmark | | 30,891,337 | | 1.1 | |
Germany | | 27,543,497 | | 0.9 | |
India | | 15,825,561 | | 0.5 | |
Hong Kong | | 14,975,767 | | 0.5 | |
China | | 13,270,451 | | 0.5 | |
Ireland | | 12,655,964 | | 0.4 | |
Japan | | 11,249,656 | | 0.4 | |
Belgium | | 6,545,070 | | 0.2 | |
| | | | | | |
| | | | | | |
Total | | $2,961,936,761 | | 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, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 0.1% |
Money Markets - 0.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 117,655 | $ | 273 | $ | 206 | $ | 2,122,650 |
Investments Purchased with Cash Collateral from Securities Lending - 0.4% |
Investment Companies - 0.4% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 28,759∆ | | - | | - | | 12,504,400 |
Total Affiliated Investments - 0.5% | $ | 146,414 | $ | 273 | $ | 206 | $ | 14,627,050 |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 0.1% |
Money Markets - 0.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 8,553,298 | | 168,035,123 | | (174,466,250) | | 2,122,650 |
Investments Purchased with Cash Collateral from Securities Lending - 0.4% |
Investment Companies - 0.4% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 977,540 | | 156,921,430 | | (145,394,570) | | 12,504,400 |
| | | | | | | | | | |
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 | $ | 14,789,264 | $ | — | $ | (14,789,264) | $ | — |
| | | | | | | | | |
(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, 2023 |
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 |
| | |
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, 2023 is $20,067,403, which represents 0.7% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2023. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2023 is $754,351, 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, 2023) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
API Holdings Private Ltd | 9/27/21 | $ | 9,401,252 | $ | 754,351 | | 0.0 | % |
| | | | | | | | | |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2023. 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, 2023. 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 | $ | 16,563,469 | $ | 73,321,529 | $ | - |
Banks | | 79,046,465 | | 94,088,559 | | - |
Beverages | | 77,669,397 | | 40,652,812 | | - |
Electronic Equipment, Instruments & Components | | - | | 26,853,397 | | - |
Entertainment | | 48,548,937 | | 11,249,656 | | - |
Hotels, Restaurants & Leisure | | 76,579,535 | | 16,591,495 | | - |
Independent Power and Renewable Electricity Producers | | 43,572,374 | | 7,476,094 | | - |
Insurance | | 64,387,052 | | 25,022,604 | | - |
Machinery | | 63,834,135 | | 32,721,265 | | - |
Metals & Mining | | 55,057,307 | | 14,650,247 | | - |
Multiline Retail | | 74,312,191 | | 13,270,451 | | - |
Oil, Gas & Consumable Fuels | | 186,245,757 | | 13,316,131 | | - |
Personal Products | | - | | 56,124,068 | | - |
Pharmaceuticals | | 63,834,417 | | 113,291,294 | | - |
Semiconductor & Semiconductor Equipment | | 148,197,480 | | 70,203,037 | | - |
Textiles, Apparel & Luxury Goods | | - | | 31,316,042 | | - |
Trading Companies & Distributors | | - | | 53,615,793 | | - |
All Other | | 1,231,748,867 | | - | | - |
Preferred Stocks | | - | | 20,067,403 | | - |
Private Placements | | - | | - | | 754,351 |
Warrants | | - | | 0 | | - |
Investment Companies | | - | | 2,122,650 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 15,630,500 | | - |
Total Assets | $ | 2,229,597,383 | $ | 731,585,027 | $ | 754,351 |
| | | | | | | |
Janus Henderson Global Research Fund
Statement of Assets and Liabilities
September 30, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $2,060,465,565)(1) | | $ | 2,947,309,711 | |
| Affiliated investments, at value (cost $14,626,844) | | | 14,627,050 | |
| Trustees' deferred compensation | | | 77,271 | |
| Receivables: | | | | |
| | Investments sold | | | 28,548,855 | |
| | Dividends | | | 1,724,667 | |
| | Foreign tax reclaims | | | 1,643,866 | |
| | Fund shares sold | | | 565,547 | |
| | Dividends from affiliates | | | 11,715 | |
| Other assets | | | 13,493 | |
Total Assets | | | 2,994,522,175 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 15,630,500 | |
| Payables: | | | — | |
| | Investments purchased | | | 16,733,516 | |
| | Advisory fees | | | 1,292,330 | |
| | Fund shares repurchased | | | 545,935 | |
| | Transfer agent fees and expenses | | | 476,148 | |
| | Trustees' deferred compensation fees | | | 77,271 | |
| | Professional fees | | | 62,180 | |
| | Trustees' fees and expenses | | | 15,709 | |
| | Custodian fees | | | 14,882 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 13,014 | |
| | Affiliated fund administration fees payable | | | 6,476 | |
| | Foreign tax liability | | | 2,934 | |
| | Accrued expenses and other payables | | | 161,060 | |
Total Liabilities | | | 35,031,955 | |
Commitments and contingent liabilities (Note 3) | | | | |
Net Assets | | $ | 2,959,490,220 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Research Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,922,591,245 | |
| Total distributable earnings (loss) (includes $2,934 of foreign capital gains tax) | | | 1,036,898,975 | |
Total Net Assets | | $ | 2,959,490,220 | |
Net Assets - Class A Shares | | $ | 19,068,008 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 210,801 | |
Net Asset Value Per Share(2) | | $ | 90.46 | |
Maximum Offering Price Per Share(3) | | $ | 95.98 | |
Net Assets - Class C Shares | | $ | 2,436,649 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 28,176 | |
Net Asset Value Per Share(2) | | $ | 86.48 | |
Net Assets - Class D Shares | | $ | 1,685,915,050 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 18,897,137 | |
Net Asset Value Per Share | | $ | 89.22 | |
Net Assets - Class I Shares | | $ | 119,711,892 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,315,641 | |
Net Asset Value Per Share | | $ | 90.99 | |
Net Assets - Class N Shares | | $ | 36,233,042 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 406,724 | |
Net Asset Value Per Share | | $ | 89.09 | |
Net Assets - Class R Shares | | $ | 6,984,692 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 78,684 | |
Net Asset Value Per Share | | $ | 88.77 | |
Net Assets - Class S Shares | | $ | 16,766,249 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 184,920 | |
Net Asset Value Per Share | | $ | 90.67 | |
Net Assets - Class T Shares | | $ | 1,072,374,638 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,043,070 | |
Net Asset Value Per Share | | $ | 89.04 | |
| |
(1) Includes $14,789,264 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, 2023 |
Janus Henderson Global Research Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 49,576,008 | |
| Dividends from affiliates | | 117,655 | |
| Affiliated securities lending income, net | | 28,759 | |
| Other income | | 338,381 | |
| Foreign tax withheld | | (2,482,856) | |
Total Investment Income | | 47,577,947 | |
Expenses: | | | |
| Advisory fees | | 15,075,513 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 46,565 | |
| | Class C Shares | | 27,889 | |
| | Class R Shares | | 39,256 | |
| | Class S Shares | | 40,616 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,935,699 | |
| | Class R Shares | | 19,673 | |
| | Class S Shares | | 40,618 | |
| | Class T Shares | | 2,633,880 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 19,339 | |
| | Class C Shares | | 2,560 | |
| | Class I Shares | | 79,877 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 1,187 | |
| | Class C Shares | | 146 | |
| | Class D Shares | | 259,776 | |
| | Class I Shares | | 5,893 | |
| | Class N Shares | | 1,420 | |
| | Class R Shares | | 121 | |
| | Class S Shares | | 313 | |
| | Class T Shares | | 11,686 | |
| Shareholder reports expense | | 276,345 | |
| Professional fees | | 145,302 | |
| Registration fees | | 139,942 | |
| Custodian fees | | 109,254 | |
| Affiliated fund administration fees | | 93,281 | |
| Trustees’ fees and expenses | | 70,950 | |
| Other expenses | | 228,545 | |
Total Expenses | | 21,305,646 | |
Less: Excess Expense Reimbursement and Waivers | | (135,523) | |
Net Expenses | | 21,170,123 | |
Net Investment Income/(Loss) | | 26,407,824 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Research Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 126,716,470 | |
| Investments in affiliates | | 273 | |
Total Net Realized Gain/(Loss) on Investments | | 126,716,743 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 468,916,588 | |
| Investments in affiliates | | 206 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 468,916,794 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 622,041,361 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2023 |
Janus Henderson Global Research Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 26,407,824 | | $ | 21,631,736 | |
| Net realized gain/(loss) on investments | | 126,716,743 | | | 109,215,158 | |
| Change in unrealized net appreciation/depreciation | | 468,916,794 | | | (907,116,204) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 622,041,361 | | | (776,269,310) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (728,299) | | | (2,432,950) | |
| | Class C Shares | | (112,458) | | | (478,940) | |
| | Class D Shares | | (67,926,045) | | | (212,599,273) | |
| | Class I Shares | | (4,815,704) | | | (15,452,023) | |
| | Class N Shares | | (1,543,781) | | | (4,330,870) | |
| | Class R Shares | | (332,948) | | | (1,035,016) | |
| | Class S Shares | | (583,254) | | | (2,106,969) | |
| | Class T Shares | | (42,103,204) | | | (139,551,040) | |
Net Decrease from Dividends and Distributions to Shareholders | | (118,145,693) | | | (377,987,081) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (1,356,516) | | | 678,202 | |
| | Class C Shares | | (1,101,199) | | | (32,373) | |
| | Class D Shares | | (24,905,852) | | | 116,945,555 | |
| | Class I Shares | | (739,299) | | | 770,181 | |
| | Class N Shares | | (508,222) | | | 348,344 | |
| | Class R Shares | | (2,628,478) | | | 1,920,902 | |
| | Class S Shares | | (90,079) | | | (3,708,048) | |
| | Class T Shares | | (27,710,401) | | | 33,302,471 | |
Net Increase/(Decrease) from Capital Share Transactions | | (59,040,046) | | | 150,225,234 | |
Net Increase/(Decrease) in Net Assets | | 444,855,622 | | | (1,004,031,157) | |
Net Assets: | | | | | | |
| Beginning of period | | 2,514,634,598 | | | 3,518,665,755 | |
| End of period | $ | 2,959,490,220 | | $ | 2,514,634,598 | |
| | | | | | | | |
| | |
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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $75.40 | | | $110.18 | | | $89.60 | | | $81.67 | | | $85.80 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.62 | | | 0.41 | | | 0.23 | | | 0.31 | | | 0.65 | |
| | Net realized and unrealized gain/(loss) | | 17.74 | | | (23.60) | | | 23.77 | | | 11.47 | | | (0.20) | |
| Total from Investment Operations | | 18.36 | | | (23.19) | | | 24.00 | | | 11.78 | | | 0.45 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.52) | | | (0.16) | | | (0.16) | | | (0.61) | | | (0.46) | |
| | Distributions (from capital gains) | | (2.78) | | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | |
| Total Dividends and Distributions | | (3.30) | | | (11.59) | | | (3.42) | | | (3.85) | | | (4.58) | |
| Net Asset Value, End of Period | | $90.46 | | | $75.40 | | | $110.18 | | | $89.60 | | | $81.67 | |
| Total Return* | | 24.94% | | | (23.60)% | | | 27.28% | | | 14.71% | | | 1.43% | |
| Net Assets, End of Period (in thousands) | | $19,068 | | | $17,175 | | | $24,310 | | | $23,470 | | | $18,247 | |
| Average Net Assets for the Period (in thousands) | | $18,696 | | | $21,901 | | | $24,438 | | | $19,926 | | | $17,274 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 1.03% | | | 1.17% | | | 1.21% | | | 1.32% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.92% | | | 1.03% | | | 1.17% | | | 1.20% | | | 1.16% | |
| | Ratio of Net Investment Income/(Loss) | | 0.71% | | | 0.43% | | | 0.23% | | | 0.37% | | | 0.83% | |
| Portfolio Turnover Rate | | 24% | | | 33% | | | 25% | | | 34% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2023 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $72.28 | | | $106.56 | | | $87.19 | | | $79.50 | | | $83.65 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.02) | | | (0.21) | | | (0.45) | | | (0.22) | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | 17.00 | | | (22.64) | | | 23.08 | | | 11.15 | | | (0.16) | |
| Total from Investment Operations | | 16.98 | | | (22.85) | | | 22.63 | | | 10.93 | | | (0.03) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (2.78) | | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | |
| Total Dividends and Distributions | | (2.78) | | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | |
| Net Asset Value, End of Period | | $86.48 | | | $72.28 | | | $106.56 | | | $87.19 | | | $79.50 | |
| Total Return* | | 23.99% | | | (24.09)% | | | 26.42% | | | 13.98% | | | 0.78% | |
| Net Assets, End of Period (in thousands) | | $2,437 | | | $2,971 | | | $4,491 | | | $5,005 | | | $5,564 | |
| Average Net Assets for the Period (in thousands) | | $2,982 | | | $4,022 | | | $4,880 | | | $5,323 | | | $6,303 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.68% | | | 1.68% | | | 1.85% | | | 1.84% | | | 1.80% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.68% | | | 1.68% | | | 1.85% | | | 1.84% | | | 1.80% | |
| | Ratio of Net Investment Income/(Loss) | | (0.02)% | | | (0.23)% | | | (0.45)% | | | (0.27)% | | | 0.17% | |
| Portfolio Turnover Rate | | 24% | | | 33% | | | 25% | | | 34% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $74.51 | | | $109.10 | | | $88.69 | | | $80.85 | | | $84.93 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.81 | | | 0.68 | | | 0.56 | | | 0.55 | | | 0.88 | |
| | Net realized and unrealized gain/(loss) | | 17.49 | | | (23.29) | | | 23.50 | | | 11.36 | | | (0.21) | |
| Total from Investment Operations | | 18.30 | | | (22.61) | | | 24.06 | | | 11.91 | | | 0.67 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.81) | | | (0.55) | | | (0.39) | | | (0.83) | | | (0.63) | |
| | Distributions (from capital gains) | | (2.78) | | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | |
| Total Dividends and Distributions | | (3.59) | | | (11.98) | | | (3.65) | | | (4.07) | | | (4.75) | |
| Net Asset Value, End of Period | | $89.22 | | | $74.51 | | | $109.10 | | | $88.69 | | | $80.85 | |
| Total Return* | | 25.23% | | | (23.37)% | | | 27.68% | | | 15.06% | | | 1.76% | |
| Net Assets, End of Period (in thousands) | | $1,685,915 | | | $1,424,181 | | | $1,959,177 | | | $1,607,701 | | | $1,493,928 | |
| Average Net Assets for the Period (in thousands) | | $1,655,619 | | | $1,797,317 | | | $1,873,058 | | | $1,511,011 | | | $1,463,525 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.69% | | | 0.75% | | | 0.86% | | | 0.89% | | | 0.83% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.69% | | | 0.75% | | | 0.86% | | | 0.89% | | | 0.83% | |
| | Ratio of Net Investment Income/(Loss) | | 0.94% | | | 0.72% | | | 0.54% | | | 0.68% | | | 1.13% | |
| Portfolio Turnover Rate | | 24% | | | 33% | | | 25% | | | 34% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2023 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $75.93 | | | $110.96 | | | $90.13 | | | $82.10 | | | $86.16 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.89 | | | 0.75 | | | 0.64 | | | 0.63 | | | 0.95 | |
| | Net realized and unrealized gain/(loss) | | 17.83 | | | (23.73) | | | 23.90 | | | 11.54 | | | (0.20) | |
| Total from Investment Operations | | 18.72 | | | (22.98) | | | 24.54 | | | 12.17 | | | 0.75 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.88) | | | (0.62) | | | (0.45) | | | (0.90) | | | (0.69) | |
| | Distributions (from capital gains) | | (2.78) | | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | |
| Total Dividends and Distributions | | (3.66) | | | (12.05) | | | (3.71) | | | (4.14) | | | (4.81) | |
| Net Asset Value, End of Period | | $90.99 | | | $75.93 | | | $110.96 | | | $90.13 | | | $82.10 | |
| Total Return* | | 25.31% | | | (23.33)% | | | 27.78% | | | 15.15% | | | 1.85% | |
| Net Assets, End of Period (in thousands) | | $119,712 | | | $100,359 | | | $145,610 | | | $135,394 | | | $139,584 | |
| Average Net Assets for the Period (in thousands) | | $116,713 | | | $128,292 | | | $145,201 | | | $132,597 | | | $146,672 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.62% | | | 0.68% | | | 0.79% | | | 0.81% | | | 0.74% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.62% | | | 0.68% | | | 0.79% | | | 0.81% | | | 0.74% | |
| | Ratio of Net Investment Income/(Loss) | | 1.01% | | | 0.78% | | | 0.61% | | | 0.76% | | | 1.21% | |
| Portfolio Turnover Rate | | 24% | | | 33% | | | 25% | | | 34% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $74.42 | | | $109.00 | | | $88.60 | | | $80.77 | | | $84.85 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.93 | | | 0.80 | | | 0.69 | | | 0.66 | | | 1.02 | |
| | Net realized and unrealized gain/(loss) | | 17.46 | | | (23.27) | | | 23.48 | | | 11.36 | | | (0.25) | |
| Total from Investment Operations | | 18.39 | | | (22.47) | | | 24.17 | | | 12.02 | | | 0.77 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.94) | | | (0.68) | | | (0.51) | | | (0.95) | | | (0.73) | |
| | Distributions (from capital gains) | | (2.78) | | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | |
| Total Dividends and Distributions | | (3.72) | | | (12.11) | | | (3.77) | | | (4.19) | | | (4.85) | |
| Net Asset Value, End of Period | | $89.09 | | | $74.42 | | | $109.00 | | | $88.60 | | | $80.77 | |
| Total Return* | | 25.40% | | | (23.28)% | | | 27.85% | | | 15.23% | | | 1.91% | |
| Net Assets, End of Period (in thousands) | | $36,233 | | | $30,831 | | | $43,521 | | | $40,607 | | | $31,393 | |
| Average Net Assets for the Period (in thousands) | | $34,675 | | | $37,593 | | | $44,557 | | | $30,617 | | | $37,778 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.56% | | | 0.62% | | | 0.73% | | | 0.76% | | | 0.68% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.56% | | | 0.62% | | | 0.73% | | | 0.76% | | | 0.68% | |
| | Ratio of Net Investment Income/(Loss) | | 1.08% | | | 0.85% | | | 0.67% | | | 0.81% | | | 1.32% | |
| Portfolio Turnover Rate | | 24% | | | 33% | | | 25% | | | 34% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2023 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $74.11 | | | $108.69 | | | $88.57 | | | $80.78 | | | $84.95 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.25 | | | 0.08 | | | (0.10) | | | 0.02 | | | 0.39 | |
| | Net realized and unrealized gain/(loss) | | 17.45 | | | (23.23) | | | 23.48 | | | 11.34 | | | (0.18) | |
| Total from Investment Operations | | 17.70 | | | (23.15) | | | 23.38 | | | 11.36 | | | 0.21 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.26) | | | — | | | — | | | (0.33) | | | (0.26) | |
| | Distributions (from capital gains) | | (2.78) | | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | |
| Total Dividends and Distributions | | (3.04) | | | (11.43) | | | (3.26) | | | (3.57) | | | (4.38) | |
| Net Asset Value, End of Period | | $88.77 | | | $74.11 | | | $108.69 | | | $88.57 | | | $80.78 | |
| Total Return* | | 24.43% | | | (23.87)% | | | 26.87% | | | 14.33% | | | 1.11% | |
| Net Assets, End of Period (in thousands) | | $6,985 | | | $8,123 | | | $9,736 | | | $7,802 | | | $6,574 | |
| Average Net Assets for the Period (in thousands) | | $7,895 | | | $9,507 | | | $8,777 | | | $6,410 | | | $6,232 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.34% | | | 1.39% | | | 1.50% | | | 1.54% | | | 1.47% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.33% | | | 1.39% | | | 1.50% | | | 1.54% | | | 1.47% | |
| | Ratio of Net Investment Income/(Loss) | | 0.29% | | | 0.09% | | | (0.10)% | | | 0.03% | | | 0.50% | |
| Portfolio Turnover Rate | | 24% | | | 33% | | | 25% | | | 34% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $75.58 | | | $110.34 | | | $89.62 | | | $81.85 | | | $85.96 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.50 | | | 0.32 | | | 0.28 | | | 0.27 | | | 0.61 | |
| | Net realized and unrealized gain/(loss) | | 17.78 | | | (23.65) | | | 23.70 | | | 11.48 | | | (0.18) | |
| Total from Investment Operations | | 18.28 | | | (23.33) | | | 23.98 | | | 11.75 | | | 0.43 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.41) | | | — | | | — | | | (0.74) | | | (0.42) | |
| | Distributions (from capital gains) | | (2.78) | | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | |
| Total Dividends and Distributions | | (3.19) | | | (11.43) | | | (3.26) | | | (3.98) | | | (4.54) | |
| Net Asset Value, End of Period | | $90.67 | | | $75.58 | | | $110.34 | | | $89.62 | | | $81.85 | |
| Total Return* | | 24.76% | | | (23.66)% | | | 27.23% | | | 14.66% | | | 1.40% | |
| Net Assets, End of Period (in thousands) | | $16,766 | | | $14,034 | | | $24,088 | | | $131,161 | | | $109,878 | |
| Average Net Assets for the Period (in thousands) | | $16,279 | | | $18,904 | | | $25,744 | | | $128,108 | | | $64,355 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.07% | | | 1.13% | | | 1.21% | | | 1.24% | | | 1.18% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.06% | | | 1.12% | | | 1.21% | | | 1.24% | | | 1.18% | |
| | Ratio of Net Investment Income/(Loss) | | 0.57% | | | 0.33% | | | 0.27% | | | 0.33% | | | 0.77% | |
| Portfolio Turnover Rate | | 24% | | | 33% | | | 25% | | | 34% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
26 | SEPTEMBER 30, 2023 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $74.35 | | | $108.88 | | | $88.54 | | | $80.73 | | | $84.82 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.73 | | | 0.58 | | | 0.45 | | | 0.48 | | | 0.82 | |
| | Net realized and unrealized gain/(loss) | | 17.46 | | | (23.25) | | | 23.47 | | | 11.34 | | | (0.21) | |
| Total from Investment Operations | | 18.19 | | | (22.67) | | | 23.92 | | | 11.82 | | | 0.61 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.72) | | | (0.43) | | | (0.32) | | | (0.77) | | | (0.58) | |
| | Distributions (from capital gains) | | (2.78) | | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | |
| Total Dividends and Distributions | | (3.50) | | | (11.86) | | | (3.58) | | | (4.01) | | | (4.70) | |
| Net Asset Value, End of Period | | $89.04 | | | $74.35 | | | $108.88 | | | $88.54 | | | $80.73 | |
| Total Return* | | 25.10% | | | (23.45)% | | | 27.55% | | | 14.96% | | | 1.67% | |
| Net Assets, End of Period (in thousands) | | $1,072,375 | | | $916,960 | | | $1,307,732 | | | $1,057,492 | | | $1,014,552 | |
| Average Net Assets for the Period (in thousands) | | $1,055,703 | | | $1,173,459 | | | $1,262,884 | | | $1,009,337 | | | $988,429 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.80% | | | 0.86% | | | 0.97% | | | 0.99% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.84% | | | 0.96% | | | 0.99% | | | 0.92% | |
| | Ratio of Net Investment Income/(Loss) | | 0.85% | | | 0.62% | | | 0.44% | | | 0.59% | | | 1.05% | |
| Portfolio Turnover Rate | | 24% | | | 33% | | | 25% | | | 34% | | | 35% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
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 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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Global Research Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Janus Henderson Global Research Fund
Notes to Financial Statements
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal 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, 2023 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, 2023.
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
Janus Henderson Global Research Fund
Notes to Financial Statements
would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
Janus Henderson Global Research Fund
Notes to Financial Statements
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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 Global Research 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, 2023, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $14,789,264. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2023 is $15,630,500, resulting in the net amount due to the counterparty of $841,236.
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-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
Janus Henderson Global Research Fund
Notes to Financial Statements
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 year ended September 30, 2023, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.52%.
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 27, 2023. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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% |
Janus Henderson Global Research Fund
Notes to Financial Statements
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 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, 2023, the Distributor retained upfront sales charges of $537.
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, 2023.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $68.
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
Janus Henderson Global Research Fund
Notes to Financial Statements
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Janus Henderson Global Research Fund
Notes to Financial Statements
As of September 30, 2023, 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 | 40 | | -* | | |
Class R Shares | - | | - | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
* | Less than 0.50% | | | | | |
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, 2023, the Fund engaged in cross trades amounting to $123,041 in sales, resulting in a net realized loss of $16,635. 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 (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.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 26,153,233 | $ 126,400,890 | $ - | $ - | $ (106,638) | $884,451,490 | |
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, 2023 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) |
$ 2,077,482,337 | $972,934,049 | $(88,479,625) | $ 884,454,424 |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 25,733,358 | $ 92,412,335 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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.
Janus Henderson Global Research Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 18,525 | $ 1,621,162 | | 53,979 | $ 5,198,977 |
Reinvested dividends and distributions | 7,278 | 580,764 | | 18,870 | 1,879,233 |
Shares repurchased | (42,788) | (3,558,442) | | (65,698) | (6,400,008) |
Net Increase/(Decrease) | (16,985) | $ (1,356,516) | | 7,151 | $ 678,202 |
Class C Shares: | | | | | |
Shares sold | 3,741 | $ 309,500 | | 4,028 | $ 377,090 |
Reinvested dividends and distributions | 1,365 | 104,747 | | 4,695 | 450,451 |
Shares repurchased | (18,038) | (1,515,446) | | (9,756) | (859,914) |
Net Increase/(Decrease) | (12,932) | $ (1,101,199) | | (1,033) | $ (32,373) |
Class D Shares: | | | | | |
Shares sold | 294,429 | $ 25,186,092 | | 304,275 | $ 28,952,846 |
Reinvested dividends and distributions | 820,842 | 64,493,576 | | 2,058,031 | 202,078,044 |
Shares repurchased | (1,332,932) | (114,585,520) | | (1,204,742) | (114,085,335) |
Net Increase/(Decrease) | (217,661) | $(24,905,852) | | 1,157,564 | $116,945,555 |
Class I Shares: | | | | | |
Shares sold | 233,098 | $ 20,401,299 | | 235,153 | $ 23,460,934 |
Reinvested dividends and distributions | 57,162 | 4,578,707 | | 146,533 | 14,654,763 |
Shares repurchased | (296,326) | (25,719,305) | | (372,248) | (37,345,516) |
Net Increase/(Decrease) | (6,066) | $ (739,299) | | 9,438 | $ 770,181 |
Class N Shares: | | | | | |
Shares sold | 96,026 | $ 8,527,545 | | 78,556 | $ 7,013,474 |
Reinvested dividends and distributions | 19,261 | 1,509,705 | | 42,847 | 4,197,755 |
Shares repurchased | (122,829) | (10,545,472) | | (106,433) | (10,862,885) |
Net Increase/(Decrease) | (7,542) | $ (508,222) | | 14,970 | $ 348,344 |
Class R Shares: | | | | | |
Shares sold | 23,397 | $ 2,021,580 | | 30,052 | $ 2,853,871 |
Reinvested dividends and distributions | 4,237 | 332,948 | | 10,544 | 1,035,016 |
Shares repurchased | (58,553) | (4,983,006) | | (20,573) | (1,967,985) |
Net Increase/(Decrease) | (30,919) | $ (2,628,478) | | 20,023 | $ 1,920,902 |
Class S Shares: | | | | | |
Shares sold | 30,608 | $ 2,692,327 | | 35,285 | $ 3,371,394 |
Reinvested dividends and distributions | 7,276 | 582,768 | | 21,077 | 2,105,395 |
Shares repurchased | (38,660) | (3,365,174) | | (88,978) | (9,184,837) |
Net Increase/(Decrease) | (776) | $ (90,079) | | (32,616) | $ (3,708,048) |
Class T Shares: | | | | | |
Shares sold | 867,419 | $ 75,241,149 | | 588,800 | $ 55,748,125 |
Reinvested dividends and distributions | 527,928 | 41,431,792 | | 1,390,985 | 136,386,095 |
Shares repurchased | (1,685,584) | (144,383,342) | | (1,657,212) | (158,831,749) |
Net Increase/(Decrease) | (290,237) | $(27,710,401) | | 322,573 | $ 33,302,471 |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$703,404,395 | $ 869,519,107 | $ - | $ - |
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.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Global Research Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Global Research Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Global Research Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Global Research Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Global Research Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Global Research Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Global Research Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Global Research Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Global Research Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Global Research Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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 year ended September 30, 2023:
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Capital Gain Distributions | $92,412,335 |
Dividends Received Deduction Percentage | 90% |
Qualified Dividend Income Percentage | 100% |
Janus Henderson Global Research Fund
Trustees and Officers (unaudited)
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years). The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Under the Fund’s Governance Procedures and Guidelines, the policy is for Trustees to retire no later than the end of the calendar year in which the Trustee turns 75. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Fund’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by the Adviser: Janus Aspen Series. Collectively, these two registered investment companies consist of 48 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). | 48 | 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). | 48 | 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). | 48 | 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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). | 48 | 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. | 48 | 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). | 48 | 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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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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93045 11-23 |
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| | | ANNUAL REPORT September 30, 2023 |
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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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Julian McManus Portfolio Manager |
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PERFORMANCE OVERVIEW
The Janus Henderson Global Select Fund Class I Shares returned 20.55% for the 12-month period ended September 30, 2023. The Fund’s benchmark, the MSCI All Country World IndexSM, returned 20.80%.
INVESTMENT ENVIRONMENT
Global equities rallied in the fourth quarter of 2022 on hopes that moderating inflation might allow central banks to slow or potentially end interest rate hikes. Chinese authorities also announced the relaxation of zero-COVID policies, which was viewed as a potential positive development for global economic growth. Equities continued to rally in the first half of 2023 despite periods of volatility. However, while the pace of interest rate increases appeared to moderate, most developed market central banks remained in tightening mode. Equities generally declined in the third quarter of 2023, as investors grew more concerned about the outlook for economic growth, inflation, and interest rates. Hopes for a near-term shift in central bank policies also gave way to a realization that interest rates may remain higher for longer given persistent inflation and rising energy prices. While U.S. economic growth appeared resilient, there were signs of slowing activity in Europe and other markets. A weaker-than-expected recovery in China added to global economic uncertainty. Despite the third-quarter market decline, global stocks still ended the 12-month performance period with strong positive performance.
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 higher returns in a risk-efficient manner by identifying companies whose free-cash-flow growth is underestimated by the market. While the Fund slightly underperformed its benchmark for the period, we believe this approach will work to the benefit of our investors over the long term.
Among individual holdings, our investment in contract drug development and manufacturing services provider Catalent detracted from relative performance. The stock sold off in late 2022, as slowing demand for COVID vaccines reduced revenues from Catalent’s outsourced vaccine manufacturing business. Catalent also warned of short-term operational challenges at several facilities, and it announced the exit of its CFO following some investor communication missteps. Despite these challenges, we have continued to see long-term potential for Catalent’s diversified business model and broader potential applications for its gene therapy manufacturing platform.
Chinese e-commerce retailer JD.Com was another detractor. JD.Com saw significant market share gains during the pandemic, supported by its differentiated logistics footprint. As China emerged from COVID lockdowns, however, these market share advantages started to narrow. This led the company to announce new advertising and promotional programs that investors worried would narrow its profit margins. More recently, fears of a potential slowdown in Chinese consumer spending also weighed on the stock. Despite near-term uncertainty, we believe JD.Com is well positioned within China's retail space, and we continue to own the position.
On a positive note, relative performance benefited from a number of energy holdings. We expect that hydrocarbons will continue to play a role in the world's energy mix, and we remain on the lookout for high-quality energy companies that we believe can deliver strong cash flow growth. These include Marathon Petroleum, an oil refiner that has delivered strong financial performance, aided by higher-than-expected refining profit margins, increased capture rates, better-than-anticipated utilization, and
Janus Henderson Global Select Fund (unaudited)
strong execution trends for its commercial businesses. Investors have also recognized that profit margins may remain higher for longer in the refining market, where capacity is being retired at a faster rate than it is being added. This could create a favorable environment for advantaged operators such as Marathon. The company has also been very disciplined in its capital allocation, returning capital to shareholders through dividend payments and stock buybacks.
Pulte Homes was another positive contributor, as higher borrowing costs failed to dent strong U.S. demand for the homebuilder’s product. We are optimistic about the long-term outlook for housing demand and pricing in the U.S., given demographic trends and structural undersupply. We have also continued to view Pulte favorably due to its market positioning and disciplined management team.
OUTLOOK
As we look ahead, we recognize that interest rates may remain higher for longer than investors had hoped at the start of the year with implications for economic growth, corporate earnings, and equity market performance. Inflation has continued to exceed policymakers’ target levels, keeping the central banks in Europe and the U.S. in tightening mode. The Bank of Japan is also starting to relax its yield curve controls, which could lead to higher rates. While this environment may lead to increased volatility, we believe it could provide a rich environment for fundamentals-driven stock selection and future relative investment returns. Our portfolio positioning reflects our long-held view that free cash flow and disciplined capital allocation will ultimately drive investment returns.
We continue to identify compelling pockets of opportunity around the world where we believe the potential for free-cash-flow growth is underestimated in a market distracted by macroeconomic considerations. We look to capitalize on these opportunities as we seek out companies with healthy balance sheets, expanding revenues and cash flows, sustainable earnings growth, and reasonable valuations. We believe this strategy will help the Fund weather near-term market volatility as it pursues long-term capital appreciation.
Thank you for your continued investment in Janus Henderson Global Select Fund.
Monetary tightening refers to central bank activity aimed at curbing inflation and slowing down growth in the economy by raising interest rates and reducing the supply of money.
Monetary Policy refers to the policies of a central bank, aimed at influencing the level of inflation and growth in an economy. It includes controlling interest rates and the supply of money.
Excess Return indicates the extent to which an investment out- or underperformed an index.
A yield curve plots the yields (interest rate) of bonds with equal credit quality but differing maturity dates. Typically bonds with longer maturities have higher yields.
Volatility measures risk using the dispersion of returns for a given investment.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Global Select Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| PulteGroup Inc | 2.34% | | 1.64% | | NRG Energy Inc | 1.23% | | -1.54% |
| Marathon Petroleum Corp | 3.79% | | 1.28% | | JD.Com Inc - Class A | 1.78% | | -1.37% |
| Vistra Energy Corp | 1.83% | | 0.90% | | Catalent Inc | 0.57% | | -0.81% |
| Teck Resources Ltd | 3.38% | | 0.76% | | Entain PLC | 2.34% | | -0.81% |
| Ferguson PLC | 2.16% | | 0.72% | | Fidelity National Information Services Inc | 0.59% | | -0.76% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | 1.53% | | 6.01% | 5.14% |
| Consumer Discretionary | | 1.31% | | 15.40% | 11.00% |
| Industrials | | 0.73% | | 12.03% | 10.25% |
| Consumer Staples | | 0.66% | | 5.22% | 7.48% |
| Materials | | 0.63% | | 5.47% | 4.78% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | -3.37% | | 15.15% | 21.00% |
| Communication Services | | -1.19% | | 7.29% | 7.21% |
| Health Care | | -0.41% | | 13.50% | 12.45% |
| Other** | | -0.29% | | 1.46% | 0.00% |
| Financials | | -0.04% | | 15.43% | 15.33% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
** | Not a GICS classified sector. |
Janus Henderson Global Select Fund (unaudited)
Fund At A Glance
September 30, 2023
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 5.5% |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 4.3% |
Marathon Petroleum Corp | |
Oil, Gas & Consumable Fuels | 3.9% |
BAE Systems PLC | |
Aerospace & Defense | 3.7% |
Teck Resources Ltd | |
Metals & Mining | 3.5% |
| | 20.9% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.7% | |
Investment Companies | | 2.3% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.7% | |
Private Placements | | 0.0% | |
Other | | (0.7)% |
| | | 100.0% |
Emerging markets comprised 7.3% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
Janus Henderson Global Select Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2023 | | | 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 | | 20.26% | 6.93% | 8.09% | 4.29% | | | 1.04% | 1.04% |
Class A Shares at MOP | | 13.38% | 5.66% | 7.45% | 4.03% | | | | |
Class C Shares at NAV | | 19.24% | 6.01% | 7.18% | 3.47% | | | 2.25% | 1.89% |
Class C Shares at CDSC | | 18.24% | 6.01% | 7.18% | 3.47% | | | | |
Class D Shares | | 20.49% | 7.16% | 8.28% | 4.43% | | | 0.82% | 0.82% |
Class I Shares | | 20.55% | 7.22% | 8.37% | 4.48% | | | 0.77% | 0.77% |
Class N Shares | | 20.67% | 7.33% | 8.36% | 4.45% | | | 0.69% | 0.69% |
Class R Shares | | 19.62% | 6.33% | 7.54% | 3.82% | | | 3.67% | 1.58% |
Class S Shares | | 19.96% | 6.61% | 7.82% | 4.10% | | | 3.97% | 1.33% |
Class T Shares | | 20.46% | 7.08% | 8.21% | 4.39% | | | 0.92% | 0.92% |
MSCI All Country World Index | | 20.80% | 6.46% | 7.56% | 4.96% | | | | |
Morningstar Quartile - Class T Shares | | 2nd | 1st | 1st | 4th | | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | 141/368 | 62/320 | 41/247 | 75/90 | | | | |
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.
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.
© 2023 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 August 1, 2023, Julian McManus is Lead Portfolio Manager.
*The Fund’s inception date – June 30, 2000
‡ As stated in the prospectus. Net expense ratios reflect the expense waiver, if any, contractually agreed to for at least a one-year period commencing on January 27, 2023. This contractual waiver may be terminated or modified only at the discretion of the Board of Trustees. 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $997.00 | $5.16 | | $1,000.00 | $1,019.90 | $5.22 | 1.03% |
Class C Shares | $1,000.00 | $993.70 | $9.10 | | $1,000.00 | $1,015.94 | $9.20 | 1.82% |
Class D Shares | $1,000.00 | $998.20 | $4.11 | | $1,000.00 | $1,020.96 | $4.15 | 0.82% |
Class I Shares | $1,000.00 | $998.80 | $4.01 | | $1,000.00 | $1,021.06 | $4.05 | 0.80% |
Class N Shares | $1,000.00 | $999.40 | $3.41 | | $1,000.00 | $1,021.66 | $3.45 | 0.68% |
Class R Shares | $1,000.00 | $995.10 | $7.75 | | $1,000.00 | $1,017.30 | $7.84 | 1.55% |
Class S Shares | $1,000.00 | $996.40 | $6.46 | | $1,000.00 | $1,018.60 | $6.53 | 1.29% |
Class T Shares | $1,000.00 | $998.20 | $4.51 | | $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 Global Select Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 97.7% | | | |
Aerospace & Defense – 3.7% | | | |
| | BAE Systems PLC | | 7,041,575 | | | $85,462,646 | |
Banks – 6.9% | | | |
| | BNP Paribas SA | | 733,014 | | | 46,659,415 | |
| | Erste Group Bank AG | | 706,932 | | | 24,417,725 | |
| | HDFC Bank Ltd | | 1,059,130 | | | 19,396,666 | |
| | Natwest Group PLC | | 6,430,673 | | | 18,397,380 | |
| | Permanent TSB Group Holdings PLC* | | 6,409,239 | | | 14,575,034 | |
| | UniCredit SpA | | 1,451,559 | | | 34,729,991 | |
| | | 158,176,211 | |
Beverages – 2.3% | | | |
| | Heineken NV | | 232,910 | | | 20,485,708 | |
| | Monster Beverage Corp | | 631,438 | | | 33,434,642 | |
| | | 53,920,350 | |
Biotechnology – 3.9% | | | |
| | Argenx SE (ADR)* | | 51,798 | | | 25,465,451 | |
| | Immunogen Inc* | | 1,328,458 | | | 21,082,628 | |
| | Madrigal Pharmaceuticals Inc* | | 26,813 | | | 3,915,771 | |
| | Sarepta Therapeutics Inc* | | 135,061 | | | 16,372,094 | |
| | Vaxcyte Inc* | | 449,081 | | | 22,894,149 | |
| | | 89,730,093 | |
Capital Markets – 2.1% | | | |
| | Morgan Stanley | | 597,640 | | | 48,809,259 | |
Chemicals – 1.2% | | | |
| | Sherwin-Williams Co | | 109,748 | | | 27,991,227 | |
Commercial Services & Supplies – 0.2% | | | |
| | Secom Co Ltd | | 51,600 | | | 3,499,707 | |
Containers & Packaging – 1.0% | | | |
| | Crown Holdings Inc | | 263,889 | | | 23,348,899 | |
Diversified Telecommunication Services – 3.4% | | | |
| | Deutsche Telekom AG | | 3,735,425 | | | 78,431,043 | |
Electronic Equipment, Instruments & Components – 3.0% | | | |
| | Hexagon AB - Class B | | 4,456,194 | | | 37,938,644 | |
| | Keyence Corp | | 81,300 | | | 30,220,926 | |
| | | 68,159,570 | |
Entertainment – 2.4% | | | |
| | Liberty Media Corp-Liberty Formula One - Series C* | | 894,802 | | | 55,746,165 | |
Health Care Providers & Services – 1.0% | | | |
| | Humana Inc | | 46,326 | | | 22,538,526 | |
Hotels, Restaurants & Leisure – 5.3% | | | |
| | Caesars Entertainment Inc* | | 170,792 | | | 7,916,209 | |
| | Chipotle Mexican Grill Inc* | | 37,703 | | | 69,065,486 | |
| | Entain PLC | | 3,964,808 | | | 45,120,384 | |
| | | 122,102,079 | |
Household Durables – 0.6% | | | |
| | PulteGroup Inc | | 185,538 | | | 13,739,089 | |
Independent Power and Renewable Electricity Producers – 3.0% | | | |
| | Vistra Energy Corp | | 2,075,797 | | | 68,874,944 | |
Insurance – 5.8% | | | |
| | AIA Group Ltd | | 4,361,600 | | | 35,282,398 | |
| | Beazley PLC | | 3,942,880 | | | 26,513,994 | |
| | Dai-ichi Life Holdings Inc | | 2,786,600 | | | 57,984,894 | |
| | WR Berkley Corp | | 205,380 | | | 13,039,576 | |
| | | 132,820,862 | |
Interactive Media & Services – 2.1% | | | |
| | Alphabet Inc - Class A* | | 362,158 | | | 47,391,996 | |
Machinery – 1.2% | | | |
| | Deere & Co | | 32,534 | | | 12,277,681 | |
| | Wabtec Corp | | 151,041 | | | 16,051,127 | |
| | | 28,328,808 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Global Select Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Metals & Mining – 3.5% | | | |
| | Teck Resources Ltd | | 1,867,725 | | | $80,397,028 | |
Multiline Retail – 4.3% | | | |
| | Amazon.com Inc* | | 525,146 | | | 66,756,560 | |
| | JD.Com Inc - Class A | | 2,270,326 | | | 32,999,973 | |
| | | 99,756,533 | |
Oil, Gas & Consumable Fuels – 6.8% | | | |
| | Canadian Natural Resources Ltd# | | 1,029,969 | | | 66,608,095 | |
| | Marathon Petroleum Corp | | 593,074 | | | 89,755,819 | |
| | | 156,363,914 | |
Personal Products – 2.0% | | | |
| | Unilever PLC | | 949,646 | | | 46,855,548 | |
Pharmaceuticals – 7.2% | | | |
| | AstraZeneca PLC | | 397,244 | | | 53,451,020 | |
| | Bayer AG | | 474,890 | | | 22,805,791 | |
| | Catalent Inc* | | 468,590 | | | 21,334,903 | |
| | Merck & Co Inc | | 449,732 | | | 46,299,909 | |
| | Organon & Co | | 1,228,529 | | | 21,327,263 | |
| | | 165,218,886 | |
Road & Rail – 0.7% | | | |
| | Full Truck Alliance Co (ADR)* | | 2,441,097 | | | 17,185,323 | |
Semiconductor & Semiconductor Equipment – 7.7% | | | |
| | ASML Holding NV | | 76,862 | | | 45,130,171 | |
| | Lam Research Corp | | 51,715 | | | 32,413,411 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 6,113,000 | | | 99,216,157 | |
| | | 176,759,739 | |
Software – 7.6% | | | |
| | Microsoft Corp | | 400,660 | | | 126,508,395 | |
| | Workday Inc - Class A* | | 221,317 | | | 47,549,957 | |
| | | 174,058,352 | |
Specialty Retail – 2.2% | | | |
| | TJX Cos Inc | | 576,517 | | | 51,240,831 | |
Textiles, Apparel & Luxury Goods – 3.8% | | | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 26,301 | | | 19,839,451 | |
| | PRADA SpA | | 1,551,300 | | | 9,075,319 | |
| | Samsonite International SA (144A)* | | 16,989,300 | | | 58,138,074 | |
| | | 87,052,844 | |
Trading Companies & Distributors – 2.8% | | | |
| | Ferguson PLC | | 398,005 | | | 65,459,882 | |
Total Common Stocks (cost $1,797,854,144) | | 2,249,420,354 | |
Private Placements– 0% | | | |
Software – 0% | | | |
| | Magic Leap Inc - Class A private equity common shares*,¢,§((cost $9,254,547) | | 19,041 | | | 0 | |
Investment Companies– 2.3% | | | |
Money Markets – 2.3% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $53,366,765) | | 53,356,818 | | | 53,372,825 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.7% | | | |
Investment Companies – 0.6% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº,£ | | 12,781,962 | | | 12,781,962 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 5.3100%, 10/2/23 | | $3,195,491 | | | 3,195,491 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $15,977,453) | | 15,977,453 | |
Total Investments (total cost $1,876,452,909) – 100.7% | | 2,318,770,632 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.7)% | | (17,003,982) | |
Net Assets – 100% | | $2,301,766,650 | |
| | |
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, 2023
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $1,162,486,676 | | 50.1 | % |
United Kingdom | | 275,800,972 | | 11.9 | |
Canada | | 147,005,123 | | 6.3 | |
Germany | | 101,236,834 | | 4.4 | |
Taiwan | | 99,216,157 | | 4.3 | |
Hong Kong | | 93,420,472 | | 4.0 | |
Japan | | 91,705,527 | | 4.0 | |
France | | 66,498,866 | | 2.9 | |
Netherlands | | 65,615,879 | | 2.8 | |
China | | 50,185,296 | | 2.2 | |
Italy | | 43,805,310 | | 1.9 | |
Sweden | | 37,938,644 | | 1.6 | |
Belgium | | 25,465,451 | | 1.1 | |
Austria | | 24,417,725 | | 1.1 | |
India | | 19,396,666 | | 0.8 | |
Ireland | | 14,575,034 | | 0.6 | |
| | | | | | |
| | | | | | |
Total | | $2,318,770,632 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Global Select Fund
Schedule of Investments
September 30, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 2.3% |
Money Markets - 2.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 1,389,031 | $ | 4,746 | $ | 3,231 | $ | 53,372,825 |
Investments Purchased with Cash Collateral from Securities Lending - 0.6% |
Investment Companies - 0.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 22,312∆ | | - | | - | | 12,781,962 |
Total Affiliated Investments - 2.9% | $ | 1,411,343 | $ | 4,746 | $ | 3,231 | $ | 66,154,787 |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 2.3% |
Money Markets - 2.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 28,298,020 | | 414,939,132 | | (389,872,304) | | 53,372,825 |
Investments Purchased with Cash Collateral from Securities Lending - 0.6% |
Investment Companies - 0.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 13,167,540 | | 80,232,249 | | (80,617,827) | | 12,781,962 |
| | |
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, 2023
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 15,307,583 | $ | — | $ | (15,307,583) | $ | — |
| | | | | | | | | |
(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, 2023 |
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, 2023 is $58,138,074, which represents 2.5% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2023. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2023 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, 2023) |
| | | | | | | | 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, 2023. 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, 2023. 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 | $ | - | $ | 85,462,646 | $ | - |
Banks | | - | | 158,176,211 | | - |
Beverages | | 33,434,642 | | 20,485,708 | | - |
Commercial Services & Supplies | | - | | 3,499,707 | | - |
Diversified Telecommunication Services | | - | | 78,431,043 | | - |
Electronic Equipment, Instruments & Components | | - | | 68,159,570 | | - |
Hotels, Restaurants & Leisure | | 76,981,695 | | 45,120,384 | | - |
Insurance | | 13,039,576 | | 119,781,286 | | - |
Multiline Retail | | 66,756,560 | | 32,999,973 | | - |
Personal Products | | - | | 46,855,548 | | - |
Pharmaceuticals | | 88,962,075 | | 76,256,811 | | - |
Semiconductor & Semiconductor Equipment | | 32,413,411 | | 144,346,328 | | - |
Textiles, Apparel & Luxury Goods | | - | | 87,052,844 | | - |
All Other | | 971,204,336 | | - | | - |
Private Placements | | - | | - | | 0 |
Investment Companies | | - | | 53,372,825 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 15,977,453 | | - |
Total Assets | $ | 1,282,792,295 | $ | 1,035,978,337 | $ | 0 |
| | | | | | | |
Janus Henderson Global Select Fund
Statement of Assets and Liabilities
September 30, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $1,810,304,182)(1) | | $ | 2,252,615,845 | |
| Affiliated investments, at value (cost $66,148,727) | | | 66,154,787 | |
| Trustees' deferred compensation | | | 60,112 | |
| Receivables: | | | | |
| | Investments sold | | | 10,344,098 | |
| | Fund shares sold | | | 2,225,363 | |
| | Dividends | | | 1,807,841 | |
| | Foreign tax reclaims | | | 648,979 | |
| | Dividends from affiliates | | | 136,516 | |
| Other assets | | | 8,150 | |
Total Assets | | | 2,334,001,691 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 15,977,453 | |
| Payables: | | | — | |
| | Investments purchased | | | 11,676,975 | |
| | Fund shares repurchased | | | 2,598,282 | |
| | Advisory fees | | | 1,288,003 | |
| | Transfer agent fees and expenses | | | 356,743 | |
| | Trustees' deferred compensation fees | | | 60,112 | |
| | Professional fees | | | 54,885 | |
| | Custodian fees | | | 52,967 | |
| | Trustees' fees and expenses | | | 12,389 | |
| | Affiliated fund administration fees payable | | | 5,033 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 2,312 | |
| | Accrued expenses and other payables | | | 149,887 | |
Total Liabilities | | | 32,235,041 | |
Commitments and contingent liabilities (Note 3) | | | | |
Net Assets | | $ | 2,301,766,650 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Select Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,664,483,193 | |
| Total distributable earnings (loss) | | | 637,283,457 | |
Total Net Assets | | $ | 2,301,766,650 | |
Net Assets - Class A Shares | | $ | 7,207,001 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 433,525 | |
Net Asset Value Per Share(2) | | $ | 16.62 | |
Maximum Offering Price Per Share(3) | | $ | 17.63 | |
Net Assets - Class C Shares | | $ | 721,277 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 46,092 | |
Net Asset Value Per Share(2) | | $ | 15.65 | |
Net Assets - Class D Shares | | $ | 1,673,252,640 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 101,340,466 | |
Net Asset Value Per Share | | $ | 16.51 | |
Net Assets - Class I Shares | | $ | 53,550,035 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,232,283 | |
Net Asset Value Per Share | | $ | 16.57 | |
Net Assets - Class N Shares | | $ | 44,845,185 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,712,197 | |
Net Asset Value Per Share | | $ | 16.53 | |
Net Assets - Class R Shares | | $ | 147,259 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,047 | |
Net Asset Value Per Share | | $ | 16.28 | |
Net Assets - Class S Shares | | $ | 153,581 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,235 | |
Net Asset Value Per Share | | $ | 16.63 | |
Net Assets - Class T Shares | | $ | 521,889,672 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 31,540,705 | |
Net Asset Value Per Share | | $ | 16.55 | |
| |
(1) Includes $15,307,583 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, 2023 |
Janus Henderson Global Select Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: |
| Dividends | $ | 47,365,189 | |
| Dividends from affiliates | | 1,389,031 | |
| Affiliated securities lending income, net | | 22,312 | |
| Unaffiliated securities lending income, net | | 4,469 | |
| Other income | | 452,933 | |
| Foreign tax withheld | | (2,893,742) | |
Total Investment Income | | 46,340,192 | |
Expenses: | | | |
| Advisory fees | | 14,761,789 | |
| 12b-1 Distribution and shareholder servicing fees: |
| | Class A Shares | | 17,119 | |
| | Class C Shares | | 9,289 | |
| | Class R Shares | | 716 | |
| | Class S Shares | | 442 | |
| Transfer agent administrative fees and expenses: | | |
| | Class D Shares | | 1,982,816 | |
| | Class R Shares | | 363 | |
| | Class S Shares | | 441 | |
| | Class T Shares | | 1,311,283 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 4,192 | |
| | Class C Shares | | 573 | |
| | Class I Shares | | 53,170 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 460 | |
| | Class C Shares | | 56 | |
| | Class D Shares | | 361,649 | |
| | Class I Shares | | 2,337 | |
| | Class N Shares | | 1,457 | |
| | Class R Shares | | 20 | |
| | Class S Shares | | 13 | |
| | Class T Shares | | 6,929 | |
| Shareholder reports expense | | 342,849 | |
| Custodian fees | | 202,567 | |
| Professional fees | | 144,135 | |
| Registration fees | | 137,291 | |
| Affiliated fund administration fees | | 74,374 | |
| Trustees’ fees and expenses | | 56,407 | |
| Other expenses | | 181,099 | |
Total Expenses | | 19,653,836 | |
Less: Excess Expense Reimbursement and Waivers | | (92,421) | |
Net Expenses | | 19,561,415 | |
Net Investment Income/(Loss) | | 26,778,777 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Select Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | |
| Investments and foreign currency transactions | $ | 182,421,955 | |
| Investments in affiliates | | 4,746 | |
Total Net Realized Gain/(Loss) on Investments | 182,426,701 | |
Change in Unrealized Net Appreciation/Depreciation: |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 192,493,467 | |
| Investments in affiliates | | 3,231 | |
Total Change in Unrealized Net Appreciation/Depreciation | 192,496,698 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 401,702,176 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2023 |
Janus Henderson Global Select Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 26,778,777 | | $ | 24,554,338 | |
| Net realized gain/(loss) on investments | | 182,426,701 | | | 47,140,551 | |
| Change in unrealized net appreciation/depreciation | 192,496,698 | | | (513,007,900) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | 401,702,176 | | | (441,313,011) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (163,306) | | | (826,160) | |
| | Class C Shares | | (26,138) | | | (68,065) | |
| | Class D Shares | | (45,052,612) | | | (220,714,191) | |
| | Class I Shares | | (1,110,286) | | | (2,697,365) | |
| | Class N Shares | | (953,930) | | | (3,114,836) | |
| | Class R Shares | | (2,679) | | | (16,669) | |
| | Class S Shares | | (4,436) | | | (15,445) | |
| | Class T Shares | | (13,349,721) | | | (68,619,381) | |
Net Decrease from Dividends and Distributions to Shareholders | (60,663,108) | | | (296,072,112) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 644,726 | | | 637,559 | |
| | Class C Shares | | 5,509 | | | 170,165 | |
| | Class D Shares | | (39,756,740) | | | 131,997,273 | |
| | Class I Shares | | 25,203,189 | | | 9,202,478 | |
| | Class N Shares | | 19,804,704 | | | 2,920,908 | |
| | Class R Shares | | 5,706 | | | 41,900 | |
| | Class S Shares | | 46,779 | | | (23,685) | |
| | Class T Shares | | (7,044,205) | | | 34,360,785 | |
Net Increase/(Decrease) from Capital Share Transactions | (1,090,332) | | | 179,307,383 | |
Net Increase/(Decrease) in Net Assets | | 339,948,736 | | | (558,077,740) | |
Net Assets: | | | | | | |
| Beginning of period | | 1,961,817,914 | | | 2,519,895,654 | |
| End of period | $ | 2,301,766,650 | | $ | 1,961,817,914 | |
| | | | | | | | |
| | |
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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $14.17 | | | $19.70 | | | $15.56 | | | $15.01 | | | $17.64 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.16 | | | 0.14 | | | 0.10 | | | 0.10 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | 2.69 | | | (3.38) | | | 4.91 | | | 1.10 | | | (0.58) | |
| Total from Investment Operations | | 2.85 | | | (3.24) | | | 5.01 | | | 1.20 | | | (0.44) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.11) | | | (0.10) | | | (0.12) | | | (0.13) | | | (0.06) | |
| | Distributions (from capital gains) | | (0.29) | | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | |
| Total Dividends and Distributions | | (0.40) | | | (2.29) | | | (0.87) | | | (0.65) | | | (2.19) | |
| Net Asset Value, End of Period | | $16.62 | | | $14.17 | | | $19.70 | | | $15.56 | | | $15.01 | |
| Total Return* | | 20.26% | | | (18.45)% | | | 32.96% | | | 7.96% | | | (0.72)% | |
| Net Assets, End of Period (in thousands) | | $7,207 | | | $5,582 | | | $7,039 | | | $5,788 | | | $5,380 | |
| Average Net Assets for the Period (in thousands) | | $6,859 | | | $6,759 | | | $6,717 | | | $5,354 | | | $4,885 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.04% | | | 1.04% | | | 1.03% | | | 1.06% | | | 1.08% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.04% | | | 1.04% | | | 1.03% | | | 1.06% | | | 1.08% | |
| | Ratio of Net Investment Income/(Loss) | | 0.95% | | | 0.83% | | | 0.56% | | | 0.70% | | | 0.97% | |
| Portfolio Turnover Rate | | 46% | | | 56% | | | 37% | | | 31% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2023 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $13.42 | | | $18.82 | | | $14.92 | | | $14.42 | | | $17.10 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.01 | | | —(2) | | | (0.06) | | | (0.04) | | | —(2) | |
| | Net realized and unrealized gain/(loss) | | 2.56 | | | (3.21) | | | 4.71 | | | 1.06 | | | (0.55) | |
| Total from Investment Operations | | 2.57 | | | (3.21) | | | 4.65 | | | 1.02 | | | (0.55) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (0.29) | | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | |
| Total Dividends and Distributions | | (0.34) | | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | |
| Net Asset Value, End of Period | | $15.65 | | | $13.42 | | | $18.82 | | | $14.92 | | | $14.42 | |
| Total Return* | | 19.24% | | | (19.14)% | | | 31.84% | | | 7.00% | | | (1.55)% | |
| Net Assets, End of Period (in thousands) | | $721 | | | $564 | | | $586 | | | $676 | | | $1,197 | |
| Average Net Assets for the Period (in thousands) | | $908 | | | $609 | | | $650 | | | $1,005 | | | $1,534 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.10% | | | 2.16% | | | 2.14% | | | 2.01% | | | 1.94% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.93% | | | 1.87% | | | 1.88% | | | 1.91% | | | 1.94% | |
| | Ratio of Net Investment Income/(Loss) | | 0.07% | | | 0.02% | | | (0.33)% | | | (0.26)% | | | (0.01)% | |
| Portfolio Turnover Rate | | 46% | | | 56% | | | 37% | | | 31% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $14.09 | | | $19.60 | | | $15.47 | | | $14.93 | | | $17.55 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.19 | | | 0.18 | | | 0.14 | | | 0.13 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 2.67 | | | (3.36) | | | 4.88 | | | 1.10 | | | (0.57) | |
| Total from Investment Operations | | 2.86 | | | (3.18) | | | 5.02 | | | 1.23 | | | (0.40) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.15) | | | (0.14) | | | (0.14) | | | (0.17) | | | (0.09) | |
| | Distributions (from capital gains) | | (0.29) | | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | |
| Total Dividends and Distributions | | (0.44) | | | (2.33) | | | (0.89) | | | (0.69) | | | (2.22) | |
| Net Asset Value, End of Period | | $16.51 | | | $14.09 | | | $19.60 | | | $15.47 | | | $14.93 | |
| Total Return* | | 20.49% | | | (18.25)% | | | 33.28% | | | 8.18% | | | (0.51)% | |
| Net Assets, End of Period (in thousands) | | $1,673,253 | | | $1,459,358 | | | $1,876,374 | | | $1,494,051 | | | $1,493,415 | |
| Average Net Assets for the Period (in thousands) | | $1,695,783 | | | $1,787,127 | | | $1,803,402 | | | $1,455,934 | | | $1,479,323 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.83% | | | 0.82% | | | 0.82% | | | 0.84% | | | 0.85% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.83% | | | 0.82% | | | 0.82% | | | 0.84% | | | 0.85% | |
| | Ratio of Net Investment Income/(Loss) | | 1.18% | | | 1.04% | | | 0.77% | | | 0.91% | | | 1.15% | |
| Portfolio Turnover Rate | | 46% | | | 56% | | | 37% | | | 31% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2023 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $14.15 | | | $19.68 | | | $15.53 | | | $14.99 | | | $17.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.20 | | | 0.19 | | | 0.16 | | | 0.14 | | | 0.19 | |
| | Net realized and unrealized gain/(loss) | | 2.68 | | | (3.38) | | | 4.89 | | | 1.10 | | | (0.58) | |
| Total from Investment Operations | | 2.88 | | | (3.19) | | | 5.05 | | | 1.24 | | | (0.39) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.17) | | | (0.15) | | | (0.15) | | | (0.18) | | | (0.10) | |
| | Distributions (from capital gains) | | (0.29) | | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | |
| Total Dividends and Distributions | | (0.46) | | | (2.34) | | | (0.90) | | | (0.70) | | | (2.23) | |
| Net Asset Value, End of Period | | $16.57 | | | $14.15 | | | $19.68 | | | $15.53 | | | $14.99 | |
| Total Return* | | 20.55% | | | (18.23)% | | | 33.31% | | | 8.25% | | | (0.39)% | |
| Net Assets, End of Period (in thousands) | | $53,550 | | | $24,004 | | | $22,347 | | | $14,853 | | | $17,024 | |
| Average Net Assets for the Period (in thousands) | | $45,935 | | | $22,980 | | | $19,681 | | | $16,194 | | | $16,875 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.80% | | | 0.77% | | | 0.77% | | | 0.78% | | | 0.80% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | | | 0.77% | | | 0.77% | | | 0.78% | | | 0.80% | |
| | Ratio of Net Investment Income/(Loss) | | 1.24% | | | 1.12% | | | 0.83% | | | 0.91% | | | 1.27% | |
| Portfolio Turnover Rate | | 46% | | | 56% | | | 37% | | | 31% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $14.11 | | | $19.64 | | | $15.50 | | | $14.96 | | | $17.58 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.21 | | | 0.20 | | | 0.17 | | | 0.14 | | | 0.19 | |
| | Net realized and unrealized gain/(loss) | | 2.68 | | | (3.37) | | | 4.88 | | | 1.12 | | | (0.56) | |
| Total from Investment Operations | | 2.89 | | | (3.17) | | | 5.05 | | | 1.26 | | | (0.37) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.18) | | | (0.17) | | | (0.16) | | | (0.20) | | | (0.12) | |
| | Distributions (from capital gains) | | (0.29) | | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | |
| Total Dividends and Distributions | | (0.47) | | | (2.36) | | | (0.91) | | | (0.72) | | | (2.25) | |
| Net Asset Value, End of Period | | $16.53 | | | $14.11 | | | $19.64 | | | $15.50 | | | $14.96 | |
| Total Return* | | 20.69% | | | (18.21)% | | | 33.41% | | | 8.38% | | | (0.28)% | |
| Net Assets, End of Period (in thousands) | | $44,845 | | | $21,395 | | | $26,130 | | | $24,271 | | | $37,810 | |
| Average Net Assets for the Period (in thousands) | | $35,705 | | | $25,204 | | | $27,543 | | | $29,294 | | | $31,647 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.69% | | | 0.69% | | | 0.68% | | | 0.68% | | | 0.69% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.69% | | | 0.69% | | | 0.68% | | | 0.68% | | | 0.69% | |
| | Ratio of Net Investment Income/(Loss) | | 1.26% | | | 1.18% | | | 0.90% | | | 0.97% | | | 1.32% | |
| Portfolio Turnover Rate | | 46% | | | 56% | | | 37% | | | 31% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2023 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $13.88 | | | $19.36 | | | $15.29 | | | $14.76 | | | $17.39 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.07 | | | 0.05 | | | —(2) | | | 0.01 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 2.64 | | | (3.31) | | | 4.82 | | | 1.08 | | | (0.55) | |
| Total from Investment Operations | | 2.71 | | | (3.26) | | | 4.82 | | | 1.09 | | | (0.50) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.02) | | | (0.03) | | | — | | | (0.04) | | | — | |
| | Distributions (from capital gains) | | (0.29) | | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | |
| Total Dividends and Distributions | | (0.31) | | | (2.22) | | | (0.75) | | | (0.56) | | | (2.13) | |
| Net Asset Value, End of Period | | $16.28 | | | $13.88 | | | $19.36 | | | $15.29 | | | $14.76 | |
| Total Return* | | 19.62% | | | (18.89)% | | | 32.19% | | | 7.29% | | | (1.21)% | |
| Net Assets, End of Period (in thousands) | | $147 | | | $120 | | | $123 | | | $107 | | | $188 | |
| Average Net Assets for the Period (in thousands) | | $145 | | | $135 | | | $118 | | | $170 | | | $198 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 3.49% | | | 3.67% | | | 3.94% | | | 3.20% | | | 2.95% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.58% | | | 1.62% | | | 1.60% | | | 1.63% | | | 1.63% | |
| | Ratio of Net Investment Income/(Loss) | | 0.44% | | | 0.27% | | | (0.02)% | | | 0.05% | | | 0.37% | |
| Portfolio Turnover Rate | | 46% | | | 56% | | | 37% | | | 31% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $14.21 | | | $19.71 | | | $15.57 | | | $15.02 | | | $17.74 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.13 | | | 0.08 | | | 0.03 | | | 0.06 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | 2.69 | | | (3.39) | | | 4.93 | | | 1.09 | | | (0.58) | |
| Total from Investment Operations | | 2.82 | | | (3.31) | | | 4.96 | | | 1.15 | | | (0.48) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.11) | | | — | | | (0.07) | | | (0.08) | | | (0.11) | |
| | Distributions (from capital gains) | | (0.29) | | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | |
| Total Dividends and Distributions | | (0.40) | | | (2.19) | | | (0.82) | | | (0.60) | | | (2.24) | |
| Net Asset Value, End of Period | | $16.63 | | | $14.21 | | | $19.71 | | | $15.57 | | | $15.02 | |
| Total Return* | | 19.96% | | | (18.75)% | | | 32.57% | | | 7.61% | | | (0.97)% | |
| Net Assets, End of Period (in thousands) | | $154 | | | $82 | | | $139 | | | $227 | | | $248 | |
| Average Net Assets for the Period (in thousands) | | $176 | | | $108 | | | $189 | | | $231 | | | $234 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.88% | | | 3.97% | | | 2.76% | | | 2.48% | | | 2.47% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.32% | | | 1.37% | | | 1.36% | | | 1.37% | | | 1.36% | |
| | Ratio of Net Investment Income/(Loss) | | 0.76% | | | 0.42% | | | 0.16% | | | 0.38% | | | 0.66% | |
| Portfolio Turnover Rate | | 46% | | | 56% | | | 37% | | | 31% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
26 | SEPTEMBER 30, 2023 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $14.11 | | | $19.63 | | | $15.50 | | | $14.96 | | | $17.57 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.17 | | | 0.13 | | | 0.12 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 2.68 | | | (3.37) | | | 4.88 | | | 1.10 | | | (0.57) | |
| Total from Investment Operations | | 2.86 | | | (3.20) | | | 5.01 | | | 1.22 | | | (0.41) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.13) | | | (0.13) | | | (0.16) | | | (0.07) | |
| | Distributions (from capital gains) | | (0.29) | | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | |
| Total Dividends and Distributions | | (0.42) | | | (2.32) | | | (0.88) | | | (0.68) | | | (2.20) | |
| Net Asset Value, End of Period | | $16.55 | | | $14.11 | | | $19.63 | | | $15.50 | | | $14.96 | |
| Total Return* | | 20.46% | | | (18.36)% | | | 33.15% | | | 8.08% | | | (0.54)% | |
| Net Assets, End of Period (in thousands) | | $521,890 | | | $450,713 | | | $587,159 | | | $464,956 | | | $484,175 | |
| Average Net Assets for the Period (in thousands) | | $525,581 | | | $554,055 | | | $561,617 | | | $464,019 | | | $481,731 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.93% | | | 0.92% | | | 0.92% | | | 0.92% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.92% | |
| | Ratio of Net Investment Income/(Loss) | | 1.10% | | | 0.96% | | | 0.68% | | | 0.83% | | | 1.08% | |
| Portfolio Turnover Rate | | 46% | | | 56% | | | 37% | | | 31% | | | 30% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 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 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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Global Select Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Janus Henderson Global Select Fund
Notes to Financial Statements
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal 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, 2023 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, 2023.
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
Janus Henderson Global Select Fund
Notes to Financial Statements
would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
Janus Henderson Global Select Fund
Notes to Financial Statements
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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.
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
Janus Henderson Global Select Fund
Notes to Financial Statements
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 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, 2023, securities lending transactions accounted for as secured borrowings with an overnight and
Janus Henderson Global Select Fund
Notes to Financial Statements
continuous contractual maturity are $15,307,583. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2023 is $15,977,453, resulting in the net amount due to the counterparty of $669,870.
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%.
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 0.81% 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 27, 2023. The previous expense limit (for the one-year period commencing January 28, 2022) 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 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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 Global Select 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 0.12%.
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 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, 2023, the Distributor retained upfront sales charges of $430.
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 Global Select Fund
Notes to Financial Statements
no CDSCs paid by redeeming shareholders of Class A Shares to the Distributor during the year ended September 30, 2023.
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, 2023.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Janus Henderson Global Select Fund
Notes to Financial Statements
As of September 30, 2023, 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 | 39 | | 1 | | |
Class R Shares | - | | - | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
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, 2023, the Fund engaged in cross trades amounting to $3,557,886 in purchases.
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 33,509,954 | $ 166,232,022 | $ - | $ - | $ (102,157) | $437,643,638 | |
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, 2023 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships, and investments in passive foreign investment companies.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 1,881,126,994 | $520,887,921 | $(83,244,283) | $ 437,643,638 |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 20,543,574 | $ 40,119,534 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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. Capital has been adjusted by $5,787,900, including $4,825,404 of long-term capital gain, for distributions in connection with Fund shares redemption (tax equalization).
Janus Henderson Global Select Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 80,704 | $ 1,328,104 | | 45,159 | $ 797,321 |
Reinvested dividends and distributions | 9,502 | 149,282 | | 43,875 | 750,710 |
Shares repurchased | (50,543) | (832,660) | | (52,420) | (910,472) |
Net Increase/(Decrease) | 39,663 | $ 644,726 | | 36,614 | $ 637,559 |
Class C Shares: | | | | | |
Shares sold | 74,415 | $ 1,098,950 | | 12,911 | $ 201,178 |
Reinvested dividends and distributions | 1,755 | 26,138 | | 4,173 | 68,065 |
Shares repurchased | (72,079) | (1,119,579) | | (6,217) | (99,078) |
Net Increase/(Decrease) | 4,091 | $ 5,509 | | 10,867 | $ 170,165 |
Class D Shares: | | | | | |
Shares sold | 1,654,234 | $ 27,075,294 | | 1,789,338 | $ 30,973,256 |
Reinvested dividends and distributions | 2,806,176 | 43,720,218 | | 12,616,979 | 214,236,297 |
Shares repurchased | (6,718,088) | (110,552,252) | | (6,550,382) | (113,212,280) |
Net Increase/(Decrease) | (2,257,678) | $(39,756,740) | | 7,855,935 | $131,997,273 |
Class I Shares: | | | | | |
Shares sold | 2,342,406 | $ 38,641,008 | | 700,589 | $ 11,575,199 |
Reinvested dividends and distributions | 69,568 | 1,087,351 | | 151,400 | 2,581,372 |
Shares repurchased | (876,389) | (14,525,170) | | (291,023) | (4,954,093) |
Net Increase/(Decrease) | 1,535,585 | $ 25,203,189 | | 560,966 | $ 9,202,478 |
Class N Shares: | | | | | |
Shares sold | 2,016,480 | $ 33,584,548 | | 217,485 | $ 3,531,454 |
Reinvested dividends and distributions | 61,189 | 953,930 | | 183,226 | 3,114,836 |
Shares repurchased | (881,218) | (14,733,774) | | (215,725) | (3,725,382) |
Net Increase/(Decrease) | 1,196,451 | $ 19,804,704 | | 184,986 | $ 2,920,908 |
Class R Shares: | | | | | |
Shares sold | 823 | $ 13,430 | | 1,868 | $ 33,827 |
Reinvested dividends and distributions | 171 | 2,646 | | 977 | 16,461 |
Shares repurchased | (628) | (10,370) | | (510) | (8,388) |
Net Increase/(Decrease) | 366 | $ 5,706 | | 2,335 | $ 41,900 |
Class S Shares: | | | | | |
Shares sold | 5,689 | $ 85,581 | | 187 | $ 3,213 |
Reinvested dividends and distributions | 282 | 4,436 | | 897 | 15,445 |
Shares repurchased | (2,538) | (43,238) | | (2,324) | (42,343) |
Net Increase/(Decrease) | 3,433 | $ 46,779 | | (1,240) | $ (23,685) |
Class T Shares: | | | | | |
Shares sold | 2,593,195 | $ 42,785,906 | | 2,015,918 | $ 35,089,015 |
Reinvested dividends and distributions | 836,147 | 13,060,618 | | 3,930,772 | 66,901,743 |
Shares repurchased | (3,829,027) | (62,890,729) | | (3,922,873) | (67,629,973) |
Net Increase/(Decrease) | (399,685) | $ (7,044,205) | | 2,023,817 | $ 34,360,785 |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$1,039,691,839 | $1,102,316,420 | $ - | $ - |
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.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Global Select Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Global Select Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Global Select Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Global Select Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Global Select Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Global Select Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Global Select Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Global Select Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Global Select Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Global Select Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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 Select Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned, and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid, and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected.
The reinvestment of dividends and distributions is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
Janus Henderson Global Select Fund
Useful Information About Your Fund Report (unaudited)
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Henderson Global Select Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2023:
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Capital Gain Distributions | $44,944,938 |
Dividends Received Deduction Percentage | 51% |
Qualified Dividend Income Percentage | 98% |
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 48 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). | 48 | 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). | 48 | 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)
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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). | 48 | 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)
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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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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 | | | | |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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)
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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). | 48 | 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)
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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. | 48 | 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). | 48 | 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)
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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 |
Julian McManus 151 Detroit Street Denver, CO 80206 DOB: 1970 | Executive Vice President and Portfolio Manager
Janus Henderson Global Select Fund | 1/18-Present | Lead 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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93046 11-23 |
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| | | ANNUAL REPORT September 30, 2023 |
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| | Janus Henderson Global Sustainable Equity 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 Sustainable Equity Fund
Janus Henderson Global Sustainable Equity Fund (unaudited)
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Aaron Scully co-portfolio manager | 
Hamish Chamberlayne co-portfolio manager |
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PERFORMANCE OVERVIEW
The Janus Henderson Global Sustainable Equity Fund I Shares returned 18.10% for the 12-month period ended September 30, 2023, underperforming its benchmark, the MSCI World IndexSM, which returned 21.95%.
INVESTMENT ENVIRONMENT
Global equities finished the period higher despite spells of considerable volatility along the way.
After the more cyclical sector strength of late 2022, secular growth stocks outperformed at the start of 2023 as signs of cooling inflation sparked hopes that interest rates may be approaching a peak. Information technology (IT) stocks were especially strong, helped by better-than-feared earnings from many major companies, including semiconductor firms. At the end of the first quarter of 2023, financial markets were rocked by turmoil within parts of the banking sector.
Equity markets soon brushed off March’s banking crisis, and the rally in secular growth shares continued. By this stage, optimism regarding artificial intelligence (AI) had built considerably, and perceived beneficiaries of this trend – most notably semiconductor firms and technology companies with AI investments – led the market higher. Meanwhile, the U.S. economy’s surprising resilience led to growing hopes for an economic soft landing. The global outlook, however, remained uncertain, as inflation proved stickier in Europe, and China’s emergence from lockdowns failed to spark a strong recovery.
Toward period-end, the prospect of a longer wait for interest rate cuts sent U.S. Treasury yields higher. This saw equities give back some of their gains, but the 12-month period was still a strong environment for equities and growth stocks, in particular. Indeed, equity market returns during the year were dominated by a small group of mega-cap growth stocks. This was reflected in the sector rankings, which technology and communication services topped by some distance. Elsewhere, energy stocks also outperformed as oil prices rallied beyond $90 per barrel, once again toward the end of the period. At the other end, the rate-sensitive real estate and utilities sectors were weakest, while consumer staples shares suffered from the rotation out of defensive sectors.
Many of the sustainable investment themes that we follow were weaker than expected, especially as we got further into 2023. Higher interest rates, inflation, and policy uncertainty weighed on the pace of renewable energy development. Real estate and construction markets were slow, and many industrial markets related to electrification and digitalization came under pressure. Despite these challenges, we retained a constructive outlook and noted the remarkable progress made in recent years. Trends such as reshoring and the transition to renewables currently enjoy almost universal support from major governments, and we expect these trends to accelerate.
PERFORMANCE DISCUSSION
Key detractors from relative performance over the period included productivity software firm Atlassian and renewable energy developers Boralex and Innergex.
Atlassian shares fell sharply in October 2022 after the firm cut forward guidance for the first time since its initial public offering (IPO). Management attributed the weaker growth to fewer free accounts upgrading to paid and slower growth from existing customers due to hiring freezes. We later sold the position as we were concerned about the company’s use of stock-based compensation and felt that there were better risk-reward opportunities elsewhere.
Janus Henderson Global Sustainable Equity Fund (unaudited)
Boralex and Innergex underperformed as higher Treasury yields weighed on utilities and renewable energy companies more broadly. As leading developers and operators of renewable energy assets, both companies, we believe, stand to benefit from the global energy transition and supportive renewables legislation. We expect policy incentives – including the U.S. Inflation Reduction Act and the European Union's Green Deal – to drive new business and potentially lead to better project economics.
Notable contributors over the period included water services company Evoqua and semiconductor firms Nvidia and Lam Research.
Nvidia shares benefited from optimism regarding the company’s growth opportunities in AI, where the company's graphic processing units, developer tools, and partnerships set the standard. Nvidia also reported stronger-than-expected earnings and forward guidance on more than one occasion. Nvidia's long-term growth opportunities continue to excite us given the array of applications that its technologies enable.
Lam Research benefited from similar tailwinds to Nvidia. Lam also provided higher-than-expected quarterly revenue guidance in July due to increased demand relating to AI applications. Nearly every advanced semiconductor chip utilizes the company’s technology. As a result, Lam underpins the application of connectivity, advanced computing, and AI technology to everything from medical technology to connected vehicles.
Evoqua outperformed after Xylem agreed to buy the company in an all-stock transaction. We believe Evoqua to be an excellent complementary fit to Xylem. Xylem is a leader in moving water, while Evoqua is a leader in treating water, ensuring the water is free from contamination. The takeover broadens Xylem’s product offerings, expands its geographic and end-market footprint, and provides revenue and cost synergies. We continue to hold Xylem shares.
OUTLOOK
Although inflation has been peaking, central banks remain hawkish, and the pace of monetary tightening and its expected duration is casting a shadow over the economy. Looking past resilient employment statistics, cracks in the economy are becoming increasingly hard to ignore. Corporate bankruptcies in the U.S. are now at a level similar to that seen in 2008. The bottom 80% of U.S. households by income now have savings that are below where they were prior to the pandemic. German construction permits have not been this low since the Global Financial Crisis. Buyers of newly issued U.S. Treasuries that have been funding fiscal deficits are becoming scarce.
Our job as portfolio managers is to worry about the things that can go wrong and to build a portfolio that will be resilient in the face of these potential macro risks. Due to our bias of owning cash-generative companies with strong balance sheets, we believe we have built a portfolio of companies that should be able to take advantage of economic downturns by investing more in their businesses and coming out of the economic downturn stronger relative to competitors. While the COVID-19-induced recession was rather short in duration, we saw evidence of our owned companies reinvesting in their businesses and being in much better competitive positions than at the beginning of the pandemic. In addition, our bias is to own companies with indispensable products and services and higher recurring revenue rates. These factors should contribute to a more resilient portfolio in the face of an economic downturn.
Despite the current macroeconomic challenges, our outlook remains positive. While there may seem to be a lull in many of the trends we are focused on, we believe this is a short-term, transitional phase. We see a lot of underlying foundational progress in reshoring manufacturing in key clean tech industries, such as batteries and semiconductors, the electrification of transportation, greening buildings, decarbonizing electricity, and transforming industry. Additionally, we continue to follow our proven investment process, identifying companies exposed to these growth trends, focusing on cash flow generation, strong balance sheets, financial resilience, and exercising valuation discipline.
Thank you for your continued investment in the Global Sustainability Equity Fund.
Monetary tightening refers to central bank activity aimed at curbing inflation and slowing down growth in the economy by raising interest rates and reducing the supply of money.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-
Janus Henderson Global Sustainable Equity Fund (unaudited)
traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Global Sustainable Equity Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| NVIDIA Corp | 3.12% | | 2.32% | | Boralex Inc - Class A | 2.01% | | -1.41% |
| Lam Research Corp | 1.89% | | 0.71% | | Innergex Renewable Energy Inc | 1.32% | | -1.07% |
| Evoqua Water Technologies Corp | 1.09% | | 0.57% | | Atlassian Corp - Class A | 0.70% | | -0.79% |
| Schneider Electric SE | 2.60% | | 0.52% | | Shimano Inc | 1.70% | | -0.69% |
| Encompass Health Corp | 2.00% | | 0.47% | | Humana Inc | 3.01% | | -0.67% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | 1.08% | | 8.56% | 13.49% |
| Consumer Staples | | 1.04% | | 0.46% | 7.61% |
| Industrials | | 0.50% | | 17.54% | 10.74% |
| Materials | | 0.27% | | 1.87% | 4.31% |
| Real Estate | | -0.07% | | 3.29% | 2.53% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Utilities | | -1.81% | | 5.42% | 2.93% |
| Communication Services | | -1.53% | | 3.62% | 6.89% |
| Financials | | -1.08% | | 16.04% | 14.52% |
| Other** | | -0.42% | | 2.28% | 0.00% |
| Information Technology | | -0.39% | | 34.49% | 21.12% |
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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, 2023
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5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 7.0% |
NVIDIA Corp | |
Semiconductor & Semiconductor Equipment | 4.1% |
Wabtec Corp | |
Machinery | 3.6% |
Humana Inc | |
Health Care Providers & Services | 3.1% |
Xylem Inc/NY | |
Machinery | 2.8% |
| | 20.6% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.7% | |
Investment Companies | | 2.5% | |
Other | | (0.2)% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
Janus Henderson Global Sustainable Equity 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, 2023 | | | Prospectus Expense Ratios |
| | One
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 17.98% | 6.79% | | | 3.31% | 1.17% |
Class A Shares at MOP | | 11.22% | 4.87% | | | | |
Class C Shares at NAV | | 18.02% | 6.82% | | | 6.64% | 1.89% |
Class C Shares at CDSC | | 17.02% | 6.82% | | | | |
Class D Shares | | 18.16% | 6.88% | | | 1.71% | 1.01% |
Class I Shares | | 18.10% | 6.94% | | | 1.57% | 0.92% |
Class N Shares | | 18.33% | 7.03% | | | 1.73% | 0.86% |
Class R Shares | | 18.21% | 6.81% | | | 8.24% | 1.61% |
Class S Shares | | 18.20% | 6.85% | | | 6.62% | 1.36% |
Class T Shares | | 18.08% | 6.78% | | | 2.25% | 1.11% |
MSCI World Index | | 21.95% | 10.08% | | | | |
Morningstar Quartile - Class I Shares | | 3rd | 2nd | | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | 244/359 | 96/331 | | | | |
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.
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.
© 2023 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 waiver, if any, contractually agreed to for at least a one-year period commencing on January 27, 2023. This contractual waiver may be terminated or modified only at the discretion of the Board of Trustees. 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.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $976.80 | $5.90 | | $1,000.00 | $1,019.10 | $6.02 | 1.19% |
Class C Shares | $1,000.00 | $976.80 | $5.90 | | $1,000.00 | $1,019.10 | $6.02 | 1.19% |
Class D Shares | $1,000.00 | $977.70 | $4.96 | | $1,000.00 | $1,020.05 | $5.06 | 1.00% |
Class I Shares | $1,000.00 | $977.60 | $5.01 | | $1,000.00 | $1,020.00 | $5.11 | 1.01% |
Class N Shares | $1,000.00 | $977.70 | $4.21 | | $1,000.00 | $1,020.81 | $4.31 | 0.85% |
Class R Shares | $1,000.00 | $977.60 | $4.66 | | $1,000.00 | $1,020.36 | $4.76 | 0.94% |
Class S Shares | $1,000.00 | $977.50 | $4.71 | | $1,000.00 | $1,020.31 | $4.81 | 0.95% |
Class T Shares | $1,000.00 | $976.90 | $5.30 | | $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 Global Sustainable Equity Fund
Schedule of Investments
September 30, 2023
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Shares
| | | Value | |
Common Stocks– 97.7% | | | |
Auto Components – 1.7% | | | |
| | Aptiv PLC* | | 4,835 | | | $476,683 | |
Banks – 1.0% | | | |
| | HDFC Bank Ltd (ADR) | | 4,555 | | | 268,791 | |
Building Products – 1.3% | | | |
| | Advanced Drainage Systems Inc | | 3,134 | | | 356,743 | |
Capital Markets – 0.9% | | | |
| | S&P Global Inc | | 704 | | | 257,249 | |
Containers & Packaging – 1.7% | | | |
| | DS Smith PLC | | 136,686 | | | 477,171 | |
Diversified Financial Services – 4.0% | | | |
| | Mastercard Inc | | 1,822 | | | 721,348 | |
| | Walker & Dunlop Inc | | 5,277 | | | 391,764 | |
| | | 1,113,112 | |
Electric Utilities – 2.0% | | | |
| | SSE PLC | | 27,473 | | | 538,241 | |
Electrical Equipment – 6.3% | | | |
| | Legrand SA | | 7,703 | | | 706,859 | |
| | nVent Electric PLC | | 5,687 | | | 301,354 | |
| | Schneider Electric SE | | 4,493 | | | 740,627 | |
| | | 1,748,840 | |
Electronic Equipment, Instruments & Components – 10.0% | | | |
| | IPG Photonics Corp* | | 4,171 | | | 423,523 | |
| | Keyence Corp | | 1,100 | | | 408,893 | |
| | Keysight Technologies Inc* | | 2,638 | | | 349,034 | |
| | Murata Manufacturing Co Ltd | | 26,100 | | | 477,063 | |
| | Shimadzu Corp | | 17,300 | | | 459,501 | |
| | TE Connectivity Ltd | | 5,340 | | | 659,650 | |
| | | 2,777,664 | |
Entertainment – 1.1% | | | |
| | Nintendo Co Ltd | | 7,500 | | | 312,494 | |
Food Products – 0.4% | | | |
| | McCormick & Co Inc/MD | | 1,533 | | | 115,956 | |
Health Care Equipment & Supplies – 1.4% | | | |
| | Nanosonics Ltd* | | 26,842 | | | 72,542 | |
| | Olympus Corp | | 24,400 | | | 316,170 | |
| | | 388,712 | |
Health Care Providers & Services – 5.3% | | | |
| | Encompass Health Corp | | 9,085 | | | 610,149 | |
| | Humana Inc | | 1,782 | | | 866,979 | |
| | | 1,477,128 | |
Independent Power and Renewable Electricity Producers – 2.5% | | | |
| | Boralex Inc - Class A | | 20,661 | | | 443,920 | |
| | Innergex Renewable Energy Inc | | 33,833 | | | 253,355 | |
| | | 697,275 | |
Industrial Real Estate Investment Trusts (REITs) – 1.1% | | | |
| | Prologis Inc | | 2,765 | | | 310,261 | |
Insurance – 12.4% | | | |
| | AIA Group Ltd | | 62,400 | | | 504,774 | |
| | Aon PLC - Class A | | 2,234 | | | 724,307 | |
| | Intact Financial Corp | | 5,093 | | | 742,593 | |
| | Marsh & McLennan Cos Inc | | 3,792 | | | 721,618 | |
| | Progressive Corp/The | | 5,411 | | | 753,752 | |
| | | 3,447,044 | |
Leisure Products – 1.5% | | | |
| | Shimano Inc | | 3,000 | | | 405,137 | |
Life Sciences Tools & Services – 2.8% | | | |
| | ICON PLC* | | 3,170 | | | 780,612 | |
Machinery – 8.4% | | | |
| | Knorr-Bremse AG | | 8,582 | | | 545,689 | |
| | |
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, 2023
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Machinery– (continued) | | | |
| | Wabtec Corp | | 9,327 | | | $991,180 | |
| | Xylem Inc/NY | | 8,635 | | | 786,044 | |
| | | 2,322,913 | |
Professional Services – 1.8% | | | |
| | Wolters Kluwer NV | | 4,149 | | | 502,399 | |
Semiconductor & Semiconductor Equipment – 11.7% | | | |
| | ASML Holding NV | | 807 | | | 473,837 | |
| | Infineon Technologies AG | | 11,457 | | | 379,918 | |
| | Lam Research Corp | | 985 | | | 617,368 | |
| | NVIDIA Corp | | 2,622 | | | 1,140,544 | |
| | Texas Instruments Inc | | 3,903 | | | 620,616 | |
| | | 3,232,283 | |
Software – 11.8% | | | |
| | Autodesk Inc* | | 2,480 | | | 513,137 | |
| | Cadence Design Systems Inc* | | 2,081 | | | 487,578 | |
| | Microsoft Corp | | 6,175 | | | 1,949,756 | |
| | Workday Inc - Class A* | | 1,426 | | | 306,376 | |
| | | 3,256,847 | |
Specialized Real Estate Investment Trusts (REITs) – 1.5% | | | |
| | Crown Castle International Corp | | 1,361 | | | 125,253 | |
| | Equinix Inc | | 400 | | | 290,504 | |
| | | 415,757 | |
Specialty Retail – 1.2% | | | |
| | Home Depot Inc | | 1,049 | | | 316,966 | |
Textiles, Apparel & Luxury Goods – 1.8% | | | |
| | adidas AG | | 1,391 | | | 244,871 | |
| | NIKE Inc - Class B | | 2,542 | | | 243,066 | |
| | | 487,937 | |
Wireless Telecommunication Services – 2.1% | | | |
| | T-Mobile US Inc* | | 4,215 | | | 590,311 | |
Total Common Stocks (cost $25,103,895) | | 27,074,526 | |
Investment Companies– 2.5% | | | |
Money Markets – 2.5% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $694,933) | | 694,812 | | | 695,021 | |
Total Investments (total cost $25,798,828) – 100.2% | | 27,769,547 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.2)% | | (52,498) | |
Net Assets – 100% | | $27,717,049 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Global Sustainable Equity Fund
Schedule of Investments
September 30, 2023
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $17,714,090 | | 63.8 | % |
Japan | | 2,379,258 | | 8.6 | |
France | | 1,447,486 | | 5.2 | |
Canada | | 1,439,868 | | 5.2 | |
Germany | | 1,170,478 | | 4.2 | |
United Kingdom | | 1,015,412 | | 3.6 | |
Netherlands | | 976,236 | | 3.5 | |
Ireland | | 780,612 | | 2.8 | |
Hong Kong | | 504,774 | | 1.8 | |
India | | 268,791 | | 1.0 | |
Australia | | 72,542 | | 0.3 | |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 2.5% |
Money Markets - 2.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 30,905 | $ | 91 | $ | 66 | $ | 695,021 |
| |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 2.5% |
Money Markets - 2.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 1,228,278 | | 7,122,027 | | (7,655,441) | | 695,021 |
| | |
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. |
| | |
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, 2023. |
| | |
£ | 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, 2023. 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 | $ | - | $ | 477,171 | $ | - |
Electric Utilities | | - | | 538,241 | | - |
Electrical Equipment | | 301,354 | | 1,447,486 | | - |
Electronic Equipment, Instruments & Components | | 1,432,207 | | 1,345,457 | | - |
Entertainment | | - | | 312,494 | | - |
Health Care Equipment & Supplies | | - | | 388,712 | | - |
Insurance | | 2,942,270 | | 504,774 | | - |
Leisure Products | | - | | 405,137 | | - |
Machinery | | 1,777,224 | | 545,689 | | - |
Professional Services | | - | | 502,399 | | - |
Semiconductor & Semiconductor Equipment | | 2,378,528 | | 853,755 | | - |
Textiles, Apparel & Luxury Goods | | 243,066 | | 244,871 | | - |
All Other | | 10,433,691 | | - | | - |
Investment Companies | | - | | 695,021 | | - |
Total Assets | $ | 19,508,340 | $ | 8,261,207 | $ | - |
| | | | | | | |
Janus Henderson Global Sustainable Equity Fund
Statement of Assets and Liabilities
September 30, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $25,103,895) | | $ | 27,074,526 | |
| Affiliated investments, at value (cost $694,933) | | | 695,021 | |
| Cash denominated in foreign currency (cost $8,183) | | | 8,183 | |
| Trustees' deferred compensation | | | 724 | |
| Receivables: | | | | |
| | Dividends | | | 41,477 | |
| | Fund shares sold | | | 11,737 | |
| | Foreign tax reclaims | | | 5,440 | |
| | Dividends from affiliates | | | 2,702 | |
| Other assets | | | 6,875 | |
Total Assets | | | 27,846,685 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Professional fees | | | 50,919 | |
| | Fund shares repurchased | | | 16,871 | |
| | Advisory fees | | | 12,878 | |
| | Transfer agent fees and expenses | | | 5,110 | |
| | Custodian fees | | | 2,017 | |
| | Trustees' deferred compensation fees | | | 724 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 183 | |
| | Trustees' fees and expenses | | | 166 | |
| | Affiliated fund administration fees payable | | | 61 | |
| | Accrued expenses and other payables | | | 40,707 | |
Total Liabilities | | | 129,636 | |
Commitments and contingent liabilities (Note 3) | | | | |
Net Assets | | $ | 27,717,049 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Sustainable Equity Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 28,236,069 | |
| Total distributable earnings (loss) | | | (519,020) | |
Total Net Assets | | $ | 27,717,049 | |
Net Assets - Class A Shares | | $ | 258,732 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 21,196 | |
Net Asset Value Per Share(1) | | $ | 12.21 | |
Maximum Offering Price Per Share(2) | | $ | 12.95 | |
Net Assets - Class C Shares | | $ | 103,533 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 8,486 | |
Net Asset Value Per Share(1) | | $ | 12.20 | |
Net Assets - Class D Shares | | $ | 22,472,517 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,833,546 | |
Net Asset Value Per Share | | $ | 12.26 | |
Net Assets - Class I Shares | | $ | 2,677,582 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 219,464 | |
Net Asset Value Per Share | | $ | 12.20 | |
Net Assets - Class N Shares | | $ | 1,494,078 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 121,556 | |
Net Asset Value Per Share | | $ | 12.29 | |
Net Assets - Class R Shares | | $ | 51,259 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,196 | |
Net Asset Value Per Share | | $ | 12.22 | |
Net Assets - Class S Shares | | $ | 62,100 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,092 | |
Net Asset Value Per Share | | $ | 12.20 | |
Net Assets - Class T Shares | | $ | 597,248 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 48,790 | |
Net Asset Value Per Share | | $ | 12.24 | |
| |
(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, 2023 |
Janus Henderson Global Sustainable Equity Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 410,227 | |
| Dividends from affiliates | | 30,905 | |
| Other income | | 488 | |
| Foreign tax withheld | | (20,084) | |
Total Investment Income | | 421,536 | |
Expenses: | | | |
| Advisory fees | | 212,327 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 531 | |
| | Class C Shares | | 271 | |
| | Class R Shares | | 6 | |
| | Class S Shares | | 1 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 26,838 | |
| | Class R Shares | | 121 | |
| | Class S Shares | | 154 | |
| | Class T Shares | | 1,537 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 252 | |
| | Class C Shares | | 25 | |
| | Class I Shares | | 4,445 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 33 | |
| | Class C Shares | | 11 | |
| | Class D Shares | | 8,477 | |
| | Class I Shares | | 242 | |
| | Class N Shares | | 123 | |
| | Class R Shares | | 5 | |
| | Class S Shares | | 7 | |
| | Class T Shares | | 48 | |
| Registration fees | | 137,983 | |
| Non-affiliated fund administration fees | | 69,520 | |
| Professional fees | | 67,059 | |
| Shareholder reports expense | | 12,221 | |
| Custodian fees | | 7,151 | |
| Affiliated fund administration fees | | 912 | |
| Trustees’ fees and expenses | | 717 | |
| Other expenses | | 14,716 | |
Total Expenses | | 565,733 | |
Less: Excess Expense Reimbursement and Waivers | | (281,202) | |
Net Expenses | | 284,531 | |
Net Investment Income/(Loss) | | 137,005 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Sustainable Equity Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | (795,256) | |
| Investments in affiliates | | 91 | |
Total Net Realized Gain/(Loss) on Investments | | (795,165) | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 5,153,909 | |
| Investments in affiliates | | 66 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 5,153,975 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 4,495,815 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Global Sustainable Equity Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 137,005 | | $ | 52,899 | |
| Net realized gain/(loss) on investments | | (795,165) | | | (1,658,807) | |
| Change in unrealized net appreciation/depreciation | | 5,153,975 | | | (8,339,907) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 4,495,815 | | | (9,945,815) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (572) | | | (1,797) | |
| | Class C Shares | | (336) | | | (778) | |
| | Class D Shares | | (50,792) | | | (270,032) | |
| | Class I Shares | | (14,523) | | | (131,214) | |
| | Class N Shares | | (5,818) | | | (16,196) | |
| | Class R Shares | | (266) | | | (510) | |
| | Class S Shares | | (315) | | | (721) | |
| | Class T Shares | | (704) | | | (6,829) | |
Net Decrease from Dividends and Distributions to Shareholders | | (73,326) | | | (428,077) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 41,576 | | | 68,834 | |
| | Class C Shares | | 31,709 | | | 5,715 | |
| | Class D Shares | | (1,756,270) | | | 4,293,945 | |
| | Class I Shares | | (1,756,037) | | | (5,268,172) | |
| | Class N Shares | | (12,810) | | | 222,331 | |
| | Class R Shares | | 3,823 | | | 510 | |
| | Class S Shares | | 315 | | | 721 | |
| | Class T Shares | | (37,794) | | | 27,879 | |
Net Increase/(Decrease) from Capital Share Transactions | | (3,485,488) | | | (648,237) | |
Net Increase/(Decrease) in Net Assets | | 937,001 | | | (11,022,129) | |
Net Assets: | | | | | | |
| Beginning of period | | 26,780,048 | | | 37,802,177 | |
| End of period | $ | 27,717,049 | | $ | 26,780,048 | |
| | | | | | | | |
| | |
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 | | 2023 | | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $10.37 | | | $14.16 | | | $11.18 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.04 | | | 0.02 | | | 0.02 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 1.82 | | | (3.67) | | | 3.00 | | | 1.17 | |
| Total from Investment Operations | | 1.86 | | | (3.65) | | | 3.02 | | | 1.18 | |
| Less Dividends and Distributions: | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.02) | | | (0.01) | | | (0.03) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.02) | | | (0.14) | | | (0.04) | | | — | |
| Net Asset Value, End of Period | | $12.21 | | | $10.37 | | | $14.16 | | | $11.18 | |
| Total Return* | | 17.98% | | | (26.05)% | | | 27.05% | | | 11.80% | |
| Net Assets, End of Period (in thousands) | | $259 | | | $182 | | | $181 | | | $67 | |
| Average Net Assets for the Period (in thousands) | | $259 | | | $208 | | | $123 | | | $63 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 3.19% | | | 3.18% | | | 4.43% | | | 15.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.05% | | | 1.06% | | | 1.13% | |
| | Ratio of Net Investment Income/(Loss) | | 0.34% | | | 0.15% | | | 0.12% | | | 0.27% | |
| Portfolio Turnover Rate | | 20% | | | 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, 2023 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $10.39 | | | $14.13 | | | $11.16 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.04 | | | 0.07 | | | (0.01) | | | (0.01) | |
| | Net realized and unrealized gain/(loss) | | 1.83 | | | (3.68) | | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | 1.87 | | | (3.61) | | | 3.00 | | | 1.16 | |
| Less Dividends and Distributions: | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | —(3) | | | (0.02) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.06) | | | (0.13) | | | (0.03) | | | — | |
| Net Asset Value, End of Period | | $12.20 | | | $10.39 | | | $14.13 | | | $11.16 | |
| Total Return* | | 18.02% | | | (25.79)% | | | 26.91% | | | 11.60% | |
| Net Assets, End of Period (in thousands) | | $104 | | | $61 | | | $77 | | | $56 | |
| Average Net Assets for the Period (in thousands) | | $88 | | | $74 | | | $67 | | | $54 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 5.48% | | | 5.34% | | | 6.64% | | | 17.28% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.20% | | | 0.59% | | | 1.19% | | | 1.87% | |
| | Ratio of Net Investment Income/(Loss) | | 0.34% | | | 0.57% | | | (0.04)% | | | (0.46)% | |
| Portfolio Turnover Rate | | 20% | | | 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 | | 2023 | | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $10.40 | | | $14.20 | | | $11.18 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.06 | | | 0.02 | | | 0.02 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 1.83 | | | (3.68) | | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | 1.89 | | | (3.66) | | | 3.03 | | | 1.18 | |
| Less Dividends and Distributions: | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | (0.01) | | | — | | | — | |
| | Distributions (from capital gains) | | — | | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.03) | | | (0.14) | | | (0.01) | | | — | |
| Net Asset Value, End of Period | | $12.26 | | | $10.40 | | | $14.20 | | | $11.18 | |
| Total Return* | | 18.16% | | | (26.02)% | | | 27.15% | | | 11.80% | |
| Net Assets, End of Period (in thousands) | | $22,473 | | | $20,664 | | | $23,921 | | | $5,226 | |
| Average Net Assets for the Period (in thousands) | | $22,960 | | | $24,549 | | | $16,804 | | | $2,485 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.93% | | | 1.71% | | | 1.97% | | | 10.52% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.01% | | | 1.00% | | | 1.00% | | | 0.98% | |
| | Ratio of Net Investment Income/(Loss) | | 0.48% | | | 0.16% | | | 0.18% | | | 0.50% | |
| Portfolio Turnover Rate | | 20% | | | 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, 2023 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $10.39 | | | $14.19 | | | $11.19 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.05 | | | 0.02 | | | 0.04 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | 1.83 | | | (3.66) | | | 3.00 | | | 1.17 | |
| Total from Investment Operations | | 1.88 | | | (3.64) | | | 3.04 | | | 1.19 | |
| Less Dividends and Distributions: | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.07) | | | (0.03) | | | (0.03) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.07) | | | (0.16) | | | (0.04) | | | — | |
| Net Asset Value, End of Period | | $12.20 | | | $10.39 | | | $14.19 | | | $11.19 | |
| Total Return* | | 18.10% | | | (25.97)% | | | 27.25% | | | 11.90% | |
| Net Assets, End of Period (in thousands) | | $2,678 | | | $3,991 | | | $11,353 | | | $5,317 | |
| Average Net Assets for the Period (in thousands) | | $2,750 | | | $7,265 | | | $7,780 | | | $5,071 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.98% | | | 1.57% | | | 1.86% | | | 10.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.01% | | | 0.92% | | | 0.87% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 0.44% | | | 0.11% | | | 0.29% | | | 0.55% | |
| Portfolio Turnover Rate | | 20% | | | 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. |
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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 | | 2023 | | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $10.43 | | | $14.23 | | | $11.19 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.08 | | | 0.04 | | | 0.05 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | 1.83 | | | (3.69) | | | 3.00 | | | 1.17 | |
| Total from Investment Operations | | 1.91 | | | (3.65) | | | 3.05 | | | 1.19 | |
| Less Dividends and Distributions: | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | (0.02) | | | — | | | — | |
| | Distributions (from capital gains) | | — | | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.05) | | | (0.15) | | | (0.01) | | | — | |
| Net Asset Value, End of Period | | $12.29 | | | $10.43 | | | $14.23 | | | $11.19 | |
| Total Return* | | 18.33% | | | (25.93)% | | | 27.30% | | | 11.90% | |
| Net Assets, End of Period (in thousands) | | $1,494 | | | $1,250 | | | $1,449 | | | $192 | |
| Average Net Assets for the Period (in thousands) | | $1,598 | | | $1,432 | | | $831 | | | $83 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.97% | | | 1.73% | | | 2.14% | | | 14.24% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.86% | | | 0.86% | | | 0.86% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 0.64% | | | 0.31% | | | 0.33% | | | 0.73% | |
| Portfolio Turnover Rate | | 20% | | | 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. |
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See Notes to Financial Statements. |
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22 | SEPTEMBER 30, 2023 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | |
Class R Shares | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2023 | | | 2022 | | | 2021(1) | |
| Net Asset Value, Beginning of Period | | $10.40 | | | $14.13 | | | $13.08 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.06 | | | 0.08 | | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | 1.83 | | | (3.68) | | | 1.08 | |
| Total from Investment Operations | | 1.89 | | | (3.60) | | | 1.05 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | (0.07) | | | — | | | — | |
| | Distributions (from capital gains) | | — | | | (0.13) | | | — | |
| Total Dividends and Distributions | | (0.07) | | | (0.13) | | | — | |
| Net Asset Value, End of Period | | $12.22 | | | $10.40 | | | $14.13 | |
| Total Return* | | 18.21% | | | (25.72)% | | | 8.03% | |
| Net Assets, End of Period (in thousands) | | $51 | | | $40 | | | $54 | |
| Average Net Assets for the Period (in thousands) | | $49 | | | $51 | | | $53 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 8.16% | | | 7.35% | | | 7.99% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.01% | | | 0.57% | | | 1.46% | |
| | Ratio of Net Investment Income/(Loss) | | 0.50% | | | 0.59% | | | (0.27)% | |
| Portfolio Turnover Rate | | 20% | | | 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. |
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See Notes to Financial Statements. |
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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 | | 2023 | | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $10.37 | | | $14.15 | | | $11.17 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.06 | | | 0.04 | | | —(3) | | | —(3) | |
| | Net realized and unrealized gain/(loss) | | 1.83 | | | (3.68) | | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | 1.89 | | | (3.64) | | | 3.01 | | | 1.17 | |
| Less Dividends and Distributions: | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | (0.01) | | | (0.02) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.06) | | | (0.14) | | | (0.03) | | | — | |
| Net Asset Value, End of Period | | $12.20 | | | $10.37 | | | $14.15 | | | $11.17 | |
| Total Return* | | 18.29% | | | (25.98)% | | | 27.05% | | | 11.70% | |
| Net Assets, End of Period (in thousands) | | $62 | | | $53 | | | $71 | | | $56 | |
| Average Net Assets for the Period (in thousands) | | $62 | | | $66 | | | $67 | | | $54 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 6.82% | | | 6.24% | | | 6.65% | | | 16.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.99% | | | 0.83% | | | 1.11% | | | 1.37% | |
| | Ratio of Net Investment Income/(Loss) | | 0.50% | | | 0.32% | | | 0.03% | | | 0.04% | |
| Portfolio Turnover Rate | | 20% | | | 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, 2023 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | |
For a share outstanding during the year or period ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $10.38 | | | $14.18 | | | $11.18 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.05 | | | 0.01 | | | 0.01 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 1.83 | | | (3.68) | | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | 1.88 | | | (3.67) | | | 3.02 | | | 1.18 | |
| Less Dividends and Distributions: | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.02) | | | —(3) | | | (0.01) | | | — | |
| | Distributions (from capital gains) | | — | | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.02) | | | (0.13) | | | (0.02) | | | — | |
| Net Asset Value, End of Period | | $12.24 | | | $10.38 | | | $14.18 | | | $11.18 | |
| Total Return* | | 18.08% | | | (26.12)% | | | 27.02% | | | 11.80% | |
| Net Assets, End of Period (in thousands) | | $597 | | | $540 | | | $697 | | | $99 | |
| Average Net Assets for the Period (in thousands) | | $616 | | | $633 | | | $387 | | | $77 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.44% | | | 2.25% | | | 2.82% | | | 14.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.09% | | | 1.09% | | | 1.09% | | | 1.11% | |
| | Ratio of Net Investment Income/(Loss) | | 0.39% | | | 0.05% | | | 0.10% | | | 0.33% | |
| Portfolio Turnover Rate | | 20% | | | 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 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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal 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, 2023 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 Global Sustainable Equity 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
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments,
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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 27, 2023. 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, 2023, the Adviser reimbursed the Fund $238,648 of fees and expense that are eligible for recoupment. As of September 30, 2023, the aggregate amount of recoupment that may potentially be made to the Adviser is $976,884. The recoupment of such reimbursements expired on June 25, 2023. The Adviser recouped $0 prior to the Recoupment Deadline.
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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
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 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, up to 0.50% for Class R 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, 2023, the Distributor retained upfront sales charges of $52.
Janus Henderson Global Sustainable Equity 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, 2023.
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, 2023.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
As of September 30, 2023, 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 | 60 | | -* | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 4 | | -* | | |
Class R Shares | 93 | | -* | | |
Class S Shares | 100 | | -* | | |
Class T Shares | - | | - | | |
| | | | | | |
* | Less than 0.50% | | | | | |
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.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 78,866 | $ - | $ (2,271,159) | $ - | $ (1,897) | $ 1,675,170 | |
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2023, 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, 2023 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(1,499,223) | $ (771,936) | $ (2,271,159) | | |
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, 2023 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) |
$ 26,094,377 | $ 4,241,647 | $ (2,566,477) | $ 1,675,170 |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 73,326 | $ - | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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.
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 10,282 | $ 122,324 | | 5,969 | $ 85,061 |
Reinvested dividends and distributions | 50 | 572 | | 125 | 1,797 |
Shares repurchased | (6,651) | (81,320) | | (1,356) | (18,024) |
Net Increase/(Decrease) | 3,681 | $ 41,576 | | 4,738 | $ 68,834 |
Class C Shares: | | | | | |
Shares sold | 2,608 | $ 31,373 | | 744 | $ 10,463 |
Reinvested dividends and distributions | 30 | 336 | | 54 | 778 |
Shares repurchased | - | - | | (371) | (5,526) |
Net Increase/(Decrease) | 2,638 | $ 31,709 | | 427 | $ 5,715 |
Class D Shares: | | | | | |
Shares sold | 305,968 | $ 3,792,350 | | 561,140 | $ 7,587,026 |
Reinvested dividends and distributions | 4,409 | 50,092 | | 18,393 | 265,600 |
Shares repurchased | (464,459) | (5,598,712) | | (276,713) | (3,558,681) |
Net Increase/(Decrease) | (154,082) | $(1,756,270) | | 302,820 | $ 4,293,945 |
Class I Shares: | | | | | |
Shares sold | 106,135 | $ 1,277,535 | | 212,724 | $ 2,770,878 |
Reinvested dividends and distributions | 1,284 | 14,523 | | 9,099 | 131,214 |
Shares repurchased | (272,137) | (3,048,095) | | (637,758) | (8,170,264) |
Net Increase/(Decrease) | (164,718) | $(1,756,037) | | (415,935) | $(5,268,172) |
Class N Shares: | | | | | |
Shares sold | 49,433 | $ 616,420 | | 27,058 | $ 350,626 |
Reinvested dividends and distributions | 511 | 5,818 | | 1,119 | 16,196 |
Shares repurchased | (48,247) | (635,048) | | (10,132) | (144,491) |
Net Increase/(Decrease) | 1,697 | $ (12,810) | | 18,045 | $ 222,331 |
Class R Shares: | | | | | |
Shares sold | 283 | $ 3,557 | | - | $ - |
Reinvested dividends and distributions | 23 | 266 | | 35 | 510 |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 306 | $ 3,823 | | 35 | $ 510 |
Class S Shares: | | | | | |
Shares sold | - | $ - | | - | $ - |
Reinvested dividends and distributions | 27 | 315 | | 51 | 721 |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 27 | $ 315 | | 51 | $ 721 |
Class T Shares: | | | | | |
Shares sold | 44,691 | $ 548,234 | | 11,608 | $ 142,737 |
Reinvested dividends and distributions | 62 | 704 | | 473 | 6,829 |
Shares repurchased | (47,978) | (586,732) | | (9,202) | (121,687) |
Net Increase/(Decrease) | (3,225) | $ (37,794) | | 2,879 | $ 27,879 |
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$ 5,524,787 | $ 8,466,545 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, 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, 2023, 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, 2023 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, 2023 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
Denver, Colorado
November 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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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 48 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). | 48 | 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). | 48 | 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). | 48 | 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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). | 48 | 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. | 48 | 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). | 48 | 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)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Hamish Chamberlayne
151 Detroit Street
Denver, CO 80206
DOB: 1980 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Sustainable Equity Fund | 6/20-Present | Head of Global Sustainable Equities of Janus Henderson Investors and Portfolio Manager for other Janus Henderson accounts. |
Aaron Scully
151 Detroit Street
Denver, CO 80206
DOB: 1976 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Global Sustainable Equity Fund | 6/20-Present | Portfolio Manager for other Janus Henderson accounts. |
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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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)
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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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
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| | | ANNUAL REPORT September 30, 2023 |
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| | Janus Henderson Global Technology and Innovation Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Technology and Innovation Fund
Janus Henderson Global Technology and Innovation Fund (unaudited)
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Jonathan Cofsky co-portfolio manager | 
Denny Fish co-portfolio manager |
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PERFORMANCE OVERVIEW
For the 12 months ended September 30, 2023, the Janus Henderson Global Technology and Innovation Fund Class I Shares returned 38.50%. By comparison, the Fund’s primary benchmark, the S&P 500® Index, returned 21.62%, while the Fund’s secondary benchmark, the MSCI All Country World Information Technology IndexSM, returned 35.88%.
MARKET ENVIRONMENT
The global technology sector generated strong returns during the 12-month period, leading the broader market higher. Growth-oriented stocks benefited from the slowdown in the pace of interest rate hikes, which had been disproportionately weighing on growth throughout much of 2022. With most of the rate-hiking cycle priced in, investors could once again return to focusing on corporate performance, which largely proved resilient within tech. The publicity surrounding artificial intelligence (AI) and the release of ChatGPT served as another boost. A late-period selloff on the back of an increase in mid- to longer-dated interest rates was not enough to significantly dent tech’s earlier performance.
PERFORMANCE DISCUSSION
The Fund outperformed its primary benchmark, the S&P 500 Index, as well as its secondary benchmark, the MSCI All Country World Information Technology Index, for the period. Because 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.
A leading relative contributor was Facebook parent company Meta. The company continued to benefit from its cost rationalization program. Meta also stands to gain from AI initiatives that could buttress advertising revenues despite a tougher macroeconomic backdrop.
ASML Holding also contributed to relative results. The semiconductor capital equipment manufacturer benefited from the rush to secure manufacturing capacity for AI-related chips. Given the company’s commanding position in providing the equipment needed to fabricate the most advanced semiconductor chips, the stock can act as an island of stability in tech soft patches.
A leading relative detractor affected by the slowing economy was Atlassian. The company provides project management tools for software developers, and the expectation of additional tech layoffs forced management to reduce forward guidance. Other headwinds for the company include its European exposure and a transition to the cloud.
Amazon.com also weighed on performance. The size of the company makes vulnerability to the economic cycle unavoidable. Aggravating the situation was the wave of investment undertaken during the pandemic. Amazon had previously invested heavily, but the scaling up of e-commerce meant that payback would start being seen in years, not quarters. Its current round of investment, in our view, exceeds what marketplace conditions would merit, especially as the economy likely enters a downturn. Management has made attempts to size the business correctly as seen in headcount reductions, but Amazon’s considerable fixed asset investments cannot be unwound as easily.
Janus Henderson Global Technology and Innovation Fund (unaudited)
OUTLOOK
For much of this year, tech investors have prepared for a slowdown in demand as the global economy found a lower gear. Although companies have largely met expectations by streamlining operations, we believe that the still wide range of economic outcomes means it is too early to sound the all-clear.
We believe that the global economy will likely slog along, as earlier rounds of monetary tightening1 continue to weigh on output. We are fairly certain the market will not get any near-term help from China. The situation does not appear as dire in developed markets, especially as investors and corporate allocators get used to the notion that a new – higher – interest rate regime will be around for the foreseeable future.
That is not necessarily bad news, as much of the move in rates has already been priced in. A higher cost of capital will disproportionately impact weaker business models, as they are unlikely to be able to achieve the profitability thresholds required by investors. Accordingly, we see the tech landscape increasingly divided between winners and losers, with the former category aligned with the secular themes of AI, the cloud, and the Internet of Things. This, in our view, is an opportune time for astute security selection.
Looking forward, we are entering the period when earnings expectations typically register their largest adjustments, as investors extrapolate the next round of earnings reports to begin divining what 2024 may look like. After that, we expect management teams to chime in with their own guidance. With corporate performance holding steady but economic clouds not yet dissipated, there will be plenty to watch. While the trajectory of these competing near-term forces is relevant, investors should not lose sight of the tech-enabled, secular themes reshaping the global economy. Our view remains that the companies at the forefront of this sea of change will likely continue to claim a larger share of aggregate corporate earnings.
Thank you for your investment in the Janus Henderson Global Technology and Innovation Fund.
1 Monetary tightening refers to central bank activity aimed at curbing inflation and slowing down growth in the economy by raising interest rates and reducing the supply of money.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Global Technology and Innovation Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Meta Platforms Inc - Class A | 2.12% | | 2.37% | | Atlassian Corp - Class A | 2.50% | | -1.77% |
| Apple Inc | 5.65% | | 1.99% | | NVIDIA Corp | 4.23% | | -1.51% |
| ASML Holding NV | 6.27% | | 1.00% | | Amazon.com Inc | 2.53% | | -1.25% |
| Lam Research Corp | 3.31% | | 0.94% | | CoStar Group Inc | 2.95% | | -0.93% |
| Advanced Micro Devices Inc | 2.66% | | 0.63% | | Taiwan Semiconductor Manufacturing Co Ltd | 3.31% | | -0.76% |
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| 3 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Information Technology Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | 2.16% | | 80.49% | 98.08% |
| Communication Services | | 1.73% | | 6.30% | 0.00% |
| Financials | | 0.81% | | 2.45% | 1.60% |
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| 4 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Information Technology Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | -0.83% | | 4.05% | 0.05% |
| Other** | | -0.49% | | 1.94% | 0.00% |
| Real Estate | | -0.28% | | 0.61% | 0.00% |
| Industrials | | -0.18% | | 4.16% | 0.27% |
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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 Technology and Innovation Fund (unaudited)
Fund At A Glance
September 30, 2023
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5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 10.9% |
NVIDIA Corp | |
Semiconductor & Semiconductor Equipment | 7.8% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 6.0% |
Meta Platforms Inc - Class A | |
Interactive Media & Services | 4.5% |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 4.5% |
| | 33.7% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.2% | |
Investment Companies | | 3.2% | |
Private Placements | | 0.9% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.1% | |
Warrants | | 0.0% | |
Other | | (0.4)% |
| | | 100.0% |
Emerging markets comprised 5.8% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
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, 2023 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 38.17% | 12.27% | 16.08% | 9.89% | | | 0.99% |
Class A Shares at MOP | | 30.21% | 10.94% | 15.39% | 9.63% | | | |
Class C Shares at NAV | | 37.23% | 11.52% | 15.29% | 9.11% | | | 1.75% |
Class C Shares at CDSC | | 36.23% | 11.52% | 15.29% | 9.11% | | | |
Class D Shares | | 38.44% | 12.49% | 16.30% | 10.07% | | | 0.80% |
Class I Shares | | 38.50% | 12.54% | 16.38% | 10.12% | | | 0.76% |
Class N Shares | | 38.63% | 12.63% | 16.39% | 10.09% | | | 0.67% |
Class S Shares | | 37.92% | 12.06% | 15.90% | 9.73% | | | 1.18% |
Class T Shares | | 38.30% | 12.37% | 16.20% | 10.02% | | | 0.91% |
S&P 500 Index | | 21.62% | 9.92% | 11.91% | 7.16% | | | |
MSCI All Country World Information Technology Index | | 35.88% | 14.86% | 16.94% | 7.64% | | | |
Morningstar Quartile - Class T Shares | | 1st | 2nd | 2nd | 2nd | | | |
Morningstar Ranking - based on total returns for Technology Funds | | 49/275 | 74/207 | 68/175 | 32/91 | | | |
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 Technology and Innovation Fund (unaudited)
Performance
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on January 27, 2017. Performance shown for periods prior to January 27, 2017, reflects the historical performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund's commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund's prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2023 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – December 31, 1998.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Technology and Innovation Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $1,090.20 | $5.14 | | $1,000.00 | $1,020.16 | $4.96 | 0.98% |
Class C Shares | $1,000.00 | $1,086.10 | $9.10 | | $1,000.00 | $1,016.34 | $8.80 | 1.74% |
Class D Shares | $1,000.00 | $1,091.50 | $4.14 | | $1,000.00 | $1,021.11 | $4.00 | 0.79% |
Class I Shares | $1,000.00 | $1,091.70 | $3.93 | | $1,000.00 | $1,021.31 | $3.80 | 0.75% |
Class N Shares | $1,000.00 | $1,092.20 | $3.46 | | $1,000.00 | $1,021.76 | $3.35 | 0.66% |
Class S Shares | $1,000.00 | $1,089.30 | $6.08 | | $1,000.00 | $1,019.25 | $5.87 | 1.16% |
Class T Shares | $1,000.00 | $1,090.70 | $4.72 | | $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 Global Technology and Innovation Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 96.2% | | | |
Aerospace & Defense – 0.6% | | | |
| | Axon Enterprise Inc* | | 156,857 | | | $31,212,974 | |
Automobiles – 0.2% | | | |
| | Tesla Inc* | | 39,781 | | | 9,954,002 | |
Diversified Financial Services – 3.4% | | | |
| | Mastercard Inc | | 365,836 | | | 144,838,131 | |
| | Visa Inc | | 104,183 | | | 23,963,132 | |
| | | 168,801,263 | |
Electronic Equipment, Instruments & Components – 1.1% | | | |
| | Amphenol Corp | | 575,560 | | | 48,341,284 | |
| | E Ink Holdings Inc | | 919,000 | | | 5,141,012 | |
| | | 53,482,296 | |
Information Technology Services – 0.8% | | | |
| | GoDaddy Inc* | | 338,947 | | | 25,244,773 | |
| | MongoDB Inc* | | 20,011 | | | 6,921,004 | |
| | Snowflake Inc - Class A* | | 45,468 | | | 6,946,146 | |
| | | 39,111,923 | |
Interactive Media & Services – 8.3% | | | |
| | Alphabet Inc - Class C* | | 1,417,401 | | | 186,884,322 | |
| | Meta Platforms Inc - Class A* | | 738,075 | | | 221,577,496 | |
| | | 408,461,818 | |
Media – 0.3% | | | |
| | Trade Desk Inc* | | 183,217 | | | 14,318,409 | |
Multiline Retail – 2.9% | | | |
| | Amazon.com Inc* | | 665,359 | | | 84,580,436 | |
| | MercadoLibre Inc* | | 47,655 | | | 60,420,821 | |
| | | 145,001,257 | |
Professional Services – 1.3% | | | |
| | Ceridian HCM Holding Inc* | | 533,236 | | | 36,180,063 | |
| | Paylocity Holding Corp* | | 162,377 | | | 29,503,901 | |
| | | 65,683,964 | |
Real Estate Management & Development – 1.4% | | | |
| | CoStar Group Inc* | | 925,105 | | | 71,131,323 | |
Semiconductor & Semiconductor Equipment – 32.5% | | | |
| | Advanced Micro Devices Inc* | | 583,846 | | | 60,031,046 | |
| | Analog Devices Inc | | 431,027 | | | 75,468,517 | |
| | Applied Materials Inc | | 708,325 | | | 98,067,596 | |
| | ASML Holding NV | | 295,482 | | | 173,494,747 | |
| | Infineon Technologies AG | | 309,685 | | | 10,269,269 | |
| | KLA Corp | | 345,992 | | | 158,692,691 | |
| | Lam Research Corp | | 273,553 | | | 171,454,814 | |
| | Lattice Semiconductor Corp* | | 161,298 | | | 13,860,337 | |
| | Marvell Technology Inc | | 836,667 | | | 45,288,785 | |
| | NVIDIA Corp | | 882,156 | | | 383,729,038 | |
| | NXP Semiconductors NV | | 250,379 | | | 50,055,770 | |
| | ON Semiconductor Corp* | | 608,885 | | | 56,595,861 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 13,534,000 | | | 219,661,617 | |
| | Texas Instruments Inc | | 554,691 | | | 88,201,416 | |
| | | 1,604,871,504 | |
Software – 36.1% | | | |
| | Adobe Inc* | | 354,414 | | | 180,715,699 | |
| | Alteryx Inc* | | 668,455 | | | 25,194,069 | |
| | Atlassian Corp - Class A* | | 292,325 | | | 58,906,411 | |
| | Cadence Design Systems Inc* | | 410,004 | | | 96,063,937 | |
| | CCC Intelligent Solutions Holdings Inc* | | 7,010,212 | | | 93,586,330 | |
| | Constellation Software Inc/Canada | | 75,723 | | | 156,345,330 | |
| | Dynatrace Inc* | | 802,685 | | | 37,509,470 | |
| | HubSpot Inc* | | 15,054 | | | 7,414,095 | |
| | Intuit Inc | | 51,008 | | | 26,062,028 | |
| | Klaviyo Inc - Class A*,# | | 407,066 | | | 14,043,777 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Global Technology and Innovation Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Software– (continued) | | | |
| | Lumine Group Inc* | | 1,272,788 | | | $18,856,119 | |
| | Microsoft Corp | | 1,699,077 | | | 536,483,563 | |
| | Nice Ltd (ADR)*,# | | 220,282 | | | 37,447,940 | |
| | Pagerduty Inc* | | 306,026 | | | 6,882,525 | |
| | Palo Alto Networks Inc* | | 258,444 | | | 60,589,611 | |
| | Procore Technologies Inc* | | 495,098 | | | 32,339,801 | |
| | ServiceNow Inc* | | 72,517 | | | 40,534,102 | |
| | Synopsys Inc* | | 127,918 | | | 58,710,524 | |
| | Tyler Technologies Inc* | | 196,537 | | | 75,890,797 | |
| | Workday Inc - Class A* | | 1,004,996 | | | 215,923,391 | |
| | | 1,779,499,519 | |
Specialized Real Estate Investment Trusts (REITs) – 0.2% | | | |
| | Equinix Inc | | 10,683 | | | 7,758,636 | |
Technology Hardware, Storage & Peripherals – 6.0% | | | |
| | Apple Inc | | 1,725,774 | | | 295,469,767 | |
Wireless Telecommunication Services – 1.1% | | | |
| | T-Mobile US Inc* | | 386,979 | | | 54,196,409 | |
Total Common Stocks (cost $2,902,280,263) | | 4,748,955,064 | |
Private Placements– 0.9% | | | |
Professional Services – 0.2% | | | |
| | Apartment List Inc*,¢,§ | | 3,783,673 | | | 10,367,264 | |
Software – 0.7% | | | |
| | Magic Leap Inc - Class A private equity common shares*,¢,§ | | 18,847 | | | 0 | |
| | Via Transportation Inc - Preferred shares*,¢,§ | | 546,008 | | | 24,847,568 | |
| | Via Transportation Inc - private equity common shares*,¢,§ | | 78,474 | | | 3,571,171 | |
| | Via Transportation Inc - Series A*,¢,§ | | 50,741 | | | 2,309,106 | |
| | Via Transportation Inc - Series B*,¢,§ | | 9,272 | | | 421,947 | |
| | Via Transportation Inc - Series C*,¢,§ | | 8,331 | | | 379,125 | |
| | Via Transportation Inc - Series D*,¢,§ | | 29,804 | | | 1,356,311 | |
| | Via Transportation Inc - Series E*,¢,§ | | 13,836 | | | 629,645 | |
| | Via Transportation Inc - Series G-1*,¢,§ | | 17,973 | | | 817,910 | |
| | | 34,332,783 | |
Total Private Placements (cost $56,880,997) | | 44,700,047 | |
Warrants– 0% | | | |
Road & Rail – 0% | | | |
| | Grab Holdings Ltd, expires 12/1/26* | | 333,275 | | | 114,980 | |
Software – 0% | | | |
| | Constellation Software Inc/Canada, expires 3/31/40* | | 75,723 | | | 6 | |
Total Warrants (cost $986,182) | | 114,986 | |
Investment Companies– 3.2% | | | |
Money Markets – 3.2% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $157,555,340) | | 157,522,223 | | | 157,569,479 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.1% | | | |
Investment Companies – 0.1% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº,£ | | 3,144,520 | | | 3,144,520 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 5.3100%, 10/2/23 | | $786,130 | | | 786,130 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $3,930,650) | | 3,930,650 | |
Total Investments (total cost $3,121,633,432) – 100.4% | | 4,955,270,226 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.4)% | | (21,686,391) | |
Net Assets – 100% | | $4,933,583,835 | |
| | |
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, 2023
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $4,273,518,385 | | 86.3 | % |
Taiwan | | 224,802,629 | | 4.5 | |
Canada | | 175,201,455 | | 3.5 | |
Netherlands | | 173,494,747 | | 3.5 | |
Argentina | | 60,420,821 | | 1.2 | |
Israel | | 37,447,940 | | 0.8 | |
Germany | | 10,269,269 | | 0.2 | |
Singapore | | 114,980 | | 0.0 | |
| | | | | | |
| | | | | | |
Total | | $4,955,270,226 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 3.2% |
Money Markets - 3.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 3,765,114 | $ | 8,600 | $ | 14,139 | $ | 157,569,479 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 27,573∆ | | - | | - | | 3,144,520 |
Total Affiliated Investments - 3.3% | $ | 3,792,687 | $ | 8,600 | $ | 14,139 | $ | 160,713,999 |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 3.2% |
Money Markets - 3.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 189,241,342 | | 1,011,968,049 | | (1,043,662,651) | | 157,569,479 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 219,182 | | 124,761,225 | | (121,835,887) | | 3,144,520 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Global Technology and Innovation Fund
Schedule of Investments
September 30, 2023
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 3,698,160 | $ | — | $ | (3,698,160) | $ | — |
| | | | | | | | | |
(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 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 |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2023. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2023 is $44,700,047, 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, 2023) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Apartment List Inc | 11/2/20 | $ | 13,821,757 | $ | 10,367,264 | | 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 | | 24,847,568 | | 24,847,568 | | 0.5 | |
Via Transportation Inc - private equity common shares | 12/2/21 | | 3,392,431 | | 3,571,171 | | 0.1 | |
Via Transportation Inc - Series A | 12/2/21 | | 2,193,533 | | 2,309,106 | | 0.1 | |
Via Transportation Inc - Series B | 12/2/21 | | 400,829 | | 421,947 | | 0.0 | |
Via Transportation Inc - Series C | 12/2/21 | | 360,149 | | 379,125 | | 0.0 | |
Via Transportation Inc - Series D | 12/2/21 | | 1,288,427 | | 1,356,311 | | 0.0 | |
Via Transportation Inc - Series E | 12/2/21 | | 598,130 | | 629,645 | | 0.0 | |
Via Transportation Inc - Series G-1 | 2/2/23 | | 817,910 | | 817,910 | | 0.0 | |
Total | | $ | 56,880,997 | $ | 44,700,047 | | 0.9 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2023. 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, 2023. 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 | | | | | | |
Electronic Equipment, Instruments & Components | $ | 48,341,284 | $ | 5,141,012 | $ | - |
Semiconductor & Semiconductor Equipment | | 1,201,445,871 | | 403,425,633 | | - |
All Other | | 3,090,601,264 | | - | | - |
Private Placements | | - | | - | | 44,700,047 |
Warrants | | 114,980 | | 6 | | - |
Investment Companies | | - | | 157,569,479 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 3,930,650 | | - |
Total Assets | $ | 4,340,503,399 | $ | 570,066,780 | $ | 44,700,047 |
| | | | | | | |
Janus Henderson Global Technology and Innovation Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $2,960,933,572)(1) | | $ | 4,794,556,227 | |
| Affiliated investments, at value (cost $160,699,860) | | | 160,713,999 | |
| Cash | | | 6,850 | |
| Trustees' deferred compensation | | | 128,828 | |
| Receivables: | | | | |
| | Dividends | | | 1,933,943 | |
| | Fund shares sold | | | 1,502,955 | |
| | Dividends from affiliates | | | 579,938 | |
| | Foreign tax reclaims | | | 4,834 | |
| Other assets | | | 21,836 | |
Total Assets | | | 4,959,449,410 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 3,930,650 | |
| Payables: | | | — | |
| | Investments purchased | | | 16,003,479 | |
| | Advisory fees | | | 2,767,831 | |
| | Fund shares repurchased | | | 1,890,836 | |
| | Transfer agent fees and expenses | | | 716,949 | |
| | Trustees' deferred compensation fees | | | 128,828 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 101,396 | |
| | Professional fees | | | 69,728 | |
| | Trustees' fees and expenses | | | 25,571 | |
| | Custodian fees | | | 21,834 | |
| | Affiliated fund administration fees payable | | | 10,812 | |
| | Accrued expenses and other payables | | | 197,661 | |
Total Liabilities | | | 25,865,575 | |
Commitments and contingent liabilities (Note 3) | | | | |
Net Assets | | $ | 4,933,583,835 | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2023 |
Janus Henderson Global Technology and Innovation Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,072,619,220 | |
| Total distributable earnings (loss) | | | 1,860,964,615 | |
Total Net Assets | | $ | 4,933,583,835 | |
Net Assets - Class A Shares | | $ | 213,742,457 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,899,677 | |
Net Asset Value Per Share(2) | | $ | 43.62 | |
Maximum Offering Price Per Share(3) | | $ | 46.28 | |
Net Assets - Class C Shares | | $ | 56,245,773 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,532,089 | |
Net Asset Value Per Share(2) | | $ | 36.71 | |
Net Assets - Class D Shares | | $ | 2,401,660,497 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 52,847,704 | |
Net Asset Value Per Share | | $ | 45.44 | |
Net Assets - Class I Shares | | $ | 773,769,147 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 16,804,158 | |
Net Asset Value Per Share | | $ | 46.05 | |
Net Assets - Class N Shares | | $ | 173,760,694 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,819,095 | |
Net Asset Value Per Share | | $ | 45.50 | |
Net Assets - Class S Shares | | $ | 23,734,365 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 562,542 | |
Net Asset Value Per Share | | $ | 42.19 | |
Net Assets - Class T Shares | | $ | 1,290,670,902 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 28,778,124 | |
Net Asset Value Per Share | | $ | 44.85 | |
| |
(1) Includes $3,698,160 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 Global Technology and Innovation Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: |
| Dividends | $ | 26,976,777 | |
| Dividends from affiliates | | 3,765,114 | |
| Non-cash dividends | | 2,054,084 | |
| Affiliated securities lending income, net | | 27,573 | |
| Unaffiliated securities lending income, net | | 6,578 | |
| Other income | | 64,815 | |
| Foreign tax withheld | | (1,742,096) | |
Total Investment Income | | 31,152,845 | |
Expenses: | | | |
| Advisory fees | | 28,839,959 | |
| 12b-1 Distribution and shareholder servicing fees: |
| | Class A Shares | | 498,328 | |
| | Class C Shares | | 504,024 | |
| | Class S Shares | | 53,742 | |
| Transfer agent administrative fees and expenses: | | |
| | Class D Shares | | 2,530,208 | |
| | Class S Shares | | 53,800 | |
| | Class T Shares | | 2,994,736 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 148,848 | |
| | Class C Shares | | 48,238 | |
| | Class I Shares | | 658,857 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 12,123 | |
| | Class C Shares | | 2,338 | |
| | Class D Shares | | 271,010 | |
| | Class I Shares | | 36,380 | |
| | Class N Shares | | 6,142 | |
| | Class S Shares | | 251 | |
| | Class T Shares | | 12,518 | |
| Shareholder reports expense | | 338,632 | |
| Registration fees | | 158,327 | |
| Affiliated fund administration fees | | 145,311 | |
| Professional fees | | 117,399 | |
| Trustees’ fees and expenses | | 110,707 | |
| Custodian fees | | 84,780 | |
| Other expenses | | 481,737 | |
Total Expenses | | 38,108,395 | |
Less: Excess Expense Reimbursement and Waivers | | (141,695) | |
Net Expenses | | 37,966,700 | |
Net Investment Income/(Loss) | | (6,813,855) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Global Technology and Innovation Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | |
| Investments and foreign currency transactions | $ | 64,708,046 | |
| Investments in affiliates | | 8,600 | |
Total Net Realized Gain/(Loss) on Investments | 64,716,646 | |
Change in Unrealized Net Appreciation/Depreciation: |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 1,344,880,715 | |
| Investments in affiliates | | 14,139 | |
Total Change in Unrealized Net Appreciation/Depreciation | 1,344,894,854 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 1,402,797,645 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Technology and Innovation Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (6,813,855) | | $ | (18,974,805) | |
| Net realized gain/(loss) on investments | | 64,716,646 | | | 47,068,517 | |
| Change in unrealized net appreciation/depreciation | 1,344,894,854 | | | (2,452,270,459) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | 1,402,797,645 | | | (2,424,176,747) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | — | | | (46,604,439) | |
| | Class C Shares | | — | | | (16,566,428) | |
| | Class D Shares | | — | | | (431,253,501) | |
| | Class I Shares | | — | | | (166,649,528) | |
| | Class N Shares | | — | | | (25,779,168) | |
| | Class S Shares | | — | | | (5,259,139) | |
| | Class T Shares | | — | | | (278,237,921) | |
Net Decrease from Dividends and Distributions to Shareholders | — | | | (970,350,124) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (30,643,810) | | | 23,568,044 | |
| | Class C Shares | | (11,136,999) | | | 384,649 | |
| | Class D Shares | | (63,266,072) | | | 276,314,024 | |
| | Class I Shares | | (98,704,511) | | | 31,451,226 | |
| | Class N Shares | | 13,296,296 | | | 34,697,306 | |
| | Class S Shares | | (903,037) | | | 8,846,141 | |
| | Class T Shares | | (128,748,639) | | | 39,626,244 | |
Net Increase/(Decrease) from Capital Share Transactions | (320,106,772) | | | 414,887,634 | |
Net Increase/(Decrease) in Net Assets | | 1,082,690,873 | | | (2,979,639,237) | |
Net Assets: | | | | | | |
| Beginning of period | | 3,850,892,962 | | | 6,830,532,199 | |
| End of period | $ | 4,933,583,835 | | $ | 3,850,892,962 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2023 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $31.58 | | | $59.21 | | | $50.45 | | | $36.72 | | | $36.33 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.12) | | | (0.22) | | | (0.27) | | | (0.11) | | | (0.05) | |
| | Net realized and unrealized gain/(loss) | | 12.16 | | | (18.76) | | | 13.83 | | | 17.17 | | | 2.33 | |
| Total from Investment Operations | | 12.04 | | | (18.98) | | | 13.56 | | | 17.06 | | | 2.28 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | —(2) | |
| | Distributions (from capital gains) | | — | | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | |
| Total Dividends and Distributions | | — | | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | |
| Net Asset Value, End of Period | | $43.62 | | | $31.58 | | | $59.21 | | | $50.45 | | | $36.72 | |
| Total Return* | | 38.13% | | | (37.50)% | | | 28.19% | | | 49.64% | | | 7.70% | |
| Net Assets, End of Period (in thousands) | | $213,742 | | | $182,141 | | | $319,194 | | | $252,037 | | | $172,237 | |
| Average Net Assets for the Period (in thousands) | | $199,763 | | | $260,997 | | | $299,780 | | | $204,220 | | | $151,979 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.00% | | | 0.99% | | | 0.98% | | | 0.99% | | | 1.01% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.00% | | | 0.99% | | | 0.98% | | | 0.99% | | | 1.01% | |
| | Ratio of Net Investment Income/(Loss) | | (0.31)% | | | (0.49)% | | | (0.47)% | | | (0.26)% | | | (0.14)% | |
| Portfolio Turnover Rate | | 43% | | | 47% | | | 43% | | | 37% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | 19 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $26.76 | | | $51.77 | | | $44.91 | | | $33.24 | | | $33.31 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.33) | | | (0.42) | | | (0.56) | | | (0.36) | | | (0.26) | |
| | Net realized and unrealized gain/(loss) | | 10.28 | | | (15.94) | | | 12.22 | | | 15.36 | | | 2.08 | |
| Total from Investment Operations | | 9.95 | | | (16.36) | | | 11.66 | | | 15.00 | | | 1.82 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | — | | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | |
| Total Dividends and Distributions | | — | | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | |
| Net Asset Value, End of Period | | $36.71 | | | $26.76 | | | $51.77 | | | $44.91 | | | $33.24 | |
| Total Return* | | 37.18% | | | (37.88)% | | | 27.37% | | | 48.56% | | | 6.97% | |
| Net Assets, End of Period (in thousands) | | $56,246 | | | $50,614 | | | $101,860 | | | $89,141 | | | $64,636 | |
| Average Net Assets for the Period (in thousands) | | $54,709 | | | $79,418 | | | $98,033 | | | $75,085 | | | $66,888 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.68% | | | 1.58% | | | 1.64% | | | 1.69% | | | 1.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.68% | | | 1.58% | | | 1.64% | | | 1.69% | | | 1.70% | |
| | Ratio of Net Investment Income/(Loss) | | (0.99)% | | | (1.09)% | | | (1.13)% | | | (0.96)% | | | (0.85)% | |
| Portfolio Turnover Rate | | 43% | | | 47% | | | 43% | | | 37% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $32.83 | | | $61.11 | | | $51.89 | | | $37.62 | | | $37.14 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.05) | | | (0.14) | | | (0.16) | | | (0.03) | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 12.66 | | | (19.49) | | | 14.23 | | | 17.63 | | | 2.40 | |
| Total from Investment Operations | | 12.61 | | | (19.63) | | | 14.07 | | | 17.60 | | | 2.41 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.05) | | | — | | | (0.04) | |
| | Distributions (from capital gains) | | — | | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | |
| Total Dividends and Distributions | | — | | | (8.65) | | | (4.85) | | | (3.33) | | | (1.93) | |
| Net Asset Value, End of Period | | $45.44 | | | $32.83 | | | $61.11 | | | $51.89 | | | $37.62 | |
| Total Return* | | 38.41% | | | (37.39)% | | | 28.43% | | | 49.90% | | | 7.91% | |
| Net Assets, End of Period (in thousands) | | $2,401,660 | | | $1,794,752 | | | $3,058,182 | | | $2,426,380 | | | $1,603,112 | |
| Average Net Assets for the Period (in thousands) | | $2,164,470 | | | $2,524,660 | | | $2,878,436 | | | $1,911,725 | | | $1,501,953 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.80% | | | 0.80% | | | 0.79% | | | 0.80% | | | 0.83% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | | | 0.80% | | | 0.79% | | | 0.80% | | | 0.83% | |
| | Ratio of Net Investment Income/(Loss) | | (0.11)% | | | (0.30)% | | | (0.29)% | | | (0.08)% | | | 0.03% | |
| Portfolio Turnover Rate | | 43% | | | 47% | | | 43% | | | 37% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $33.25 | | | $61.76 | | | $52.40 | | | $37.94 | | | $37.45 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.03) | | | (0.12) | | | (0.14) | | | (0.01) | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | 12.83 | | | (19.74) | | | 14.38 | | | 17.80 | | | 2.41 | |
| Total from Investment Operations | | 12.80 | | | (19.86) | | | 14.24 | | | 17.79 | | | 2.45 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.08) | | | — | | | (0.07) | |
| | Distributions (from capital gains) | | — | | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | |
| Total Dividends and Distributions | | — | | | (8.65) | | | (4.88) | | | (3.33) | | | (1.96) | |
| Net Asset Value, End of Period | | $46.05 | | | $33.25 | | | $61.76 | | | $52.40 | | | $37.94 | |
| Total Return* | | 38.50% | | | (37.36)% | | | 28.48% | | | 49.99% | | | 7.97% | |
| Net Assets, End of Period (in thousands) | | $773,769 | | | $644,388 | | | $1,189,917 | | | $890,656 | | | $418,834 | |
| Average Net Assets for the Period (in thousands) | | $724,972 | | | $944,382 | | | $1,074,031 | | | $606,085 | | | $356,404 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.76% | | | 0.75% | | | 0.75% | | | 0.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.76% | | | 0.75% | | | 0.75% | | | 0.76% | |
| | Ratio of Net Investment Income/(Loss) | | (0.07)% | | | (0.26)% | | | (0.24)% | | | (0.02)% | | | 0.11% | |
| Portfolio Turnover Rate | | 43% | | | 47% | | | 43% | | | 37% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $32.83 | | | $61.03 | | | $51.81 | | | $37.52 | | | $37.05 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.01 | | | (0.08) | | | (0.09) | | | 0.02 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 12.66 | | | (19.47) | | | 14.21 | | | 17.60 | | | 2.37 | |
| Total from Investment Operations | | 12.67 | | | (19.55) | | | 14.12 | | | 17.62 | | | 2.44 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.10) | | | — | | | (0.08) | |
| | Distributions (from capital gains) | | — | | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | |
| Total Dividends and Distributions | | — | | | (8.65) | | | (4.90) | | | (3.33) | | | (1.97) | |
| Net Asset Value, End of Period | | $45.50 | | | $32.83 | | | $61.03 | | | $51.81 | | | $37.52 | |
| Total Return* | | 38.59% | | | (37.29)% | | | 28.59% | | | 50.10% | | | 8.06% | |
| Net Assets, End of Period (in thousands) | | $173,761 | | | $115,297 | | | $175,740 | | | $117,541 | | | $41,043 | |
| Average Net Assets for the Period (in thousands) | | $148,567 | | | $155,684 | | | $158,218 | | | $70,265 | | | $28,002 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.67% | | | 0.67% | | | 0.67% | | | 0.67% | | | 0.69% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.67% | | | 0.67% | | | 0.67% | | | 0.69% | |
| | Ratio of Net Investment Income/(Loss) | | 0.01% | | | (0.17)% | | | (0.16)% | | | 0.06% | | | 0.19% | |
| Portfolio Turnover Rate | | 43% | | | 47% | | | 43% | | | 37% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
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See Notes to Financial Statements. |
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Janus Investment Fund | 23 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $30.59 | | | $57.73 | | | $49.38 | | | $36.07 | | | $35.79 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.18) | | | (0.29) | | | (0.36) | | | (0.19) | | | (0.12) | |
| | Net realized and unrealized gain/(loss) | | 11.78 | | | (18.20) | | | 13.51 | | | 16.83 | | | 2.29 | |
| Total from Investment Operations | | 11.60 | | | (18.49) | | | 13.15 | | | 16.64 | | | 2.17 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | — | | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | |
| Total Dividends and Distributions | | — | | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | |
| Net Asset Value, End of Period | | $42.19 | | | $30.59 | | | $57.73 | | | $49.38 | | | $36.07 | |
| Total Return* | | 37.92% | | | (37.63)% | | | 27.95% | | | 49.35% | | | 7.49% | |
| Net Assets, End of Period (in thousands) | | $23,734 | | | $17,985 | | | $27,069 | | | $21,002 | | | $9,084 | |
| Average Net Assets for the Period (in thousands) | | $21,555 | | | $26,676 | | | $25,961 | | | $14,529 | | | $7,654 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.18% | | | 1.18% | | | 1.17% | | | 1.19% | | | 1.22% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.18% | | | 1.17% | | | 1.17% | | | 1.18% | | | 1.22% | |
| | Ratio of Net Investment Income/(Loss) | | (0.48)% | | | (0.68)% | | | (0.66)% | | | (0.46)% | | | (0.35)% | |
| Portfolio Turnover Rate | | 43% | | | 47% | | | 43% | | | 37% | | | 36% | |
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* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
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See Notes to Financial Statements. |
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24 | SEPTEMBER 30, 2023 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $32.43 | | | $60.53 | | | $51.47 | | | $37.37 | | | $36.91 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.09) | | | (0.19) | | | (0.23) | | | (0.08) | | | (0.02) | |
| | Net realized and unrealized gain/(loss) | | 12.51 | | | (19.26) | | | 14.11 | | | 17.51 | | | 2.39 | |
| Total from Investment Operations | | 12.42 | | | (19.45) | | | 13.88 | | | 17.43 | | | 2.37 | |
| 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) | |
| Total Dividends and Distributions | | — | | | (8.65) | | | (4.82) | | | (3.33) | | | (1.91) | |
| Net Asset Value, End of Period | | $44.85 | | | $32.43 | | | $60.53 | | | $51.47 | | | $37.37 | |
| Total Return* | | 38.30% | | | (37.45)% | | | 28.26% | | | 49.77% | | | 7.82% | |
| Net Assets, End of Period (in thousands) | | $1,290,671 | | | $1,045,715 | | | $1,958,570 | | | $1,601,653 | | | $936,931 | |
| Average Net Assets for the Period (in thousands) | | $1,200,202 | | | $1,554,115 | | | $1,860,359 | | | $1,210,097 | | | $869,267 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.91% | | | 0.91% | | | 0.92% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.90% | | | 0.91% | | | 0.91% | | | 0.92% | |
| | Ratio of Net Investment Income/(Loss) | | (0.21)% | | | (0.41)% | | | (0.40)% | | | (0.18)% | | | (0.06)% | |
| Portfolio Turnover Rate | | 43% | | | 47% | | | 43% | | | 37% | | | 36% | |
| | | | | | | | | | | | | | | | | | | |
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* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
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See Notes to Financial Statements. |
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Janus Investment Fund | 25 |
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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
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 Global Technology and Innovation 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 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, 2023 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, 2023.
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 Global Technology and Innovation 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
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments,
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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.
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.
Janus Henderson Global Technology and Innovation 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, 2023, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $3,698,160. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2023 is $3,930,650, resulting in the net amount due to the counterparty of $232,490.
Janus Henderson Global Technology and Innovation 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.
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 0.71% 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 27, 2023. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
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, 2023, the Distributor retained upfront sales charges of $25,933.
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, 2023.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $3,113.
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
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of September 30, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 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, 2023, the Fund engaged in cross trades amounting to $6,675,426 in purchases.
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The Fund has elected to defer qualified late-year losses as noted in the table below. These losses will be deferred for tax purposes and recognized during the next fiscal year.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ - | $ 35,277,873 | $ - | $ (5,000,860) | $ (134,159) | $1,830,821,761 | |
Janus Henderson Global Technology and Innovation 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, 2023 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) |
$3,124,448,465 | $1,858,595,012 | $ (27,773,251) | $1,830,821,761 |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ - | $ - | $ - | $ 19,643,572 | |
| | | | | |
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 | $ - | $ - | |
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. Capital has been adjusted by $352,366, all of which is long-term capital gain, for distributions in connection with Fund shares redemption (tax equalization).
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 436,382 | $ 17,488,428 | | 877,413 | $ 39,900,994 |
Reinvested dividends and distributions | - | - | | 785,445 | 39,554,989 |
Shares repurchased | (1,304,998) | (48,132,238) | | (1,285,642) | (55,887,939) |
Net Increase/(Decrease) | (868,616) | $ (30,643,810) | | 377,216 | $ 23,568,044 |
Class C Shares: | | | | | |
Shares sold | 154,282 | $ 5,151,176 | | 226,192 | $ 8,952,475 |
Reinvested dividends and distributions | - | - | | 359,888 | 15,435,591 |
Shares repurchased | (513,935) | (16,288,175) | | (662,056) | (24,003,417) |
Net Increase/(Decrease) | (359,653) | $ (11,136,999) | | (75,976) | $ 384,649 |
Class D Shares: | | | | | |
Shares sold | 3,313,443 | $ 140,177,494 | | 3,599,506 | $171,960,826 |
Reinvested dividends and distributions | - | - | | 8,016,491 | 419,182,331 |
Shares repurchased | (5,132,227) | (203,443,566) | | (6,992,723) | (314,829,133) |
Net Increase/(Decrease) | (1,818,784) | $ (63,266,072) | | 4,623,274 | $276,314,024 |
Class I Shares: | | | | | |
Shares sold | 4,403,666 | $ 178,894,447 | | 7,091,813 | $326,578,396 |
Reinvested dividends and distributions | - | - | | 2,866,657 | 151,760,832 |
Shares repurchased | (6,978,731) | (277,598,958) | | (9,846,435) | (446,888,002) |
Net Increase/(Decrease) | (2,575,065) | $ (98,704,511) | | 112,035 | $ 31,451,226 |
Class N Shares: | | | | | |
Shares sold | 1,753,124 | $ 71,527,802 | | 1,255,721 | $ 59,650,746 |
Reinvested dividends and distributions | - | - | | 493,570 | 25,779,168 |
Shares repurchased | (1,446,362) | (58,231,506) | | (1,116,408) | (50,732,608) |
Net Increase/(Decrease) | 306,762 | $ 13,296,296 | | 632,883 | $ 34,697,306 |
Class S Shares: | | | | | |
Shares sold | 222,072 | $ 8,436,393 | | 312,563 | $ 16,857,268 |
Reinvested dividends and distributions | - | - | | 107,615 | 5,259,139 |
Shares repurchased | (247,392) | (9,339,430) | | (301,224) | (13,270,266) |
Net Increase/(Decrease) | (25,320) | $ (903,037) | | 118,954 | $ 8,846,141 |
Class T Shares: | | | | | |
Shares sold | 2,549,081 | $ 102,982,215 | | 3,854,873 | $184,777,506 |
Reinvested dividends and distributions | - | - | | 5,264,764 | 272,188,274 |
Shares repurchased | (6,013,420) | (231,730,854) | | (9,232,493) | (417,339,536) |
Net Increase/(Decrease) | (3,464,339) | $(128,748,639) | | (112,856) | $ 39,626,244 |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$1,896,519,252 | $2,160,804,910 | $ - | $ - |
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.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Capital Gain Distributions | $352,366 |
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 48 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). | 48 | 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). | 48 | 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)
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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). | 48 | 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)
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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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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 | | | | |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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)
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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). | 48 | 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)
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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. | 48 | 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). | 48 | 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)
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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 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. |
Denny Fish
151 Detroit Street
Denver, CO 80206
DOB: 1971 | Executive Vice President and Lead 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). |
* 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 Technology and Innovation 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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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
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Janus Henderson Global Technology and Innovation Fund
Notes
NotesPage2
Janus Henderson Global Technology and Innovation Fund
Notes
NotesPage3
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93047 11-23 |
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| | | ANNUAL REPORT September 30, 2023 |
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| | Janus Henderson Growth and Income Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Growth and Income Fund
Janus Henderson Growth and Income Fund (unaudited)
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Jeremiah Buckley Portfolio Manager |
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PERFORMANCE OVERVIEW
The Janus Henderson Growth and Income Fund I Shares returned 19.01% for the 12-month period ended September 30, 2023. The Fund’s benchmark, the S&P 500® Index, returned 21.62%.
MARKET ENVIRONMENT
The stock market climbed steadily from the beginning of the period to July, driven by optimism about the slowing pace of interest rate hikes and positive economic fundamentals. Excitement surrounding artificial intelligence (AI) and related technologies also boosted market sentiment. However, returns have been narrow in breadth, driven by a handful of large- and mega-cap stocks linked to AI developments. Bouts of volatility have occurred in the rising rate environment, most notably the March collapse of Silicon Valley Bank and other regional banks. In July, the S&P 500 Index reached an 18-month peak, but market sentiment began to shift as investors recognized that the Fed may keep policy rates higher for longer in its fight against inflation.
PERFORMANCE DISCUSSION
Although the Fund captured the bulk of the market’s upside, it ultimately underperformed the S&P 500 Index. During the period, our emphasis on dividend-paying stocks hurt performance relative to the benchmark as cyclical, higher-beta companies outperformed on stronger-than-expected economic growth and the market’s solidified view of a soft landing. Index results were dominated by strength in non-dividend-paying mega-cap companies that enjoyed tailwinds from investor excitement over recent advancements in AI. Defensive, dividend-paying areas of the market have also been negatively impacted by rising interest rates.
At the security level, confectionary company Hershey was a relative detractor. The company hindered fund results due to a volume slowdown. In the discretionary segments of the food and beverage industry, rising prices during this inflationary environment impacted volume as consumer budgets tightened.
Mailing services company United Parcel Service (UPS) sank on a disappointing earnings report due, in part, to a decrease in shipping volumes as consumers shift spending away from goods and toward services post-pandemic. The stock also came under pressure as the company entered contract negotiations — which take place every four years — with the Teamsters Union representing UPS’ workers.
Detractors were partially offset by strong stock selection in the healthcare and financial sectors, along with an overweight to the information technology sector. Optimism around advancements in AI helped specific stocks in the information technology sector, including our position in Microsoft. Notably, in the second quarter, the company reported strong results across most major business lines and issued better-than-expected guidance. Enthusiasm for AI has been a tailwind for Microsoft as it seeks to strengthen its long-term earnings potential by infusing AI through Office, Azure, Search, and other products.
Cable company Comcast also contributed to performance. The company benefited from moderating investor concern around its high-speed internet competition. Less aggressive spending on fiberoptic network builds and a slowing rollout of fixed wireless have improved the competitive environment for the company’s broadband business. Additionally, Comcast and Disney announced that they agreed to speed up Comcast’s sale of Hulu. Management indicated that the proceeds of the sale will help fund share repurchases earlier than anticipated.
Janus Henderson Growth and Income Fund (unaudited)
OUTLOOK
As we approach the end of 2023, the debate goes on surrounding the future path of inflation, whether the Fed is done raising rates, and ultimately, if the U.S. will enter a recession. While U.S. economic growth remains robust and the labor market tight by historical standards, we are now beginning to see early signs of cooling in key areas of the economy. A softening in the job market, tighter lending conditions, erosion of COVID-19-era excess savings, and an uptick in consumer credit delinquencies all seem to point to continued below-average real gross domestic product (GPD) growth.
Additionally, market confidence in an economic soft landing eroded due to the Fed’s announcement that it expects to keep interest rates higher for longer. Both equities and fixed income adjusted accordingly. That said, we remain focused on the lagged impact of policy tightening, believing the full effects of rate increases have yet to be felt in the broader economy. We expect pressure on consumer spending to increase, and with that, some level of continued market volatility and macroeconomic uncertainty.
Overall, we believe equity multiples remain in a reasonable range relative to history, and we see opportunities for earnings growth in a number of areas despite a potentially slower-growth macroeconomic environment. We are particularly excited about opportunities in AI, which has driven our overweight allocation in software and semiconductors. There are lasting productivity and efficiency benefits to be had across many industries that will likely spur high levels of technology investment levels for years to come. We also see opportunities where market misperception on the negative impact of AI is being overly discounted, and we are focused on identifying the potential winners and losers related to this long-term theme.
Additionally, we continue to see tailwinds for companies from a price cost standpoint, as supply chains have normalized and labor attrition has improved. These factors, along with declining commodity prices and transportation costs, could help lower company cost of goods sold and contribute to improved margins. These cost improvements have yet to be reflected in margins, and we expect companies to be able to hold on to most of their price gains. Macroeconomic risks that could challenge the earnings outlook in 2024 include rising energy prices and a softening labor force.
We maintain our focus on companies that provide attractive current income and the potential for growth of income over time, which also stand to benefit from longer-term macro trends. We believe our emphasis on companies with consistent cash flows and healthy balance sheets, which are well positioned to increase dividends and share buybacks, will be an important factor in a higher-cost and slower-growth environment.
Thank you for your investment in the Janus Henderson Growth and Income Fund.
Cost of goods sold refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs.
Monetary Policy refers to the policies of a central bank, aimed at influencing the level of inflation and growth in an economy. It includes controlling interest rates and the supply of money.
Monetary tightening refers to central bank activity aimed at curbing inflation and slowing down growth in the economy by raising interest rates and reducing the supply of money.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Growth and Income Fund (unaudited)
Fund At A Glance
September 30, 2023
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| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| KLA Corp | 3.14% | | 0.81% | | Hershey Co | 1.60% | | -0.47% |
| Oracle Corp | 1.76% | | 0.60% | | United Parcel Service Inc | 2.32% | | -0.45% |
| Comcast Corp - Class A | 2.37% | | 0.56% | | Broadcom Inc | 0.01% | | -0.43% |
| Microsoft Corp | 8.97% | | 0.40% | | Hasbro Inc | 0.65% | | -0.41% |
| JPMorgan Chase & Co | 3.16% | | 0.39% | | UnitedHealth Group Inc | 3.12% | | -0.38% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Utilities | | 0.91% | | 0.00% | 2.82% |
| Health Care | | 0.82% | | 16.54% | 14.37% |
| Real Estate | | 0.67% | | 0.00% | 2.58% |
| Financials | | 0.60% | | 13.78% | 12.17% |
| Consumer Discretionary | | 0.25% | | 11.07% | 10.43% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | -2.34% | | 32.75% | 26.86% |
| Industrials | | -1.43% | | 12.69% | 8.45% |
| Communication Services | | -0.63% | | 2.86% | 8.10% |
| Energy | | -0.41% | | 2.18% | 4.73% |
| Consumer Staples | | -0.14% | | 6.80% | 6.89% |
| | | | | | | |
| 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, 2023
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 9.9% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 6.3% |
Accenture PLC | |
Information Technology Services | 4.5% |
KLA Corp | |
Semiconductor & Semiconductor Equipment | 3.5% |
UnitedHealth Group Inc | |
Health Care Providers & Services | 3.2% |
| | 27.4% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.9% | |
Investment Companies | | 0.1% | |
Other | | 0.0% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
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, 2023 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 18.62% | 7.99% | 10.67% | 10.43% | | | 1.01% |
Class A Shares at MOP | | 11.80% | 6.72% | 10.02% | 10.23% | | | |
Class C Shares at NAV | | 17.91% | 7.29% | 9.90% | 9.68% | | | 1.69% |
Class C Shares at CDSC | | 16.91% | 7.29% | 9.90% | 9.68% | | | |
Class D Shares | | 18.94% | 8.25% | 10.90% | 10.55% | | | 0.75% |
Class I Shares | | 19.01% | 8.31% | 10.96% | 10.59% | | | 0.70% |
Class N Shares | | 19.10% | 8.39% | 10.95% | 10.56% | | | 0.63% |
Class R Shares | | 18.15% | 7.55% | 10.21% | 10.00% | | | 1.41% |
Class S Shares | | 18.49% | 7.85% | 10.51% | 10.26% | | | 1.13% |
Class T Shares | | 18.81% | 8.14% | 10.79% | 10.51% | | | 0.87% |
S&P 500 Index | | 21.62% | 9.92% | 11.91% | 10.06% | | | |
Morningstar Quartile - Class T Shares | | 3rd | 3rd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Large Blend Funds | | 908/1,442 | 837/1,240 | 460/1,066 | 33/324 | | | |
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.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund
Janus Henderson Growth and Income Fund (unaudited)
Performance
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.
© 2023 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $1,016.40 | $5.05 | | $1,000.00 | $1,020.05 | $5.06 | 1.00% |
Class C Shares | $1,000.00 | $1,013.50 | $8.18 | | $1,000.00 | $1,016.95 | $8.19 | 1.62% |
Class D Shares | $1,000.00 | $1,017.80 | $3.79 | | $1,000.00 | $1,021.31 | $3.80 | 0.75% |
Class I Shares | $1,000.00 | $1,018.00 | $3.49 | | $1,000.00 | $1,021.61 | $3.50 | 0.69% |
Class N Shares | $1,000.00 | $1,018.50 | $3.14 | | $1,000.00 | $1,021.96 | $3.14 | 0.62% |
Class R Shares | $1,000.00 | $1,014.40 | $7.12 | | $1,000.00 | $1,018.00 | $7.13 | 1.41% |
Class S Shares | $1,000.00 | $1,015.90 | $5.66 | | $1,000.00 | $1,019.45 | $5.67 | 1.12% |
Class T Shares | $1,000.00 | $1,017.30 | $4.30 | | $1,000.00 | $1,020.81 | $4.31 | 0.85% |
† | 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, 2023
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 99.9% | | | |
Aerospace & Defense – 1.2% | | | |
| | General Dynamics Corp | | 344,126 | | | $76,041,522 | |
Air Freight & Logistics – 1.6% | | | |
| | United Parcel Service Inc | | 671,943 | | | 104,735,755 | |
Banks – 3.2% | | | |
| | Bank of America Corp | | 1,408,786 | | | 38,572,561 | |
| | JPMorgan Chase & Co | | 1,153,708 | | | 167,310,734 | |
| | | 205,883,295 | |
Beverages – 2.1% | | | |
| | Brown-Forman Corp | | 800,574 | | | 46,185,114 | |
| | Coca-Cola Co | | 904,723 | | | 50,646,394 | |
| | Constellation Brands Inc - Class A | | 155,281 | | | 39,026,774 | |
| | | 135,858,282 | |
Biotechnology – 2.6% | | | |
| | AbbVie Inc | | 658,920 | | | 98,218,615 | |
| | Gilead Sciences Inc | | 917,768 | | | 68,777,534 | |
| | | 166,996,149 | |
Building Products – 0.7% | | | |
| | Trane Technologies PLC | | 219,789 | | | 44,597,386 | |
Capital Markets – 5.4% | | | |
| | Charles Schwab Corp | | 673,720 | | | 36,987,228 | |
| | CME Group Inc | | 623,379 | | | 124,812,943 | |
| | Goldman Sachs Group Inc | | 257,367 | | | 83,276,240 | |
| | Morgan Stanley | | 1,233,402 | | | 100,731,941 | |
| | | 345,808,352 | |
Chemicals – 1.7% | | | |
| | Air Products & Chemicals Inc | | 108,771 | | | 30,825,701 | |
| | Corteva Inc | | 775,130 | | | 39,655,651 | |
| | Sherwin-Williams Co | | 149,858 | | | 38,221,283 | |
| | | 108,702,635 | |
Commercial Services & Supplies – 0.5% | | | |
| | Waste Management Inc | | 198,430 | | | 30,248,669 | |
Communications Equipment – 1.3% | | | |
| | Cisco Systems Inc | | 1,609,542 | | | 86,528,978 | |
Consumer Finance – 2.4% | | | |
| | American Express Co | | 1,046,331 | | | 156,102,122 | |
Diversified Financial Services – 2.8% | | | |
| | Visa Inc | | 770,407 | | | 177,201,314 | |
Electrical Equipment – 0.9% | | | |
| | Rockwell Automation Inc | | 192,914 | | | 55,148,325 | |
Electronic Equipment, Instruments & Components – 1.7% | | | |
| | TE Connectivity Ltd | | 892,173 | | | 110,210,131 | |
Energy Equipment & Services – 0.8% | | | |
| | Schlumberger Ltd | | 909,734 | | | 53,037,492 | |
Food & Staples Retailing – 2.1% | | | |
| | Costco Wholesale Corp | | 135,593 | | | 76,604,621 | |
| | Sysco Corp | | 851,326 | | | 56,230,082 | |
| | | 132,834,703 | |
Food Products – 1.3% | | | |
| | Hershey Co | | 428,206 | | | 85,675,457 | |
Health Care Equipment & Supplies – 4.0% | | | |
| | Abbott Laboratories | | 1,246,352 | | | 120,709,191 | |
| | Medtronic PLC | | 1,123,634 | | | 88,047,960 | |
| | Stryker Corp | | 173,413 | | | 47,388,571 | |
| | | 256,145,722 | |
Health Care Providers & Services – 4.0% | | | |
| | HCA Healthcare Inc | | 207,390 | | | 51,013,792 | |
| | UnitedHealth Group Inc | | 413,102 | | | 208,281,897 | |
| | | 259,295,689 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Growth and Income Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Hotels, Restaurants & Leisure – 6.0% | | | |
| | Marriott International Inc/MD - Class A | | 605,295 | | | $118,976,785 | |
| | McDonald's Corp | | 568,116 | | | 149,664,479 | |
| | Starbucks Corp | | 1,286,086 | | | 117,381,069 | |
| | | 386,022,333 | |
Household Products – 1.9% | | | |
| | Procter & Gamble Co | | 846,540 | | | 123,476,324 | |
Industrial Conglomerates – 1.5% | | | |
| | Honeywell International Inc | | 513,978 | | | 94,952,296 | |
Information Technology Services – 4.5% | | | |
| | Accenture PLC | | 946,066 | | | 290,546,329 | |
Insurance – 0.7% | | | |
| | Marsh & McLennan Cos Inc | | 227,513 | | | 43,295,724 | |
Life Sciences Tools & Services – 1.1% | | | |
| | Danaher Corp | | 290,584 | | | 72,093,890 | |
Machinery – 2.0% | | | |
| | Deere & Co | | 337,145 | | | 127,231,780 | |
Media – 2.7% | | | |
| | Comcast Corp - Class A | | 3,939,540 | | | 174,679,204 | |
Oil, Gas & Consumable Fuels – 2.8% | | | |
| | Chevron Corp | | 709,267 | | | 119,596,602 | |
| | ConocoPhillips | | 482,308 | | | 57,780,498 | |
| | | 177,377,100 | |
Pharmaceuticals – 4.0% | | | |
| | Eli Lilly & Co | | 184,161 | | | 98,918,398 | |
| | Merck & Co Inc | | 947,127 | | | 97,506,725 | |
| | Zoetis Inc | | 367,104 | | | 63,868,754 | |
| | | 260,293,877 | |
Professional Services – 2.0% | | | |
| | Automatic Data Processing Inc | | 392,256 | | | 94,368,949 | |
| | Booz Allen Hamilton Holding Corp | | 294,780 | | | 32,210,611 | |
| | | 126,579,560 | |
Semiconductor & Semiconductor Equipment – 7.2% | | | |
| | Broadcom Inc | | 40,343 | | | 33,508,089 | |
| | KLA Corp | | 485,884 | | | 222,855,556 | |
| | Lam Research Corp | | 76,975 | | | 48,245,621 | |
| | Texas Instruments Inc | | 987,844 | | | 157,077,074 | |
| | | 461,686,340 | |
Software – 12.4% | | | |
| | Intuit Inc | | 99,909 | | | 51,047,505 | |
| | Microsoft Corp | | 2,022,846 | | | 638,713,625 | |
| | Oracle Corp | | 1,028,820 | | | 108,972,614 | |
| | | 798,733,744 | |
Specialty Retail – 2.7% | | | |
| | Home Depot Inc | | 323,913 | | | 97,873,552 | |
| | TJX Cos Inc | | 836,305 | | | 74,330,788 | |
| | | 172,204,340 | |
Technology Hardware, Storage & Peripherals – 6.3% | | | |
| | Apple Inc | | 2,382,008 | | | 407,823,590 | |
Textiles, Apparel & Luxury Goods – 1.8% | | | |
| | NIKE Inc - Class B | | 1,227,544 | | | 117,377,757 | |
Total Common Stocks (cost $3,565,897,993) | | 6,425,426,166 | |
Investment Companies– 0.1% | | | |
Money Markets – 0.1% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $3,942,709) | | 3,941,920 | | | 3,943,103 | |
Total Investments (total cost $3,569,840,702) – 100.0% | | 6,429,369,269 | |
Cash, Receivables and Other Assets, net of Liabilities – 0% | | 2,313,510 | |
Net Assets – 100% | | $6,431,682,779 | |
| | |
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, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 0.1% |
Money Markets - 0.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 205,325 | $ | 1,214 | $ | 394 | $ | 3,943,103 |
| |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 0.1% |
Money Markets - 0.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 11,984,222 | | 188,649,051 | | (196,691,778) | | 3,943,103 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
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, 2023. |
| | |
£ | 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, 2023. 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 | $ | 6,425,426,166 | $ | - | $ | - |
Investment Companies | | - | | 3,943,103 | | - |
Total Assets | $ | 6,425,426,166 | $ | 3,943,103 | $ | - |
| | | | | | | |
Janus Henderson Growth and Income Fund
Statement of Assets and Liabilities
September 30, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,565,897,993) | | $ | 6,425,426,166 | |
| Affiliated investments, at value (cost $3,942,709) | | | 3,943,103 | |
| Trustees' deferred compensation | | | 167,461 | |
| Receivables: | | | | |
| | Dividends | | | 4,060,092 | |
| | Fund shares sold | | | 3,360,852 | |
| | Investments sold | | | 2,383,000 | |
| | Dividends from affiliates | | | 17,672 | |
| Other assets | | | 7,997 | |
Total Assets | | | 6,439,366,343 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Advisory fees | | | 3,384,775 | |
| | Fund shares repurchased | | | 2,077,138 | |
| | Transfer agent fees and expenses | | | 959,740 | |
| | Dividends | | | 671,388 | |
| | Trustees' deferred compensation fees | | | 167,461 | |
| | Professional fees | | | 66,240 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 59,793 | |
| | Trustees' fees and expenses | | | 34,632 | |
| | Affiliated fund administration fees payable | | | 14,103 | |
| | Custodian fees | | | 398 | |
| | Accrued expenses and other payables | | | 247,896 | |
Total Liabilities | | | 7,683,564 | |
Commitments and contingent liabilities (Note 3) | | | | |
Net Assets | | $ | 6,431,682,779 | |
| | |
See Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2023 |
Janus Henderson Growth and Income Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,203,918,840 | |
| Total distributable earnings (loss) | | | 3,227,763,939 | |
Total Net Assets | | $ | 6,431,682,779 | |
Net Assets - Class A Shares | | $ | 81,967,040 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,229,171 | |
Net Asset Value Per Share(1) | | $ | 66.68 | |
Maximum Offering Price Per Share(2) | | $ | 70.75 | |
Net Assets - Class C Shares | | $ | 41,905,245 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 639,622 | |
Net Asset Value Per Share(1) | | $ | 65.52 | |
Net Assets - Class D Shares | | $ | 3,980,874,336 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 59,577,579 | |
Net Asset Value Per Share | | $ | 66.82 | |
Net Assets - Class I Shares | | $ | 374,459,233 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,600,803 | |
Net Asset Value Per Share | | $ | 66.86 | |
Net Assets - Class N Shares | | $ | 79,132,714 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,185,690 | |
Net Asset Value Per Share | | $ | 66.74 | |
Net Assets - Class R Shares | | $ | 5,231,442 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 79,051 | |
Net Asset Value Per Share | | $ | 66.18 | |
Net Assets - Class S Shares | | $ | 12,790,581 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 191,871 | |
Net Asset Value Per Share | | $ | 66.66 | |
Net Assets - Class T Shares | | $ | 1,855,322,188 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 27,797,015 | |
Net Asset Value Per Share | | $ | 66.75 | |
| |
(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. |
| |
Janus Investment Fund | 13 |
Janus Henderson Growth and Income Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 128,439,390 | |
| Dividends from affiliates | | 205,325 | |
| Other income | | 141 | |
| Foreign withholding tax income | | 136,245 | |
Total Investment Income | | 128,781,101 | |
Expenses: | | | |
| Advisory fees | | 38,768,388 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 202,922 | |
| | Class C Shares | | 411,927 | |
| | Class R Shares | | 28,873 | |
| | Class S Shares | | 32,194 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 4,679,978 | |
| | Class R Shares | | 14,471 | |
| | Class S Shares | | 32,292 | |
| | Class T Shares | | 4,706,508 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 110,173 | |
| | Class C Shares | | 27,862 | |
| | Class I Shares | | 290,667 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 4,864 | |
| | Class C Shares | | 1,797 | |
| | Class D Shares | | 409,656 | |
| | Class I Shares | | 18,210 | |
| | Class N Shares | | 2,508 | |
| | Class R Shares | | 168 | |
| | Class S Shares | | 242 | |
| | Class T Shares | | 16,533 | |
| Shareholder reports expense | | 406,900 | |
| Affiliated fund administration fees | | 207,539 | |
| Trustees’ fees and expenses | | 159,203 | |
| Registration fees | | 151,563 | |
| Professional fees | | 113,085 | |
| Custodian fees | | 52,605 | |
| Other expenses | | 331,507 | |
Total Expenses | | 51,182,635 | |
Less: Excess Expense Reimbursement and Waivers | | (289,050) | |
Net Expenses | | 50,893,585 | |
Net Investment Income/(Loss) | | 77,887,516 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2023 |
Janus Henderson Growth and Income Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | $ | 388,858,065 | |
| Investments in affiliates | | 1,214 | |
Total Net Realized Gain/(Loss) on Investments | | 388,859,279 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments and Trustees’ deferred compensation | | 606,944,791 | |
| Investments in affiliates | | 394 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 606,945,185 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 1,073,691,980 | |
| | | | | |
| | |
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, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 77,887,516 | | $ | 69,392,607 | |
| Net realized gain/(loss) on investments | | 388,859,279 | | | 370,337,386 | |
| Change in unrealized net appreciation/depreciation | | 606,945,185 | | | (1,387,712,807) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 1,073,691,980 | | | (947,982,814) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (4,820,669) | | | (5,314,593) | |
| | Class C Shares | | (2,515,368) | | | (2,753,238) | |
| | Class D Shares | | (248,798,148) | | | (260,184,925) | |
| | Class I Shares | | (23,560,589) | | | (26,709,382) | |
| | Class N Shares | | (4,208,965) | | | (4,394,143) | |
| | Class R Shares | | (335,210) | | | (391,842) | |
| | Class S Shares | | (776,458) | | | (1,294,942) | |
| | Class T Shares | | (116,499,325) | | | (125,047,566) | |
Net Decrease from Dividends and Distributions to Shareholders | | (401,514,732) | | | (426,090,631) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 1,853,572 | | | (2,581,520) | |
| | Class C Shares | | (2,809,521) | | | (3,207,945) | |
| | Class D Shares | | 36,377,473 | | | 87,339,620 | |
| | Class I Shares | | (10,138,589) | | | (30,154,463) | |
| | Class N Shares | | 26,245,479 | | | (11,386,114) | |
| | Class R Shares | | (899,708) | | | (565,996) | |
| | Class S Shares | | (631,186) | | | (8,461,564) | |
| | Class T Shares | | (25,346,584) | | | (22,616,596) | |
Net Increase/(Decrease) from Capital Share Transactions | | 24,650,936 | | | 8,365,422 | |
Net Increase/(Decrease) in Net Assets | | 696,828,184 | | | (1,365,708,023) | |
Net Assets: | | | | | | |
| Beginning of period | | 5,734,854,595 | | | 7,100,562,618 | |
| End of period | $ | 6,431,682,779 | | $ | 5,734,854,595 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $59.86 | | | $73.95 | | | $59.77 | | | $58.49 | | | $59.20 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.65 | | | 0.55 | | | 0.49 | | | 0.80 | | | 1.00 | |
| | Net realized and unrealized gain/(loss) | | 10.25 | | | (10.31) | | | 16.06 | | | 2.53 | | | 2.27 | |
| Total from Investment Operations | | 10.90 | | | (9.76) | | | 16.55 | | | 3.33 | | | 3.27 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.66) | | | (0.57) | | | (0.51) | | | (0.83) | | | (1.01) | |
| | Distributions (from capital gains) | | (3.42) | | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | |
| Total Dividends and Distributions | | (4.08) | | | (4.33) | | | (2.37) | | | (2.05) | | | (3.98) | |
| Net Asset Value, End of Period | | $66.68 | | | $59.86 | | | $73.95 | | | $59.77 | | | $58.49 | |
| Total Return* | | 18.62% | | | (14.38)% | | | 28.28% | | | 5.81% | | | 6.53% | |
| Net Assets, End of Period (in thousands) | | $81,967 | | | $71,633 | | | $91,735 | | | $80,310 | | | $88,445 | |
| Average Net Assets for the Period (in thousands) | | $81,344 | | | $90,358 | | | $88,624 | | | $80,441 | | | $64,525 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.01% | | | 1.01% | | | 1.01% | | | 0.99% | | | 0.95% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.01% | | | 1.01% | | | 1.01% | | | 0.99% | | | 0.95% | |
| | Ratio of Net Investment Income/(Loss) | | 0.98% | | | 0.77% | | | 0.71% | | | 1.41% | | | 1.79% | |
| Portfolio Turnover Rate | | 22% | | | 17% | | | 11% | | | 24% | | | 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $58.87 | | | $72.81 | | | $58.90 | | | $57.68 | | | $58.46 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.24 | | | 0.10 | | | 0.05 | | | 0.43 | | | 0.56 | |
| | Net realized and unrealized gain/(loss) | | 10.08 | | | (10.13) | | | 15.82 | | | 2.49 | | | 2.26 | |
| Total from Investment Operations | | 10.32 | | | (10.03) | | | 15.87 | | | 2.92 | | | 2.82 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.25) | | | (0.15) | | | (0.10) | | | (0.48) | | | (0.63) | |
| | Distributions (from capital gains) | | (3.42) | | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | |
| Total Dividends and Distributions | | (3.67) | | | (3.91) | | | (1.96) | | | (1.70) | | | (3.60) | |
| Net Asset Value, End of Period | | $65.52 | | | $58.87 | | | $72.81 | | | $58.90 | | | $57.68 | |
| Total Return* | | 17.91% | | | (14.93)% | | | 27.48% | | | 5.12% | | | 5.75% | |
| Net Assets, End of Period (in thousands) | | $41,905 | | | $40,161 | | | $53,156 | | | $49,982 | | | $59,591 | |
| Average Net Assets for the Period (in thousands) | | $43,861 | | | $50,122 | | | $53,200 | | | $55,935 | | | $42,229 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.63% | | | 1.64% | | | 1.65% | | | 1.64% | | | 1.69% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.63% | | | 1.64% | | | 1.65% | | | 1.64% | | | 1.69% | |
| | Ratio of Net Investment Income/(Loss) | | 0.36% | | | 0.15% | | | 0.08% | | | 0.77% | | | 1.02% | |
| Portfolio Turnover Rate | | 22% | | | 17% | | | 11% | | | 24% | | | 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, 2023 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $59.97 | | | $74.09 | | | $59.87 | | | $58.58 | | | $59.27 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.83 | | | 0.74 | | | 0.67 | | | 0.93 | | | 1.09 | |
| | Net realized and unrealized gain/(loss) | | 10.28 | | | (10.34) | | | 16.11 | | | 2.54 | | | 2.28 | |
| Total from Investment Operations | | 11.11 | | | (9.60) | | | 16.78 | | | 3.47 | | | 3.37 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.84) | | | (0.76) | | | (0.70) | | | (0.96) | | | (1.09) | |
| | Distributions (from capital gains) | | (3.42) | | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | |
| Total Dividends and Distributions | | (4.26) | | | (4.52) | | | (2.56) | | | (2.18) | | | (4.06) | |
| Net Asset Value, End of Period | | $66.82 | | | $59.97 | | | $74.09 | | | $59.87 | | | $58.58 | |
| Total Return* | | 18.94% | | | (14.17)% | | | 28.63% | | | 6.07% | | | 6.71% | |
| Net Assets, End of Period (in thousands) | | $3,980,874 | | | $3,529,397 | | | $4,284,567 | | | $3,506,038 | | | $3,546,939 | |
| Average Net Assets for the Period (in thousands) | | $4,003,145 | | | $4,238,795 | | | $4,038,177 | | | $3,410,901 | | | $3,396,252 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.75% | | | 0.75% | | | 0.75% | | | 0.76% | | | 0.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.75% | | | 0.75% | | | 0.75% | | | 0.76% | | | 0.76% | |
| | Ratio of Net Investment Income/(Loss) | | 1.24% | | | 1.04% | | | 0.97% | | | 1.64% | | | 1.95% | |
| Portfolio Turnover Rate | | 22% | | | 17% | | | 11% | | | 24% | | | 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $60.00 | | | $74.12 | | | $59.90 | | | $58.61 | | | $59.29 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.86 | | | 0.78 | | | 0.71 | | | 0.97 | | | 1.13 | |
| | Net realized and unrealized gain/(loss) | | 10.29 | | | (10.35) | | | 16.10 | | | 2.52 | | | 2.29 | |
| Total from Investment Operations | | 11.15 | | | (9.57) | | | 16.81 | | | 3.49 | | | 3.42 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.87) | | | (0.79) | | | (0.73) | | | (0.98) | | | (1.13) | |
| | Distributions (from capital gains) | | (3.42) | | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | |
| Total Dividends and Distributions | | (4.29) | | | (4.55) | | | (2.59) | | | (2.20) | | | (4.10) | |
| Net Asset Value, End of Period | | $66.86 | | | $60.00 | | | $74.12 | | | $59.90 | | | $58.61 | |
| Total Return* | | 19.01% | | | (14.12)% | | | 28.68% | | | 6.11% | | | 6.80% | |
| Net Assets, End of Period (in thousands) | | $374,459 | | | $344,524 | | | $458,387 | | | $429,567 | | | $537,792 | |
| Average Net Assets for the Period (in thousands) | | $375,504 | | | $425,515 | | | $443,087 | | | $500,070 | | | $359,418 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.70% | | | 0.70% | | | 0.70% | | | 0.71% | | | 0.71% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.70% | | | 0.70% | | | 0.70% | | | 0.71% | | | 0.71% | |
| | Ratio of Net Investment Income/(Loss) | | 1.29% | | | 1.08% | | | 1.03% | | | 1.70% | | | 2.02% | |
| Portfolio Turnover Rate | | 22% | | | 17% | | | 11% | | | 24% | | | 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, 2023 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $59.90 | | | $74.01 | | | $59.80 | | | $58.52 | | | $59.22 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.89 | | | 0.84 | | | 0.76 | | | 1.00 | | | 1.14 | |
| | Net realized and unrealized gain/(loss) | | 10.29 | | | (10.35) | | | 16.09 | | | 2.53 | | | 2.30 | |
| Total from Investment Operations | | 11.18 | | | (9.51) | | | 16.85 | | | 3.53 | | | 3.44 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.92) | | | (0.84) | | | (0.78) | | | (1.03) | | | (1.17) | |
| | Distributions (from capital gains) | | (3.42) | | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | |
| Total Dividends and Distributions | | (4.34) | | | (4.60) | | | (2.64) | | | (2.25) | | | (4.14) | |
| Net Asset Value, End of Period | | $66.74 | | | $59.90 | | | $74.01 | | | $59.80 | | | $58.52 | |
| Total Return* | | 19.10% | | | (14.06)% | | | 28.81% | | | 6.20% | | | 6.85% | |
| Net Assets, End of Period (in thousands) | | $79,133 | | | $47,906 | | | $73,167 | | | $55,506 | | | $40,399 | |
| Average Net Assets for the Period (in thousands) | | $66,259 | | | $73,633 | | | $65,537 | | | $50,678 | | | $17,524 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.63% | | | 0.63% | | | 0.62% | | | 0.63% | | | 0.64% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.63% | | | 0.63% | | | 0.62% | | | 0.63% | | | 0.64% | |
| | Ratio of Net Investment Income/(Loss) | | 1.34% | | | 1.17% | | | 1.09% | | | 1.76% | | | 2.04% | |
| Portfolio Turnover Rate | | 22% | | | 17% | | | 11% | | | 24% | | | 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $59.42 | | | $73.44 | | | $59.35 | | | $58.10 | | | $58.86 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.39 | | | 0.27 | | | 0.23 | | | 0.57 | | | 0.72 | |
| | Net realized and unrealized gain/(loss) | | 10.17 | | | (10.23) | | | 15.95 | | | 2.51 | | | 2.27 | |
| Total from Investment Operations | | 10.56 | | | (9.96) | | | 16.18 | | | 3.08 | | | 2.99 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.38) | | | (0.30) | | | (0.23) | | | (0.61) | | | (0.78) | |
| | Distributions (from capital gains) | | (3.42) | | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | |
| Total Dividends and Distributions | | (3.80) | | | (4.06) | | | (2.09) | | | (1.83) | | | (3.75) | |
| Net Asset Value, End of Period | | $66.18 | | | $59.42 | | | $73.44 | | | $59.35 | | | $58.10 | |
| Total Return* | | 18.15% | | | (14.72)% | | | 27.82% | | | 5.38% | | | 6.03% | |
| Net Assets, End of Period (in thousands) | | $5,231 | | | $5,477 | | | $7,329 | | | $8,023 | | | $7,760 | |
| Average Net Assets for the Period (in thousands) | | $5,805 | | | $6,786 | | | $8,987 | | | $8,032 | | | $6,321 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.42% | | | 1.40% | | | 1.39% | | | 1.40% | | | 1.42% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.42% | | | 1.40% | | | 1.39% | | | 1.40% | | | 1.42% | |
| | Ratio of Net Investment Income/(Loss) | | 0.58% | | | 0.38% | | | 0.34% | | | 1.00% | | | 1.30% | |
| Portfolio Turnover Rate | | 22% | | | 17% | | | 11% | | | 24% | | | 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, 2023 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $59.83 | | | $73.92 | | | $59.74 | | | $58.47 | | | $59.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.58 | | | 0.46 | | | 0.42 | | | 0.72 | | | 0.89 | |
| | Net realized and unrealized gain/(loss) | | 10.25 | | | (10.31) | | | 16.05 | | | 2.53 | | | 2.28 | |
| Total from Investment Operations | | 10.83 | | | (9.85) | | | 16.47 | | | 3.25 | | | 3.17 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.58) | | | (0.48) | | | (0.43) | | | (0.76) | | | (0.90) | |
| | Distributions (from capital gains) | | (3.42) | | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | |
| Total Dividends and Distributions | | (4.00) | | | (4.24) | | | (2.29) | | | (1.98) | | | (3.87) | |
| Net Asset Value, End of Period | | $66.66 | | | $59.83 | | | $73.92 | | | $59.74 | | | $58.47 | |
| Total Return* | | 18.51% | | | (14.49)% | | | 28.15% | | | 5.67% | | | 6.34% | |
| Net Assets, End of Period (in thousands) | | $12,791 | | | $12,049 | | | $23,935 | | | $22,870 | | | $24,559 | |
| Average Net Assets for the Period (in thousands) | | $12,949 | | | $19,602 | | | $23,621 | | | $23,489 | | | $22,203 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.14% | | | 1.13% | | | 1.13% | | | 1.13% | | | 1.13% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.12% | | | 1.12% | | | 1.13% | | | 1.12% | |
| | Ratio of Net Investment Income/(Loss) | | 0.87% | | | 0.63% | | | 0.61% | | | 1.28% | | | 1.59% | |
| Portfolio Turnover Rate | | 22% | | | 17% | | | 11% | | | 24% | | | 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $59.90 | | | $74.01 | | | $59.81 | | | $58.53 | | | $59.22 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.76 | | | 0.67 | | | 0.60 | | | 0.88 | | | 1.04 | |
| | Net realized and unrealized gain/(loss) | | 10.28 | | | (10.34) | | | 16.08 | | | 2.52 | | | 2.28 | |
| Total from Investment Operations | | 11.04 | | | (9.67) | | | 16.68 | | | 3.40 | | | 3.32 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.77) | | | (0.68) | | | (0.62) | | | (0.90) | | | (1.04) | |
| | Distributions (from capital gains) | | (3.42) | | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | |
| Total Dividends and Distributions | | (4.19) | | | (4.44) | | | (2.48) | | | (2.12) | | | (4.01) | |
| Net Asset Value, End of Period | | $66.75 | | | $59.90 | | | $74.01 | | | $59.81 | | | $58.53 | |
| Total Return* | | 18.84% | | | (14.26)% | | | 28.49% | | | 5.95% | | | 6.62% | |
| Net Assets, End of Period (in thousands) | | $1,855,322 | | | $1,683,707 | | | $2,108,286 | | | $1,805,935 | | | $1,996,900 | |
| Average Net Assets for the Period (in thousands) | | $1,886,917 | | | $2,048,237 | | | $2,025,668 | | | $1,863,456 | | | $1,852,659 | |
| 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% | | | 0.85% | | | 0.86% | | | 0.86% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 1.14% | | | 0.93% | | | 0.87% | | | 1.54% | | | 1.86% | |
| Portfolio Turnover Rate | | 22% | | | 17% | | | 11% | | | 24% | | | 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, 2023 |
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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Growth and Income Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Janus Henderson Growth and Income Fund
Notes to Financial Statements
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal 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, 2023 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Janus Henderson Growth and Income Fund
Notes to Financial Statements
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
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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,
Janus Henderson Growth and Income Fund
Notes to Financial Statements
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 27, 2023. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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 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
Janus Henderson Growth and Income Fund
Notes to Financial Statements
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, 2023, the Distributor retained upfront sales charges of $9,571.
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, 2023.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $538.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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
Janus Henderson Growth and Income Fund
Notes to Financial Statements
“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, 2023 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
As of September 30, 2023, 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 | 36 | | -* | | |
Class R Shares | - | | - | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
* | Less than 0.50% | | | | | |
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.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ - | $ 370,107,014 | $ - | $ - | $ (195,494) | $2,857,852,419 | |
Janus Henderson Growth and Income 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, 2023 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) |
$ 3,571,516,850 | $2,914,621,050 | $(56,768,631) | $ 2,857,852,419 |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 77,883,728 | $ 323,631,004 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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. Capital has been adjusted by $12,728,754, all of which is long-term capital gain, for distributions in connection with Fund shares redemption (tax equalization).
Janus Henderson Growth and Income Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 282,167 | $ 18,662,811 | | 337,245 | $ 24,516,166 |
Reinvested dividends and distributions | 60,259 | 3,821,499 | | 57,277 | 4,326,800 |
Shares repurchased | (310,020) | (20,630,738) | | (438,197) | (31,424,486) |
Net Increase/(Decrease) | 32,406 | $ 1,853,572 | | (43,675) | $ (2,581,520) |
Class C Shares: | | | | | |
Shares sold | 90,885 | $ 5,954,450 | | 61,090 | $ 4,343,205 |
Reinvested dividends and distributions | 36,977 | 2,292,894 | | 33,118 | 2,489,705 |
Shares repurchased | (170,467) | (11,056,865) | | (142,074) | (10,040,855) |
Net Increase/(Decrease) | (42,605) | $ (2,809,521) | | (47,866) | $ (3,207,945) |
Class D Shares: | | | | | |
Shares sold | 1,284,134 | $ 85,579,617 | | 1,909,020 | $139,542,930 |
Reinvested dividends and distributions | 3,767,677 | 239,784,514 | | 3,338,269 | 251,383,633 |
Shares repurchased | (4,330,392) | (288,986,658) | | (4,223,345) | (303,586,943) |
Net Increase/(Decrease) | 721,419 | $ 36,377,473 | | 1,023,944 | $ 87,339,620 |
Class I Shares: | | | | | |
Shares sold | 1,025,617 | $ 68,554,073 | | 1,279,575 | $ 92,804,912 |
Reinvested dividends and distributions | 339,910 | 21,654,006 | | 325,224 | 24,502,380 |
Shares repurchased | (1,506,780) | (100,346,668) | | (2,046,739) | (147,461,755) |
Net Increase/(Decrease) | (141,253) | $ (10,138,589) | | (441,940) | $ (30,154,463) |
Class N Shares: | | | | | |
Shares sold | 621,001 | $ 42,288,702 | | 399,722 | $ 27,478,070 |
Reinvested dividends and distributions | 62,497 | 3,979,211 | | 55,534 | 4,172,414 |
Shares repurchased | (297,575) | (20,022,434) | | (644,155) | (43,036,598) |
Net Increase/(Decrease) | 385,923 | $ 26,245,479 | | (188,899) | $ (11,386,114) |
Class R Shares: | | | | | |
Shares sold | 13,119 | $ 879,290 | | 8,252 | $ 588,018 |
Reinvested dividends and distributions | 5,329 | 334,246 | | 5,174 | 391,000 |
Shares repurchased | (31,582) | (2,113,244) | | (21,043) | (1,545,014) |
Net Increase/(Decrease) | (13,134) | $ (899,708) | | (7,617) | $ (565,996) |
Class S Shares: | | | | | |
Shares sold | 15,256 | $ 1,016,050 | | 34,533 | $ 2,494,027 |
Reinvested dividends and distributions | 12,195 | 772,296 | | 16,974 | 1,290,405 |
Shares repurchased | (36,957) | (2,419,532) | | (173,932) | (12,245,996) |
Net Increase/(Decrease) | (9,506) | $ (631,186) | | (122,425) | $ (8,461,564) |
Class T Shares: | | | | | |
Shares sold | 1,543,553 | $103,100,821 | | 1,463,801 | $105,819,866 |
Reinvested dividends and distributions | 1,794,193 | 113,986,763 | | 1,617,397 | 121,911,409 |
Shares repurchased | (3,647,202) | (242,434,168) | | (3,459,836) | (250,347,871) |
Net Increase/(Decrease) | (309,456) | $ (25,346,584) | | (378,638) | $ (22,616,596) |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$1,396,786,533 | $1,693,423,313 | $ - | $ - |
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, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Capital Gain Distributions | $336,359,758 |
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 48 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). | 48 | 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). | 48 | 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). | 48 | 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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)
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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). | 48 | 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)
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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. | 48 | 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). | 48 | 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)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Jeremiah Buckley
151 Detroit Street
Denver, CO 80206
DOB: 1976 | Executive Vice President and Portfolio Manager
Janus Henderson Growth and Income Fund | 7/14-Present | Portfolio Manager for other Janus Henderson accounts. |
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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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)
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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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Growth and Income Fund
Notes
NotesPage1
Janus Henderson Growth and Income Fund
Notes
NotesPage2
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93048 11-23 |
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| | | ANNUAL REPORT September 30, 2023 |
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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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Julian McManus portfolio manager |
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PERFORMANCE
The Janus Henderson Overseas Fund Class I Shares returned 22.18% for the 12-month period ended September 30, 2023. The Fund’s primary benchmark, the MSCI All Country World ex-USA IndexSM returned 20.39%.
INVESTMENT ENVIRONMENT
Global equities rallied in the fourth quarter of 2022 on hopes that moderating inflation might allow central banks to slow or potentially end interest rate hikes. Chinese authorities also announced the relaxation of zero-COVID policies, which was viewed as a potential positive development for global economic growth. Equities continued to rally in the first half of 2023 despite periods of volatility. However, while the pace of interest rate increases appeared to moderate, most developed market central banks remained in tightening mode. Equities generally declined in the third quarter of 2023, as investors grew more concerned about the outlook for economic growth, inflation, and interest rates. Hopes for a near-term shift in central bank policies also gave way to a realization that interest rates may remain higher for longer given persistent inflation and rising energy prices. While U.S. economic growth appeared resilient, there were signs of slowing activity in Europe and other markets. A weaker-than-expected recovery in China added to global economic uncertainty. Despite the third-quarter market decline, global stocks still ended the 12-month performance period with strong positive performance.
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. This approach enabled us to outperform our benchmark for the period.
Among individual holdings, BNP Paribas was a top relative contributor. The shift to positive real interest rates in Europe provided an earnings tailwind for the European bank, leading shares to rally in the fourth quarter of 2022. BNP Paribas reported solid quarterly financial results, supported by its diversified and integrated business model and strong competitive position in European banking. It also received regulatory approval for the sale of its U.S. banking subsidiary, Bank of the West, in a deal that closed in February 2023. We viewed this transaction positively, as it enabled the company to streamline its business focus and strengthen its capital position. Additionally, the bank’s management team has demonstrated its disciplined approach to capital allocation by returning capital to shareholders through share buybacks.
Several energy-related names were strong relative contributors, especially against a backdrop of rising crude oil prices in the third quarter of 2023. We expect hydrocarbons to continue to play a role in the world's energy mix, and we remain on the lookout for high-quality energy companies that we believe can deliver long-term strong cash flow growth. These include Canadian Natural Resources, an oil and gas company. which we favor for its advantaged assets and low-cost extraction model. The company has delivered strong earnings growth, and it has used its robust free cash flow to pay down debt and return capital to shareholders.
Economic concerns pressured several of our holdings. These included Chinese e-commerce retailer JD.Com, a relative detractor. JD.Com saw significant market share gains during the pandemic, supported by its differentiated logistics footprint. As China emerged from COVID lockdowns, however, these market share advantages
Janus Henderson Overseas Fund (unaudited)
started to narrow. This led the company to announce new advertising and promotional programs that investors worried would narrow its profit margins. More recently, fears of a potential slowdown in Chinese consumer spending also weighed on the stock. Despite near-term uncertainty, we believe JD.Com is well positioned within China's retail space, and we continue to own the position.
An uncertain macroeconomic outlook for the U.K. also pressured stock performance for U.K.-based online gambling and sports-betting company Entain. Entain's underlying business continued to perform well, however, helped by the growth in its U.S. subsidiary, BetMGM. While Entain faces some near-term business headwinds, we remain invested in the company because of the potential we see around its broad geographic diversification and market share growth potential, especially in the U.S. sports betting market.
OUTLOOK
As we look ahead, we recognize that interest rates may remain higher for longer than investors had hoped at the start of the year with implications for economic growth, corporate earnings, and equity market performance. Inflation has continued to exceed policymakers’ target levels, keeping the central banks in Europe and the U.S. in tightening mode. The Bank of Japan is also starting to relax its yield curve controls, which could lead to higher rates. While this environment may lead to increased volatility, we believe it could provide a rich environment for fundamentals-driven stock selection and future relative investment returns. Our portfolio positioning reflects our long-held view that free cash flow and disciplined capital allocation will ultimately drive investment returns.
We continue to identify compelling pockets of opportunity around the world where we believe the potential for free-cash-flow growth is underestimated in a market distracted by macroeconomic considerations. We look to capitalize on these opportunities as we seek out companies with healthy balance sheets, expanding revenues and cash flows, sustainable earnings growth, and reasonable valuations. We believe this strategy will help the Fund weather near-term market volatility as it pursues long-term capital appreciation.
Thank you for your continued investment in Janus Henderson Overseas Fund.
Monetary tightening refers to central bank activity aimed at curbing inflation and slowing down growth in the economy by raising interest rates and reducing the supply of money.
Monetary Policy refers to the policies of a central bank, aimed at influencing the level of inflation and growth in an economy. It includes controlling interest rates and the supply of money.
A yield curve plots the yields (interest rate) of bonds with equal credit quality but differing maturity dates. Typically bonds with longer maturities have higher yields.
Volatility measures risk using the dispersion of returns for a given investment.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Overseas Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| BNP Paribas SA | 4.04% | | 1.26% | | JD.Com Inc - Class A | 2.66% | | -1.95% |
| Teck Resources Ltd | 3.56% | | 0.97% | | Entain PLC | 3.01% | | -0.97% |
| Erste Group Bank AG | 2.86% | | 0.90% | | Diageo PLC | 2.72% | | -0.87% |
| Ferguson PLC | 2.36% | | 0.85% | | Heineken NV | 3.26% | | -0.65% |
| Canadian Natural Resources Ltd | 3.27% | | 0.76% | | Novo Nordisk A/S - Class B | 0.13% | | -0.58% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-USA Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | 1.75% | | 20.00% | 20.70% |
| Materials | | 1.64% | | 5.41% | 8.16% |
| Industrials | | 1.33% | | 10.13% | 12.72% |
| Energy | | 1.23% | | 5.98% | 5.81% |
| Health Care | | 0.88% | | 12.38% | 9.66% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-USA Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | -2.59% | | 14.46% | 11.72% |
| Information Technology | | -1.01% | | 11.92% | 11.32% |
| Consumer Staples | | -0.78% | | 9.06% | 8.77% |
| Other** | | -0.63% | | 4.13% | 0.00% |
| Communication Services | | -0.04% | | 6.53% | 5.75% |
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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 Overseas Fund (unaudited)
Fund At A Glance
September 30, 2023
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5 Largest Equity Holdings - (% of Net Assets) |
Teck Resources Ltd | |
Metals & Mining | 4.8% |
BAE Systems PLC | |
Aerospace & Defense | 4.8% |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 4.7% |
BNP Paribas SA | |
Banks | 4.4% |
Deutsche Telekom AG | |
Diversified Telecommunication Services | 4.3% |
| | 23.0% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.9% | |
Investment Companies | | 2.0% | |
Preferred Stocks | | 1.1% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.0% | |
Other | | 0.0% |
| | | 100.0% |
Emerging markets comprised 11.6% of total net assets.
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
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Janus Henderson Overseas 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, 2023 | | | 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 | | 21.80% | 5.92% | 3.04% | 7.37% | | | 1.22% | 1.22% |
Class A Shares at MOP | | 14.80% | 4.67% | 2.43% | 7.15% | | | | |
Class C Shares at NAV | | 20.98% | 5.06% | 2.23% | 6.61% | | | 2.13% | 2.06% |
Class C Shares at CDSC | | 19.98% | 5.06% | 2.23% | 6.61% | | | | |
Class D Shares | | 22.17% | 6.22% | 3.33% | 7.56% | | | 0.95% | 0.95% |
Class I Shares | | 22.18% | 6.26% | 3.37% | 7.59% | | | 0.92% | 0.92% |
Class N Shares | | 22.31% | 6.37% | 3.48% | 7.61% | | | 0.81% | 0.81% |
Class R Shares | | 21.39% | 5.58% | 2.72% | 7.00% | | | 1.56% | 1.56% |
Class S Shares | | 21.72% | 5.85% | 2.98% | 7.25% | | | 1.31% | 1.31% |
Class T Shares | | 22.02% | 6.12% | 3.25% | 7.52% | | | 1.05% | 1.05% |
MSCI All Country World ex-USA Index | | 20.39% | 2.58% | 3.35% | N/A** | | | | |
Morningstar Quartile - Class T Shares | | 3rd | 1st | 3rd | 1st | | | | |
Morningstar Ranking - based on total returns for Foreign Large Blend Funds | | 448/737 | 24/653 | 362/514 | 14/113 | | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs),
Janus Henderson Overseas 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 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.
© 2023 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 August 1, 2023, Julian McManus is Lead Portfolio Manager.
*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 waiver, if any, contractually agreed to through at least March 31, 2024. C, D and R share classes are also subject to a non-standard expense waiver, contractually agreed to for at least a one-year period commencing on June 16, 2023. These contractual waivers may be terminated or modified only at the discretion of the Board of Trustees. 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
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $964.50 | $5.66 | | $1,000.00 | $1,019.30 | $5.82 | 1.15% |
Class C Shares | $1,000.00 | $961.60 | $8.70 | | $1,000.00 | $1,016.19 | $8.95 | 1.77% |
Class D Shares | $1,000.00 | $965.80 | $4.58 | | $1,000.00 | $1,020.41 | $4.71 | 0.93% |
Class I Shares | $1,000.00 | $965.80 | $4.44 | | $1,000.00 | $1,020.56 | $4.56 | 0.90% |
Class N Shares | $1,000.00 | $966.40 | $3.89 | | $1,000.00 | $1,021.11 | $4.00 | 0.79% |
Class R Shares | $1,000.00 | $962.90 | $7.53 | | $1,000.00 | $1,017.40 | $7.74 | 1.53% |
Class S Shares | $1,000.00 | $964.20 | $6.30 | | $1,000.00 | $1,018.65 | $6.48 | 1.28% |
Class T Shares | $1,000.00 | $965.30 | $5.03 | | $1,000.00 | $1,019.95 | $5.17 | 1.02% |
† | 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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 96.9% | | | |
Aerospace & Defense – 5.8% | | | |
| | Airbus SE | | 211,957 | | | $28,352,225 | |
| | BAE Systems PLC | | 11,425,696 | | | 138,672,131 | |
| | | 167,024,356 | |
Banks – 14.2% | | | |
| | BNP Paribas SA | | 1,991,117 | | | 126,742,948 | |
| | Erste Group Bank AG | | 2,476,237 | | | 85,530,254 | |
| | HDFC Bank Ltd | | 3,899,502 | | | 71,414,594 | |
| | Natwest Group PLC | | 17,935,348 | | | 51,310,868 | |
| | Permanent TSB Group Holdings PLC* | | 8,598,231 | | | 19,552,947 | |
| | UniCredit SpA | | 2,416,284 | | | 57,811,995 | |
| | | 412,363,606 | |
Beverages – 4.7% | | | |
| | Diageo PLC | | 1,314,628 | | | 48,473,958 | |
| | Heineken NV | | 998,226 | | | 87,799,433 | |
| | | 136,273,391 | |
Biotechnology – 2.0% | | | |
| | Argenx SE (ADR)* | | 68,632 | | | 33,741,550 | |
| | Ascendis Pharma A/S (ADR)* | | 146,401 | | | 13,708,990 | |
| | Zai Lab Ltd (ADR)*,# | | 444,769 | | | 10,812,334 | |
| | | 58,262,874 | |
Commercial Services & Supplies – 3.1% | | | |
| | Secom Co Ltd | | 1,318,900 | | | 89,452,793 | |
Diversified Telecommunication Services – 4.3% | | | |
| | Deutsche Telekom AG | | 5,897,799 | | | 123,833,440 | |
Electronic Equipment, Instruments & Components – 3.8% | | | |
| | Hexagon AB - Class B | | 5,143,805 | | | 43,792,749 | |
| | Keyence Corp | | 176,100 | | | 65,460,088 | |
| | | 109,252,837 | |
Entertainment – 2.4% | | | |
| | Liberty Media Corp-Liberty Formula One - Series C* | | 1,121,086 | | | 69,843,658 | |
Health Care Equipment & Supplies – 1.7% | | | |
| | Hoya Corp | | 469,100 | | | 48,348,891 | |
Hotels, Restaurants & Leisure – 2.6% | | | |
| | Entain PLC | | 6,543,933 | | | 74,471,392 | |
Insurance – 7.7% | | | |
| | AIA Group Ltd | | 9,872,000 | | | 79,857,812 | |
| | Beazley PLC | | 4,946,900 | | | 33,265,551 | |
| | Dai-ichi Life Holdings Inc | | 5,368,900 | | | 111,718,616 | |
| | | 224,841,979 | |
Metals & Mining – 4.8% | | | |
| | Teck Resources Ltd | | 3,249,596 | | | 139,880,261 | |
Multiline Retail – 1.4% | | | |
| | JD.Com Inc - Class A | | 2,878,639 | | | 41,842,012 | |
Oil, Gas & Consumable Fuels – 7.5% | | | |
| | Canadian Natural Resources Ltd | | 1,856,062 | | | 120,031,530 | |
| | Gaztransport Et Technigaz SA | | 192,773 | | | 23,679,267 | |
| | TotalEnergies SE | | 1,119,556 | | | 73,664,897 | |
| | | 217,375,694 | |
Personal Products – 3.1% | | | |
| | Unilever PLC | | 1,850,888 | | | 91,322,842 | |
Pharmaceuticals – 8.7% | | | |
| | AstraZeneca PLC | | 455,310 | | | 61,264,069 | |
| | Bayer AG | | 675,083 | | | 32,419,722 | |
| | Novartis AG | | 303,834 | | | 31,012,884 | |
| | Novo Nordisk A/S - Class B | | 467,218 | | | 42,508,409 | |
| | Sanofi | | 793,128 | | | 85,092,672 | |
| | | 252,297,756 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Overseas Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Road & Rail – 1.6% | | | |
| | Central Japan Railway Co | | 569,500 | | | $13,849,508 | |
| | Full Truck Alliance Co (ADR)* | | 4,546,638 | | | 32,008,331 | |
| | | 45,857,839 | |
Semiconductor & Semiconductor Equipment – 9.6% | | | |
| | ASML Holding NV | | 167,938 | | | 98,606,212 | |
| | SK Hynix Inc | | 521,624 | | | 44,311,962 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 8,379,000 | | | 135,994,140 | |
| | | 278,912,314 | |
Textiles, Apparel & Luxury Goods – 5.1% | | | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 34,553 | | | 26,064,124 | |
| | PRADA SpA | | 2,295,100 | | | 13,426,652 | |
| | Samsonite International SA (144A)* | | 31,711,500 | | | 108,518,039 | |
| | | 148,008,815 | |
Trading Companies & Distributors – 2.8% | | | |
| | Ferguson PLC | | 493,608 | | | 81,148,441 | |
Total Common Stocks (cost $2,572,782,293) | | 2,810,615,191 | |
Preferred Stocks– 1.1% | | | |
Automobiles – 1.1% | | | |
| | Dr Ing hc F Porsche AG (144A)((cost $33,040,619) | | 327,972 | | | 30,842,083 | |
Investment Companies– 2.0% | | | |
Money Markets – 2.0% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $56,372,975) | | 56,360,263 | | | 56,377,171 | |
Investments Purchased with Cash Collateral from Securities Lending– 0% | | | |
Investment Companies – 0% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº,£ | | 584,080 | | | 584,080 | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 5.3100%, 10/2/23 | | $146,020 | | | 146,020 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $730,100) | | 730,100 | |
Total Investments (total cost $2,662,925,987) – 100.0% | | 2,898,564,545 | |
Cash, Receivables and Other Assets, net of Liabilities – 0% | | 1,102,495 | |
Net Assets – 100% | | $2,899,667,040 | |
| | |
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, 2023
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United Kingdom | | $498,780,811 | | 17.2 | % |
France | | 363,596,133 | | 12.5 | |
Japan | | 328,829,896 | | 11.3 | |
Canada | | 259,911,791 | | 9.0 | |
United States | | 208,099,370 | | 7.2 | |
Hong Kong | | 188,375,851 | | 6.5 | |
Germany | | 187,095,245 | | 6.5 | |
Netherlands | | 186,405,645 | | 6.4 | |
Taiwan | | 135,994,140 | | 4.7 | |
Austria | | 85,530,254 | | 2.9 | |
China | | 84,662,677 | | 2.9 | |
India | | 71,414,594 | | 2.5 | |
Italy | | 71,238,647 | | 2.5 | |
Denmark | | 56,217,399 | | 1.9 | |
South Korea | | 44,311,962 | | 1.5 | |
Sweden | | 43,792,749 | | 1.5 | |
Belgium | | 33,741,550 | | 1.2 | |
Switzerland | | 31,012,884 | | 1.1 | |
Ireland | | 19,552,947 | | 0.7 | |
| | | | | | |
| | | | | | |
Total | | $2,898,564,545 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Overseas Fund
Schedule of Investments
September 30, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 2.0% |
Money Markets - 2.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 4,693,281 | $ | 13,212 | $ | 1,715 | $ | 56,377,171 |
Investments Purchased with Cash Collateral from Securities Lending - 0.0% |
Investment Companies - 0.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 559,370∆ | | - | | - | | 584,080 |
Total Affiliated Investments - 2.0% | $ | 5,252,651 | $ | 13,212 | $ | 1,715 | $ | 56,961,251 |
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 2.0% |
Money Markets - 2.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 75,216,629 | | 850,900,433 | | (869,754,818) | | 56,377,171 |
Investments Purchased with Cash Collateral from Securities Lending - 0.0% |
Investment Companies - 0.0% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 41,118,585 | | 205,452,609 | | (245,987,114) | | 584,080 |
| | | | | | | | | | |
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 | $ | 724,438 | $ | — | $ | (724,438) | $ | — |
| | | | | | | | | |
(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 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, 2023 is $139,360,122, which represents 4.8% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2023. |
| | |
£ | 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, 2023. 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 | $ | 58,262,874 | $ | - | $ | - |
Entertainment | | 69,843,658 | | - | | - |
Metals & Mining | | 139,880,261 | | - | | - |
Oil, Gas & Consumable Fuels | | 120,031,530 | | 97,344,164 | | - |
Road & Rail | | 32,008,331 | | 13,849,508 | | - |
All Other | | - | | 2,279,394,865 | | - |
Preferred Stocks | | - | | 30,842,083 | | - |
Investment Companies | | - | | 56,377,171 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 730,100 | | - |
Total Assets | $ | 420,026,654 | $ | 2,478,537,891 | $ | - |
| | | | | | | |
Janus Henderson Overseas Fund
Statement of Assets and Liabilities
September 30, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $2,605,968,932)(1) | | $ | 2,841,603,294 | |
| Affiliated investments, at value (cost $56,957,055) | | | 56,961,251 | |
| Cash | | | 27,401 | |
| Trustees' deferred compensation | | | 75,724 | |
| Receivables: | | | | |
| | Foreign tax reclaims | | | 6,988,766 | |
| | Fund shares sold | | | 5,708,464 | |
| | Dividends | | | 4,438,819 | |
| | Investments sold | | | 1,436,193 | |
| | Dividends from affiliates | | | 358,073 | |
| Other assets | | | 13,138 | |
Total Assets | | | 2,917,611,123 | |
Liabilities: | | | | |
| Foreign cash due to custodian | | | 12,933 | |
| Collateral for securities loaned (Note 2) | | | 730,100 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 6,618,955 | |
| | Foreign withholding tax reclaim fee (Note 1) | | | 4,216,505 | |
| | Investments purchased | | | 2,999,158 | |
| | Advisory fees | | | 1,871,229 | |
| | Transfer agent fees and expenses | | | 478,463 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 95,491 | |
| | Professional fees | | | 78,811 | |
| | Trustees' deferred compensation fees | | | 75,724 | |
| | Custodian fees | | | 51,216 | |
| | Trustees' fees and expenses | | | 17,016 | |
| | Affiliated fund administration fees payable | | | 6,377 | |
| | Accrued expenses and other payables | | | 692,105 | |
Total Liabilities | | | 17,944,083 | |
Commitments and contingent liabilities (Note 3) | | | | |
Net Assets | | $ | 2,899,667,040 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Overseas Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 4,142,338,824 | |
| Total distributable earnings (loss) | | | (1,242,671,784) | |
Total Net Assets | | $ | 2,899,667,040 | |
Net Assets - Class A Shares | | $ | 209,483,113 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,112,040 | |
Net Asset Value Per Share(2) | | $ | 40.98 | |
Maximum Offering Price Per Share(3) | | $ | 43.48 | |
Net Assets - Class C Shares | | $ | 14,764,684 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 368,118 | |
Net Asset Value Per Share(2) | | $ | 40.11 | |
Net Assets - Class D Shares | | $ | 614,115,609 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 15,121,982 | |
Net Asset Value Per Share | | $ | 40.61 | |
Net Assets - Class I Shares | | $ | 1,261,146,507 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 30,966,402 | |
Net Asset Value Per Share | | $ | 40.73 | |
Net Assets - Class N Shares | | $ | 171,596,741 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,232,433 | |
Net Asset Value Per Share | | $ | 40.54 | |
Net Assets - Class R Shares | | $ | 22,304,698 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 553,967 | |
Net Asset Value Per Share | | $ | 40.26 | |
Net Assets - Class S Shares | | $ | 121,809,201 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,999,247 | |
Net Asset Value Per Share | | $ | 40.61 | |
Net Assets - Class T Shares | | $ | 484,446,487 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 11,916,016 | |
Net Asset Value Per Share | | $ | 40.66 | |
| |
(1) Includes $724,438 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, 2023 |
Janus Henderson Overseas Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 67,495,226 | |
| Dividends from affiliates | | 4,693,281 | |
| Affiliated securities lending income, net | | 559,370 | |
| Unaffiliated securities lending income, net | | 95,730 | |
| Other income | | 351,776 | |
| Foreign tax withheld | | (7,168,595) | |
Total Investment Income | | 66,026,788 | |
Expenses: | | | |
| Advisory fees | | 18,800,105 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 172,826 | |
| | Class C Shares | | 62,485 | |
| | Class R Shares | | 110,085 | |
| | Class S Shares | | 304,398 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 740,840 | |
| | Class R Shares | | 55,587 | |
| | Class S Shares | | 304,485 | |
| | Class T Shares | | 1,239,752 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 119,846 | |
| | Class C Shares | | 7,711 | |
| | Class I Shares | | 1,159,019 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 4,022 | |
| | Class C Shares | | 315 | |
| | Class D Shares | | 116,785 | |
| | Class I Shares | | 51,629 | |
| | Class N Shares | | 5,852 | |
| | Class R Shares | | 472 | |
| | Class S Shares | | 1,822 | |
| | Class T Shares | | 6,413 | |
| Shareholder reports expense | | 379,538 | |
| Custodian fees | | 373,533 | |
| Registration fees | | 223,249 | |
| Professional fees | | 100,305 | |
| Affiliated fund administration fees | | 81,898 | |
| Trustees’ fees and expenses | | 62,339 | |
| Other expenses | | 169,620 | |
Total Expenses | | 24,654,931 | |
Less: Excess Expense Reimbursement and Waivers | | (55,589) | |
Net Expenses | | 24,599,342 | |
Net Investment Income/(Loss) | | 41,427,446 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Overseas Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (net of foreign taxes of $1,719) | $ | 18,045,879 | |
| Investments in affiliates | | 13,212 | |
Total Net Realized Gain/(Loss) on Investments | | 18,059,091 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 273,472,077 | |
| Investments in affiliates | | 1,715 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 273,473,792 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 332,960,329 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Overseas Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 41,427,446 | | $ | 32,969,684 | |
| Net realized gain/(loss) on investments | | 18,059,091 | | | (4,562,441) | |
| Change in unrealized net appreciation/depreciation | | 273,473,792 | | | (468,597,266) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 332,960,329 | | | (440,190,023) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (295,705) | | | (163,941) | |
| | Class C Shares | | (26,327) | | | — | |
| | Class D Shares | | (9,693,682) | | | (7,514,426) | |
| | Class I Shares | | (11,776,581) | | | (4,194,570) | |
| | Class N Shares | | (2,006,853) | | | (764,172) | |
| | Class R Shares | | (200,146) | | | (103,612) | |
| | Class S Shares | | (1,409,535) | | | (907,459) | |
| | Class T Shares | | (6,892,452) | | | (5,080,049) | |
Net Decrease from Dividends and Distributions to Shareholders | | (32,301,281) | | | (18,728,229) | |
Capital Share Transactions: (Note 5) | | | | | | |
| | Class A Shares | | 198,989,644 | | | 2,623,775 | |
| | Class C Shares | | 13,182,322 | | | 1,110,931 | |
| | Class D Shares | | (21,572,913) | | | (43,685,697) | |
| | Class I Shares | | 644,630,020 | | | 348,539,981 | |
| | Class N Shares | | 87,255,676 | | | 28,719,088 | |
| | Class R Shares | | 687,015 | | | (931,155) | |
| | Class S Shares | | 354,467 | | | 3,222 | |
| | Class T Shares | | 4,194,027 | | | (17,862,031) | |
Net Increase/(Decrease) from Capital Share Transactions | | 927,720,258 | | | 318,518,114 | |
Net Increase/(Decrease) in Net Assets | | 1,228,379,306 | | | (140,400,138) | |
Net Assets: | | | | | | |
| Beginning of period | | 1,671,287,734 | | | 1,811,687,872 | |
| End of period | $ | 2,899,667,040 | | $ | 1,671,287,734 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $34.10 | | | $43.91 | | | $33.08 | | | $30.94 | | | $32.42 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.28 | | | 0.63 | | | 0.43 | | | 0.21 | | | 0.53 | |
| | Net realized and unrealized gain/(loss) | | 7.14 | | | (10.09) | | | 10.64 | | | 2.51 | | | (1.77) | |
| Total from Investment Operations | | 7.42 | | | (9.46) | | | 11.07 | | | 2.72 | | | (1.24) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.54) | | | (0.35) | | | (0.24) | | | (0.58) | | | (0.24) | |
| Total Dividends and Distributions | | (0.54) | | | (0.35) | | | (0.24) | | | (0.58) | | | (0.24) | |
| Net Asset Value, End of Period | | $40.98 | | | $34.10 | | | $43.91 | | | $33.08 | | | $30.94 | |
| Total Return* | | 21.80% | | | (21.71)% | | | 33.54% | | | 8.74% | | | (3.74)% | |
| Net Assets, End of Period (in thousands) | | $209,483 | | | $19,008 | | | $21,130 | | | $15,231 | | | $17,470 | |
| Average Net Assets for the Period (in thousands) | | $79,912 | | | $19,976 | | | $19,864 | | | $15,904 | | | $17,537 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.17% | | | 1.22% | | | 1.22% | | | 1.17% | | | 1.11% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.22% | | | 1.22% | | | 1.17% | | | 1.10% | |
| | Ratio of Net Investment Income/(Loss) | | 0.66% | | | 1.53% | | | 1.03% | | | 0.66% | | | 1.78% | |
| Portfolio Turnover Rate | | 42% | | | 32% | | | 27% | | | 18% | | | 22% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $33.48 | | | $43.14 | | | $32.58 | | | $30.34 | | | $31.76 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.08 | | | 0.36 | | | (0.02) | | | (0.06) | | | 0.28 | |
| | Net realized and unrealized gain/(loss) | | 6.94 | | | (10.02) | | | 10.58 | | | 2.43 | | | (1.70) | |
| Total from Investment Operations | | 7.02 | | | (9.66) | | | 10.56 | | | 2.37 | | | (1.42) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.39) | | | — | | | — | | | (0.13) | | | — | |
| Total Dividends and Distributions | | (0.39) | | | — | | | — | | | (0.13) | | | — | |
| Net Asset Value, End of Period | | $40.11 | | | $33.48 | | | $43.14 | | | $32.58 | | | $30.34 | |
| Total Return* | | 20.98% | | | (22.39)% | | | 32.41% | | | 7.79% | | | (4.47)% | |
| Net Assets, End of Period (in thousands) | | $14,765 | | | $1,941 | | | $1,295 | | | $2,665 | | | $3,693 | |
| Average Net Assets for the Period (in thousands) | | $7,113 | | | $1,631 | | | $1,910 | | | $3,305 | | | $5,809 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.82% | | | 2.13% | | | 2.06% | | | 2.02% | | | 1.90% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.82% | | | 2.09% | | | 2.06% | | | 1.99% | | | 1.87% | |
| | Ratio of Net Investment Income/(Loss) | | 0.19% | | | 0.90% | | | (0.04)% | | | (0.19)% | | | 0.95% | |
| Portfolio Turnover Rate | | 42% | | | 32% | | | 27% | | | 18% | | | 22% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $33.78 | | | $43.49 | | | $32.77 | | | $30.66 | | | $32.12 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.68 | | | 0.73 | | | 0.53 | | | 0.30 | | | 0.63 | |
| | Net realized and unrealized gain/(loss) | | 6.78 | | | (9.98) | | | 10.54 | | | 2.50 | | | (1.78) | |
| Total from Investment Operations | | 7.46 | | | (9.25) | | | 11.07 | | | 2.80 | | | (1.15) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.63) | | | (0.46) | | | (0.35) | | | (0.69) | | | (0.31) | |
| Total Dividends and Distributions | | (0.63) | | | (0.46) | | | (0.35) | | | (0.69) | | | (0.31) | |
| Net Asset Value, End of Period | | $40.61 | | | $33.78 | | | $43.49 | | | $32.77 | | | $30.66 | |
| Total Return* | | 22.13% | | | (21.48)% | | | 33.89% | | | 9.06% | | | (3.46)% | |
| Net Assets, End of Period (in thousands) | | $614,116 | | | $528,221 | | | $726,916 | | | $572,590 | | | $587,147 | |
| Average Net Assets for the Period (in thousands) | | $633,545 | | | $668,081 | | | $704,107 | | | $570,593 | | | $605,377 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.94% | | | 0.95% | | | 0.95% | | | 0.89% | | | 0.79% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.94% | | | 0.95% | | | 0.95% | | | 0.89% | | | 0.79% | |
| | Ratio of Net Investment Income/(Loss) | | 1.65% | | | 1.77% | | | 1.28% | | | 0.98% | | | 2.11% | |
| Portfolio Turnover Rate | | 42% | | | 32% | | | 27% | | | 18% | | | 22% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $33.89 | | | $43.68 | | | $32.91 | | | $30.79 | | | $32.25 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.72 | | | 0.83 | | | 0.72 | | | 0.32 | | | 0.64 | |
| | Net realized and unrealized gain/(loss) | | 6.79 | | | (10.11) | | | 10.41 | | | 2.50 | | | (1.77) | |
| Total from Investment Operations | | 7.51 | | | (9.28) | | | 11.13 | | | 2.82 | | | (1.13) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.67) | | | (0.51) | | | (0.36) | | | (0.70) | | | (0.33) | |
| Total Dividends and Distributions | | (0.67) | | | (0.51) | | | (0.36) | | | (0.70) | | | (0.33) | |
| Net Asset Value, End of Period | | $40.73 | | | $33.89 | | | $43.68 | | | $32.91 | | | $30.79 | |
| Total Return* | | 22.21% | | | (21.46)% | | | 33.96% | | | 9.10% | | | (3.40)% | |
| Net Assets, End of Period (in thousands) | | $1,261,147 | | | $532,808 | | | $312,685 | | | $44,806 | | | $42,606 | |
| Average Net Assets for the Period (in thousands) | | $1,041,727 | | | $434,124 | | | $90,200 | | | $43,005 | | | $45,239 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.90% | | | 0.92% | | | 0.90% | | | 0.84% | | | 0.74% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.92% | | | 0.90% | | | 0.84% | | | 0.74% | |
| | Ratio of Net Investment Income/(Loss) | | 1.73% | | | 2.05% | | | 1.72% | | | 1.04% | | | 2.14% | |
| Portfolio Turnover Rate | | 42% | | | 32% | | | 27% | | | 18% | | | 22% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $33.73 | | | $43.43 | | | $32.72 | | | $30.62 | | | $32.08 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.77 | | | 0.84 | | | 0.64 | | | 0.32 | | | 0.68 | |
| | Net realized and unrealized gain/(loss) | | 6.73 | | | (10.02) | | | 10.46 | | | 2.52 | | | (1.77) | |
| Total from Investment Operations | | 7.50 | | | (9.18) | | | 11.10 | | | 2.84 | | | (1.09) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.69) | | | (0.52) | | | (0.39) | | | (0.74) | | | (0.37) | |
| Total Dividends and Distributions | | (0.69) | | | (0.52) | | | (0.39) | | | (0.74) | | | (0.37) | |
| Net Asset Value, End of Period | | $40.54 | | | $33.73 | | | $43.43 | | | $32.72 | | | $30.62 | |
| Total Return* | | 22.31% | | | (21.37)% | | | 34.06% | | | 9.20% | | | (3.27)% | |
| Net Assets, End of Period (in thousands) | | $171,597 | | | $70,342 | | | $61,263 | | | $23,810 | | | $51,945 | |
| Average Net Assets for the Period (in thousands) | | $144,128 | | | $72,777 | | | $42,249 | | | $45,317 | | | $59,886 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.81% | | | 0.81% | | | 0.74% | | | 0.63% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.81% | | | 0.81% | | | 0.74% | | | 0.63% | |
| | Ratio of Net Investment Income/(Loss) | | 1.87% | | | 2.07% | | | 1.54% | | | 1.02% | | | 2.27% | |
| Portfolio Turnover Rate | | 42% | | | 32% | | | 27% | | | 18% | | | 22% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $33.48 | | | $43.10 | | | $32.48 | | | $30.41 | | | $31.78 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.42 | | | 0.47 | | | 0.27 | | | 0.11 | | | 0.44 | |
| | Net realized and unrealized gain/(loss) | | 6.73 | | | (9.90) | | | 10.48 | | | 2.45 | | | (1.72) | |
| Total from Investment Operations | | 7.15 | | | (9.43) | | | 10.75 | | | 2.56 | | | (1.28) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.37) | | | (0.19) | | | (0.13) | | | (0.49) | | | (0.09) | |
| Total Dividends and Distributions | | (0.37) | | | (0.19) | | | (0.13) | | | (0.49) | | | (0.09) | |
| Net Asset Value, End of Period | | $40.26 | | | $33.48 | | | $43.10 | | | $32.48 | | | $30.41 | |
| Total Return* | | 21.39% | | | (21.97)% | | | 33.12% | | | 8.37% | | | (4.00)% | |
| Net Assets, End of Period (in thousands) | | $22,305 | | | $18,008 | | | $24,155 | | | $21,288 | | | $24,381 | |
| Average Net Assets for the Period (in thousands) | | $22,272 | | | $22,449 | | | $24,617 | | | $22,679 | | | $25,588 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.55% | | | 1.56% | | | 1.56% | | | 1.49% | | | 1.39% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.55% | | | 1.56% | | | 1.56% | | | 1.49% | | | 1.39% | |
| | Ratio of Net Investment Income/(Loss) | | 1.02% | | | 1.16% | | | 0.66% | | | 0.35% | | | 1.50% | |
| Portfolio Turnover Rate | | 42% | | | 32% | | | 27% | | | 18% | | | 22% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $33.77 | | | $43.48 | | | $32.77 | | | $30.67 | | | $32.08 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.52 | | | 0.59 | | | 0.38 | | | 0.19 | | | 0.53 | |
| | Net realized and unrealized gain/(loss) | | 6.80 | | | (10.00) | | | 10.55 | | | 2.48 | | | (1.75) | |
| Total from Investment Operations | | 7.32 | | | (9.41) | | | 10.93 | | | 2.67 | | | (1.22) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.48) | | | (0.30) | | | (0.22) | | | (0.57) | | | (0.19) | |
| Total Dividends and Distributions | | (0.48) | | | (0.30) | | | (0.22) | | | (0.57) | | | (0.19) | |
| Net Asset Value, End of Period | | $40.61 | | | $33.77 | | | $43.48 | | | $32.77 | | | $30.67 | |
| Total Return* | | 21.72% | | | (21.77)% | | | 33.43% | | | 8.64% | | | (3.74)% | |
| Net Assets, End of Period (in thousands) | | $121,809 | | | $101,257 | | | $130,076 | | | $107,722 | | | $118,308 | |
| Average Net Assets for the Period (in thousands) | | $122,018 | | | $122,666 | | | $127,073 | | | $109,624 | | | $125,646 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.29% | | | 1.31% | | | 1.31% | | | 1.23% | | | 1.13% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.29% | | | 1.31% | | | 1.31% | | | 1.23% | | | 1.13% | |
| | Ratio of Net Investment Income/(Loss) | | 1.28% | | | 1.43% | | | 0.92% | | | 0.62% | | | 1.77% | |
| Portfolio Turnover Rate | | 42% | | | 32% | | | 27% | | | 18% | | | 22% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $33.81 | | | $43.53 | | | $32.80 | | | $30.70 | | | $32.14 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.65 | | | 0.69 | | | 0.49 | | | 0.27 | | | 0.60 | |
| | Net realized and unrealized gain/(loss) | | 6.79 | | | (9.99) | | | 10.56 | | | 2.49 | | | (1.76) | |
| Total from Investment Operations | | 7.44 | | | (9.30) | | | 11.05 | | | 2.76 | | | (1.16) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.59) | | | (0.42) | | | (0.32) | | | (0.66) | | | (0.28) | |
| Total Dividends and Distributions | | (0.59) | | | (0.42) | | | (0.32) | | | (0.66) | | | (0.28) | |
| Net Asset Value, End of Period | | $40.66 | | | $33.81 | | | $43.53 | | | $32.80 | | | $30.70 | |
| Total Return* | | 22.05% | | | (21.56)% | | | 33.78% | | | 8.93% | | | (3.51)% | |
| Net Assets, End of Period (in thousands) | | $484,446 | | | $399,703 | | | $534,168 | | | $411,807 | | | $444,252 | |
| Average Net Assets for the Period (in thousands) | | $496,776 | | | $499,214 | | | $511,140 | | | $422,347 | | | $462,499 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.04% | | | 1.05% | | | 1.05% | | | 0.98% | | | 0.88% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.03% | | | 1.04% | | | 1.05% | | | 0.97% | | | 0.87% | |
| | Ratio of Net Investment Income/(Loss) | | 1.59% | | | 1.68% | | | 1.19% | | | 0.88% | | | 2.03% | |
| Portfolio Turnover Rate | | 42% | | | 32% | | | 27% | | | 18% | | | 22% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | 25 |
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 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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Overseas Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Janus Henderson Overseas Fund
Notes to Financial Statements
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal 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, 2023 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 Overseas 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
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments,
Janus Henderson Overseas Fund
Notes to Financial Statements
the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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. 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
Janus Henderson Overseas Fund
Notes to Financial Statements
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, 2023, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $724,438. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2023 is $730,100, resulting in the net amount due to the counterparty of $5,662.
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
Janus Henderson Overseas Fund
Notes to Financial Statements
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, 2023, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.74%.
The Adviser has agreed to limit the net annual fund operating expenses of Class C Shares, Class D Shares, and Class R Shares (excluding any performance adjustments to management fees, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses) to the extent they exceed 1.95%, 0.95%, and 1.54%, respectively. The Adviser has agreed to continue the waivers for a least a one-year period commencing on June 16, 2023. This arrangement is in addition to the existing expense limit wherein 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, through at least March 31, 2024. 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
Janus Henderson Overseas 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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 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, 2023, the Distributor retained upfront sales charges of $4,082.
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, 2023.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $34.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 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, 2023, the Fund engaged in cross trades amounting to $12,486,479 in purchases.
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes (reduced by foreign tax liability).
Other book to tax differences primarily consist of deferred compensation 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.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 41,882,716 | $ - | $(1,507,861,887) | $ - | $(4,793,010) | $228,100,397 | |
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2023, 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, 2023 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(195,757,499) | $(1,312,104,388) | $(1,507,861,887) | | |
During the year ended September 30, 2023, capital loss carryovers of $13,382,939 were utilized by the Fund.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 30, 2023 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) |
$ 2,670,735,133 | $374,965,724 | $(147,136,312) | $ 227,829,412 |
Janus Henderson Overseas 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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 32,301,281 | $ - | $ - | $ - | |
| | | | | |
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 | $ - | $ - | $ - | |
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.
Janus Henderson Overseas Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 257,875 | $ 10,892,924 | | 150,131 | $ 5,617,275 |
Shares from the Acquisition (See Note 8) | 4,692,687 | 204,862,058 | | - | - |
Reinvested dividends and distributions | 5,978 | 237,997 | | 3,517 | 148,824 |
Shares repurchased | (401,920) | (17,003,335) | | (77,473) | (3,142,324) |
Net Increase/(Decrease) | 4,554,620 | $198,989,644 | | 76,175 | $ 2,623,775 |
Class C Shares: | | | | | |
Shares sold | 89,323 | $ 3,593,765 | | 36,815 | $ 1,473,830 |
Shares from the Acquisition (See Note 8) | 335,927 | 14,378,399 | | - | - |
Reinvested dividends and distributions | 672 | 26,327 | | - | - |
Shares repurchased | (115,788) | (4,816,169) | | (8,855) | (362,899) |
Net Increase/(Decrease) | 310,134 | $ 13,182,322 | | 27,960 | $ 1,110,931 |
Class D Shares: | | | | | |
Shares sold | 297,684 | $ 12,370,029 | | 295,417 | $ 12,439,513 |
Shares from the Acquisition (See Note 8) | 69,125 | 2,988,738 | | - | - |
Reinvested dividends and distributions | 230,818 | 9,085,002 | | 169,001 | 7,069,316 |
Shares repurchased | (1,114,780) | (46,016,682) | | (1,540,034) | (63,194,526) |
Net Increase/(Decrease) | (517,153) | $ (21,572,913) | | (1,075,616) | $ (43,685,697) |
Class I Shares: | | | | | |
Shares sold | 20,509,906 | $850,698,752 | | 11,619,053 | $468,755,843 |
Shares from the Acquisition (See Note 8) | 7,423,490 | 321,865,459 | | - | - |
Reinvested dividends and distributions | 286,787 | 11,319,469 | | 99,055 | 4,156,347 |
Shares repurchased | (12,974,900) | (539,253,660) | | (3,155,471) | (124,372,209) |
Net Increase/(Decrease) | 15,245,283 | $644,630,020 | | 8,562,637 | $348,539,981 |
Class N Shares: | | | | | |
Shares sold | 2,929,908 | $119,608,329 | | 979,538 | $ 41,252,029 |
Shares from the Acquisition (See Note 8) | 446,833 | 19,279,769 | | - | - |
Reinvested dividends and distributions | 51,130 | 2,006,853 | | 18,317 | 764,172 |
Shares repurchased | (1,281,066) | (53,639,275) | | (322,727) | (13,297,113) |
Net Increase/(Decrease) | 2,146,805 | $ 87,255,676 | | 675,128 | $ 28,719,088 |
Class R Shares: | | | | | |
Shares sold | 136,012 | $ 5,646,497 | | 99,343 | $ 4,051,490 |
Shares from the Acquisition (See Note 8) | 41,867 | 1,797,809 | | - | - |
Reinvested dividends and distributions | 5,082 | 199,263 | | 2,475 | 103,109 |
Shares repurchased | (166,907) | (6,956,554) | | (124,408) | (5,085,754) |
Net Increase/(Decrease) | 16,054 | $ 687,015 | | (22,590) | $ (931,155) |
Class S Shares: | | | | | |
Shares sold | 559,251 | $ 23,295,900 | | 481,312 | $ 19,583,450 |
Shares from the Acquisition (See Note 8) | 1,579 | 68,335 | | - | - |
Reinvested dividends and distributions | 35,677 | 1,408,178 | | 21,616 | 906,569 |
Shares repurchased | (595,684) | (24,417,946) | | (496,046) | (20,486,797) |
Net Increase/(Decrease) | 823 | $ 354,467 | | 6,882 | $ 3,222 |
Class T Shares: | | | | | |
Shares sold | 1,885,296 | $ 78,572,526 | | 990,010 | $ 41,112,070 |
Shares from the Acquisition (See Note 8) | 22,517 | 974,892 | | - | - |
Reinvested dividends and distributions | 171,986 | 6,781,400 | | 118,113 | 4,948,931 |
Shares repurchased | (1,986,552) | (82,134,791) | | (1,556,278) | (63,923,032) |
Net Increase/(Decrease) | 93,247 | $ 4,194,027 | | (448,155) | $ (17,862,031) |
Janus Henderson Overseas Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$ 1,411,533,865 | $ 1,016,796,491 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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.
8. Fund Acquisition
At a special meeting of shareholders of Janus Henderson International Opportunities Fund (the "Target Fund") held on May 18, 2023, shareholders of the Target Fund approved an Agreement and Plan of Reorganization, which provided for the reorganization of the Target Fund with and into Janus Henderson Overseas Fund (the "Acquiring Fund") (the "Reorganization"). The Reorganization was effective immediately after the close of business on June 16, 2023. Upon closing of the Reorganization, the Target Fund transferred its assets to the Acquiring Fund in exchange for shares of beneficial interest of the Acquiring Fund and the assumption by the Acquiring Fund of all of the liabilities of the Target Fund. At the time of the Reorganization, shares of beneficial interest of the Acquiring Fund were distributed to Target Fund shareholders. The Target Fund was subsequently terminated. Each Target Fund shareholder received shares of beneficial interest of the Acquiring Fund with a total net asset value equal to the total net asset value of that shareholder’s shares of beneficial interest in the Target Fund shares immediately prior to the closing of the Reorganization. The Reorganization was tax-free for U.S. federal income tax purposes.
| | | | | | |
Target Fund’s Shares Outstanding Prior to Merger | Target Fund’s Net Assets Prior to Merger | Acquiring Fund’s Shares Issued in Merger | Acquiring Fund’s Net Assets Prior to Merger | Combined Net Assets after Merger | Target Fund’s Unrealized Appreciation/(Depreciation) Prior to Merger |
29,107,989 | $566,215,459 | 13,034,023 | $2,764,408,498 | $3,330,623,957 | $30,867,833 |
Assuming the Merger had been completed on 10/1/2022, the pro forma results of operations for the year ended 9/30/2023, are as follows:
Net investment income $64,547,670
Net realized gain/(loss) on investments $56,436,548
Change in unrealized net appreciation/depreciation $384,851,337
Net increase/(decrease) in net assets resulting from operations $505,835,5554
Because the combined investment portfolios have been managed as a single portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Acquired Fund that have been included in the Fund’s accompanying Statement of Operations since the close of business on June 16, 2023.
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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Overseas Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Overseas Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Overseas Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Overseas Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Overseas Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Overseas Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Overseas Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Overseas Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Overseas Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Overseas Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Foreign Taxes Paid | $6,844,124 |
Foreign Source Income | $51,046,937 |
Dividends Received Deduction Percentage | 1% |
Qualified Dividend Income Percentage | 99% |
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 48 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). | 48 | 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). | 48 | 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). | 48 | 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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). | 48 | 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. | 48 | 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). | 48 | 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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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 |
Julian McManus 151 Detroit Street Denver, CO 80206 DOB: 1970 | Executive Vice President and Portfolio Manager
Janus Henderson Overseas Fund | 1/18-Present | Lead 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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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)
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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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93050 11-23 |
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| | | ANNUAL REPORT September 30, 2023 |
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| | Janus Henderson Research Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Research Fund
Janus Henderson Research Fund (unaudited)
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| | | | | Team-Based Approach Led by Matthew Peron, Director of Research |
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PERFORMANCE
The Janus Henderson Research Fund Class I Shares returned 32.24% for the 12-month period ended September 30, 2023, while its primary benchmark, the Russell 1000® Growth Index, returned 27.72%, and its secondary benchmark, the S&P 500® Index, returned 21.62%.
INVESTMENT ENVIRONMENT
Stocks rallied in the fourth quarter of 2022 on hopes that moderating inflation might allow the Federal Reserve (Fed) to slow or end its campaign of interest rate hikes. This rally extended into the first half of 2023, despite periods of market volatility. U.S. economic growth appeared resilient, as a strong job market helped support consumer spending. However, there were signs of slowing in other areas of the economy, especially manufacturing and housing. Corporations reduced their earnings outlooks as they faced weaker demand as well as higher input, labor, and funding costs. The Fed continued to raise rates through the first seven months of 2023, although the pace of rate hikes moderated. The Fed left rates unchanged in September, but policymakers indicated that an extended period of higher rates might be needed to bring inflation under control, especially against a backdrop of rising fuel prices. These signals put upward pressure on long-term bond yields while adding to fears of a more pronounced economic slowdown. As a result, stocks suffered broad-based declines in the third quarter. Despite this sell-off, equities still ended the twelve-month period with strong positive performance. Growth stocks outperformed value against this backdrop, as measured by the Russell indices.
PERFORMANCE DISCUSSION
We were pleased that the Fund outperformed both benchmarks for the reporting period. At the same time, our primary focus remains on the long view. We continue to look for opportunities to capitalize on long-term trends that may play out over the next three to five years, creating above-average earnings growth potential for disciplined and innovative companies. To take advantage of these long-term opportunities, we remain focused on what we view to be our strengths: picking stocks and avoiding macroeconomic risks. We continue to rely on the stock-picking expertise of our seven global sector teams that employ a bottom-up, fundamental approach to identify what we consider the best long-term global growth opportunities.
Among individual holdings, information technology holding Nvidia was a standout performer. The graphics chipmaker has benefited from its diverse portfolio of new products targeting the gaming and data center markets. In particular, it has experienced accelerating demand for its data center graphics processing units (GPUs), which are in high demand to support generative artificial intelligence (AI) applications. As a result, Nvidia reported revenue growth that well exceeded analyst targets, assisted by surging demand for its products from data centers, cloud service providers, consumer internet companies, and AI startups. Nvidia’s management indicated they expect data center demand to accelerate into 2024, as technology companies rush to deploy AI-related capabilities. Moreover, it reported strength in its gaming business, fueled by robust demand for its RTX 40x Ada Lovelace GPUs.
Booking Holdings, another top contributor, provides online travel and restaurant reservations through brands such as Booking.com, Priceline, and OpenTable. The company reported solid financial results as travel volumes continued to recover from the pandemic to reach 2019 levels. It has also gained market share, and it was able to raise prices without seeing any negative impact from people shortening stays or trading down to less-expensive properties. The company’s geographic diversification also enabled it to capitalize on reopening in Asia. Additionally, Booking Holdings has benefited from relatively low debt levels and positive cash flows, which company management has indicated it will use to buy back stock.
Janus Henderson Research Fund (unaudited)
Global package delivery and logistics company United Parcel Service (UPS) was a relative detractor, as uncertainty over the company's labor negotiations weighed on the stock. While UPS avoided a strike, the potential for higher labor costs was a headwind for its business and ultimately led the company to reduce its full-year revenue and margin guidance. UPS also faced concerns over slower volumes, especially within its international business. On a positive note, we have been encouraged by the company's focus on cost reduction and productivity initiatives, including investments in automation that the management team hopes will support margin improvement. Additionally, UPS has aimed at shifting its business toward higher-margin deliveries, while it has explored new market segments such as small- and medium-sized enterprises.
Atlassian, another detractor, provides collaboration and productivity software that helps teams organize, discuss, and complete shared work. The stock sold off in the fourth quarter of 2022 after the company reported slower year-over-year subscription growth for its cloud and data center businesses. It also reduced guidance, as it warned that macroeconomic headwinds may slow enterprise capital spending and hiring. We trimmed our position given some near-term headwinds for enterprise spending, and we continued to monitor the company’s fundamentals and capital allocation. After a challenging start to the year, the stock rallied later in 2023 after the company reported solid second-quarter results and improved guidance. This helped investors shake off some fears around near-term demand for cloud-computing solutions. We continue to see long-term potential for Atlassian given its plans to migrate more customers to cloud-based versions of its software, providing the potential for recurring revenues.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
While overall economic growth has remained relatively resilient, we have seen pockets of weakness, especially in manufacturing. This weakness may broaden out, as consumer spending is showing early signs of softening due to higher living costs and the ending of fiscal support. We recognize that we have yet to see the full impact of central bank rate hikes, which can take 18 months to affect the economy. Policymakers have also indicated that we are likely to see an extended period of higher rates with implications for economic growth, corporate earnings, and equity market performance.
Our response to this environment is the same risk-conscious investment approach we have always followed. We continue to seek out companies with high-quality business models, robust cash flow, and proven management teams. We also pay close attention to the quality of corporate balance sheets and capital allocation, favoring companies that continue to reinvest in the business and pursue innovation. Adhering to this fundamentals-driven approach, we are seeking out longer-term secular growth opportunities in sectors such as healthcare and information technology. We remain opportunistic in other sectors, where we can identify improving business models and economic conditions. Through this disciplined, fundamentals-driven investment approach, we will continue to pursue our goal of long-term growth of capital.
Thank you for investing in the Janus Henderson Research Fund.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Research Fund (unaudited)
Fund At A Glance
September 30, 2023
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| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| NVIDIA Corp | 4.81% | | 1.95% | | Broadcom Inc | 0.02% | | -0.68% |
| Booking Holdings Inc | 2.13% | | 0.87% | | Atlassian Corp - Class A | 1.09% | | -0.68% |
| Tesla Inc | 0.66% | | 0.70% | | United Parcel Service Inc | 2.16% | | -0.47% |
| Lam Research Corp | 1.52% | | 0.45% | | T-Mobile US Inc | 1.54% | | -0.42% |
| Deckers Outdoor Corp | 0.89% | | 0.33% | | Constellation Brands Inc - Class A | 1.36% | | -0.28% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Technology | | 2.69% | | 40.15% | 40.49% |
| Consumer | | 2.19% | | 17.97% | 17.76% |
| Industrials | | 0.59% | | 10.32% | 10.43% |
| Financials | | 0.54% | | 8.11% | 8.12% |
| Energy | | 0.13% | | 1.27% | 1.31% |
| | | | | | |
| | | | | | |
| 3 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Healthcare | | -0.65% | | 12.00% | 11.94% |
| Communications | | -0.25% | | 10.02% | 9.95% |
| Other** | | 0.01% | | 0.16% | 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. |
* | 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, 2023
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 11.6% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 7.0% |
NVIDIA Corp | |
Semiconductor & Semiconductor Equipment | 6.3% |
Alphabet Inc - Class C | |
Interactive Media & Services | 6.0% |
Amazon.com Inc | |
Multiline Retail | 5.4% |
| | 36.3% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.7% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.2% | |
Investment Companies | | 0.0% | |
Private Placements | | 0.0% | |
Other | | 0.1% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
Janus Henderson Research Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2023 | | | 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 | | 31.94% | 9.62% | 12.08% | 11.03% | | | 0.84% | 0.84% |
Class A Shares at MOP | | 24.35% | 8.34% | 11.42% | 10.81% | | | | |
Class C Shares at NAV | | 30.79% | 8.83% | 11.28% | 10.25% | | | 1.62% | 1.62% |
Class C Shares at CDSC | | 29.79% | 8.83% | 11.28% | 10.25% | | | | |
Class D Shares | | 32.18% | 9.84% | 12.30% | 11.26% | | | 0.64% | 0.64% |
Class I Shares | | 32.24% | 9.89% | 12.37% | 11.30% | | | 0.59% | 0.59% |
Class N Shares | | 32.35% | 9.98% | 12.47% | 11.31% | | | 0.52% | 0.52% |
Class R Shares | | 31.35% | 9.14% | 11.63% | 10.72% | | | 1.34% | 1.29% |
Class S Shares | | 31.68% | 9.42% | 11.90% | 10.87% | | | 1.04% | 1.04% |
Class T Shares | | 32.05% | 9.72% | 12.20% | 11.22% | | | 0.77% | 0.77% |
Russell 1000 Growth Index | | 27.72% | 12.42% | 14.48% | 10.21% | | | | |
S&P 500 Index | | 21.62% | 9.92% | 11.91% | 9.87% | | | | |
Morningstar Quartile - Class T Shares | | 1st | 2nd | 2nd | 1st | | | | |
Morningstar Ranking - based on total returns for Large Growth Funds | | 78/1,223 | 445/1,106 | 436/1,015 | 23/353 | | | | |
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.
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.
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on 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.
© 2023 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 waiver, if any, contractually agreed to for at least a one-year period commencing on January 27, 2023. This contractual waiver may be terminated or modified only at the discretion of the Board of Trustees. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Research Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $1,100.70 | $4.32 | | $1,000.00 | $1,020.96 | $4.15 | 0.82% |
Class C Shares | $1,000.00 | $1,096.30 | $8.41 | | $1,000.00 | $1,017.05 | $8.09 | 1.60% |
Class D Shares | $1,000.00 | $1,101.60 | $3.32 | | $1,000.00 | $1,021.91 | $3.19 | 0.63% |
Class I Shares | $1,000.00 | $1,102.00 | $3.06 | | $1,000.00 | $1,022.16 | $2.94 | 0.58% |
Class N Shares | $1,000.00 | $1,102.30 | $2.64 | | $1,000.00 | $1,022.56 | $2.54 | 0.50% |
Class R Shares | $1,000.00 | $1,098.20 | $6.63 | | $1,000.00 | $1,018.75 | $6.38 | 1.26% |
Class S Shares | $1,000.00 | $1,099.50 | $5.32 | | $1,000.00 | $1,020.00 | $5.11 | 1.01% |
Class T Shares | $1,000.00 | $1,100.90 | $3.84 | | $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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 99.7% | | | |
Aerospace & Defense – 1.6% | | | |
| | General Dynamics Corp | | 565,755 | | | $125,014,882 | |
| | Howmet Aerospace Inc | | 3,325,056 | | | 153,783,840 | |
| | | 278,798,722 | |
Air Freight & Logistics – 0.8% | | | |
| | United Parcel Service Inc | | 932,975 | | | 145,422,813 | |
Automobiles – 1.1% | | | |
| | Rivian Automotive Inc - Class A*,# | | 3,729,787 | | | 90,559,228 | |
| | Tesla Inc* | | 364,868 | | | 91,297,271 | |
| | | 181,856,499 | |
Beverages – 2.2% | | | |
| | Constellation Brands Inc - Class A | | 765,542 | | | 192,403,671 | |
| | Monster Beverage Corp | | 3,526,040 | | | 186,703,818 | |
| | | 379,107,489 | |
Biotechnology – 2.6% | | | |
| | Amgen Inc | | 265,737 | | | 71,419,476 | |
| | Argenx SE (ADR)* | | 67,557 | | | 33,213,048 | |
| | Madrigal Pharmaceuticals Inc* | | 226,918 | | | 33,139,105 | |
| | Sarepta Therapeutics Inc* | | 679,148 | | | 82,326,320 | |
| | United Therapeutics Corp* | | 257,601 | | | 58,184,338 | |
| | Vertex Pharmaceuticals Inc* | | 475,620 | | | 165,392,099 | |
| | | 443,674,386 | |
Capital Markets – 1.4% | | | |
| | Ares Management Corp - Class A | | 51,611 | | | 5,309,224 | |
| | Blackstone Group Inc | | 953,153 | | | 102,120,812 | |
| | Charles Schwab Corp | | 1,293,802 | | | 71,029,730 | |
| | LPL Financial Holdings Inc | | 283,235 | | | 67,310,798 | |
| | | 245,770,564 | |
Chemicals – 0.9% | | | |
| | Sherwin-Williams Co | | 611,733 | | | 156,022,502 | |
Diversified Financial Services – 5.2% | | | |
| | Apollo Global Management Inc | | 1,033,367 | | | 92,755,022 | |
| | Global Payments Inc | | 304,088 | | | 35,088,714 | |
| | Mastercard Inc | | 965,573 | | | 382,280,006 | |
| | Visa Inc | | 1,667,923 | | | 383,638,969 | |
| | | 893,762,711 | |
Energy Equipment & Services – 0.2% | | | |
| | Atlas Energy Solutions Inc - Class A# | | 1,801,181 | | | 40,040,254 | |
Entertainment – 2.2% | | | |
| | Liberty Media Corp-Liberty Formula One - Class C* | | 118,500 | | | 3,803,850 | |
| | Liberty Media Corp-Liberty Formula One - Series C* | | 2,981,129 | | | 185,724,337 | |
| | Netflix Inc* | | 520,891 | | | 196,688,442 | |
| | | 386,216,629 | |
Health Care Equipment & Supplies – 1.8% | | | |
| | Abbott Laboratories | | 726,023 | | | 70,315,327 | |
| | Boston Scientific Corp* | | 1,003,691 | | | 52,994,885 | |
| | DexCom Inc* | | 529,101 | | | 49,365,123 | |
| | Edwards Lifesciences Corp* | | 1,146,758 | | | 79,447,394 | |
| | Stryker Corp | | 191,353 | | | 52,291,034 | |
| | | 304,413,763 | |
Health Care Providers & Services – 2.4% | | | |
| | HCA Healthcare Inc | | 210,699 | | | 51,827,740 | |
| | UnitedHealth Group Inc | | 719,584 | | | 362,807,057 | |
| | | 414,634,797 | |
Hotels, Restaurants & Leisure – 3.1% | | | |
| | Booking Holdings Inc* | | 95,136 | | | 293,394,667 | |
| | Caesars Entertainment Inc* | | 868,506 | | | 40,255,253 | |
| | Chipotle Mexican Grill Inc* | | 110,230 | | | 201,922,621 | |
| | | 535,572,541 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Research Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Household Products – 1.8% | | | |
| | Procter & Gamble Co | | 2,156,791 | | | $314,589,535 | |
Information Technology Services – 0.3% | | | |
| | Snowflake Inc - Class A* | | 293,557 | | | 44,846,703 | |
Insurance – 0.9% | | | |
| | Aon PLC - Class A | | 105,346 | | | 34,155,280 | |
| | Progressive Corp/The | | 908,134 | | | 126,503,066 | |
| | | 160,658,346 | |
Interactive Media & Services – 10.6% | | | |
| | Alphabet Inc - Class C* | | 7,816,846 | | | 1,030,651,145 | |
| | Meta Platforms Inc - Class A* | | 2,633,227 | | | 790,521,078 | |
| | | 1,821,172,223 | |
Life Sciences Tools & Services – 1.0% | | | |
| | Danaher Corp | | 175,848 | | | 43,627,889 | |
| | Illumina Inc* | | 263,501 | | | 36,173,417 | |
| | Thermo Fisher Scientific Inc | | 170,851 | | | 86,479,651 | |
| | | 166,280,957 | |
Machinery – 2.2% | | | |
| | Deere & Co | | 668,329 | | | 252,213,998 | |
| | Ingersoll Rand Inc | | 1,895,625 | | | 120,789,225 | |
| | | 373,003,223 | |
Multiline Retail – 5.4% | | | |
| | Amazon.com Inc* | | 7,245,913 | | | 921,100,460 | |
Oil, Gas & Consumable Fuels – 0.4% | | | |
| | EOG Resources Inc | | 516,760 | | | 65,504,498 | |
Pharmaceuticals – 3.3% | | | |
| | AstraZeneca PLC (ADR) | | 968,920 | | | 65,615,262 | |
| | Eli Lilly & Co | | 370,162 | | | 198,825,115 | |
| | Merck & Co Inc | | 1,105,322 | | | 113,792,900 | |
| | Novo Nordisk A/S (ADR) | | 771,324 | | | 70,144,205 | |
| | Zoetis Inc | | 697,610 | | | 121,370,188 | |
| | | 569,747,670 | |
Real Estate Management & Development – 0.7% | | | |
| | CoStar Group Inc* | | 1,472,134 | | | 113,192,383 | |
Road & Rail – 2.0% | | | |
| | JB Hunt Transport Services Inc | | 547,704 | | | 103,253,158 | |
| | TFI International Inc | | 1,013,018 | | | 130,081,641 | |
| | Uber Technologies Inc* | | 2,264,812 | | | 104,158,704 | |
| | | 337,493,503 | |
Semiconductor & Semiconductor Equipment – 12.7% | | | |
| | Advanced Micro Devices Inc* | | 2,126,490 | | | 218,645,702 | |
| | ASML Holding NV | | 273,421 | | | 160,952,006 | |
| | Broadcom Inc | | 105,783 | | | 87,861,244 | |
| | KLA Corp | | 331,606 | | | 152,094,408 | |
| | Lam Research Corp | | 413,075 | | | 258,903,018 | |
| | Lattice Semiconductor Corp* | | 338,326 | | | 29,072,353 | |
| | Marvell Technology Inc | | 702,568 | | | 38,030,006 | |
| | NVIDIA Corp | | 2,474,755 | | | 1,076,493,677 | |
| | ON Semiconductor Corp* | | 1,099,061 | | | 102,157,720 | |
| | Texas Instruments Inc | | 426,843 | | | 67,872,305 | |
| | | 2,192,082,439 | |
Software – 20.3% | | | |
| | Adobe Inc* | | 676,220 | | | 344,804,578 | |
| | Atlassian Corp - Class A* | | 557,467 | | | 112,335,175 | |
| | Cadence Design Systems Inc* | | 938,571 | | | 219,907,185 | |
| | Microsoft Corp | | 6,332,231 | | | 1,999,401,938 | |
| | Palo Alto Networks Inc* | | 795,176 | | | 186,421,061 | |
| | ServiceNow Inc* | | 224,935 | | | 125,729,668 | |
| | Synopsys Inc* | | 468,781 | | | 215,156,416 | |
| | Tyler Technologies Inc* | | 123,746 | | | 47,783,280 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Software– (continued) | | | |
| | Workday Inc - Class A* | | 1,120,568 | | | $240,754,035 | |
| | | 3,492,293,336 | |
Specialty Retail – 3.0% | | | |
| | O'Reilly Automotive Inc* | | 265,459 | | | 241,265,067 | |
| | TJX Cos Inc | | 3,010,833 | | | 267,602,837 | |
| | | 508,867,904 | |
Technology Hardware, Storage & Peripherals – 7.0% | | | |
| | Apple Inc | | 7,055,546 | | | 1,207,980,031 | |
Textiles, Apparel & Luxury Goods – 0.6% | | | |
| | Deckers Outdoor Corp* | | 211,843 | | | 108,906,368 | |
Trading Companies & Distributors – 0.8% | | | |
| | Ferguson PLC | | 835,927 | | | 137,484,914 | |
Wireless Telecommunication Services – 1.2% | | | |
| | T-Mobile US Inc* | | 1,524,713 | | | 213,536,056 | |
Total Common Stocks (cost $9,791,980,788) | | 17,154,034,219 | |
Private Placements– 0% | | | |
Health Care Equipment & Supplies – 0% | | | |
| | MedicaMetrix Inc*,¢,£,§((cost $3,000,000) | | 2,727,273 | | | 3 | |
Investment Companies– 0% | | | |
Money Markets – 0% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $3,131,268) | | 3,130,641 | | | 3,131,581 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.2% | | | |
Investment Companies – 0.1% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº,£ | | 17,386,427 | | | 17,386,427 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 5.3100%, 10/2/23 | | $4,346,607 | | | 4,346,607 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $21,733,034) | | 21,733,034 | |
Total Investments (total cost $9,819,845,090) – 99.9% | | 17,178,898,837 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.1% | | 25,019,983 | |
Net Assets – 100% | | $17,203,918,820 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $16,718,892,675 | | 97.3 | % |
Netherlands | | 160,952,006 | | 0.9 | |
Canada | | 130,081,641 | | 0.8 | |
Denmark | | 70,144,205 | | 0.4 | |
United Kingdom | | 65,615,262 | | 0.4 | |
Belgium | | 33,213,048 | | 0.2 | |
| | | | | | |
| | | | | | |
Total | | $17,178,898,837 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Research Fund
Schedule of Investments
September 30, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/23 |
Private Placements - 0.0% |
Health Care Equipment & Supplies - 0.0% | |
| | MedicaMetrix Inc*,¢,§ | $ | - | $ | - | $ | - | $ | 3 |
Investment Companies - 0.0% |
Money Markets - 0.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 759,439 | | (800) | | 313 | | 3,131,581 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 61,405∆ | | - | | - | | 17,386,427 |
Total Affiliated Investments - 0.1% | $ | 820,844 | $ | (800) | $ | 313 | $ | 20,518,011 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2023, this column reflects amounts for the entire year ended September 30, 2023 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Private Placements - 0.0% |
Health Care Equipment & Supplies - 0.0% | |
| | MedicaMetrix Inc*,¢,§ | | 3 | | - | | - | | 3 |
Investment Companies - 0.0% |
Money Markets - 0.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 13,038,186 | | 771,378,106 | | (781,284,224) | | 3,131,581 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 1,275,965 | | 299,282,957 | | (283,172,495) | | 17,386,427 |
| | | | | | | | | | |
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 | $ | 20,628,991 | $ | — | $ | (20,628,991) | $ | — |
| | | | | | | | | |
(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, 2023. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2023. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2023 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, 2023) |
| | | | | | | | 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, 2023. 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, 2023. 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 | $ | 17,154,034,219 | $ | - | $ | - |
Private Placements | | - | | - | | 3 |
Investment Companies | | - | | 3,131,581 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 21,733,034 | | - |
Total Assets | $ | 17,154,034,219 | $ | 24,864,615 | $ | 3 |
| | | | | | | |
Janus Henderson Research Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $9,796,327,395)(1) | | $ | 17,158,380,826 | |
| Affiliated investments, at value (cost $23,517,695) | | | 20,518,011 | |
| Cash | | | 9,133 | |
| Trustees' deferred compensation | | | 449,269 | |
| Receivables: | | | | |
| | Investments sold | | | 91,190,678 | |
| | Dividends | | | 3,446,610 | |
| | Fund shares sold | | | 1,672,096 | |
| | Foreign tax reclaims | | | 525,000 | |
| | Dividends from affiliates | | | 45,511 | |
| Other assets | | | 27,003 | |
Total Assets | | | 17,276,264,137 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 21,733,034 | |
| Payables: | | | — | |
| | Investments purchased | | | 35,561,876 | |
| | Advisory fees | | | 7,453,844 | |
| | Fund shares repurchased | | | 4,094,086 | |
| | Transfer agent fees and expenses | | | 2,386,763 | |
| | Trustees' deferred compensation fees | | | 449,269 | |
| | Trustees' fees and expenses | | | 88,367 | |
| | Professional fees | | | 83,665 | |
| | Affiliated fund administration fees payable | | | 37,765 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 22,287 | |
| | Custodian fees | | | 15,716 | |
| | Accrued expenses and other payables | | | 418,645 | |
Total Liabilities | | | 72,345,317 | |
Commitments and contingent liabilities (Note 3) | | | | |
Net Assets | | $ | 17,203,918,820 | |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2023 |
Janus Henderson Research Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 9,343,316,599 | |
| Total distributable earnings (loss) | | | 7,860,602,221 | |
Total Net Assets | | $ | 17,203,918,820 | |
Net Assets - Class A Shares | | $ | 47,977,766 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 815,882 | |
Net Asset Value Per Share(2) | | $ | 58.80 | |
Maximum Offering Price Per Share(3) | | $ | 62.39 | |
Net Assets - Class C Shares | | $ | 6,441,173 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 124,116 | |
Net Asset Value Per Share(2) | | $ | 51.90 | |
Net Assets - Class D Shares | | $ | 12,534,832,624 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 210,258,327 | |
Net Asset Value Per Share | | $ | 59.62 | |
Net Assets - Class I Shares | | $ | 394,957,822 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,637,349 | |
Net Asset Value Per Share | | $ | 59.51 | |
Net Assets - Class N Shares | | $ | 361,771,512 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,073,308 | |
Net Asset Value Per Share | | $ | 59.57 | |
Net Assets - Class R Shares | | $ | 3,151,375 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 54,641 | |
Net Asset Value Per Share | | $ | 57.67 | |
Net Assets - Class S Shares | | $ | 20,641,834 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 360,692 | |
Net Asset Value Per Share | | $ | 57.23 | |
Net Assets - Class T Shares | | $ | 3,834,144,714 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 64,371,360 | |
Net Asset Value Per Share | | $ | 59.56 | |
| |
(1) Includes $20,628,991 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, 2023
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 131,904,340 | |
| Dividends from affiliates | | 759,439 | |
| Affiliated securities lending income, net | | 61,405 | |
| Unaffiliated securities lending income, net | | 15,788 | |
| Other income | | 463 | |
| Foreign tax withheld | | (995,306) | |
Total Investment Income | | 131,746,129 | |
Expenses: | | | |
| Advisory fees | | 75,698,089 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 105,602 | |
| | Class C Shares | | 86,361 | |
| | Class R Shares | | 15,864 | |
| | Class S Shares | | 48,480 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 13,639,000 | |
| | Class R Shares | | 8,036 | |
| | Class S Shares | | 48,661 | |
| | Class T Shares | | 8,838,068 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 26,227 | |
| | Class C Shares | | 6,936 | |
| | Class I Shares | | 283,154 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 2,461 | |
| | Class C Shares | | 347 | |
| | Class D Shares | | 1,029,891 | |
| | Class I Shares | | 16,341 | |
| | Class N Shares | | 12,226 | |
| | Class R Shares | | 56 | |
| | Class S Shares | | 1,469 | |
| | Class T Shares | | 28,553 | |
| Shareholder reports expense | | 909,125 | |
| Affiliated fund administration fees | | 511,960 | |
| Trustees’ fees and expenses | | 389,929 | |
| Professional fees | | 229,094 | |
| Registration fees | | 158,610 | |
| Custodian fees | | 108,858 | |
| Other expenses | | 674,578 | |
Total Expenses | | 102,877,976 | |
Less: Excess Expense Reimbursement and Waivers | | (662,879) | |
Net Expenses | | 102,215,097 | |
Net Investment Income/(Loss) | | 29,531,032 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Research Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 545,098,599 | |
| Investments in affiliates | | (800) | |
Total Net Realized Gain/(Loss) on Investments | | 545,097,799 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 3,731,763,013 | |
| Investments in affiliates | | 313 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 3,731,763,326 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 4,306,392,157 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Research Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 29,531,032 | | $ | 1,821,435 | |
| Net realized gain/(loss) on investments | | 545,097,799 | | | 156,764,213 | |
| Change in unrealized net appreciation/depreciation | | 3,731,763,326 | | | (5,572,729,769) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 4,306,392,157 | | | (5,414,144,121) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (90,957) | | | (6,911,925) | |
| | Class C Shares | | (22,695) | | | (2,088,374) | |
| | Class D Shares | | (44,917,698) | | | (1,802,485,719) | |
| | Class I Shares | | (1,571,320) | | | (55,752,162) | |
| | Class N Shares | | (1,852,697) | | | (53,166,280) | |
| | Class R Shares | | (7,488) | | | (537,126) | |
| | Class S Shares | | (43,861) | | | (3,541,069) | |
| | Class T Shares | | (8,746,211) | | | (562,781,567) | |
Net Decrease from Dividends and Distributions to Shareholders | | (57,252,927) | | | (2,487,264,222) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 436,264 | | | 4,554,902 | |
| | Class C Shares | | (4,255,541) | | | (1,479,412) | |
| | Class D Shares | | (588,451,094) | | | 1,046,592,561 | |
| | Class I Shares | | 4,159,561 | | | 24,195,712 | |
| | Class N Shares | | (14,029,247) | | | 18,448,765 | |
| | Class R Shares | | (593,752) | | | 382,838 | |
| | Class S Shares | | (3,635,851) | | | (453,903) | |
| | Class T Shares | | (158,586,632) | | | 250,068,736 | |
Net Increase/(Decrease) from Capital Share Transactions | | (764,956,292) | | | 1,342,310,199 | |
Net Increase/(Decrease) in Net Assets | | 3,484,182,938 | | | (6,559,098,144) | |
Net Assets: | | | | | | |
| Beginning of period | | 13,719,735,882 | | | 20,278,834,026 | |
| End of period | $ | 17,203,918,820 | | $ | 13,719,735,882 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | SEPTEMBER 30, 2023 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $44.68 | | | $70.69 | | | $59.31 | | | $49.56 | | | $53.33 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.01 | | | (0.10) | | | (0.15) | | | 0.06 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | 14.22 | | | (17.06) | | | 13.37 | | | 14.75 | | | 0.50 | |
| Total from Investment Operations | | 14.23 | | | (17.16) | | | 13.22 | | | 14.81 | | | 0.64 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | (0.13) | | | (0.06) | |
| | Distributions (from capital gains) | | (0.11) | | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | |
| Total Dividends and Distributions | | (0.11) | | | (8.85) | | | (1.84) | | | (5.06) | | | (4.41) | |
| Net Asset Value, End of Period | | $58.80 | | | $44.68 | | | $70.69 | | | $59.31 | | | $49.56 | |
| Total Return* | | 31.92% | | | (28.11)% | | | 22.66% | | | 32.14% | | | 2.98% | |
| Net Assets, End of Period (in thousands) | | $47,978 | | | $36,486 | | | $53,589 | | | $36,300 | | | $29,853 | |
| Average Net Assets for the Period (in thousands) | | $42,314 | | | $48,724 | | | $45,054 | | | $31,223 | | | $28,823 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.81% | | | 0.84% | | | 0.86% | | | 0.86% | | | 0.89% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.81% | | | 0.84% | | | 0.86% | | | 0.86% | | | 0.89% | |
| | Ratio of Net Investment Income/(Loss) | | 0.01% | | | (0.16)% | | | (0.22)% | | | 0.12% | | | 0.30% | |
| Portfolio Turnover Rate | | 27% | | | 32% | | | 31% | | | 38% | | | 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 | 19 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $39.79 | | | $64.28 | | | $54.45 | | | $46.06 | | | $50.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.40) | | | (0.45) | | | (0.53) | | | (0.27) | | | (0.18) | |
| | Net realized and unrealized gain/(loss) | | 12.62 | | | (15.19) | | | 12.20 | | | 13.59 | | | 0.41 | |
| Total from Investment Operations | | 12.22 | | | (15.64) | | | 11.67 | | | 13.32 | | | 0.23 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (0.11) | | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | |
| Total Dividends and Distributions | | (0.11) | | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | |
| Net Asset Value, End of Period | | $51.90 | | | $39.79 | | | $64.28 | | | $54.45 | | | $46.06 | |
| Total Return* | | 30.79% | | | (28.60)% | | | 21.81% | | | 31.20% | | | 2.27% | |
| Net Assets, End of Period (in thousands) | | $6,441 | | | $8,523 | | | $15,910 | | | $18,502 | | | $19,109 | |
| Average Net Assets for the Period (in thousands) | | $7,894 | | | $12,989 | | | $17,155 | | | $18,763 | | | $21,832 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.71% | | | 1.52% | | | 1.54% | | | 1.55% | | | 1.58% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.70% | | | 1.52% | | | 1.54% | | | 1.55% | | | 1.57% | |
| | Ratio of Net Investment Income/(Loss) | | (0.85)% | | | (0.85)% | | | (0.88)% | | | (0.57)% | | | (0.39)% | |
| Portfolio Turnover Rate | | 27% | | | 32% | | | 31% | | | 38% | | | 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, 2023 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $45.30 | | | $71.42 | | | $59.86 | | | $49.98 | | | $53.74 | | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.11 | | | 0.02 | | | (0.01) | | | 0.17 | | | 0.24 | | |
| | Net realized and unrealized gain/(loss) | | 14.41 | | | (17.29) | | | 13.48 | | | 14.87 | | | 0.50 | | |
| Total from Investment Operations | | 14.52 | | | (17.27) | | | 13.47 | | | 15.04 | | | 0.74 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.09) | | | — | | | (0.07) | | | (0.23) | | | (0.15) | | |
| | Distributions (from capital gains) | | (0.11) | | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | |
| Total Dividends and Distributions | | (0.20) | | | (8.85) | | | (1.91) | | | (5.16) | | | (4.50) | |
| Net Asset Value, End of Period | | $59.62 | | | $45.30 | | | $71.42 | | | $59.86 | | | $49.98 | |
| Total Return* | | 32.18% | | | (27.96)% | | | 22.89% | | | 32.40% | | | 3.20% | |
| Net Assets, End of Period (in thousands) | | $12,534,833 | | | $10,017,030 | | | $14,715,777 | | | $12,635,778 | | | $10,221,640 | |
| Average Net Assets for the Period (in thousands) | | $11,667,368 | | | $13,156,776 | | | $14,113,628 | | | $11,047,912 | | | $9,901,606 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.62% | | | 0.64% | | | 0.66% | | | 0.66% | | | 0.69% | | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.62% | | | 0.64% | | | 0.66% | | | 0.66% | | | 0.68% | | |
| | Ratio of Net Investment Income/(Loss) | | 0.21% | | | 0.03% | | | (0.02)% | | | 0.32% | | | 0.50% | | |
| Portfolio Turnover Rate | | 27% | | | 32% | | | 31% | | | 38% | | | 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 | 21 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $45.23 | | | $71.28 | | | $59.74 | | | $49.89 | | | $53.67 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.13 | | | 0.05 | | | 0.02 | | | 0.20 | | | 0.27 | |
| | Net realized and unrealized gain/(loss) | | 14.39 | | | (17.25) | | | 13.46 | | | 14.84 | | | 0.48 | |
| Total from Investment Operations | | 14.52 | | | (17.20) | | | 13.48 | | | 15.04 | | | 0.75 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | — | | | (0.10) | | | (0.26) | | | (0.18) | |
| | Distributions (from capital gains) | | (0.11) | | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | |
| Total Dividends and Distributions | | (0.24) | | | (8.85) | | | (1.94) | | | (5.19) | | | (4.53) | |
| Net Asset Value, End of Period | | $59.51 | | | $45.23 | | | $71.28 | | | $59.74 | | | $49.89 | |
| Total Return* | | 32.24% | | | (27.91)% | | | 22.95% | | | 32.47% | | | 3.23% | |
| Net Assets, End of Period (in thousands) | | $394,958 | | | $298,319 | | | $448,508 | | | $383,533 | | | $340,425 | |
| Average Net Assets for the Period (in thousands) | | $352,581 | | | $396,836 | | | $428,367 | | | $349,367 | | | $339,641 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.57% | | | 0.59% | | | 0.61% | | | 0.60% | | | 0.63% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.57% | | | 0.59% | | | 0.61% | | | 0.60% | | | 0.62% | |
| | Ratio of Net Investment Income/(Loss) | | 0.25% | | | 0.08% | | | 0.03% | | | 0.38% | | | 0.56% | |
| Portfolio Turnover Rate | | 27% | | | 32% | | | 31% | | | 38% | | | 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, 2023 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $45.29 | | | $71.32 | | | $59.75 | | | $49.90 | | | $53.69 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.09 | | | 0.07 | | | 0.23 | | | 0.31 | |
| | Net realized and unrealized gain/(loss) | | 14.39 | | | (17.27) | | | 13.47 | | | 14.85 | | | 0.47 | |
| Total from Investment Operations | | 14.57 | | | (17.18) | | | 13.54 | | | 15.08 | | | 0.78 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.18) | | | — | | | (0.13) | | | (0.30) | | | (0.22) | |
| | Distributions (from capital gains) | | (0.11) | | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | |
| Total Dividends and Distributions | | (0.29) | | | (8.85) | | | (1.97) | | | (5.23) | | | (4.57) | |
| Net Asset Value, End of Period | | $59.57 | | | $45.29 | | | $71.32 | | | $59.75 | | | $49.90 | |
| Total Return* | | 32.35% | | | (27.86)% | | | 23.05% | | | 32.57% | | | 3.31% | |
| Net Assets, End of Period (in thousands) | | $361,772 | | | $286,346 | | | $432,553 | | | $394,953 | | | $308,922 | |
| Average Net Assets for the Period (in thousands) | | $336,090 | | | $378,504 | | | $426,650 | | | $350,927 | | | $296,644 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.49% | | | 0.52% | | | 0.54% | | | 0.53% | | | 0.55% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.49% | | | 0.52% | | | 0.54% | | | 0.53% | | | 0.54% | |
| | Ratio of Net Investment Income/(Loss) | | 0.33% | | | 0.15% | | | 0.11% | | | 0.45% | | | 0.64% | |
| Portfolio Turnover Rate | | 27% | | | 32% | | | 31% | | | 38% | | | 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 Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $44.02 | | | $70.04 | | | $59.04 | | | $49.46 | | | $53.37 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.22) | | | (0.35) | | | (0.42) | | | (0.18) | | | (0.05) | |
| | Net realized and unrealized gain/(loss) | | 13.98 | | | (16.82) | | | 13.26 | | | 14.69 | | | 0.49 | |
| Total from Investment Operations | | 13.76 | | | (17.17) | | | 12.84 | | | 14.51 | | | 0.44 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (0.11) | | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | |
| Total Dividends and Distributions | | (0.11) | | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | |
| Net Asset Value, End of Period | | $57.67 | | | $44.02 | | | $70.04 | | | $59.04 | | | $49.46 | |
| Total Return* | | 31.33% | | | (28.41)% | | | 22.10% | | | 31.48% | | | 2.55% | |
| Net Assets, End of Period (in thousands) | | $3,151 | | | $2,903 | | | $4,226 | | | $4,269 | | | $4,476 | |
| Average Net Assets for the Period (in thousands) | | $3,222 | | | $3,822 | | | $4,354 | | | $4,322 | | | $4,550 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.32% | | | 1.33% | | | 1.34% | | | 1.34% | | | 1.30% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.26% | | | 1.27% | | | 1.30% | | | 1.34% | | | 1.30% | |
| | Ratio of Net Investment Income/(Loss) | | (0.43)% | | | (0.60)% | | | (0.64)% | | | (0.36)% | | | (0.11)% | |
| Portfolio Turnover Rate | | 27% | | | 32% | | | 31% | | | 38% | | | 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, 2023 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $43.57 | | | $69.26 | | | $58.25 | | | $48.72 | | | $52.52 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.09) | | | (0.20) | | | (0.26) | | | (0.03) | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 13.86 | | | (16.64) | | | 13.11 | | | 14.49 | | | 0.48 | |
| Total from Investment Operations | | 13.77 | | | (16.84) | | | 12.85 | | | 14.46 | | | 0.55 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (0.11) | | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | |
| Total Dividends and Distributions | | (0.11) | | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | |
| Net Asset Value, End of Period | | $57.23 | | | $43.57 | | | $69.26 | | | $58.25 | | | $48.72 | |
| Total Return* | | 31.68% | | | (28.24)% | | | 22.43% | | | 31.89% | | | 2.82% | |
| Net Assets, End of Period (in thousands) | | $20,642 | | | $19,124 | | | $30,909 | | | $26,600 | | | $33,835 | |
| Average Net Assets for the Period (in thousands) | | $19,517 | | | $26,683 | | | $29,786 | | | $25,562 | | | $28,972 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.01% | | | 1.04% | | | 1.05% | | | 1.03% | | | 1.06% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.00% | | | 1.03% | | | 1.04% | | | 1.03% | | | 1.05% | |
| | Ratio of Net Investment Income/(Loss) | | (0.17)% | | | (0.35)% | | | (0.39)% | | | (0.06)% | | | 0.14% | |
| Portfolio Turnover Rate | | 27% | | | 32% | | | 31% | | | 38% | | | 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 | 25 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $45.23 | | | $71.39 | | | $59.86 | | | $49.98 | | | $53.74 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.06 | | | (0.04) | | | (0.08) | | | 0.11 | | | 0.20 | |
| | Net realized and unrealized gain/(loss) | | 14.40 | | | (17.27) | | | 13.48 | | | 14.89 | | | 0.49 | |
| Total from Investment Operations | | 14.46 | | | (17.31) | | | 13.40 | | | 15.00 | | | 0.69 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.02) | | | — | | | (0.03) | | | (0.19) | | | (0.10) | |
| | Distributions (from capital gains) | | (0.11) | | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | |
| Total Dividends and Distributions | | (0.13) | | | (8.85) | | | (1.87) | | | (5.12) | | | (4.45) | |
| Net Asset Value, End of Period | | $59.56 | | | $45.23 | | | $71.39 | | | $59.86 | | | $49.98 | |
| Total Return* | | 32.05% | | | (28.04)% | | | 22.76% | | | 32.27% | | | 3.07% | |
| Net Assets, End of Period (in thousands) | | $3,834,145 | | | $3,051,003 | | | $4,577,362 | | | $3,940,635 | | | $3,319,149 | |
| Average Net Assets for the Period (in thousands) | | $3,541,753 | | | $4,056,851 | | | $4,384,575 | | | $3,505,134 | | | $3,219,617 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.74% | | | 0.77% | | | 0.79% | | | 0.78% | | | 0.80% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.72% | | | 0.74% | | | 0.77% | | | 0.76% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | 0.11% | | | (0.07)% | | | (0.13)% | | | 0.22% | | | 0.41% | |
| Portfolio Turnover Rate | | 27% | | | 32% | | | 31% | | | 38% | | | 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, 2023 |
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 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 (the “Distributor”) including, but not limited to,
Janus Henderson Research Fund
Notes to Financial Statements
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
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.
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Notes to Financial Statements
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal 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, 2023 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, 2023.
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
Janus Henderson Research Fund
Notes to Financial Statements
would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
Janus Henderson Research Fund
Notes to Financial Statements
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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 Research 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, 2023, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $20,628,991. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2023 is $21,733,034, resulting in the net amount due to the counterparty of $1,104,043.
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 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
Janus Henderson Research Fund
Notes to Financial Statements
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, 2023, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.48%.
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 27, 2023. 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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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% |
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Notes to Financial Statements
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 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, 2023, the Distributor retained upfront sales charges of $1,329.
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, 2023.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $77.
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
Janus Henderson Research Fund
Notes to Financial Statements
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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, 2023 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, 2023, the Fund engaged in cross trades amounting to $11,160,573 in sales, resulting in a net realized loss of $700,297. The net realized loss is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
Janus Henderson Research Fund
Notes to Financial Statements
4. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 7,294,094 | $ 540,165,796 | $ - | $ - | $ (433,877) | $7,313,576,208 | |
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, 2023 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) |
$ 9,865,322,629 | $7,595,661,508 | $(282,085,300) | $ 7,313,576,208 |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 23,139,319 | $ 34,113,608 | $ - | $ - | |
| | | | | |
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 | $ - | $ - | |
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. Capital has been adjusted by $14,045,962, including $13,334,428 of long-term capital gain, for distributions in connection with Fund shares redemption (tax equalization).
Janus Henderson Research Fund
Notes to Financial Statements
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 207,953 | $ 11,056,450 | | 175,606 | $ 10,649,895 |
Reinvested dividends and distributions | 1,743 | 81,942 | | 95,791 | 6,169,874 |
Shares repurchased | (210,369) | (10,702,128) | | (212,938) | (12,264,867) |
Net Increase/(Decrease) | (673) | $ 436,264 | | 58,459 | $ 4,554,902 |
Class C Shares: | | | | | |
Shares sold | 19,188 | $ 903,902 | | 9,627 | $ 570,670 |
Reinvested dividends and distributions | 532 | 22,223 | | 35,103 | 2,024,369 |
Shares repurchased | (109,789) | (5,181,666) | | (78,041) | (4,074,451) |
Net Increase/(Decrease) | (90,069) | $ (4,255,541) | | (33,311) | $ (1,479,412) |
Class D Shares: | | | | | |
Shares sold | 2,597,999 | $ 141,234,795 | | 2,832,009 | $ 171,231,316 |
Reinvested dividends and distributions | 903,656 | 43,004,989 | | 26,529,687 | 1,729,735,563 |
Shares repurchased | (14,384,587) | (772,690,878) | | (14,276,695) | (854,374,318) |
Net Increase/(Decrease) | (10,882,932) | $(588,451,094) | | 15,085,001 | $ 1,046,592,561 |
Class I Shares: | | | | | |
Shares sold | 1,507,122 | $ 82,174,668 | | 1,299,315 | $ 76,937,896 |
Reinvested dividends and distributions | 30,850 | 1,464,759 | | 795,671 | 51,774,306 |
Shares repurchased | (1,496,943) | (79,479,866) | | (1,790,464) | (104,516,490) |
Net Increase/(Decrease) | 41,029 | $ 4,159,561 | | 304,522 | $ 24,195,712 |
Class N Shares: | | | | | |
Shares sold | 674,445 | $ 37,073,261 | | 544,068 | $ 32,790,860 |
Reinvested dividends and distributions | 38,960 | 1,850,588 | | 815,570 | 53,109,893 |
Shares repurchased | (963,058) | (52,953,096) | | (1,101,554) | (67,451,988) |
Net Increase/(Decrease) | (249,653) | $ (14,029,247) | | 258,084 | $ 18,448,765 |
Class R Shares: | | | | | |
Shares sold | 5,376 | $ 297,112 | | 9,779 | $ 536,087 |
Reinvested dividends and distributions | 160 | 7,408 | | 8,356 | 532,028 |
Shares repurchased | (16,844) | (898,272) | | (12,520) | (685,277) |
Net Increase/(Decrease) | (11,308) | $ (593,752) | | 5,615 | $ 382,838 |
Class S Shares: | | | | | |
Shares sold | 37,005 | $ 2,005,969 | | 95,521 | $ 5,406,583 |
Reinvested dividends and distributions | 955 | 43,737 | | 56,135 | 3,531,423 |
Shares repurchased | (116,198) | (5,685,557) | | (158,984) | (9,391,909) |
Net Increase/(Decrease) | (78,238) | $ (3,635,851) | | (7,328) | $ (453,903) |
Class T Shares: | | | | | |
Shares sold | 5,163,622 | $ 283,005,328 | | 4,935,340 | $ 301,385,804 |
Reinvested dividends and distributions | 180,157 | 8,571,880 | | 8,407,226 | 547,814,842 |
Shares repurchased | (8,426,142) | (450,163,840) | | (10,007,466) | (599,131,910) |
Net Increase/(Decrease) | (3,082,363) | $(158,586,632) | | 3,335,100 | $ 250,068,736 |
6. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$ 4,301,636,736 | $ 5,149,018,730 | $ - | $ - |
Janus Henderson 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.
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Research Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Research Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Research Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Research Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Research Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Research Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Research Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Research Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Research Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Research Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Capital Gain Distributions | $47,448,036 |
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 48 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). | 48 | 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). | 48 | 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). | 48 | 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)
| | | | | | |
TRUSTEES |
Name, Address, and Age | Positions Held with the Trust | Length of Time Served | Principal Occupations During the Past 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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 | | | | |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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). | 48 | 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. | 48 | 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). | 48 | 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)
| | | | |
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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Research Fund
Notes
NotesPage1
Janus Henderson Research Fund
Notes
NotesPage2
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| | | | | |
| | | | |
This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93053 11-23 |
| | | | |
| | | |
| | | ANNUAL REPORT September 30, 2023 |
| | |
| | Janus Henderson Triton Fund |
| | |
| | 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)
| | | | | | |
| | | 
Aaron Schaechterle co-portfolio manager | 
Jonathan Coleman co-portfolio manager | 
Scott Stutzman co-portfolio manager |
| | | |
PERFORMANCE
The Janus Henderson Triton Fund Class I Shares returned 11.43% for the 12-month period ended September 30, 2023. The Fund’s primary benchmark, the Russell 2500™ Growth Index, returned 10.61%. The Fund’s secondary benchmark, the Russell 2000® Growth Index, returned 9.59%.
INVESTMENT ENVIRONMENT
Stocks rallied in the fourth quarter of 2022 on hopes that moderating inflation might allow the Federal Reserve (Fed) to slow or end its campaign of interest rate hikes. This rally extended into the first half of 2023, despite periods of market volatility. Economic growth appeared resilient, as a strong job market helped support consumer spending. However, there were signs of slowing in other areas of the economy, especially manufacturing and housing. Corporations also reduced their earnings outlooks as they faced weaker demand as well as higher input, labor, and funding costs. The Fed continued to raise rates through the first seven months of 2023, although the pace of rate hikes moderated. The Fed left rates unchanged in September, but policymakers indicated that an extended period of higher rates might be needed to bring inflation under control, especially against a backdrop of rising fuel prices. These signals put upward pressure on long-term bond yields in the third quarter while adding to fears of a more pronounced economic slowdown. As a result, stocks suffered a broad-based sell-off in the third quarter. Despite this correction, equities still ended the twelve-month performance period with strong positive performance.
PERFORMANCE DISCUSSION
Among individual holdings, Saia was a top contributor to relative performance. The provider of Less Than Truckload (LTL) trucking services benefited from strong demand and pricing trends, which have supported its earnings performance. Competitive pressures in the LTL space also eased following the bankruptcy of Yellow, a potential LTL industry disruptor that sought to gain market share through aggressive pricing. We believe this development may help improve the rationality and stability of the LTL pricing environment, helping disciplined competitors such as Saia. Additionally, Saia continued to build out its transport network, helping it to better compete with regional and national carriers.
Another top contributor, OSI Systems provides electronics-enabled, security-related services such as baggage and vehicle screening. It has also developed patient monitoring systems for hospitals. The company reported better-than-expected financial results and an increased outlook. It also won several large contracts, including a new border and airport security arrangement with the Mexican government. It has also benefited from a record orders backlog that has helped support its earnings visibility.
Contract drug development and manufacturing services provider Catalent was a detractor from relative performance. The stock sold off in late 2022 as slowing demand for COVID-19 vaccines reduced revenues from Catalent’s outsourced vaccine fill/finish business. Catalent also warned of short-term operational challenges at several facilities, while the exit of its CFO added to near-term uncertainty. Despite these challenges, we continue to see long-term potential for Catalent’s diversified business model. We are particularly excited about its gene therapy manufacturing platform, which we believe could have broader applications with the potential to drive future earnings growth. We continue to see long-term potential for this company, which provides services that are critical to global pharmaceutical manufacturing.
Janus Henderson Triton Fund (unaudited)
Agiliti was a prominent detractor in the healthcare sector. Agiliti leases and services medical equipment for hospitals and medical facilities. While hospitals generally prefer to outsource equipment management in pursuit of cost savings, many facilities acquired additional equipment during the pandemic. These purchases reduced their near-term need for equipment rentals, leading Agiliti to issue a weaker-than-expected business outlook. We see this as a temporary headwind, and we anticipate improved demand for outsourced equipment once this equipment starts to age. The start of the winter cold and flu season may also lead to more hospital rentals of ventilators and other equipment. We continue to believe in Agiliti’s long-term business opportunity, given its strong competitive positioning and existing relationship with hospitals.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
While the economy has continued to grow despite higher interest rates, we have noted some pockets of weakness, especially in the manufacturing sector. Consumer spending, which has been the engine of the economic expansion, is showing early signs of slowing. Additionally, we caution that we have yet to see the full impact of past Fed rate hikes, which can take up to 18 months to filter through the economy. Fed policymakers have indicated they may continue to raise rates if they do not see signs of cooling economic activity and job growth. Even if the Fed pauses, we anticipate that rates will remain high for longer than investors had anticipated earlier in the year. We see added sources of uncertainty, including the United Automobile Workers (UAW) strike and a potential government shutdown, as well as slowing growth in China and Europe. Moreover, the continued war in Ukraine could keep upward pressure on oil and food prices, complicating the Fed’s task in combating inflation and managing growth.
Despite the risk of recession and the potential for market volatility, we believe our portfolio is positioned to navigate this uncertain environment due to our focus on well-managed, profitable growth companies with strong balance sheets, healthy free cash flows, and high returns on capital. We believe such companies may be better able to manage near-term market uncertainty and higher capital costs even as they look to capitalize on long-term trends.
Thank you for your investment in the Janus Henderson Triton Fund.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Triton Fund (unaudited)
Fund At A Glance
September 30, 2023
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| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Saia Inc | 1.29% | | 0.83% | | Catalent Inc | 1.70% | | -1.07% |
| ON Semiconductor Corp | 2.08% | | 0.75% | | Leslie's Inc | 0.74% | | -0.79% |
| OSI Systems Inc | 1.65% | | 0.74% | | Driven Brands Holdings Inc | 0.72% | | -0.60% |
| Rentokil Initial PLC (ADR) | 2.45% | | 0.63% | | Wolfspeed Inc | 0.37% | | -0.47% |
| Blackbaud Inc | 1.74% | | 0.58% | | Agiliti Inc | 0.91% | | -0.45% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2500 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | 2.86% | | 22.80% | 19.66% |
| Information Technology | | 1.26% | | 22.41% | 21.13% |
| Industrials | | 0.94% | | 22.50% | 19.13% |
| Utilities | | 0.06% | | 0.65% | 1.23% |
| Real Estate | | 0.03% | | 0.78% | 2.28% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2500 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | -1.81% | | 6.49% | 12.76% |
| Materials | | -0.64% | | 6.47% | 4.68% |
| Energy | | -0.36% | | 2.02% | 5.34% |
| Financials | | -0.32% | | 7.13% | 7.86% |
| Communication Services | | -0.31% | | 2.13% | 1.99% |
| | | | | | | |
| 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, 2023
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Rentokil Initial PLC (ADR) | |
Commercial Services & Supplies | 2.7% |
Crown Holdings Inc | |
Containers & Packaging | 2.4% |
ON Semiconductor Corp | |
Semiconductor & Semiconductor Equipment | 2.1% |
Blackbaud Inc | |
Software | 2.0% |
SS&C Technologies Holdings Inc | |
Professional Services | 2.0% |
| | 11.2% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 98.6% | |
Private Placements | | 0.5% | |
Investment Companies | | 0.3% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.3% | |
Private Investment in Public Equity (PIPES) | | 0.1% | |
Warrants | | 0.0% | |
Other | | 0.2% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
Janus Henderson Triton Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
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Average Annual Total Return - for the periods ended September 30, 2023 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 11.02% | 2.04% | 8.13% | 10.35% | | | 1.30% |
Class A Shares at MOP | | 4.65% | 0.84% | 7.49% | 10.00% | | | |
Class C Shares at NAV | | 10.47% | 1.50% | 7.50% | 9.63% | | | 1.74% |
Class C Shares at CDSC | | 9.47% | 1.50% | 7.50% | 9.63% | | | |
Class D Shares | | 11.39% | 2.37% | 8.48% | 10.64% | | | 0.79% |
Class I Shares | | 11.43% | 2.41% | 8.52% | 10.70% | | | 0.76% |
Class N Shares | | 11.56% | 2.51% | 8.63% | 10.72% | | | 0.66% |
Class R Shares | | 10.73% | 1.75% | 7.82% | 10.00% | | | 1.42% |
Class S Shares | | 10.97% | 2.00% | 8.09% | 10.25% | | | 1.16% |
Class T Shares | | 11.27% | 2.25% | 8.36% | 10.55% | | | 0.91% |
Russell 2500 Growth Index | | 10.61% | 4.05% | 8.37% | 8.75% | | | |
Russell 2000 Growth Index | | 9.59% | 1.55% | 6.72% | 7.60% | | | |
Morningstar Quartile - Class T Shares | | 2nd | 3rd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Small Growth Funds | | 184/597 | 372/562 | 168/523 | 13/427 | | | |
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.
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.
© 2023 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 September 1, 2023, Aaron Schaechterle, is Co-Portfolio Manager with Portfolio Managers Jonathan Coleman and Scott Stutzman.
*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.
| | | | | | | | | | | |
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $973.60 | $5.54 | | $1,000.00 | $1,019.45 | $5.67 | 1.12% |
Class C Shares | $1,000.00 | $970.70 | $8.25 | | $1,000.00 | $1,016.70 | $8.44 | 1.67% |
Class D Shares | $1,000.00 | $975.30 | $3.91 | | $1,000.00 | $1,021.11 | $4.00 | 0.79% |
Class I Shares | $1,000.00 | $975.60 | $3.76 | | $1,000.00 | $1,021.26 | $3.85 | 0.76% |
Class N Shares | $1,000.00 | $975.90 | $3.27 | | $1,000.00 | $1,021.76 | $3.35 | 0.66% |
Class R Shares | $1,000.00 | $972.30 | $6.92 | | $1,000.00 | $1,018.05 | $7.08 | 1.40% |
Class S Shares | $1,000.00 | $973.60 | $5.69 | | $1,000.00 | $1,019.30 | $5.82 | 1.15% |
Class T Shares | $1,000.00 | $974.50 | $4.45 | | $1,000.00 | $1,020.56 | $4.56 | 0.90% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 98.6% | | | |
Aerospace & Defense – 1.4% | | | |
| | Axon Enterprise Inc* | | 442,633 | | | $88,079,541 | |
Auto Components – 0.9% | | | |
| | Fox Factory Holding Corp* | | 329,149 | | | 32,612,083 | |
| | Quantumscape Corp*,# | | 1,011,669 | | | 6,768,066 | |
| | Visteon Corp* | | 144,983 | | | 20,017,803 | |
| | | 59,397,952 | |
Automobiles – 0.5% | | | |
| | Thor Industries Inc | | 315,303 | | | 29,994,774 | |
Biotechnology – 7.4% | | | |
| | Abcam PLC (ADR)* | | 1,809,024 | | | 40,938,213 | |
| | Akero Therapeutics Inc* | | 758,388 | | | 38,359,265 | |
| | Ardelyx Inc* | | 4,872,374 | | | 19,879,286 | |
| | Ascendis Pharma A/S (ADR)* | | 355,464 | | | 33,285,649 | |
| | Eagle Pharmaceuticals Inc/DE*,£ | | 712,558 | | | 11,237,040 | |
| | Immunogen Inc* | | 2,391,663 | | | 37,955,692 | |
| | Legend Biotech Corp (ADR)* | | 320,301 | | | 21,514,618 | |
| | Madrigal Pharmaceuticals Inc* | | 251,109 | | | 36,671,958 | |
| | Neurocrine Biosciences Inc* | | 478,830 | | | 53,868,375 | |
| | Prothena Corp PLC* | | 265,780 | | | 12,823,885 | |
| | Sarepta Therapeutics Inc* | | 574,410 | | | 69,629,980 | |
| | Soleno Therapeutics Inc*,# | | 500,187 | | | 14,760,518 | |
| | Vaxcyte Inc* | | 1,618,689 | | | 82,520,765 | |
| | | 473,445,244 | |
Building Products – 2.2% | | | |
| | Carlisle Cos Inc | | 259,626 | | | 67,310,637 | |
| | Zurn Water Solutions Corp | | 2,554,863 | | | 71,587,261 | |
| | | 138,897,898 | |
Capital Markets – 3.6% | | | |
| | Cboe Global Markets Inc | | 749,347 | | | 117,055,495 | |
| | LPL Financial Holdings Inc | | 475,829 | | | 113,080,762 | |
| | | 230,136,257 | |
Chemicals – 1.5% | | | |
| | Sensient Technologies Corp | | 1,680,067 | | | 98,250,318 | |
Commercial Services & Supplies – 4.8% | | | |
| | Brady Corp | | 933,227 | | | 51,252,827 | |
| | Clean Harbors Inc* | | 338,840 | | | 56,708,262 | |
| | Driven Brands Holdings Inc* | | 2,306,625 | | | 29,040,409 | |
| | Rentokil Initial PLC (ADR) | | 4,679,138 | | | 173,362,063 | |
| | | 310,363,561 | |
Construction Materials – 1.4% | | | |
| | Summit Materials Inc | | 2,961,079 | | | 92,208,000 | |
Containers & Packaging – 2.6% | | | |
| | Crown Holdings Inc | | 1,766,634 | | | 156,311,776 | |
| | Sealed Air Corp | | 404,795 | | | 13,301,564 | |
| | | 169,613,340 | |
Diversified Financial Services – 3.7% | | | |
| | Euronet Worldwide Inc* | | 879,206 | | | 69,791,372 | |
| | Walker & Dunlop Inc | | 877,631 | | | 65,155,325 | |
| | WEX Inc* | | 539,247 | | | 101,426,968 | |
| | | 236,373,665 | |
Diversified Telecommunication Services – 0.1% | | | |
| | AST SpaceMobile Inc*,# | | 2,204,000 | | | 8,375,200 | |
Electric Utilities – 0.5% | | | |
| | NRG Energy Inc | | 915,825 | | | 35,277,579 | |
Electrical Equipment – 2.5% | | | |
| | EnerSys | | 845,374 | | | 80,031,557 | |
| | Regal Beloit Corp | | 517,096 | | | 73,882,676 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Electrical Equipment– (continued) | | | |
| | Wallbox NV* | | 3,048,357 | | | $6,858,803 | |
| | | 160,773,036 | |
Electronic Equipment, Instruments & Components – 5.9% | | | |
| | Flex Ltd* | | 3,009,231 | | | 81,189,052 | |
| | Itron Inc* | | 460,116 | | | 27,873,827 | |
| | Mirion Technologies Inc* | | 7,805,717 | | | 58,308,706 | |
| | OSI Systems Inc* | | 809,544 | | | 95,558,574 | |
| | Teledyne Technologies Inc* | | 281,785 | | | 115,131,715 | |
| | | 378,061,874 | |
Energy Equipment & Services – 0.7% | | | |
| | ChampionX Corp | | 1,334,696 | | | 47,541,872 | |
Food & Staples Retailing – 1.9% | | | |
| | Casey's General Stores Inc | | 285,239 | | | 77,448,093 | |
| | Grocery Outlet Holding Corp* | | 1,514,016 | | | 43,679,362 | |
| | | 121,127,455 | |
Food Products – 3.3% | | | |
| | Hostess Brands Inc* | | 2,946,633 | | | 98,152,345 | |
| | Premium Brands Holdings Corp# | | 962,497 | | | 67,398,177 | |
| | Simply Good Foods Co* | | 1,374,269 | | | 47,439,766 | |
| | | 212,990,288 | |
Health Care Equipment & Supplies – 8.3% | | | |
| | Glaukos Corp* | | 1,040,179 | | | 78,273,470 | |
| | Globus Medical Inc* | | 1,620,670 | | | 80,466,265 | |
| | ICU Medical Inc* | | 477,689 | | | 56,849,768 | |
| | Lantheus Holdings Inc* | | 769,712 | | | 53,479,590 | |
| | Neogen Corp* | | 2,180,721 | | | 40,430,567 | |
| | QuidelOrtho Corp* | | 413,810 | | | 30,224,682 | |
| | Shockwave Medical Inc* | | 192,033 | | | 38,233,770 | |
| | STERIS PLC | | 368,523 | | | 80,861,317 | |
| | Tandem Diabetes Care Inc* | | 617,405 | | | 12,823,502 | |
| | Teleflex Inc | | 324,681 | | | 63,770,595 | |
| | | 535,413,526 | |
Health Care Providers & Services – 1.6% | | | |
| | Agiliti Inc* | | 2,786,459 | | | 18,084,119 | |
| | HealthEquity Inc* | | 666,599 | | | 48,695,057 | |
| | NeoGenomics Inc* | | 2,395,223 | | | 29,461,243 | |
| | P3 Health Partners Inc* | | 3,562,530 | | | 5,236,919 | |
| | | 101,477,338 | |
Health Care Technology – 0.4% | | | |
| | Doximity Inc - Class A* | | 1,282,352 | | | 27,211,509 | |
Hotels, Restaurants & Leisure – 2.2% | | | |
| | Aramark | | 1,293,835 | | | 44,896,074 | |
| | Churchill Downs Inc | | 323,774 | | | 37,570,735 | |
| | Wendy's Co | | 2,894,078 | | | 59,068,132 | |
| | | 141,534,941 | |
Household Durables – 0% | | | |
| | Helen of Troy Ltd* | | 4,069 | | | 474,283 | |
Insurance – 0.8% | | | |
| | Axis Capital Holdings Ltd | | 907,686 | | | 51,166,260 | |
Interactive Media & Services – 1.3% | | | |
| | Ziff Davis Inc* | | 1,352,759 | | | 86,157,221 | |
Life Sciences Tools & Services – 3.1% | | | |
| | Azenta Inc* | | 456,404 | | | 22,906,917 | |
| | Bio-Techne Corp | | 603,632 | | | 41,089,230 | |
| | Bruker Corp | | 677,443 | | | 42,204,699 | |
| | OmniAb Inc*,# | | 4,948,819 | | | 25,684,371 | |
| | OmniAb Inc - 12.5 Earnout* | | 340,494 | | | 1,520,646 | |
| | OmniAb Inc - 15 Earnout* | | 340,494 | | | 1,436,885 | |
| | PerkinElmer Inc | | 396,969 | | | 43,944,468 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Life Sciences Tools & Services– (continued) | | | |
| | Sotera Health Co* | | 1,317,222 | | | $19,731,986 | |
| | | 198,519,202 | |
Machinery – 4.5% | | | |
| | Chart Industries Inc* | | 200,293 | | | 33,873,552 | |
| | Donaldson Co Inc | | 1,243,253 | | | 74,147,609 | |
| | Gates Industrial Corp PLC* | | 4,819,863 | | | 55,958,609 | |
| | ITT Inc | | 788,102 | | | 77,163,067 | |
| | Nordson Corp | | 215,627 | | | 48,121,478 | |
| | | 289,264,315 | |
Media – 0.5% | | | |
| | Cable One Inc | | 55,191 | | | 33,977,787 | |
Multiline Retail – 0.4% | | | |
| | Etsy Inc* | | 372,384 | | | 24,048,559 | |
Oil, Gas & Consumable Fuels – 1.0% | | | |
| | Magnolia Oil & Gas Corp | | 2,853,345 | | | 65,370,134 | |
Personal Products – 0.6% | | | |
| | BellRing Brands Inc* | | 1,007,383 | | | 41,534,401 | |
Pharmaceuticals – 2.9% | | | |
| | Catalent Inc* | | 2,411,150 | | | 109,779,659 | |
| | CymaBay Therapeutics Inc* | | 1,193,958 | | | 17,801,914 | |
| | Ligand Pharmaceuticals Inc*,£ | | 897,906 | | | 53,802,528 | |
| | Structure Therapeutics Inc (ADR)* | | 86,401 | | | 4,356,338 | |
| | | 185,740,439 | |
Professional Services – 9.6% | | | |
| | Alight Inc - Class A* | | 12,542,944 | | | 88,929,473 | |
| | Broadridge Financial Solutions Inc | | 630,204 | | | 112,838,026 | |
| | Ceridian HCM Holding Inc* | | 653,142 | | | 44,315,685 | |
| | Clarivate Analytics PLC* | | 7,936,378 | | | 53,253,096 | |
| | MAXIMUS Inc | | 1,163,202 | | | 86,867,925 | |
| | SS&C Technologies Holdings Inc | | 2,478,960 | | | 130,244,558 | |
| | TriNet Group Inc*,# | | 875,193 | | | 101,942,481 | |
| | | 618,391,244 | |
Road & Rail – 1.4% | | | |
| | Saia Inc* | | 218,736 | | | 87,199,106 | |
Semiconductor & Semiconductor Equipment – 4.0% | | | |
| | Entegris Inc | | 483,893 | | | 45,442,392 | |
| | MACOM Technology Solutions Holdings Inc* | | 729,858 | | | 59,541,816 | |
| | ON Semiconductor Corp* | | 1,440,267 | | | 133,872,818 | |
| | Wolfspeed Inc* | | 418,595 | | | 15,948,470 | |
| | | 254,805,496 | |
Software – 9.1% | | | |
| | Altair Engineering Inc* | | 803,741 | | | 50,282,037 | |
| | Aspen Technology Inc* | | 203,626 | | | 41,592,647 | |
| | Blackbaud Inc* | | 1,875,343 | | | 131,874,120 | |
| | Clearwater Analytics Holdings Inc - Class A* | | 1,460,677 | | | 28,249,493 | |
| | Consensus Cloud Solutions Inc* | | 820,842 | | | 20,668,802 | |
| | Dynatrace Inc* | | 1,901,578 | | | 88,860,740 | |
| | Envestnet Inc* | | 959,377 | | | 42,241,369 | |
| | LiveRamp Holdings Inc* | | 1,993,846 | | | 57,502,519 | |
| | NCR Corp* | | 1,323,666 | | | 35,699,272 | |
| | Nice Ltd (ADR)* | | 202,092 | | | 34,355,640 | |
| | Pagerduty Inc* | | 2,509,870 | | | 56,446,976 | |
| | | 587,773,615 | |
Specialized Real Estate Investment Trusts (REITs) – 0.7% | | | |
| | Lamar Advertising Co | | 576,730 | | | 48,139,653 | |
Specialty Retail – 1.3% | | | |
| | Leslie's Inc* | | 5,962,361 | | | 33,746,963 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Specialty Retail– (continued) | | | |
| | Williams-Sonoma Inc | | 302,064 | | | $46,940,746 | |
| | | 80,687,709 | |
Total Common Stocks (cost $4,487,479,225) | | 6,349,794,592 | |
Private Investment in Public Equity (PIPES)– 0.1% | | | |
Pharmaceuticals – 0.1% | | | |
| | Structure Therapeutics Inc*,§((cost $5,241,453) | | 419,652 | | | 5,241,453 | |
Private Placements– 0.5% | | | |
Professional Services – 0.2% | | | |
| | IntelyCare Inc*,¢,§ | | 1,023,958 | | | 11,751,966 | |
Software – 0.3% | | | |
| | Loadsmart Inc - Series A*,¢,§ | | 377,303 | | | 5,859,516 | |
| | Loadsmart Inc - Series D*,¢,§ | | 1,075,313 | | | 16,699,611 | |
| | | 22,559,127 | |
Total Private Placements (cost $53,756,971) | | 34,311,093 | |
Warrants– 0% | | | |
Electrical Equipment – 0% | | | |
| | Amprius Technologies Inc, expires 9/14/27* | | 1,887,070 | | | 566,121 | |
| | Wallbox NV - Class A, expires 12/31/26* | | 665,780 | | | 272,837 | |
Total Warrants (cost $1,754,801) | | 838,958 | |
Investment Companies– 0.3% | | | |
Money Markets – 0.3% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $19,585,619) | | 19,581,703 | | | 19,587,578 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.3% | | | |
Investment Companies – 0.2% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº,£ | | 14,157,917 | | | 14,157,917 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 5.3100%, 10/2/23 | | $3,539,479 | | | 3,539,479 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $17,697,396) | | 17,697,396 | |
Total Investments (total cost $4,585,515,465) – 99.8% | | 6,427,471,070 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.2% | | 13,824,788 | |
Net Assets – 100% | | $6,441,295,858 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $6,070,999,688 | | 94.5 | % |
United Kingdom | | 214,300,276 | | 3.3 | |
Canada | | 67,398,177 | | 1.1 | |
Israel | | 34,355,640 | | 0.5 | |
Denmark | | 33,285,649 | | 0.5 | |
Spain | | 7,131,640 | | 0.1 | |
| | | | | | |
| | | | | | |
Total | | $6,427,471,070 | | 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, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/23 |
Common Stocks - 1.0% |
Banks - N/A | |
| | MSD Acquisition Corp | $ | - | $ | 876,692 | $ | 377,842 | $ | - |
Biotechnology - 0.2% | |
| | Eagle Pharmaceuticals Inc/DE* | | - | | (3,809,847) | | (3,900,419) | | 11,237,040 |
Electronic Equipment, Instruments & Components – N/A | |
| | Mirion Technologies Inc*,š | | - | | (6,955,380) | | (16,218,975) | | N/A |
| | OSI Systems Inc*,š | | - | | 19,322,018 | | 39,260,932 | | N/A |
Total Electronic Equipment, Instruments & Components | $ | - | $ | 12,366,638 | $ | 23,041,957 | $ | - |
Health Care Providers & Services - N/A | |
| | P3 Health Partners Inc*,š | | - | | (19,491,391) | | (28,740,465) | | N/A |
Pharmaceuticals - 0.8% | |
| | Ligand Pharmaceuticals Inc* | | - | | - | | 4,984,440 | | 53,802,528 |
Total Common Stocks | $ | - | $ | (10,057,908) | $ | (4,236,645) | $ | 65,039,568 |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 3,542,283 | | 8,528 | | 844 | | 19,587,578 |
Investments Purchased with Cash Collateral from Securities Lending - 0.2% |
Investment Companies - 0.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 2,923,993∆ | | - | | - | | 14,157,917 |
Total Affiliated Investments - 1.5% | $ | 6,466,276 | $ | (10,049,380) | $ | (4,235,801) | $ | 98,785,063 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2023, this column reflects amounts for the entire year ended September 30, 2023 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, 2023 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2023
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Common Stocks - 1.0% |
Banks - N/A | |
| | MSD Acquisition Corp | | 37,406,328 | | - | | (38,660,862)Ð | | - |
Biotechnology - 0.2% | |
| | Eagle Pharmaceuticals Inc/DE* | | 20,956,661 | | - | | (2,009,355) | | 11,237,040 |
Electronic Equipment, Instruments & Components – N/A | |
| | Mirion Technologies Inc*,š | | 10,351,978 | | 94,584,070Ð | | (23,452,987) | | 58,308,706 |
| | OSI Systems Inc*,š | | 92,280,757 | | - | | (55,305,133) | | 95,558,574 |
Health Care Providers & Services - N/A | |
| | P3 Health Partners Inc*,š | | - | | 59,520,704Ð | | (6,051,929) | | 5,236,919 |
Pharmaceuticals - 0.8% | |
| | Ligand Pharmaceuticals Inc* | | 77,318,686 | | - | | (28,500,598)Ð | | 53,802,528 |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 22,506,660 | | 1,041,880,547 | | (1,044,809,001) | | 19,587,578 |
Investments Purchased with Cash Collateral from Securities Lending - 0.2% |
Investment Companies - 0.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 54,754,734 | | 380,283,178 | | (420,879,995) | | 14,157,917 |
| | |
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, 2023
| | | | | | | |
Schedule of Forward Foreign Currency Exchange Contracts | | | | | | |
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
Bank of America, National Association: | | | | | | | | |
British Pound | 10/26/23 | (9,122,000) | $ | 11,749,775 | $ | 620,237 | | |
Canadian Dollar | 10/26/23 | 2,562,000 | | (1,897,586) | | (10,393) | | |
Euro | 10/26/23 | 2,889,000 | | (3,172,393) | | (115,141) | | |
Euro | 10/26/23 | (528,000) | | 573,902 | | 15,152 | | |
| | | | | | | | | |
| | | | | | | 509,855 | | |
Barclays Capital, Inc.: | | | | | | | | |
British Pound | 10/26/23 | 10,876,000 | | (13,777,381) | | (507,829) | | |
British Pound | 10/26/23 | (8,010,000) | | 10,317,868 | | 545,055 | | |
Canadian Dollar | 10/26/23 | (14,644,000) | | 11,127,355 | | 340,449 | | |
Euro | 10/26/23 | 1,723,000 | | (1,837,173) | | (13,828) | | |
Euro | 10/26/23 | (9,108,000) | | 10,099,356 | | 460,917 | | |
| | | | | | | | | |
| | | | | | | 824,764 | | |
BNP Paribas: | | | | | | | | |
Euro | 10/26/23 | 600,000 | | (665,334) | | (30,391) | | |
Citibank, National Association: | | | | | | | | |
British Pound | 10/26/23 | (68,003,000) | | 87,602,077 | | 4,633,215 | | |
Canadian Dollar | 10/26/23 | (8,643,000) | | 6,568,889 | | 202,375 | | |
Euro | 10/26/23 | (5,669,000) | | 6,287,103 | | 287,947 | | |
| | | | | | | | | |
| | | | | | | 5,123,537 | | |
Goldman Sachs & Co. LLC: | | | | | | | | |
British Pound | 10/26/23 | (4,425,000) | | 5,699,665 | | 300,827 | | |
Canadian Dollar | 10/26/23 | (859,000) | | 652,765 | | 20,018 | | |
Euro | 10/26/23 | (10,000) | | 11,089 | | 507 | | |
| | | | | | | | | |
| | | | | | | 321,352 | | |
HSBC Securities (USA), Inc.: | | | | | | | | |
British Pound | 10/26/23 | (9,867,000) | | 12,724,372 | | 685,877 | | |
Canadian Dollar | 10/26/23 | 5,514,000 | | (4,086,625) | | (24,961) | | |
Canadian Dollar | 10/26/23 | (23,497,000) | | 17,857,015 | | 548,908 | | |
Euro | 10/26/23 | 130,000 | | (144,212) | | (6,641) | | |
| | | | | | | | | |
| | | | | | | 1,203,183 | | |
JPMorgan Chase Bank, National Association: | | | | | | | | |
British Pound | 10/26/23 | 12,974,000 | | (16,711,939) | | (882,667) | | |
Canadian Dollar | 10/26/23 | (13,305,000) | | 10,113,256 | | 312,670 | | |
Euro | 10/26/23 | 3,082,000 | | (3,417,476) | | (155,984) | | |
| | | | | | | | | |
| | | | | | | (725,981) | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2023 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
Morgan Stanley & Co: | | | | | | | |
Canadian Dollar | 10/26/23 | (2,093,000) | $ | 1,591,034 | | 49,311 | |
Euro | 10/26/23 | 1,319,000 | | (1,445,950) | | (50,133) | |
| | | | | | | | |
| | | | | | | (822) | |
State Street Bank and Trust Company: | | | | | | | |
British Pound | 10/26/23 | 9,326,000 | | (11,896,487) | | (518,054) | |
British Pound | 10/26/23 | (97,851,000) | | 126,083,877 | | 6,698,172 | |
Canadian Dollar | 10/26/23 | 2,969,000 | | (2,208,467) | | (21,474) | |
Canadian Dollar | 10/26/23 | (16,835,000) | | 12,756,703 | | 355,886 | |
Euro | 10/26/23 | 1,613,000 | | (1,777,398) | | (70,459) | |
Euro | 10/26/23 | (1,406,000) | | 1,552,272 | | 64,388 | |
| | | | | | | | |
| | | | | | | 6,508,459 | |
Total | | | | | $ | 13,733,956 | |
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, 2023.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2023 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $16,141,911 |
| | | | |
Liability Derivatives: | | | |
Forward foreign currency exchange contracts | | | $ 2,407,955 |
| | | | |
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, 2023.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2023 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $(25,727,633) |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ 9,864,954 |
| | | | | |
| | |
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, 2023
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, 2023 |
| |
| |
Forward foreign currency exchange contracts: | |
Average amounts purchased - in USD | $68,699,936 |
Average amounts sold - in USD | 323,992,073 |
| | |
| |
| |
| |
| | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Bank of America, National Association | $ | 635,389 | $ | (125,534) | $ | — | $ | 509,855 |
Barclays Capital, Inc. | | 1,346,421 | | (521,657) | | — | | 824,764 |
Citibank, National Association | | 5,123,537 | | — | | — | | 5,123,537 |
Goldman Sachs & Co. LLC | | 321,352 | | — | | — | | 321,352 |
HSBC Securities (USA), Inc. | | 1,234,785 | | (31,602) | | — | | 1,203,183 |
JPMorgan Chase Bank, National Association | | 17,692,042 | | (312,670) | | (17,379,372) | | — |
Morgan Stanley & Co | | 49,311 | | (49,311) | | — | | — |
State Street Bank and Trust Company | | 7,118,446 | | (609,987) | | — | | 6,508,459 |
| | | | | | | | | |
Total | $ | 33,521,283 | $ | (1,650,761) | $ | (17,379,372) | $ | 14,491,150 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson Triton Fund
Schedule of Investments
September 30, 2023
| | | | | | | | | | |
Offsetting of Financial Liabilities and Derivative Liabilities |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Bank of America, National Association | $ | 125,534 | $ | (125,534) | $ | — | $ | — |
Barclays Capital, Inc. | | 521,657 | | (521,657) | | — | | — |
BNP Paribas | | 30,391 | | — | | — | | 30,391 |
HSBC Securities (USA), Inc. | | 31,602 | | (31,602) | | — | | — |
JPMorgan Chase Bank, National Association | | 1,038,651 | | (312,670) | | — | | 725,981 |
Morgan Stanley & Co | | 50,133 | | (49,311) | | — | | 822 |
State Street Bank and Trust Company | | 609,987 | | (609,987) | | — | | — |
| | | | | | | | | |
Total | $ | 2,407,955 | $ | (1,650,761) | $ | — | $ | 757,194 |
(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 | 17 |
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, 2023. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2023. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2023 is $34,311,093, which represents 0.5% 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, 2023. |
| | |
∆ | 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, 2023) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
IntelyCare Inc | 3/29/22 | $ | 25,081,954 | $ | 11,751,966 | | 0.2 | % |
Loadsmart Inc - Series A | 1/4/22 | | 7,168,757 | | 5,859,516 | | 0.1 | |
Loadsmart Inc - Series D | 1/4/22 | | 21,506,260 | | 16,699,611 | | 0.2 | |
Structure Therapeutics Inc | 9/29/23 | | 5,241,453 | | 5,241,453 | | 0.1 | |
Total | | $ | 58,998,424 | $ | 39,552,546 | | 0.6 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2023. 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, 2023. 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 | | | | | | |
Life Sciences Tools & Services | $ | 195,561,671 | $ | 2,957,531 | $ | - |
All Other | | 6,151,275,390 | | - | | - |
Private Investment in Public Equity (PIPES) | | 5,241,453 | | - | | - |
Private Placements | | - | | - | | 34,311,093 |
Warrants | | 566,121 | | 272,837 | | - |
Investment Companies | | - | | 19,587,578 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 17,697,396 | | - |
Total Investments in Securities | $ | 6,352,644,635 | $ | 40,515,342 | $ | 34,311,093 |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 16,141,911 | | - |
Total Assets | $ | 6,352,644,635 | $ | 56,657,253 | $ | 34,311,093 |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 2,407,955 | $ | - |
| | | | | | | |
(a) | Other financial instruments may 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, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $4,436,372,133)(1) | | $ | 6,328,686,007 | |
| Affiliated investments, at value (cost $149,143,332) | | | 98,785,063 | |
| Cash | | | 59 | |
| Forward foreign currency exchange contracts | | | 16,141,911 | |
| Trustees' deferred compensation | | | 168,426 | |
| Receivables: | | | | |
| | Investments sold | | | 50,195,238 | |
| | Fund shares sold | | | 6,996,060 | |
| | Dividends | | | 1,779,434 | |
| | Foreign tax reclaims | | | 201,263 | |
| | Dividends from affiliates | | | 193,198 | |
| Other assets | | | 138,641 | |
Total Assets | | | 6,503,285,300 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 17,697,396 | |
| Forward foreign currency exchange contracts | | | 2,407,955 | |
| Payables: | | | — | |
| | Investments purchased | | | 21,521,075 | |
| | Fund shares repurchased | | | 15,150,277 | |
| | Advisory fees | | | 3,614,028 | |
| | Transfer agent fees and expenses | | | 863,600 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 201,217 | |
| | Trustees' deferred compensation fees | | | 168,426 | |
| | Professional fees | | | 75,940 | |
| | Trustees' fees and expenses | | | 37,267 | |
| | Custodian fees | | | 18,811 | |
| | Affiliated fund administration fees payable | | | 14,117 | |
| | Accrued expenses and other payables | | | 219,333 | |
Total Liabilities | | | 61,989,442 | |
Commitments and contingent liabilities (Note 4) | | | | |
Net Assets | | $ | 6,441,295,858 | |
| | |
See Notes to Financial Statements. |
| |
20 | SEPTEMBER 30, 2023 |
Janus Henderson Triton Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 4,147,696,160 | |
| Total distributable earnings (loss) | | | 2,293,599,698 | |
Total Net Assets | | $ | 6,441,295,858 | |
Net Assets - Class A Shares | | $ | 265,743,533 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 11,096,851 | |
Net Asset Value Per Share(2) | | $ | 23.95 | |
Maximum Offering Price Per Share(3) | | $ | 25.41 | |
Net Assets - Class C Shares | | $ | 11,572,560 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 562,834 | |
Net Asset Value Per Share(2) | | $ | 20.56 | |
Net Assets - Class D Shares | | $ | 890,168,465 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 35,190,081 | |
Net Asset Value Per Share | | $ | 25.30 | |
Net Assets - Class I Shares | | $ | 957,122,136 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 37,392,927 | |
Net Asset Value Per Share | | $ | 25.60 | |
Net Assets - Class N Shares | | $ | 2,408,276,409 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 92,967,994 | |
Net Asset Value Per Share | | $ | 25.90 | |
Net Assets - Class R Shares | | $ | 188,079,362 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 8,367,951 | |
Net Asset Value Per Share | | $ | 22.48 | |
Net Assets - Class S Shares | | $ | 225,744,726 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,583,063 | |
Net Asset Value Per Share | | $ | 23.56 | |
Net Assets - Class T Shares | | $ | 1,494,588,667 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 60,167,962 | |
Net Asset Value Per Share | | $ | 24.84 | |
| |
(1) Includes $17,379,372 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 | 21 |
Janus Henderson Triton Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: |
| Dividends | $ | 46,291,812 | |
| Dividends from affiliates | | 3,542,283 | |
| Affiliated securities lending income, net | | 2,923,993 | |
| Unaffiliated securities lending income, net | | 325,665 | |
| Other income | | 262 | |
| Foreign tax withheld | | (601,288) | |
Total Investment Income | | 52,482,727 | |
Expenses: | | | |
| Advisory fees | | 45,223,069 | |
| 12b-1 Distribution and shareholder servicing fees: |
| | Class A Shares | | 732,520 | |
| | Class C Shares | | 132,217 | |
| | Class R Shares | | 996,237 | |
| | Class S Shares | | 616,379 | |
| Transfer agent administrative fees and expenses: | | |
| | Class D Shares | | 1,097,517 | |
| | Class R Shares | | 501,701 | |
| | Class S Shares | | 617,574 | |
| | Class T Shares | | 4,080,223 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 1,308,309 | |
| | Class C Shares | | 12,959 | |
| | Class I Shares | | 1,153,336 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 18,435 | |
| | Class C Shares | | 731 | |
| | Class D Shares | | 103,287 | |
| | Class I Shares | | 86,452 | |
| | Class N Shares | | 110,725 | |
| | Class R Shares | | 5,335 | |
| | Class S Shares | | 3,658 | |
| | Class T Shares | | 17,025 | |
| Shareholder reports expense | | 380,960 | |
| Custodian fees | | 255,825 | |
| Affiliated fund administration fees | | 227,422 | |
| Trustees’ fees and expenses | | 172,770 | |
| Registration fees | | 163,113 | |
| Professional fees | | 127,127 | |
| Other expenses | | 358,816 | |
Total Expenses | | 58,503,722 | |
Less: Excess Expense Reimbursement and Waivers | | (792,575) | |
Net Expenses | | 57,711,147 | |
Net Investment Income/(Loss) | | (5,228,420) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2023 |
Janus Henderson Triton Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | |
| Investments and foreign currency transactions | $ | 597,357,155 | |
| Investments in affiliates | | (10,049,380) | |
| Forward foreign currency exchange contracts | | (25,727,633) | |
Total Net Realized Gain/(Loss) on Investments | 561,580,142 | |
Change in Unrealized Net Appreciation/Depreciation: |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 229,991,963 | |
| Investments in affiliates | | (4,235,801) | |
| Forward foreign currency exchange contracts | | 9,864,954 | |
Total Change in Unrealized Net Appreciation/Depreciation | 235,621,116 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 791,972,838 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Triton Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (5,228,420) | | $ | (31,991,552) | |
| Net realized gain/(loss) on investments | | 561,580,142 | | | 470,370,140 | |
| Change in unrealized net appreciation/depreciation | 235,621,116 | | | (3,047,442,620) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | 791,972,838 | | | (2,609,064,032) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (17,964,474) | | | (79,886,294) | |
| | Class C Shares | | (1,339,127) | | | (8,666,725) | |
| | Class D Shares | | (53,671,559) | | | (220,219,254) | |
| | Class I Shares | | (68,298,977) | | | (331,363,921) | |
| | Class N Shares | | (149,713,854) | | | (711,413,843) | |
| | Class R Shares | | (12,943,552) | | | (53,978,801) | |
| | Class S Shares | | (15,468,292) | | | (72,364,312) | |
| | Class T Shares | | (98,199,980) | | | (450,188,562) | |
Net Decrease from Dividends and Distributions to Shareholders | (417,599,815) | | | (1,928,081,712) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (25,363,068) | | | (3,460,663) | |
| | Class C Shares | | (8,124,368) | | | (13,329,427) | |
| | Class D Shares | | (19,724,884) | | | 113,336,445 | |
| | Class I Shares | | (264,650,859) | | | (150,968,605) | |
| | Class N Shares | | (223,648,887) | | | (248,827,543) | |
| | Class R Shares | | (8,394,099) | | | 21,508,574 | |
| | Class S Shares | | (20,324,480) | | | (52,512,981) | |
| | Class T Shares | | (181,262,198) | | | (28,513,973) | |
Net Increase/(Decrease) from Capital Share Transactions | (751,492,843) | | | (362,768,173) | |
Net Increase/(Decrease) in Net Assets | | (377,119,820) | | | (4,899,913,917) | |
Net Assets: | | | | | | |
| Beginning of period | | 6,818,415,678 | | | 11,718,329,595 | |
| End of period | $ | 6,441,295,858 | | $ | 6,818,415,678 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
24 | SEPTEMBER 30, 2023 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $23.01 | | | $38.38 | | | $30.01 | | | $29.95 | | | $33.12 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.09) | | | (0.19) | | | (0.26) | | | (0.16) | | | (0.08) | |
| | Net realized and unrealized gain/(loss) | | 2.55 | | | (8.25) | | | 10.22 | | | 1.55 | | | (1.19) | |
| Total from Investment Operations | | 2.46 | | | (8.44) | | | 9.96 | | | 1.39 | | | (1.27) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Total Dividends and Distributions | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Net Asset Value, End of Period | | $23.95 | | | $23.01 | | | $38.38 | | | $30.01 | | | $29.95 | |
| Total Return* | | 11.02% | | | (26.63)% | | | 33.41% | | | 4.64% | | | (2.69)% | |
| Net Assets, End of Period (in thousands) | | $265,744 | | | $277,727 | | | $467,269 | | | $416,036 | | | $491,045 | |
| Average Net Assets for the Period (in thousands) | | $294,438 | | | $376,354 | | | $494,458 | | | $430,974 | | | $501,143 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.36% | | | 1.30% | | | 1.29% | | | 1.35% | | | 1.33% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.12% | | | 1.10% | | | 1.12% | | | 1.12% | |
| | Ratio of Net Investment Income/(Loss) | | (0.38)% | | | (0.65)% | | | (0.69)% | | | (0.57)% | | | (0.28)% | |
| Portfolio Turnover Rate | | 19% | | | 8% | | | 24% | | | 32% | | | 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. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $20.05 | | | $34.49 | | | $27.23 | | | $27.45 | | | $30.72 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.18) | | | (0.31) | | | (0.42) | | | (0.30) | | | (0.23) | |
| | Net realized and unrealized gain/(loss) | | 2.21 | | | (7.20) | | | 9.27 | | | 1.41 | | | (1.14) | |
| Total from Investment Operations | | 2.03 | | | (7.51) | | | 8.85 | | | 1.11 | | | (1.37) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Total Dividends and Distributions | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Net Asset Value, End of Period | | $20.56 | | | $20.05 | | | $34.49 | | | $27.23 | | | $27.45 | |
| Total Return* | | 10.47% | | | (26.99)% | | | 32.72% | | | 4.02% | | | (3.26)% | |
| Net Assets, End of Period (in thousands) | | $11,573 | | | $18,940 | | | $49,738 | | | $97,105 | | | $150,431 | |
| Average Net Assets for the Period (in thousands) | | $16,028 | | | $33,240 | | | $75,187 | | | $124,872 | | | $168,909 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.59% | | | 1.60% | | | 1.65% | | | 1.70% | | | 1.68% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.59% | | | 1.60% | | | 1.65% | | | 1.70% | | | 1.68% | |
| | Ratio of Net Investment Income/(Loss) | | (0.86)% | | | (1.15)% | | | (1.25)% | | | (1.14)% | | | (0.84)% | |
| Portfolio Turnover Rate | | 19% | | | 8% | | | 24% | | | 32% | | | 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. |
| | |
See Notes to Financial Statements. |
| |
26 | SEPTEMBER 30, 2023 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $24.15 | | | $39.82 | | | $30.99 | | | $30.79 | | | $33.89 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.01) | | | (0.10) | | | (0.14) | | | (0.07) | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 2.68 | | | (8.64) | | | 10.56 | | | 1.60 | | | (1.21) | |
| Total from Investment Operations | | 2.67 | | | (8.74) | | | 10.42 | | | 1.53 | | | (1.20) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Total Dividends and Distributions | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Net Asset Value, End of Period | | $25.30 | | | $24.15 | | | $39.82 | | | $30.99 | | | $30.79 | |
| Total Return* | | 11.39% | | | (26.39)% | | | 33.85% | | | 4.98% | | | (2.41)% | |
| Net Assets, End of Period (in thousands) | | $890,168 | | | $864,531 | | | $1,289,904 | | | $1,057,332 | | | $1,191,950 | |
| Average Net Assets for the Period (in thousands) | | $938,887 | | | $1,111,102 | | | $1,297,945 | | | $1,088,543 | | | $1,183,056 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.80% | | | 0.79% | | | 0.78% | | | 0.80% | | | 0.80% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | | | 0.79% | | | 0.78% | | | 0.80% | | | 0.80% | |
| | Ratio of Net Investment Income/(Loss) | | (0.06)% | | | (0.32)% | | | (0.37)% | | | (0.25)% | | | 0.04% | |
| Portfolio Turnover Rate | | 19% | | | 8% | | | 24% | | | 32% | | | 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. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 27 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $24.41 | | | $40.17 | | | $31.24 | | | $31.02 | | | $34.11 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.01) | | | (0.09) | | | (0.13) | | | (0.06) | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | 2.72 | | | (8.74) | | | 10.65 | | | 1.61 | | | (1.21) | |
| Total from Investment Operations | | 2.71 | | | (8.83) | | | 10.52 | | | 1.55 | | | (1.19) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Total Dividends and Distributions | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Net Asset Value, End of Period | | $25.60 | | | $24.41 | | | $40.17 | | | $31.24 | | | $31.02 | |
| Total Return* | | 11.43% | | | (26.38)% | | | 33.90% | | | 5.00% | | | (2.36)% | |
| Net Assets, End of Period (in thousands) | | $957,122 | | | $1,154,792 | | | $2,082,427 | | | $1,953,114 | | | $2,235,807 | |
| Average Net Assets for the Period (in thousands) | | $1,106,238 | | | $1,607,957 | | | $2,243,961 | | | $2,022,112 | | | $2,206,658 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.77% | | | 0.76% | | | 0.75% | | | 0.76% | | | 0.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.77% | | | 0.76% | | | 0.75% | | | 0.76% | | | 0.76% | |
| | Ratio of Net Investment Income/(Loss) | | (0.04)% | | | (0.30)% | | | (0.34)% | | | (0.21)% | | | 0.08% | |
| Portfolio Turnover Rate | | 19% | | | 8% | | | 24% | | | 32% | | | 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. |
| | |
See Notes to Financial Statements. |
| |
28 | SEPTEMBER 30, 2023 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $24.66 | | | $40.48 | | | $31.44 | | | $31.18 | | | $34.24 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.02 | | | (0.06) | | | (0.10) | | | (0.03) | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 2.74 | | | (8.83) | | | 10.73 | | | 1.62 | | | (1.21) | |
| Total from Investment Operations | | 2.76 | | | (8.89) | | | 10.63 | | | 1.59 | | | (1.16) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Total Dividends and Distributions | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Net Asset Value, End of Period | | $25.90 | | | $24.66 | | | $40.48 | | | $31.44 | | | $31.18 | |
| Total Return* | | 11.52% | | | (26.32)% | | | 34.04% | | | 5.11% | | | (2.26)% | |
| Net Assets, End of Period (in thousands) | | $2,408,276 | | | $2,485,743 | | | $4,412,467 | | | $3,824,419 | | | $3,848,034 | |
| Average Net Assets for the Period (in thousands) | | $2,644,853 | | | $3,483,140 | | | $4,658,162 | | | $3,817,816 | | | $3,452,214 | |
| 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) | | 0.08% | | | (0.20)% | | | (0.25)% | | | (0.12)% | | | 0.17% | |
| Portfolio Turnover Rate | | 19% | | | 8% | | | 24% | | | 32% | | | 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. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 29 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $21.74 | | | $36.75 | | | $28.86 | | | $28.94 | | | $32.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.15) | | | (0.26) | | | (0.35) | | | (0.24) | | | (0.16) | |
| | Net realized and unrealized gain/(loss) | | 2.41 | | | (7.82) | | | 9.83 | | | 1.49 | | | (1.17) | |
| Total from Investment Operations | | 2.26 | | | (8.08) | | | 9.48 | | | 1.25 | | | (1.33) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Total Dividends and Distributions | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Net Asset Value, End of Period | | $22.48 | | | $21.74 | | | $36.75 | | | $28.86 | | | $28.94 | |
| Total Return* | | 10.73% | | | (26.87)% | | | 33.06% | | | 4.30% | | | (2.97)% | |
| Net Assets, End of Period (in thousands) | | $188,079 | | | $188,832 | | | $293,567 | | | $281,907 | | | $325,507 | |
| Average Net Assets for the Period (in thousands) | | $201,211 | | | $248,880 | | | $316,824 | | | $295,035 | | | $341,001 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.41% | | | 1.41% | | | 1.40% | | | 1.41% | | | 1.41% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.41% | | | 1.41% | | | 1.40% | | | 1.41% | | | 1.41% | |
| | Ratio of Net Investment Income/(Loss) | | (0.67)% | | | (0.94)% | | | (0.99)% | | | (0.86)% | | | (0.57)% | |
| Portfolio Turnover Rate | | 19% | | | 8% | | | 24% | | | 32% | | | 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. |
| | |
See Notes to Financial Statements. |
| |
30 | SEPTEMBER 30, 2023 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $22.67 | | | $37.93 | | | $29.68 | | | $29.65 | | | $32.83 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.10) | | | (0.21) | | | (0.28) | | | (0.17) | | | (0.09) | |
| | Net realized and unrealized gain/(loss) | | 2.51 | | | (8.12) | | | 10.12 | | | 1.53 | | | (1.19) | |
| Total from Investment Operations | | 2.41 | | | (8.33) | | | 9.84 | | | 1.36 | | | (1.28) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Total Dividends and Distributions | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Net Asset Value, End of Period | | $23.56 | | | $22.67 | | | $37.93 | | | $29.68 | | | $29.65 | |
| Total Return* | | 10.97% | | | (26.66)% | | | 33.37% | | | 4.58% | | | (2.75)% | |
| Net Assets, End of Period (in thousands) | | $225,745 | | | $234,961 | | | $452,832 | | | $450,947 | | | $520,950 | |
| Average Net Assets for the Period (in thousands) | | $247,711 | | | $338,266 | | | $498,603 | | | $471,543 | | | $541,037 | |
| 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) | | (0.42)% | | | (0.69)% | | | (0.75)% | | | (0.61)% | | | (0.32)% | |
| Portfolio Turnover Rate | | 19% | | | 8% | | | 24% | | | 32% | | | 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. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 31 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $23.76 | | | $39.34 | | | $30.67 | | | $30.51 | | | $33.64 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.04) | | | (0.13) | | | (0.19) | | | (0.10) | | | (0.02) | |
| | Net realized and unrealized gain/(loss) | | 2.64 | | | (8.52) | | | 10.45 | | | 1.59 | | | (1.21) | |
| Total from Investment Operations | | 2.60 | | | (8.65) | | | 10.26 | | | 1.49 | | | (1.23) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Total Dividends and Distributions | | (1.52) | | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | |
| Net Asset Value, End of Period | | $24.84 | | | $23.76 | | | $39.34 | | | $30.67 | | | $30.51 | |
| Total Return* | | 11.27% | | | (26.50)% | | | 33.67% | | | 4.89% | | | (2.52)% | |
| Net Assets, End of Period (in thousands) | | $1,494,589 | | | $1,592,889 | | | $2,670,126 | | | $2,379,045 | | | $2,881,377 | |
| Average Net Assets for the Period (in thousands) | | $1,636,791 | | | $2,140,397 | | | $2,809,155 | | | $2,557,135 | | | $2,940,071 | |
| 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) | | 0.91% | | | 0.90% | | | 0.90% | | | 0.90% | | | 0.90% | |
| | Ratio of Net Investment Income/(Loss) | | (0.16)% | | | (0.44)% | | | (0.49)% | | | (0.35)% | | | (0.07)% | |
| Portfolio Turnover Rate | | 19% | | | 8% | | | 24% | | | 32% | | | 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. |
| | |
See Notes to Financial Statements. |
| |
32 | SEPTEMBER 30, 2023 |
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 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 (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 Triton 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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
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, 2023 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, 2023.
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. 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, 2023 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.
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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
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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
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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.
Janus Henderson Triton Fund
Notes to Financial Statements
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
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
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Notes to Financial Statements
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, 2023, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $17,379,372. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2023 is $17,697,396, resulting in the net amount due from the counterparty of $318,024.
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, 2023” 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 0.86% 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 27, 2023. The previous expense limit (for the one-year period commencing January 28, 2022) was 0.92%. 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.
Janus Henderson Triton Fund
Notes to Financial Statements
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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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 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
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Notes to Financial Statements
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, 2023, the Distributor retained upfront sales charges of $6,880.
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, 2023.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $373.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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
Janus Henderson Triton Fund
Notes to Financial Statements
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, 2023 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, 2023, the Fund engaged in cross trades amounting to $13,229,081 in sales, resulting in a net realized loss of $4,802,822. The net realized loss is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
5. Federal Income Tax
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation, derivatives, and foreign currency contract adjustments. The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The Fund has elected to defer qualified late-year losses as noted in the table below. These losses will be deferred for tax purposes and recognized during the next fiscal year.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ - | $ 459,635,955 | $ - | $ (3,326,549) | $ (162,932) | $1,837,453,224 | |
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, 2023 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships, and investments in passive foreign investment companies.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 4,590,017,846 | $2,445,013,190 | $(607,559,966) | $ 1,837,453,224 |
Janus Henderson Triton Fund
Notes to Financial Statements
Information on the tax components of derivatives as of September 30, 2023 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 13,733,956 | $ - | $ - | $ - |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ - | $ 417,599,815 | $ - | $ 21,987,670 | |
| | | | | |
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 | $ - | $ - | |
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. Capital has been adjusted by $43,933,575, all of which is long-term capital gain, for distributions in connection with Fund shares redemption (tax equalization).
Janus Henderson Triton Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 2,017,248 | $ 49,028,187 | | 2,937,275 | $ 88,643,047 |
Reinvested dividends and distributions | 496,850 | 11,338,124 | | 1,630,945 | 50,477,762 |
Shares repurchased | (3,486,777) | (85,729,379) | | (4,672,637) | (142,581,472) |
Net Increase/(Decrease) | (972,679) | $ (25,363,068) | | (104,417) | $ (3,460,663) |
Class C Shares: | | | | | |
Shares sold | 86,656 | $ 1,854,792 | | 41,904 | $ 1,116,254 |
Reinvested dividends and distributions | 66,657 | 1,311,143 | | 315,522 | 8,538,022 |
Shares repurchased | (535,059) | (11,290,303) | | (855,073) | (22,983,703) |
Net Increase/(Decrease) | (381,746) | $ (8,124,368) | | (497,647) | $ (13,329,427) |
Class D Shares: | | | | | |
Shares sold | 919,270 | $ 23,926,367 | | 1,135,387 | $ 34,665,655 |
Reinvested dividends and distributions | 2,153,271 | 51,764,626 | | 6,559,596 | 212,530,907 |
Shares repurchased | (3,680,517) | (95,415,877) | | (4,287,428) | (133,860,117) |
Net Increase/(Decrease) | (607,976) | $ (19,724,884) | | 3,407,555 | $ 113,336,445 |
Class I Shares: | | | | | |
Shares sold | 5,756,050 | $ 150,808,274 | | 5,914,164 | $ 184,023,211 |
Reinvested dividends and distributions | 2,549,500 | 62,003,849 | | 9,090,129 | 297,610,830 |
Shares repurchased | (18,214,407) | (477,462,982) | | (19,540,591) | (632,602,646) |
Net Increase/(Decrease) | (9,908,857) | $(264,650,859) | | (4,536,298) | $ (150,968,605) |
Class N Shares: | | | | | |
Shares sold | 15,807,818 | $ 418,825,837 | | 16,856,775 | $ 530,171,185 |
Reinvested dividends and distributions | 5,765,645 | 141,834,865 | | 20,501,639 | 677,579,161 |
Shares repurchased | (29,388,607) | (784,309,589) | | (45,586,136) | (1,456,577,889) |
Net Increase/(Decrease) | (7,815,144) | $(223,648,887) | | (8,227,722) | $ (248,827,543) |
Class R Shares: | | | | | |
Shares sold | 910,689 | $ 21,144,215 | | 1,063,048 | $ 29,759,479 |
Reinvested dividends and distributions | 599,036 | 12,861,310 | | 1,823,751 | 53,454,135 |
Shares repurchased | (1,826,536) | (42,399,624) | | (2,191,161) | (61,705,040) |
Net Increase/(Decrease) | (316,811) | $ (8,394,099) | | 695,638 | $ 21,508,574 |
Class S Shares: | | | | | |
Shares sold | 1,030,153 | $ 24,888,290 | | 1,423,695 | $ 42,111,779 |
Reinvested dividends and distributions | 675,912 | 15,174,226 | | 2,334,571 | 71,181,074 |
Shares repurchased | (2,489,096) | (60,386,996) | | (5,331,144) | (165,805,834) |
Net Increase/(Decrease) | (783,031) | $ (20,324,480) | | (1,572,878) | $ (52,512,981) |
Class T Shares: | | | | | |
Shares sold | 3,632,560 | $ 92,531,273 | | 4,993,809 | $ 146,578,935 |
Reinvested dividends and distributions | 4,090,248 | 96,652,553 | | 13,871,334 | 442,634,268 |
Shares repurchased | (14,582,073) | (370,446,024) | | (19,713,824) | (617,727,176) |
Net Increase/(Decrease) | (6,859,265) | $(181,262,198) | | (848,681) | $ (28,513,973) |
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$1,351,065,167 | $2,577,035,068 | $ - | $ - |
Janus Henderson Triton Fund
Notes to Financial Statements
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.
9. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Triton Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Triton Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Triton Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Triton Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Triton Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Triton Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Triton Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Triton Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Triton Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Triton Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Capital Gain Distributions | $461,533,390 |
Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income Percentage | 100% |
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 48 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). | 48 | 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). | 48 | 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). | 48 | 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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). | 48 | 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. | 48 | 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). | 48 | 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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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 Lead Portfolio Manager
Janus Henderson Triton Fund | 5/13-Present | Portfolio Manager for other Janus Henderson accounts. |
Aaron Schaechterle
151 Detroit Street
Denver, CO 80206
DOB: 1984 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Triton Fund | 9/23-Present | Portfolio Manager for other Janus Henderson accounts. Formerly, Vice President of corporate strategy and development at Glaukos Corporation (2021-2022) and analyst for Janus Henderson Investors (2014-2021). |
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). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Triton Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93054 11-23 |
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| | | ANNUAL REPORT September 30, 2023 |
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| | Janus Henderson U.S. Dividend Income Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson U.S. Dividend Income Fund
Janus Henderson U.S. Dividend Income Fund (unaudited)
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Jeremiah Buckley portfolio manager |
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PERFORMANCE OVERVIEW
The Janus Henderson U.S. Dividend Income Fund I Shares returned -0.19% since inception on December 20, 2022 for the period ended September 30, 2023. The Fund’s benchmark, the Russell 1000® Value Index, returned 3.19%.
MARKET ENVIRONMENT
The stock market climbed steadily from the beginning of the period to July, driven by optimism about the slowing pace of interest rate hikes and positive economic fundamentals. Excitement surrounding artificial intelligence (AI) and related technologies also boosted market sentiment. However, returns have been narrow in breadth, driven by a handful of large- and mega-cap stocks linked to AI developments. Bouts of volatility have occurred in the rising rate environment, most notably the March collapse of Silicon Valley Bank and other regional banks. In July, the S&P 500® Index reached an 18-month peak, but market sentiment began to shift as investors recognized that the Fed may keep policy rates higher for longer in its fight against inflation.
PERFORMANCE DISCUSSION
The Fund underperformed the Russell 1000 Value Index for the period primarily due to an unfavorable market environment for dividend-paying stocks. Our emphasis on dividend-paying stocks hurt performance relative to the benchmark as cyclical, higher-beta companies outperformed on stronger-than-expected economic growth and the market’s solidified view of a soft landing. Index results were dominated by strength in non-dividend-paying mega-cap companies that enjoyed tailwinds from investor excitement over recent advancements in AI. Defensive, dividend-paying areas of the market have also been negatively impacted by rising interest rates.
At the security level, mailing services company United Parcel Service (UPS) detracted from Fund relative performance. The stock sank on a disappointing earnings report due, in part, to a decrease in shipping volumes as consumers shift spending away from goods and toward services post-pandemic. The stock also came under pressure as the company entered contract negotiations - which take place every four years - with the Teamsters Union representing UPS’ workers.
Within healthcare, Bristol Myers Squibb hurt performance. In the second quarter of 2023, the company reported lower-than-expected sales of Revlimid, one of the company’s top-selling cancer drugs, which recently lost patent protection. In addition, another top-selling drug, Eliquis, has been named among a list of 10 therapies subject to Medicare price negotiation starting in 2026 under the Inflation Reduction Act.
Cable company Comcast contributed to performance during the period. The company benefited from moderating investor concern around its high-speed internet competition. Less aggressive spending on fiberoptic network builds and a slowing rollout of fixed wireless have improved the competitive environment for the company’s broadband business. Additionally, Comcast and Disney announced that they agreed to speed up Comcast’s sale of Hulu. Management indicated that the proceeds of the sale will help fund share repurchases earlier than anticipated.
NXP Semiconductors also contributed to performance. The Dutch-American semiconductor manufacturer experienced continued strength in its end markets, led by automotive, industrial, and mobile. We believe the stock’s performance relative to semiconductor manufacturer competitors has benefited from NXP’s revenue ties to a
Janus Henderson U.S. Dividend Income Fund (unaudited)
more narrow set of industries with secular growth drivers, notably automotive.
OUTLOOK
As we approach the end of 2023, the debate goes on surrounding the future path of inflation, whether the Fed is done raising rates, and ultimately, if the U.S. will enter a recession. While U.S. economic growth remains robust and the labor market tight by historical standards, we are now beginning to see early signs of cooling in key areas of the economy. A softening in the job market, tighter lending conditions, erosion of COVID-19-era excess savings, and an uptick in consumer credit delinquencies all seem to point to continued below-average real gross domestic product (GPD) growth.
Additionally, market confidence in an economic soft landing eroded due to the Fed’s announcement that it expects to keep interest rates higher for longer. Both equities and fixed income adjusted accordingly. That said, we remain focused on the lagged impact of policy tightening, believing the full effects of rate increases have yet to be felt in the broader economy. We expect pressure on consumer spending to increase, and with that, some level of continued market volatility and macroeconomic uncertainty.
Overall, we believe equity multiples remain in a reasonable range relative to history, and we see opportunities for earnings growth in a number of areas despite a potentially slower-growth macroeconomic environment. We are particularly excited about opportunities in AI, which has driven our overweight allocation in software and semiconductors. There are lasting productivity and efficiency benefits to be had across many industries that will likely spur high levels of technology investment levels for years to come. We also see opportunities where market misperception on the negative impact of AI is being overly discounted, and we are focused on identifying the potential winners and losers related to this long-term theme.
Additionally, we continue to see tailwinds for companies from a price cost standpoint, as supply chains have normalized and labor attrition has improved. These factors, along with declining commodity prices and transportation costs, could help lower company cost of goods sold and contribute to improved margins. These cost improvements have yet to be reflected in margins, and we expect companies to be able to hold on to most of their price gains. Macroeconomic risks that could challenge the earnings outlook in 2024 include rising energy prices and a softening labor force.
We maintain our focus on companies with dividend yields above the benchmark average that have the potential for growth of income over time, which also stand to benefit from longer-term macro trends. We believe our emphasis on companies with revenue growth, consistent cash flows and healthy balance sheets, which are well positioned to increase dividends and share buybacks, will be an important factor in a higher-cost and slower-growth environment.
Thank you for your investment in the Janus Henderson U.S. Dividend Income Fund.
Beta measures how a fund or security moves in relationship to the overall market. A market has a beta of 1. If the fund/security’s beta is more than 1, it moves more than the market, while a beta lower than 1 means it moves to a lesser extent than the market. A negative beta could mean the fund/security moves in the opposite direction to the market.
Monetary tightening refers to central bank activity aimed at curbing inflation and slowing down growth in the economy by raising interest rates and reducing the supply of money.
Monetary Policy refers to the policies of a central bank, aimed at influencing the level of inflation and growth in an economy. It includes controlling interest rates and the supply of money.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson U.S. Dividend Income Fund (unaudited)
Fund At A Glance
September 30, 2023
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| CME Group Inc | 3.49% | | 0.55% | | Gilead Sciences Inc | 3.89% | | -0.42% |
| Comcast Corp - Class A | 2.90% | | 0.48% | | State Street Corp | 1.89% | | -0.39% |
| Interpublic Group of Cos Inc | 1.50% | | 0.39% | | Sysco Corp | 2.63% | | -0.39% |
| NXP Semiconductors NV | 1.06% | | 0.36% | | Bristol-Myers Squibb Co | 2.25% | | -0.38% |
| Cisco Systems Inc | 3.27% | | 0.25% | | United Parcel Service Inc | 3.23% | | -0.32% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Value Index |
| | | Contribution | | Average Weight | Average Weight |
| Utilities | | 0.90% | | 0.62% | 5.40% |
| Other** | | 0.34% | | 0.91% | 0.00% |
| Real Estate | | 0.29% | | 0.00% | 4.63% |
| Health Care | | 0.23% | | 16.62% | 16.17% |
| Materials | | -0.18% | | 1.96% | 4.54% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Value Index |
| | | Contribution | | Average Weight | Average Weight |
| Industrials | | -0.93% | | 13.63% | 11.65% |
| Consumer Staples | | -0.91% | | 12.05% | 7.72% |
| Communication Services | | -0.89% | | 4.55% | 7.20% |
| Information Technology | | -0.53% | | 12.61% | 8.48% |
| Consumer Discretionary | | -0.31% | | 10.07% | 5.73% |
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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 U.S. Dividend Income Fund (unaudited)
Fund At A Glance
September 30, 2023
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5 Largest Equity Holdings - (% of Net Assets) |
Chevron Corp | |
Oil, Gas & Consumable Fuels | 3.9% |
JPMorgan Chase & Co | |
Banks | 3.8% |
CME Group Inc | |
Capital Markets | 3.8% |
Cisco Systems Inc | |
Communications Equipment | 3.6% |
Gilead Sciences Inc | |
Biotechnology | 3.5% |
| | 18.6% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.7% | |
Investment Companies | | 0.8% | |
Other | | (0.5)% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
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Janus Henderson U.S. Dividend Income Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Cumulative Total Return - for the period ended September 30, 2023 | | | Prospectus Expense Ratios |
| | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class D Shares | | -0.25% | | | 10.72% | 0.88% |
Class I Shares | | -0.19% | | | 10.25% | 0.81% |
Class N Shares | | -0.18% | | | 10.19% | 0.75% |
Russell 1000 Value Index | | 3.19% | | | | |
Morningstar Quartile - Class I Shares | | 4th | | | | |
Morningstar Ranking - based on total returns for Large Cap Value | | 1,008/1,241 | | | | |
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).
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.
© 2023 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 20, 2022
Janus Henderson U.S. Dividend Income Fund (unaudited)
Performance
‡ As stated in the prospectus. Includes estimated expenses. Net expense ratios reflect the expense waiver, if any, contractually agreed to through at least January 31, 2024. This contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. Certain expenses waived or reimbursed during the first three years of operation may be recovered within three years of such waiver or reimbursement amount, if the expense ratio falls below certain limits. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson U.S. Dividend Income Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; 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
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class D Shares | $1,000.00 | $984.70 | $4.53 | | $1,000.00 | $1,020.51 | $4.61 | 0.91% |
Class I Shares | $1,000.00 | $985.30 | $3.88 | | $1,000.00 | $1,021.16 | $3.95 | 0.78% |
Class N Shares | $1,000.00 | $985.40 | $3.78 | | $1,000.00 | $1,021.26 | $3.85 | 0.76% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 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 U.S. Dividend Income Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 99.7% | | | |
Aerospace & Defense – 1.9% | | | |
| | General Dynamics Corp | | 1,685 | | | $372,334 | |
Air Freight & Logistics – 2.4% | | | |
| | United Parcel Service Inc | | 3,033 | | | 472,754 | |
Banks – 7.5% | | | |
| | Bank of America Corp | | 18,204 | | | 498,426 | |
| | JPMorgan Chase & Co | | 5,050 | | | 732,351 | |
| | US Bancorp | | 6,686 | | | 221,039 | |
| | | 1,451,816 | |
Beverages – 4.3% | | | |
| | Coca-Cola Co | | 7,519 | | | 420,914 | |
| | PepsiCo Inc | | 2,398 | | | 406,317 | |
| | | 827,231 | |
Biotechnology – 5.6% | | | |
| | AbbVie Inc | | 2,741 | | | 408,573 | |
| | Gilead Sciences Inc | | 9,039 | | | 677,383 | |
| | | 1,085,956 | |
Capital Markets – 8.2% | | | |
| | Charles Schwab Corp | | 2,901 | | | 159,265 | |
| | CME Group Inc | | 3,653 | | | 731,404 | |
| | Goldman Sachs Group Inc | | 1,004 | | | 324,864 | |
| | Morgan Stanley | | 4,615 | | | 376,907 | |
| | | 1,592,440 | |
Chemicals – 1.9% | | | |
| | Air Products & Chemicals Inc | | 1,277 | | | 361,902 | |
Commercial Services & Supplies – 1.1% | | | |
| | Waste Management Inc | | 1,451 | | | 221,190 | |
Communications Equipment – 3.6% | | | |
| | Cisco Systems Inc | | 13,070 | | | 702,643 | |
Consumer Finance – 1.1% | | | |
| | American Express Co | | 1,476 | | | 220,204 | |
Electrical Equipment – 0.8% | | | |
| | Rockwell Automation Inc | | 538 | | | 153,798 | |
Energy Equipment & Services – 1.6% | | | |
| | Schlumberger Ltd | | 5,345 | | | 311,613 | |
Food & Staples Retailing – 3.6% | | | |
| | Sysco Corp | | 7,916 | | | 522,852 | |
| | Target Corp | | 1,631 | | | 180,340 | |
| | | 703,192 | |
Food Products – 1.9% | | | |
| | Hershey Co | | 1,881 | | | 376,350 | |
Health Care Equipment & Supplies – 4.6% | | | |
| | Abbott Laboratories | | 3,558 | | | 344,592 | |
| | Medtronic PLC | | 6,898 | | | 540,527 | |
| | | 885,119 | |
Health Care Providers & Services – 1.9% | | | |
| | UnitedHealth Group Inc | | 739 | | | 372,596 | |
Hotels, Restaurants & Leisure – 3.5% | | | |
| | McDonald's Corp | | 1,231 | | | 324,295 | |
| | Starbucks Corp | | 3,810 | | | 347,739 | |
| | | 672,034 | |
Household Products – 3.9% | | | |
| | Colgate-Palmolive Co | | 3,337 | | | 237,294 | |
| | Procter & Gamble Co | | 3,546 | | | 517,220 | |
| | | 754,514 | |
Industrial Conglomerates – 1.2% | | | |
| | Honeywell International Inc | | 1,281 | | | 236,652 | |
Information Technology Services – 4.5% | | | |
| | Accenture PLC | | 756 | | | 232,175 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson U.S. Dividend Income Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Information Technology Services– (continued) | | | |
| | International Business Machines Corp | | 4,602 | | | $645,661 | |
| | | 877,836 | |
Insurance – 3.1% | | | |
| | Marsh & McLennan Cos Inc | | 1,339 | | | 254,812 | |
| | Travelers Cos Inc | | 2,073 | | | 338,542 | |
| | | 593,354 | |
Machinery – 2.5% | | | |
| | Cummins Inc | | 1,165 | | | 266,156 | |
| | Illinois Tool Works Inc | | 978 | | | 225,243 | |
| | | 491,399 | |
Media – 3.3% | | | |
| | Comcast Corp - Class A | | 14,532 | | | 644,349 | |
Oil, Gas & Consumable Fuels – 7.1% | | | |
| | Chevron Corp | | 4,488 | | | 756,767 | |
| | ConocoPhillips | | 5,115 | | | 612,777 | |
| | | 1,369,544 | |
Pharmaceuticals – 3.6% | | | |
| | Bristol-Myers Squibb Co | | 6,309 | | | 366,174 | |
| | Merck & Co Inc | | 3,145 | | | 323,778 | |
| | | 689,952 | |
Professional Services – 2.7% | | | |
| | Paychex Inc | | 4,539 | | | 523,483 | |
Semiconductor & Semiconductor Equipment – 7.6% | | | |
| | Broadcom Inc | | 291 | | | 241,699 | |
| | Lam Research Corp | | 386 | | | 241,933 | |
| | NXP Semiconductors NV | | 2,197 | | | 439,224 | |
| | Texas Instruments Inc | | 3,529 | | | 561,146 | |
| | | 1,484,002 | |
Software – 1.4% | | | |
| | Oracle Corp | | 2,538 | | | 268,825 | |
Specialty Retail – 1.9% | | | |
| | Home Depot Inc | | 1,245 | | | 376,189 | |
Textiles, Apparel & Luxury Goods – 1.4% | | | |
| | NIKE Inc - Class B | | 2,918 | | | 279,019 | |
Total Common Stocks (cost $19,693,347) | | 19,372,290 | |
Investment Companies– 0.8% | | | |
Money Markets – 0.8% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $165,305) | | 165,267 | | | 165,317 | |
Total Investments (total cost $19,858,652) – 100.5% | | 19,537,607 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.5)% | | (104,490) | |
Net Assets – 100% | | $19,433,117 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson U.S. Dividend Income Fund
Schedule of Investments
September 30, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 9/30/23 |
Investment Companies - 0.8% |
Money Markets - 0.8% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | $ | 9,573 | $ | 2 | $ | 12 | $ | 165,317 |
| |
| | | | | | | | | | | |
| | Value at 12/20/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Investment Companies - 0.8% |
Money Markets - 0.8% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | - | | 20,573,318 | | (20,408,015) | | 165,317 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson U.S. Dividend Income Fund
Notes to Schedule of Investments and Other Information
| | |
Russell 1000® Value Index | Russell 1000® Value Index reflects the performance of U.S. large-cap equities with lower price-to-book ratios and lower expected growth values. |
| | |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
ºº | Rate shown is the 7-day yield as of September 30, 2023. |
| | |
£ | 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, 2023. 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 | $ | 19,372,290 | $ | - | $ | - |
Investment Companies | | - | | 165,317 | | - |
Total Assets | $ | 19,372,290 | $ | 165,317 | $ | - |
| | | | | | | |
Janus Henderson U.S. Dividend Income Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $19,693,347) | | $ | 19,372,290 | |
| Affiliated investments, at value (cost $165,305) | | | 165,317 | |
| Cash | | | 5,092 | |
| Trustees' deferred compensation | | | 505 | |
| Receivables: | | | | |
| | Dividends | | | 22,753 | |
| | Due from adviser | | | 20,968 | |
| | Fund shares sold | | | 7,304 | |
| | Dividends from affiliates | | | 250 | |
| Other assets | | | 8 | |
Total Assets | | | 19,594,487 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Investments purchased | | | 69,592 | |
| | Professional fees | | | 54,557 | |
| | Advisory fees | | | 10,114 | |
| | Fund shares repurchased | | | 6,242 | |
| | Dividends | | | 2,676 | |
| | Custodian fees | | | 1,735 | |
| | Trustees' deferred compensation fees | | | 505 | |
| | Transfer agent fees and expenses | | | 460 | |
| | Trustees' fees and expenses | | | 108 | |
| | Affiliated fund administration fees payable | | | 42 | |
| | Accrued expenses and other payables | | | 15,339 | |
Total Liabilities | | | 161,370 | |
Commitments and contingent liabilities (Note 3) | | | | |
Net Assets | | $ | 19,433,117 | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 19,730,342 | |
| Total distributable earnings (loss) | | | (297,225) | |
Total Net Assets | | $ | 19,433,117 | |
Net Assets - Class D Shares | | $ | 2,363,326 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 238,858 | |
Net Asset Value Per Share | | $ | 9.89 | |
Net Assets - Class I Shares | | $ | 199,679 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 20,185 | |
Net Asset Value Per Share | | $ | 9.89 | |
Net Assets - Class N Shares | | $ | 16,870,112 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,705,401 | |
Net Asset Value Per Share | | $ | 9.89 | |
| | |
See Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2023 |
Janus Henderson U.S. Dividend Income Fund
Statement of Operations
For the period ended September 30, 2023(1)
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 240,709 | |
| Dividends from affiliates | | 9,573 | |
Total Investment Income | | 250,282 | |
Expenses: | | | |
| Advisory fees | | 50,356 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,292 | |
| | Class I Shares | | — | |
| Other transfer agent fees and expenses: | | | |
| | Class D Shares | | 480 | |
| | Class I Shares | | 70 | |
| | Class N Shares | | 509 | |
| Registration fees | | 82,847 | |
| Professional fees | | 55,624 | |
| Non-affiliated fund administration fees | | 41,238 | |
| Shareholder reports expense | | 39,332 | |
| Custodian fees | | 6,650 | |
| Trustees’ fees and expenses | | 223 | |
| Affiliated fund administration fees | | 220 | |
| Other expenses | | 3,164 | |
Total Expenses | | 282,005 | |
Less: Excess Expense Reimbursement and Waivers | | (216,668) | |
Net Expenses | | 65,337 | |
Net Investment Income/(Loss) | | 184,945 | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | | 26,079 | |
| Investments in affiliates | | 2 | |
Total Net Realized Gain/(Loss) on Investments | | 26,081 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments and Trustees’ deferred compensation | | (321,057) | |
| Investments in affiliates | | 12 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (321,045) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (110,019) | |
| | | | | |
| |
(1) Period from December 20, 2022 (inception date) through September 30, 2023. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson U.S. Dividend Income Fund
Statement of Changes in Net Assets
| | | | | | |
| | | | | |
| | | Period ended
September 30, 2023(1) | |
| | | | | | |
Operations: | | | |
| Net investment income/(loss) | $ | 184,945 | |
| Net realized gain/(loss) on investments | | 26,081 | |
| Change in unrealized net appreciation/depreciation | | (321,045) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (110,019) | |
Dividends and Distributions to Shareholders: | | | |
| | Class D Shares | | (18,198) | |
| | Class I Shares | | (1,850) | |
| | Class N Shares | | (159,025) | |
Net Decrease from Dividends and Distributions to Shareholders | | (179,073) | |
Capital Share Transactions: | | | |
| | Class D Shares | | 2,427,194 | |
| | Class I Shares | | 201,850 | |
| | Class N Shares | | 17,093,165 | |
Net Increase/(Decrease) from Capital Share Transactions | | 19,722,209 | |
Net Increase/(Decrease) in Net Assets | | 19,433,117 | |
Net Assets: | | | |
| Beginning of period | | — | |
| End of period | $ | 19,433,117 | |
| | | | | |
| |
(1) Period from December 20, 2022 (inception date) through September 30, 2023. |
| | |
See Notes to Financial Statements. |
| |
14 | SEPTEMBER 30, 2023 |
Janus Henderson U.S. Dividend Income Fund
Financial Highlights
| | | | | | | |
Class D Shares | | | |
For a share outstanding during the period ended September 30 | | 2023(1) | |
| Net Asset Value, Beginning of Period | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | (0.19) | |
| Total from Investment Operations | | (0.02) | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.09) | |
| Total Dividends and Distributions | | (0.09) | |
| Net Asset Value, End of Period | | $9.89 | |
| Total Return* | | (0.25)% | |
| Net Assets, End of Period (in thousands) | | $2,363 | |
| Average Net Assets for the Period (in thousands) | | $1,411 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 10.39% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.92% | |
| | Ratio of Net Investment Income/(Loss) | | 2.11% | |
| Portfolio Turnover Rate | | 85% | |
| | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 December 20, 2022 (inception date) through September 30, 2023. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson U.S. Dividend Income Fund
Financial Highlights
| | | | | | | |
Class I Shares | | | |
For a share outstanding during the period ended September 30 | | 2023(1) | |
| Net Asset Value, Beginning of Period | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.18 | |
| | Net realized and unrealized gain/(loss) | | (0.20) | |
| Total from Investment Operations | | (0.02) | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.09) | |
| Total Dividends and Distributions | | (0.09) | |
| Net Asset Value, End of Period | | $9.89 | |
| Total Return* | | (0.19)% | |
| Net Assets, End of Period (in thousands) | | $200 | |
| Average Net Assets for the Period (in thousands) | | $204 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 16.44% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | |
| | Ratio of Net Investment Income/(Loss) | | 2.30% | |
| Portfolio Turnover Rate | | 85% | |
| | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 December 20, 2022 (inception date) through September 30, 2023. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
16 | SEPTEMBER 30, 2023 |
Janus Henderson U.S. Dividend Income Fund
Financial Highlights
| | | | | | | |
Class N Shares | | | |
For a share outstanding during the period ended September 30 | | 2023(1) | |
| Net Asset Value, Beginning of Period | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.18 | |
| | Net realized and unrealized gain/(loss) | | (0.20) | |
| Total from Investment Operations | | (0.02) | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.09) | |
| Total Dividends and Distributions | | (0.09) | |
| Net Asset Value, End of Period | | $9.89 | |
| Total Return* | | (0.18)% | |
| Net Assets, End of Period (in thousands) | | $16,870 | |
| Average Net Assets for the Period (in thousands) | | $9,065 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 2.00% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | |
| | Ratio of Net Investment Income/(Loss) | | 2.23% | |
| Portfolio Turnover Rate | | 85% | |
| | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 December 20, 2022 (inception date) through September 30, 2023. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson U.S. Dividend Income Fund
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Janus Henderson U.S. Dividend 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 provide current income and aims to provide a growing stream of income per share over time. The Fund’s secondary objective is to seek to provide long-term capital appreciation. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US 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")).
The Fund currently offers Class D Shares. Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable.
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 (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price
Janus Henderson U.S. Dividend Income Fund
Notes to Financial Statements
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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal 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, 2023 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
Janus Henderson U.S. Dividend Income 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.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) quarterly. 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
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market
Janus Henderson U.S. Dividend Income Fund
Notes to Financial Statements
favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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 | 0.60 |
Over $2 Billion | 0.55 |
The Fund’s actual investment advisory fee rate for the reporting period was 0.60% of average annual net assets before 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 shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), brokerage commissions, interest, dividends, taxes, 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 waiver until at least January 31, 2024. 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 a period of three years subsequent to the Fund’s commencement of operations, or until the Fund’s assets meet 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, 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 period ended September 30, 2023, the Adviser reimbursed the Fund $216,668 of fees and expense that are eligible for recoupment. As of September 30, 2023, the aggregate amount of recoupment that may potentially be made to the Adviser is $216,668. The recoupment of such reimbursements expires at the latest December 20, 2025.
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
Janus Henderson U.S. Dividend Income Fund
Notes to Financial Statements
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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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%.
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 I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the 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 0.15% for Class I Shares on an annual basis based on the daily net assets of the 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.
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, 2023 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, 2023 are included in “Trustees’ fees and expenses” on the Statement of
Janus Henderson U.S. Dividend Income Fund
Notes to Financial Statements
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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the period ended September 30, 2023.
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, 2023 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
As of September 30, 2023, 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 D Shares | - | % | - | % | |
Class I Shares | 100 | | 1 | | |
Class N Shares | 99 | | 86 | | |
| | | | | | |
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.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ 61,973 | - | - | $ - | $ (506) | $ (358,692) | |
Janus Henderson U.S. Dividend Income 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, 2023 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) |
$ 19,896,299 | $ 629,853 | $ (988,545) | $ (358,692) |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ 179,073 | - | - | - | |
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. Capital has been adjusted by $8,174, none of which is long-term capital gain, for distributions in connection with Fund shares redemption (tax equalization).
5. Capital Share Transactions
| | | | |
| | | |
| | Period ended September 30, 2023(1) |
| | Shares | Amount |
| | | | |
Class D Shares: | | |
Shares sold | 370,031 | $ 3,792,033 |
Reinvested dividends and distributions | 1,413 | 14,134 |
Shares repurchased | (132,586) | (1,378,973) |
Net Increase/(Decrease) | 238,858 | $ 2,427,194 |
Class I Shares: | | |
Shares sold | 20,000 | $ 200,000 |
Reinvested dividends and distributions | 185 | 1,850 |
Shares repurchased | - | - |
Net Increase/(Decrease) | 20,185 | $ 201,850 |
Class N Shares: | | |
Shares sold | 1,785,390 | $17,914,671 |
Reinvested dividends and distributions | 15,864 | 159,025 |
Shares repurchased | (95,853) | (980,531) |
Net Increase/(Decrease) | 1,705,401 | $17,093,165 |
(1) | Period from December 20, 2022 (inception date) through September 30, 2023. |
Janus Henderson U.S. Dividend Income Fund
Notes to Financial Statements
6. Purchases and Sales of Investment Securities
For the period ended September 30, 2023, 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 |
$26,578,974 | $ 6,911,701 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Henderson U.S. Dividend Income Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Janus Investment Fund and Shareholders of Janus Henderson U.S. Dividend 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 U.S. Dividend Income Fund (one of the funds constituting Janus Investment Fund, referred to hereafter as the "Fund") as of September 30, 2023, and the related statements of operations and changes in net assets, including the related notes, and the financial highlights for the period December 20, 2022 (commencement of operations) through September 30, 2023 (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, 2023, and the results of its operations, changes in its net assets, and the financial highlights for the period December 20, 2022 (commencement of operations) through September 30, 2023 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 audit. 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 audit 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 audit 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 audit 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, 2023 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 audit provides a reasonable basis for our opinion.
Denver, Colorado
November 20, 2023
We have served as the auditor of one or more investment companies in Janus Henderson Funds since 1990.
Janus Henderson U.S. Dividend 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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
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Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson U.S. Dividend Income Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
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Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
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Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
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Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson U.S. Dividend Income Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson U.S. Dividend Income Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson U.S. Dividend Income Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson U.S. Dividend Income Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson U.S. Dividend Income Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’s ability to serve the Janus Henderson Funds.
Janus Henderson U.S. Dividend 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, 2023. 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 U.S. Dividend 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 U.S. Dividend 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 U.S. Dividend Income Fund
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the period ended September 30, 2023:
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Dividends Received Deduction Percentage | 88% |
Qualified Dividend Income Percentage | 88% |
Janus Henderson U.S. Dividend 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 48 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 U.S. Dividend 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). | 48 | 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). | 48 | 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 U.S. Dividend 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). | 48 | 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 U.S. Dividend 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
Janus Henderson U.S. Dividend 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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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 U.S. Dividend 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). | 48 | 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 U.S. Dividend 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. | 48 | 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). | 48 | 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 U.S. Dividend Income Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Jeremiah Buckley
151 Detroit Street
Denver, CO 80206
DOB: 1976 | Executive Vice President and Portfolio Manager
Janus Henderson U.S. Dividend Income Fund | 12/22-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 and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 U.S. Dividend 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 |
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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson U.S. Dividend Income Fund
Notes
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Janus Henderson U.S. Dividend Income Fund
Notes
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Janus Henderson U.S. Dividend Income Fund
Notes
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93097 11-23 |
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| | | ANNUAL REPORT September 30, 2023 |
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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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Aaron Schaechterle co-portfolio manager | 
Jonathan Coleman co-portfolio manager | 
Scott Stutzman co-portfolio manager |
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PERFORMANCE
The Janus Henderson Venture Fund Class I Shares returned 10.14% for the 12-month period ended September 30, 2023. The Fund’s primary benchmark, the Russell 2000® Growth Index, returned 9.59%, while its secondary benchmark, the Russell 2000® Index, returned 8.93%.
INVESTMENT ENVIRONMENT
Stocks rallied in the fourth quarter of 2022 on hopes that moderating inflation might allow the Federal Reserve (Fed) to slow or end its campaign of interest rate hikes. This rally extended into the first half of 2023, despite periods of market volatility. Economic growth appeared resilient, as a strong job market helped support consumer spending. However, there were signs of slowing in other areas of the economy, especially manufacturing and housing. Corporations also reduced their earnings outlooks as they faced weaker demand as well as higher input, labor, and funding costs. The Fed continued to raise rates through the first seven months of 2023, although the pace of rate hikes moderated. The Fed left rates unchanged in September, but policymakers indicated that an extended period of higher rates might be needed to bring inflation under control, especially against a backdrop of rising fuel prices. These signals put upward pressure on long-term bond yields in the third quarter while adding to fears of a more pronounced economic slowdown. As a result, stocks suffered a broad-based sell-off in the third quarter. Despite this correction, equities still ended the twelve-month performance period with strong positive performance.
PERFORMANCE DISCUSSION
Among individual holdings, ON Semiconductor was a notable contributor to relative performance. The analog and power semiconductor producer continued to deliver strong earnings growth, aided by its focus on fast-growing end markets such as electric vehicles (EV). It also widened its profit margins by pursuing operational and manufacturing efficiencies and portfolio rationalization, which benefited its earnings growth. Investors have also been excited by the company’s production of silicon carbide chips, which are increasingly replacing traditional silicon in the EV market due to their ability to extend battery life. This technology is difficult for other companies to replicate, and we believe it provides ON Semiconductor with an additional competitive edge.
Another top contributor, OSI Systems provides electronics-enabled, security-related services such as baggage and vehicle screening. It has also developed patient monitoring systems for hospitals. The company reported better-than-expected financial results and an increased outlook. It also won several large contracts, including a new border and airport security arrangement with the Mexican government. It benefited from a record orders backlog that has helped support its earnings visibility.
Contract drug development and manufacturing services provider Catalent was a detractor from relative performance. The stock sold off in late 2022 as slowing demand for COVID-19 vaccines reduced revenues from Catalent’s outsourced vaccine fill/finish business. Catalent also warned of short-term operational challenges at several facilities, while the exit of its CFO added to near-term uncertainty. Despite these challenges, we continue to see long-term potential for Catalent’s diversified business model. We are particularly excited about its gene therapy manufacturing platform, which we believe could have broader applications with the potential to drive future earnings growth. We continue to see long-term potential for this company, which provides services that are critical to global pharmaceutical manufacturing.
Janus Henderson Venture Fund (unaudited)
Xometry, another detractor, provides an online platform that helps designers and engineers outsource production to a global network of manufacturers. The stock dropped sharply in early 2023 after the company reported weaker-than-expected revenues and earnings, as macroeconomic uncertainty impacted customer and producer behavior. We viewed this as a timing issue, and we continue to like the company for its unique business model. We believe it provides dual value by helping designers source high-quality, low-cost parts while improving capacity utilization for producers. We were also pleased to see improved revenue growth in the second quarter, even as the company took steps to exit some lower-margin business lines. Additionally, Xometry has continued to grow its network by adding buyers and suppliers, which we believe is an indicator of the underlying health of the business. We remain constructive on its efforts to expand its leadership in the marketplace for custom industrial parts.
DERIVATIVES USAGE
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
While the economy has continued to grow despite higher interest rates, we have noted some pockets of weakness, especially in the manufacturing sector. Consumer spending, which has been the engine of the economic expansion, is showing early signs of slowing. Additionally, we caution that we have yet to see the full impact of past Fed rate hikes, which can take up to 18 months to filter through the economy. Fed policymakers have indicated they may continue to raise rates if they do not see signs of cooling economic activity and job growth. Even if the Fed pauses, we anticipate that rates will remain high for longer than investors had anticipated earlier in the year. We see added sources of uncertainty, including the United Automobile Workers (UAW) strike and a potential government shutdown, as well as slowing growth in China and Europe. Moreover, the continued war in Ukraine could keep upward pressure on oil and food prices, complicating the Fed’s task in combating inflation and managing growth.
Despite the risk of recession and the potential for market volatility, we believe our portfolio is positioned to navigate this uncertain environment due to our focus on well-managed, profitable growth companies with strong balance sheets, healthy free cash flows, and high returns on capital. We believe such companies may be better able to manage near-term market uncertainty and higher capital costs even as they look to capitalize on long-term trends.
Thank you for your investment in the Janus Henderson Venture Fund.
Important Notice – Tailored Shareholder Reports
Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments that require mutual funds and exchange-traded funds to provide shareholders with streamlined annual and semi-annual shareholder reports that highlight key information. Other information, including financial statements, that currently appears in shareholder reports will be made available online, delivered free of charge to shareholders upon request, and filed with the SEC. The first tailored shareholder report for the Fund will be for the reporting period ending September 30, 2024. Currently, management is evaluating the impact of the rule and form amendments on the content of the Fund’s current shareholder reports.
Janus Henderson Venture Fund (unaudited)
Fund At A Glance
September 30, 2023
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| ATS Corp | 1.99% | | 0.78% | | Catalent Inc | 1.66% | | -0.96% |
| ON Semiconductor Corp | 2.14% | | 0.73% | | Paylocity Holding Corp | 1.56% | | -0.78% |
| OSI Systems Inc | 1.29% | | 0.58% | | Xometry Inc - Class A | 0.47% | | -0.59% |
| Constellium SE | 1.13% | | 0.56% | | WNS Holdings Ltd (ADR) | 1.80% | | -0.51% |
| Rentokil Initial PLC (ADR) | 2.02% | | 0.54% | | Perimeter Solutions SA | 0.66% | | -0.49% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | 2.04% | | 22.67% | 22.73% |
| Financials | | 0.89% | | 8.73% | 6.15% |
| Industrials | | 0.49% | | 23.64% | 18.90% |
| Utilities | | 0.35% | | 0.00% | 1.70% |
| Real Estate | | 0.13% | | 0.79% | 2.02% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | -1.00% | | 1.90% | 6.46% |
| Consumer Discretionary | | -0.73% | | 6.23% | 11.14% |
| Information Technology | | -0.66% | | 22.83% | 19.60% |
| Materials | | -0.21% | | 6.23% | 4.47% |
| Other** | | -0.09% | | 1.55% | 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 Venture Fund (unaudited)
Fund At A Glance
September 30, 2023
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Rentokil Initial PLC (ADR) | |
Commercial Services & Supplies | 2.3% |
ATS Corp | |
Machinery | 2.2% |
ON Semiconductor Corp | |
Semiconductor & Semiconductor Equipment | 1.9% |
Nice Ltd (ADR) | |
Software | 1.9% |
SS&C Technologies Holdings Inc | |
Professional Services | 1.8% |
| | 10.1% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 98.0% | |
Investment Companies | | 1.2% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.8% | |
Private Placements | | 0.7% | |
Private Investment in Public Equity (PIPES) | | 0.1% | |
Warrants | | 0.0% | |
Other | | (0.8)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of September 30, 2023 
| As of September 30, 2022 
|
Janus Henderson Venture Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | |
Average Annual Total Return - for the periods ended September 30, 2023 | | | Prospectus Expense Ratios |
| | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 9.86% | 2.75% | 7.71% | 11.06% | | | 1.01% |
Class A Shares at MOP | | 3.54% | 1.54% | 7.07% | 10.89% | | | |
Class C Shares at NAV | | 8.79% | 1.96% | 6.91% | 10.31% | | | 1.87% |
Class C Shares at CDSC | | 7.79% | 1.96% | 6.91% | 10.31% | | | |
Class D Shares | | 10.11% | 2.98% | 7.96% | 11.28% | | | 0.79% |
Class I Shares | | 10.14% | 3.01% | 8.01% | 11.29% | | | 0.76% |
Class N Shares | | 10.24% | 3.11% | 8.10% | 11.31% | | | 0.67% |
Class S Shares | | 9.69% | 2.59% | 7.56% | 10.93% | | | 1.17% |
Class T Shares | | 9.98% | 2.86% | 7.84% | 11.23% | | | 0.92% |
Russell 2000 Growth Index | | 9.59% | 1.55% | 6.72% | 7.74% | | | |
Russell 2000 Index | | 8.93% | 2.40% | 6.65% | 9.05% | | | |
Morningstar Quartile - Class T Shares | | 2nd | 3rd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Small Growth Funds | | 258/597 | 319/562 | 227/523 | 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.
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.
© 2023 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 September 1, 2023, Aaron Schaechterle, is Co-Portfolio Manager with Portfolio Managers Jonathan Coleman and Scott Stutzman.
*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
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | | Beginning
Account
Value
(4/1/23) | Ending
Account
Value
(9/30/23) | Expenses
Paid During
Period
(4/1/23 - 9/30/23)† | Net Annualized
Expense Ratio
(4/1/23 - 9/30/23) |
Class A Shares | $1,000.00 | $958.50 | $4.96 | | $1,000.00 | $1,020.00 | $5.11 | 1.01% |
Class C Shares | $1,000.00 | $954.20 | $9.21 | | $1,000.00 | $1,015.64 | $9.50 | 1.88% |
Class D Shares | $1,000.00 | $959.60 | $3.88 | | $1,000.00 | $1,021.11 | $4.00 | 0.79% |
Class I Shares | $1,000.00 | $959.70 | $3.73 | | $1,000.00 | $1,021.26 | $3.85 | 0.76% |
Class N Shares | $1,000.00 | $960.10 | $3.24 | | $1,000.00 | $1,021.76 | $3.35 | 0.66% |
Class S Shares | $1,000.00 | $957.70 | $5.74 | | $1,000.00 | $1,019.20 | $5.92 | 1.17% |
Class T Shares | $1,000.00 | $959.00 | $4.37 | | $1,000.00 | $1,020.61 | $4.51 | 0.89% |
† | 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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 98.0% | | | |
Auto Components – 0.5% | | | |
| | Quantumscape Corp*,# | | 486,572 | | | $3,255,167 | |
| | Visteon Corp* | | 80,275 | | | 11,083,569 | |
| | | 14,338,736 | |
Automobiles – 0.4% | | | |
| | Thor Industries Inc | | 112,378 | | | 10,690,519 | |
Banks – 1.1% | | | |
| | Bancorp Inc/The* | | 878,127 | | | 30,295,382 | |
Biotechnology – 8.2% | | | |
| | Abcam PLC (ADR)* | | 460,133 | | | 10,412,810 | |
| | Akero Therapeutics Inc* | | 324,363 | | | 16,406,281 | |
| | Ascendis Pharma A/S (ADR)* | | 170,315 | | | 15,948,297 | |
| | Biohaven Ltd* | | 875,878 | | | 22,781,587 | |
| | Biomea Fusion Inc*,# | | 177,387 | | | 2,440,845 | |
| | Eagle Pharmaceuticals Inc/DE* | | 360,214 | | | 5,680,575 | |
| | Halozyme Therapeutics Inc* | | 350,054 | | | 13,372,063 | |
| | Immunogen Inc* | | 1,150,366 | | | 18,256,308 | |
| | Insmed Inc* | | 545,448 | | | 13,772,562 | |
| | Madrigal Pharmaceuticals Inc* | | 127,734 | | | 18,654,273 | |
| | Mirum Pharmaceuticals Inc* | | 308,194 | | | 9,738,930 | |
| | Neurocrine Biosciences Inc* | | 151,919 | | | 17,090,888 | |
| | Prothena Corp PLC* | | 136,917 | | | 6,606,245 | |
| | PTC Therapeutics Inc* | | 175,144 | | | 3,924,977 | |
| | Sarepta Therapeutics Inc* | | 119,940 | | | 14,539,127 | |
| | Seres Therapeutics Inc* | | 967,347 | | | 2,302,286 | |
| | Soleno Therapeutics Inc* | | 217,781 | | | 6,426,717 | |
| | Vaxcyte Inc* | | 628,974 | | | 32,065,095 | |
| | | 230,419,866 | |
Building Products – 3.9% | | | |
| | CSW Industrials Inc | | 260,751 | | | 45,694,005 | |
| | Janus International Group Inc* | | 2,706,879 | | | 28,963,605 | |
| | Zurn Water Solutions Corp | | 1,229,360 | | | 34,446,667 | |
| | | 109,104,277 | |
Capital Markets – 2.3% | | | |
| | Assetmark Financial Holdings Inc* | | 678,283 | | | 17,011,338 | |
| | LPL Financial Holdings Inc | | 199,990 | | | 47,527,624 | |
| | | 64,538,962 | |
Chemicals – 2.7% | | | |
| | Innospec Inc | | 239,227 | | | 24,448,999 | |
| | Perimeter Solutions SA* | | 2,557,669 | | | 11,611,817 | |
| | Sensient Technologies Corp | | 683,817 | | | 39,989,618 | |
| | | 76,050,434 | |
Commercial Services & Supplies – 3.3% | | | |
| | Brady Corp | | 323,796 | | | 17,782,876 | |
| | Montrose Environmental Group Inc* | | 325,995 | | | 9,538,614 | |
| | Rentokil Initial PLC (ADR) | | 1,745,274 | | | 64,662,402 | |
| | | 91,983,892 | |
Containers & Packaging – 0.4% | | | |
| | Sealed Air Corp | | 331,199 | | | 10,883,199 | |
Diversified Consumer Services – 1.7% | | | |
| | Stride Inc* | | 1,041,878 | | | 46,915,766 | |
Diversified Financial Services – 5.4% | | | |
| | AvidXchange Holdings Inc* | | 1,895,263 | | | 17,967,093 | |
| | Euronet Worldwide Inc* | | 364,509 | | | 28,934,724 | |
| | Payfare Inc*,£ | | 3,166,976 | | | 12,615,669 | |
| | Repay Holdings Corp* | | 1,876,946 | | | 14,246,020 | |
| | Shift4 Payments Inc - Class A* | | 521,970 | | | 28,901,479 | |
| | Walker & Dunlop Inc | | 181,782 | | | 13,495,496 | |
| | WEX Inc* | | 193,043 | | | 36,309,458 | |
| | | 152,469,939 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | SEPTEMBER 30, 2023 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Electrical Equipment – 2.2% | | | |
| | EnerSys | | 330,597 | | | $31,297,618 | |
| | Regal Beloit Corp | | 208,353 | | | 29,769,477 | |
| | | 61,067,095 | |
Electronic Equipment, Instruments & Components – 2.8% | | | |
| | Napco Security Technologies Inc | | 792,330 | | | 17,629,343 | |
| | Novanta Inc* | | 156,991 | | | 22,518,789 | |
| | OSI Systems Inc* | | 314,572 | | | 37,132,079 | |
| | | 77,280,211 | |
Entertainment – 1.6% | | | |
| | Atlanta Braves Holdings Inc - Class C* | | 491,966 | | | 17,577,945 | |
| | Manchester United PLC*,# | | 618,367 | | | 12,237,483 | |
| | Vivid Seats Inc - Class A* | | 2,485,524 | | | 15,957,064 | |
| | | 45,772,492 | |
Food & Staples Retailing – 1.1% | | | |
| | Casey's General Stores Inc | | 109,463 | | | 29,721,394 | |
Health Care Equipment & Supplies – 7.4% | | | |
| | Alphatec Holdings Inc* | | 1,286,340 | | | 16,683,830 | |
| | Glaukos Corp* | | 438,015 | | | 32,960,629 | |
| | Globus Medical Inc* | | 629,439 | | | 31,251,646 | |
| | ICU Medical Inc* | | 203,275 | | | 24,191,758 | |
| | Lantheus Holdings Inc* | | 416,296 | | | 28,924,246 | |
| | Neogen Corp* | | 782,821 | | | 14,513,501 | |
| | Paragon 28 Inc* | | 848,663 | | | 10,650,721 | |
| | Shockwave Medical Inc* | | 51,496 | | | 10,252,854 | |
| | STERIS PLC | | 140,232 | | | 30,769,705 | |
| | Tandem Diabetes Care Inc* | | 355,764 | | | 7,389,218 | |
| | | 207,588,108 | |
Health Care Providers & Services – 1.3% | | | |
| | HealthEquity Inc* | | 293,467 | | | 21,437,764 | |
| | NeoGenomics Inc* | | 1,327,705 | | | 16,330,772 | |
| | | 37,768,536 | |
Health Care Technology – 0.3% | | | |
| | Phreesia Inc* | | 421,437 | | | 7,872,443 | |
Hotels, Restaurants & Leisure – 0.8% | | | |
| | Inspirato Inc* | | 1,380,494 | | | 814,491 | |
| | Monarch Casino & Resort Inc | | 367,303 | | | 22,809,516 | |
| | | 23,624,007 | |
Household Durables – 0.4% | | | |
| | Lovesac Co* | | 556,191 | | | 11,079,325 | |
Insurance – 1.6% | | | |
| | BRP Group Inc - Class A* | | 950,701 | | | 22,084,784 | |
| | RLI Corp | | 165,838 | | | 22,535,726 | |
| | | 44,620,510 | |
Interactive Media & Services – 1.4% | | | |
| | Ziff Davis Inc* | | 640,387 | | | 40,786,248 | |
Life Sciences Tools & Services – 3.0% | | | |
| | Bio-Techne Corp | | 275,324 | | | 18,741,305 | |
| | CryoPort Inc* | | 669,993 | | | 9,185,604 | |
| | ICON PLC* | | 132,873 | | | 32,719,976 | |
| | OmniAb Inc*,# | | 2,101,961 | | | 10,909,178 | |
| | OmniAb Inc - 12.5 Earnout* | | 104,942 | | | 468,671 | |
| | OmniAb Inc - 15 Earnout* | | 104,942 | | | 442,855 | |
| | Sotera Health Co* | | 757,310 | | | 11,344,504 | |
| | | 83,812,093 | |
Machinery – 7.7% | | | |
| | Alamo Group Inc | | 111,898 | | | 19,342,688 | |
| | ATS Corp* | | 1,458,369 | | | 62,174,777 | |
| | EnPro Industries Inc | | 92,036 | | | 11,153,843 | |
| | |
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, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Machinery– (continued) | | | |
| | Gates Industrial Corp PLC* | | 2,018,776 | | | $23,437,989 | |
| | ITT Inc | | 327,192 | | | 32,035,369 | |
| | Kornit Digital Ltd* | | 706,266 | | | 13,355,490 | |
| | Nordson Corp | | 87,735 | | | 19,579,820 | |
| | SPX Technologies Inc* | | 423,605 | | | 34,481,447 | |
| | | 215,561,423 | |
Metals & Mining – 1.5% | | | |
| | Constellium SE* | | 2,326,160 | | | 42,336,112 | |
Oil, Gas & Consumable Fuels – 1.5% | | | |
| | California Resources Corp | | 331,131 | | | 18,546,647 | |
| | Magnolia Oil & Gas Corp | | 1,078,952 | | | 24,718,790 | |
| | | 43,265,437 | |
Personal Products – 1.8% | | | |
| | BellRing Brands Inc* | | 944,501 | | | 38,941,776 | |
| | Oddity Tech Ltd - Class A*,# | | 400,513 | | | 11,354,544 | |
| | | 50,296,320 | |
Pharmaceuticals – 3.2% | | | |
| | Avadel Pharmaceuticals PLC (ADR)*,# | | 1,097,702 | | | 11,306,331 | |
| | Catalent Inc* | | 1,045,523 | | | 47,602,662 | |
| | Ligand Pharmaceuticals Inc* | | 331,341 | | | 19,853,953 | |
| | Structure Therapeutics Inc (ADR)* | | 37,628 | | | 1,897,204 | |
| | Verona Pharma PLC (ADR)* | | 498,426 | | | 8,124,344 | |
| | | 88,784,494 | |
Professional Services – 9.1% | | | |
| | Alight Inc - Class A* | | 4,438,249 | | | 31,467,185 | |
| | Asure Software Inc* | | 639,077 | | | 6,045,668 | |
| | Broadridge Financial Solutions Inc | | 263,614 | | | 47,200,087 | |
| | Clarivate Analytics PLC* | | 3,631,746 | | | 24,369,016 | |
| | CRA International Inc | | 172,824 | | | 17,413,746 | |
| | Paylocity Holding Corp* | | 194,250 | | | 35,295,225 | |
| | SS&C Technologies Holdings Inc | | 951,434 | | | 49,988,342 | |
| | WNS Holdings Ltd (ADR)* | | 640,556 | | | 43,852,464 | |
| | | 255,631,733 | |
Real Estate Management & Development – 0.7% | | | |
| | FirstService Corp# | | 126,928 | | | 18,473,101 | |
Road & Rail – 0.5% | | | |
| | AMERCO Series N | | 269,845 | | | 14,137,180 | |
Semiconductor & Semiconductor Equipment – 3.8% | | | |
| | Camtek Ltd*,# | | 193,480 | | | 12,046,065 | |
| | MACOM Technology Solutions Holdings Inc* | | 332,384 | | | 27,115,887 | |
| | ON Semiconductor Corp* | | 581,978 | | | 54,094,855 | |
| | PDF Solutions Inc* | | 419,802 | | | 13,601,585 | |
| | | 106,858,392 | |
Software – 10.4% | | | |
| | Altair Engineering Inc* | | 346,600 | | | 21,683,296 | |
| | Blackbaud Inc* | | 669,004 | | | 47,044,361 | |
| | Clear Secure Inc - Class A | | 337,646 | | | 6,428,780 | |
| | Consensus Cloud Solutions Inc* | | 510,779 | | | 12,861,415 | |
| | CoreCard Corp*,#,£ | | 477,352 | | | 9,547,040 | |
| | Descartes Systems Group Inc* | | 667,499 | | | 48,997,110 | |
| | Enfusion Inc - Class A* | | 1,517,057 | | | 13,608,001 | |
| | EngageSmart Inc* | | 685,508 | | | 12,332,289 | |
| | Envestnet Inc* | | 391,679 | | | 17,245,626 | |
| | Nice Ltd (ADR)* | | 317,325 | | | 53,945,250 | |
| | Tyler Technologies Inc* | | 76,027 | | | 29,357,066 | |
| | Vertex Inc - Class A* | | 802,452 | | | 18,536,641 | |
| | | 291,586,875 | |
Specialty Retail – 2.2% | | | |
| | CarParts.com Inc* | | 1,133,265 | | | 4,669,052 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | SEPTEMBER 30, 2023 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2023
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Specialty Retail– (continued) | | | |
| | Valvoline Inc | | 1,120,425 | | | $36,122,502 | |
| | Williams-Sonoma Inc | | 139,943 | | | 21,747,142 | |
| | | 62,538,696 | |
Trading Companies & Distributors – 1.8% | | | |
| | Core & Main Inc - Class A* | | 1,407,859 | | | 40,616,732 | |
| | Xometry Inc - Class A*,# | | 665,298 | | | 11,296,760 | |
| | | 51,913,492 | |
Total Common Stocks (cost $1,976,196,138) | | 2,750,066,689 | |
Private Investment in Public Equity (PIPES)– 0.1% | | | |
Pharmaceuticals – 0.1% | | | |
| | Structure Therapeutics Inc*,§((cost $2,284,321) | | 182,892 | | | 2,284,321 | |
Private Placements– 0.7% | | | |
Professional Services – 0.4% | | | |
| | Apartment List Inc*,¢,§ | | 2,431,401 | | | 6,662,039 | |
| | IntelyCare Inc*,¢,§ | | 384,276 | | | 4,410,336 | |
| | | 11,072,375 | |
Software – 0.3% | | | |
| | Loadsmart Inc - Series A*,¢,§ | | 140,312 | | | 2,179,045 | |
| | Loadsmart Inc - Series D*,¢,§ | | 399,891 | | | 6,210,307 | |
| | | 8,389,352 | |
Total Private Placements (cost $28,958,535) | | 19,461,727 | |
Warrants– 0% | | | |
Chemicals – 0% | | | |
| | Perimeter Solutions SA, expires 11/8/24*((cost $13,929) | | 1,392,883 | | | 24,375 | |
Investment Companies– 1.2% | | | |
Money Markets – 1.2% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº,£((cost $33,358,630) | | 33,351,960 | | | 33,361,965 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.8% | | | |
Investment Companies – 0.6% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº,£ | | 18,276,040 | | | 18,276,040 | |
Time Deposits – 0.2% | | | |
| | Royal Bank of Canada, 5.3100%, 10/2/23 | | $4,569,010 | | | 4,569,010 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $22,845,050) | | 22,845,050 | |
Total Investments (total cost $2,063,656,603) – 100.8% | | 2,828,044,127 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.8)% | | (22,677,800) | |
Net Assets – 100% | | $2,805,366,327 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $2,364,788,233 | | 83.6 | % |
Canada | | 142,260,657 | | 5.0 | |
United Kingdom | | 95,437,039 | | 3.4 | |
Israel | | 90,701,349 | | 3.2 | |
India | | 43,852,464 | | 1.5 | |
Netherlands | | 42,336,112 | | 1.5 | |
Ireland | | 32,719,976 | | 1.2 | |
Denmark | | 15,948,297 | | 0.6 | |
| | | | | | |
| | | | | | |
Total | | $2,828,044,127 | | 100.0 | % |
| | |
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, 2023
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 9/30/23 |
Common Stocks - 0.7% |
Diversified Financial Services - 0.4% | |
| | Payfare Inc* | $ | - | $ | - | $ | 102,906 | $ | 12,615,669 |
Software - 0.3% | |
| | ChannelAdvisor Corp* | | - | | 15,496,857 | | (14,904,550) | | - |
| | CoreCard Corp (formerly Intelligent Systems Corp)*# | | - | | - | | (844,913) | | 9,547,040 |
Total Software | $ | - | $ | 15,496,857 | $ | (15,749,463) | $ | 9,547,040 |
Total Common Stocks | $ | - | $ | 15,496,857 | $ | (15,646,557) | $ | 22,162,709 |
Investment Companies - 1.2% |
Money Markets - 1.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 2,104,051 | | 3,539 | | 3,226 | | 33,361,965 |
Investments Purchased with Cash Collateral from Securities Lending - 0.6% |
Investment Companies - 0.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 354,957∆ | | - | | - | | 18,276,040 |
Total Affiliated Investments - 2.5% | $ | 2,459,008 | $ | 15,500,396 | $ | (15,643,331) | $ | 73,800,714 |
(1) For securities that were affiliated for a portion of the year ended September 30, 2023, this column reflects amounts for the entire year ended September 30, 2023 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/22 | Purchases | Sales Proceeds | Value at 9/30/23 |
Common Stocks - 0.7% |
Diversified Financial Services - 0.4% | |
| | Payfare Inc* | | 9,207,074 | | 3,305,689 | | - | | 12,615,669 |
Software - 0.3% | |
| | ChannelAdvisor Corp* | | 37,349,662 | | - | | (37,941,969)Ð | | - |
| | CoreCard Corp (formerly Intelligent Systems Corp)*# | | 10,391,953 | | - | | - | | 9,547,040 |
Investment Companies - 1.2% |
Money Markets - 1.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 5.3601%ºº | | 13,005,929 | | 479,257,801 | | (458,908,530) | | 33,361,965 |
Investments Purchased with Cash Collateral from Securities Lending - 0.6% |
Investment Companies - 0.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 5.2832%ºº | | 42,547,193 | | 347,383,637 | | (371,654,790) | | 18,276,040 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | SEPTEMBER 30, 2023 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2023
| | | | | | | |
Schedule of Forward Foreign Currency Exchange Contracts | | | | | | |
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
Bank of America, National Association: | | | | | | | | |
British Pound | 10/26/23 | 1,477,000 | $ | (1,878,105) | $ | (76,052) | | |
British Pound | 10/26/23 | (1,967,000) | | 2,533,634 | | 133,743 | | |
| | | | | | | | | |
| | | | | | | 57,691 | | |
Barclays Capital, Inc.: | | | | | | | | |
British Pound | 10/26/23 | 10,826,100 | | (13,525,523) | | (316,852) | | |
British Pound | 10/26/23 | (2,181,000) | | 2,772,507 | | 111,521 | | |
Canadian Dollar | 10/26/23 | (28,688,900) | | 21,799,480 | | 666,970 | | |
| | | | | | | | | |
| | | | | | | 461,639 | | |
Citibank, National Association: | | | | | | | | |
British Pound | 10/26/23 | (26,274,800) | | 33,847,434 | | 1,790,168 | | |
Canadian Dollar | 10/26/23 | (39,898,900) | | 30,324,129 | | 934,230 | | |
| | | | | | | | | |
| | | | | | | 2,724,398 | | |
Goldman Sachs & Co. LLC: | | | | | | | | |
British Pound | 10/26/23 | (863,000) | | 1,111,596 | | 58,670 | | |
Canadian Dollar | 10/26/23 | 3,365,000 | | (2,557,107) | | (78,417) | | |
| | | | | | | | | |
| | | | | | | (19,747) | | |
HSBC Securities (USA), Inc.: | | | | | | | | |
British Pound | 10/26/23 | (16,179,900) | | 20,865,416 | | 1,124,700 | | |
Canadian Dollar | 10/26/23 | (26,322,700) | | 20,004,463 | | 614,918 | | |
| | | | | | | | | |
| | | | | | | 1,739,618 | | |
JPMorgan Chase Bank, National Association: | | | | | | | | |
British Pound | 10/26/23 | 452,200 | | (582,483) | | (30,765) | | |
British Pound | 10/26/23 | (2,102,000) | | 2,624,347 | | 59,746 | | |
British Pound | 10/26/23 | (6,416,000) | | 7,815,711 | | (12,300) | | |
Canadian Dollar | 10/26/23 | 6,661,000 | | (5,047,659) | | (141,105) | | |
Canadian Dollar | 10/26/23 | (35,402,500) | | 26,909,775 | | 831,966 | | |
Canadian Dollar | 10/26/23 | (4,673,000) | | 3,438,397 | | (3,779) | | |
| | | | | | | | | |
| | | | | | | 703,763 | | |
Morgan Stanley & Co: | | | | | | | | |
British Pound | 10/26/23 | 1,982,000 | | (2,516,132) | | (97,940) | | |
Canadian Dollar | 10/26/23 | 4,441,000 | | (3,276,640) | | (5,358) | | |
Canadian Dollar | 10/26/23 | (6,521,000) | | 4,957,062 | | 153,633 | | |
| | | | | | | | | |
| | | | | | | 50,335 | | |
State Street Bank and Trust Company: | | | | | | | | |
British Pound | 10/26/23 | 1,517,000 | | (1,938,734) | | (87,878) | | |
| | |
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, 2023
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | | |
British Pound | 10/26/23 | (33,257,000) | $ | 42,759,741 | | 2,183,658 | | |
Canadian Dollar | 10/26/23 | 12,909,000 | | (9,607,753) | | (98,865) | | |
Canadian Dollar | 10/26/23 | (23,723,500) | | 18,025,469 | | 550,519 | | |
Canadian Dollar | 10/26/23 | (5,337,000) | | 3,918,995 | | (12,288) | | |
| | | | | | | | |
| | | | | | | 2,535,146 | |
Total | | | | | $ | 8,252,843 | |
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, 2023.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of September 30, 2023 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $9,214,442 |
| | | | |
Liability Derivatives: | | | |
Forward foreign currency exchange contracts | | | $ 961,599 |
| | | | |
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, 2023.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the year ended September 30, 2023 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $(8,614,510) |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ 3,735,559 |
| | | | | |
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. |
| |
14 | SEPTEMBER 30, 2023 |
Janus Henderson Venture Fund
Schedule of Investments
September 30, 2023
| | |
Average Ending Monthly Value of Derivative Instruments During the Year Ended September 30, 2023 |
| |
| |
Forward foreign currency exchange contracts: | |
Average amounts purchased - in USD | $35,082,587 |
Average amounts sold - in USD | 211,560,288 |
| | |
| |
| |
| |
| | |
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, 2023
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Bank of America, National Association | $ | 133,743 | $ | (76,052) | $ | — | $ | 57,691 |
Barclays Capital, Inc. | | 778,491 | | (316,852) | | — | | 461,639 |
Citibank, National Association | | 2,724,398 | | — | | — | | 2,724,398 |
Goldman Sachs & Co. LLC | | 58,670 | | (58,670) | | — | | — |
HSBC Securities (USA), Inc. | | 1,739,618 | | — | | — | | 1,739,618 |
JPMorgan Chase Bank, National Association | | 23,395,805 | | (187,949) | | (22,504,093) | | 703,763 |
Morgan Stanley & Co | | 153,633 | | (103,298) | | — | | 50,335 |
State Street Bank and Trust Company | | 2,734,177 | | (199,031) | | — | | 2,535,146 |
| | | | | | | | | |
Total | $ | 31,718,535 | $ | (941,852) | $ | (22,504,093) | $ | 8,272,590 |
Offsetting of Financial Liabilities and Derivative Liabilities |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Bank of America, National Association | $ | 76,052 | $ | (76,052) | $ | — | $ | — |
Barclays Capital, Inc. | | 316,852 | | (316,852) | | — | | — |
Goldman Sachs & Co. LLC | | 78,417 | | (58,670) | | — | | 19,747 |
JPMorgan Chase Bank, National Association | | 187,949 | | (187,949) | | — | | — |
Morgan Stanley & Co | | 103,298 | | (103,298) | | — | | — |
State Street Bank and Trust Company | | 199,031 | | (199,031) | | — | | — |
| | | | | | | | | |
Total | $ | 961,599 | $ | (941,852) | $ | — | $ | 19,747 |
(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, 2023 |
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, 2023. |
| | |
# | Loaned security; a portion of the security is on loan at September 30, 2023. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the year ended September 30, 2023 is $19,461,727, which represents 0.7% of net assets. |
| | |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | |
Ð | All or a portion is the result of a corporate action. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of September 30, 2023) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Apartment List Inc | 11/2/20 | $ | 8,881,908 | $ | 6,662,039 | | 0.2 | % |
IntelyCare Inc | 3/29/22 | | 9,412,879 | | 4,410,336 | | 0.2 | |
Loadsmart Inc - Series A | 1/4/22 | | 2,665,928 | | 2,179,045 | | 0.1 | |
Loadsmart Inc - Series D | 1/4/22 | | 7,997,820 | | 6,210,307 | | 0.2 | |
Structure Therapeutics Inc | 9/29/23 | | 2,284,321 | | 2,284,321 | | 0.1 | |
Total | | $ | 31,242,856 | $ | 21,746,048 | | 0.8 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of September 30, 2023. 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, 2023. 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 | | | | | | |
Life Sciences Tools & Services | $ | 82,900,567 | $ | 911,526 | $ | - |
All Other | | 2,666,254,596 | | - | | - |
Private Investment in Public Equity (PIPES) | | 2,284,321 | | - | | - |
Private Placements | | - | | - | | 19,461,727 |
Warrants | | - | | 24,375 | | - |
Investment Companies | | - | | 33,361,965 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 22,845,050 | | - |
Total Investments in Securities | $ | 2,751,439,484 | $ | 57,142,916 | $ | 19,461,727 |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 9,214,442 | | - |
Total Assets | $ | 2,751,439,484 | $ | 66,357,358 | $ | 19,461,727 |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 961,599 | $ | - |
| | | | | | | |
(a) | Other financial instruments may 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, 2023
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $1,968,324,339)(1) | | $ | 2,754,243,413 | |
| Affiliated investments, at value (cost $95,332,264) | | | 73,800,714 | |
| Cash | | | 20 | |
| Forward foreign currency exchange contracts | | | 9,214,442 | |
| Trustees' deferred compensation | | | 73,291 | |
| Receivables: | | | | |
| | Investments sold | | | 2,963,186 | |
| | Fund shares sold | | | 713,236 | |
| | Dividends | | | 402,975 | |
| | Dividends from affiliates | | | 167,174 | |
| | Foreign tax reclaims | | | 71,362 | |
| Other assets | | | 11,381 | |
Total Assets | | | 2,841,661,194 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 22,845,050 | |
| Forward foreign currency exchange contracts | | | 961,599 | |
| Payables: | | | — | |
| | Investments purchased | | | 8,431,900 | |
| | Fund shares repurchased | | | 1,811,962 | |
| | Advisory fees | | | 1,576,871 | |
| | Transfer agent fees and expenses | | | 381,871 | |
| | Trustees' deferred compensation fees | | | 73,291 | |
| | Professional fees | | | 61,691 | |
| | Trustees' fees and expenses | | | 16,088 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 10,803 | |
| | Custodian fees | | | 8,808 | |
| | Affiliated fund administration fees payable | | | 6,161 | |
| | Accrued expenses and other payables | | | 108,772 | |
Total Liabilities | | | 36,294,867 | |
Commitments and contingent liabilities (Note 4) | | | | |
Net Assets | | $ | 2,805,366,327 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Venture Fund
Statement of Assets and Liabilities
September 30, 2023
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,894,972,089 | |
| Total distributable earnings (loss) | | | 910,394,238 | |
Total Net Assets | | $ | 2,805,366,327 | |
Net Assets - Class A Shares | | $ | 17,572,260 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 251,361 | |
Net Asset Value Per Share(2) | | $ | 69.91 | |
Maximum Offering Price Per Share(3) | | $ | 74.18 | |
Net Assets - Class C Shares | | $ | 734,176 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,195 | |
Net Asset Value Per Share(2) | | $ | 60.20 | |
Net Assets - Class D Shares | | $ | 1,557,240,389 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 21,174,540 | |
Net Asset Value Per Share | | $ | 73.54 | |
Net Assets - Class I Shares | | $ | 210,384,290 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,837,874 | |
Net Asset Value Per Share | | $ | 74.13 | |
Net Assets - Class N Shares | | $ | 322,200,305 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,287,619 | |
Net Asset Value Per Share | | $ | 75.15 | |
Net Assets - Class S Shares | | $ | 28,123,822 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 411,464 | |
Net Asset Value Per Share | | $ | 68.35 | |
Net Assets - Class T Shares | | $ | 669,111,085 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,321,454 | |
Net Asset Value Per Share | | $ | 71.78 | |
| |
(1) Includes $22,504,093 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, 2023 |
Janus Henderson Venture Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Investment Income: |
| Dividends | $ | 16,153,363 | |
| Dividends from affiliates | | 2,104,051 | |
| Affiliated securities lending income, net | | 354,957 | |
| Unaffiliated securities lending income, net | | 94,313 | |
| Other income | | 365 | |
| Foreign tax withheld | | (118,055) | |
Total Investment Income | | 18,588,994 | |
Expenses: | | | |
| Advisory fees | | 19,111,594 | |
| 12b-1 Distribution and shareholder servicing fees: |
| | Class A Shares | | 45,817 | |
| | Class C Shares | | 13,014 | |
| | Class S Shares | | 77,994 | |
| Transfer agent administrative fees and expenses: | | |
| | Class D Shares | | 1,918,817 | |
| | Class S Shares | | 78,084 | |
| | Class T Shares | | 1,774,389 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 14,927 | |
| | Class C Shares | | 1,094 | |
| | Class I Shares | | 223,817 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 1,216 | |
| | Class C Shares | | 70 | |
| | Class D Shares | | 136,663 | |
| | Class I Shares | | 11,837 | |
| | Class N Shares | | 14,334 | |
| | Class S Shares | | 402 | |
| | Class T Shares | | 6,383 | |
| Shareholder reports expense | | 199,691 | |
| Registration fees | | 127,373 | |
| Professional fees | | 119,555 | |
| Affiliated fund administration fees | | 96,433 | |
| Trustees’ fees and expenses | | 73,823 | |
| Custodian fees | | 50,719 | |
| Other expenses | | 197,258 | |
Total Expenses | | 24,295,304 | |
Less: Excess Expense Reimbursement and Waivers | | (101,797) | |
Net Expenses | | 24,193,507 | |
Net Investment Income/(Loss) | | (5,604,513) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Venture Fund
Statement of Operations
For the year ended September 30, 2023
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | |
| Investments and foreign currency transactions | $ | 168,287,440 | |
| Investments in affiliates | | 15,500,396 | |
| Forward foreign currency exchange contracts | | (8,614,510) | |
Total Net Realized Gain/(Loss) on Investments | 175,173,326 | |
Change in Unrealized Net Appreciation/Depreciation: |
| Investments, foreign currency translations and Trustees’ deferred compensation | | 125,593,087 | |
| Investments in affiliates | | (15,643,331) | |
| Forward foreign currency exchange contracts | | 3,735,559 | |
Total Change in Unrealized Net Appreciation/Depreciation | 113,685,315 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 283,254,128 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
22 | SEPTEMBER 30, 2023 |
Janus Henderson Venture Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Year ended
September 30, 2023 | | Year ended
September 30, 2022 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (5,604,513) | | $ | (13,543,805) | |
| Net realized gain/(loss) on investments | | 175,173,326 | | | 167,985,475 | |
| Change in unrealized net appreciation/depreciation | 113,685,315 | | | (1,313,757,499) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | 283,254,128 | | | (1,159,315,829) | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (755,705) | | | (2,765,688) | |
| | Class C Shares | | (77,952) | | | (429,596) | |
| | Class D Shares | | (66,559,828) | | | (245,929,527) | |
| | Class I Shares | | (9,789,044) | | | (39,332,133) | |
| | Class N Shares | | (14,171,285) | | | (60,480,498) | |
| | Class S Shares | | (1,332,618) | | | (6,073,592) | |
| | Class T Shares | | (29,907,426) | | | (117,792,659) | |
Net Decrease from Dividends and Distributions to Shareholders | (122,593,858) | | | (472,803,693) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 1,532,934 | | | (121,465) | |
| | Class C Shares | | (989,513) | | | (837,470) | |
| | Class D Shares | | (29,563,977) | | | 129,351,737 | |
| | Class I Shares | | (23,795,907) | | | (6,508,752) | |
| | Class N Shares | | (34,214,214) | | | (19,282,673) | |
| | Class S Shares | | (2,633,229) | | | (5,473,577) | |
| | Class T Shares | | (33,525,662) | | | 11,716,334 | |
Net Increase/(Decrease) from Capital Share Transactions | (123,189,568) | | | 108,844,134 | |
Net Increase/(Decrease) in Net Assets | | 37,470,702 | | | (1,523,275,388) | |
Net Assets: | | | | | | |
| Beginning of period | | 2,767,895,625 | | | 4,291,171,013 | |
| End of period | $ | 2,805,366,327 | | $ | 2,767,895,625 | |
| | | | | | | | |
| | |
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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $66.65 | | | $106.21 | | | $82.08 | | | $76.74 | | | $88.38 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.29) | | | (0.49) | | | (0.67) | | | (0.37) | | | (0.24) | |
| | Net realized and unrealized gain/(loss) | | 6.69 | | | (26.74) | | | 30.42 | | | 8.89 | | | (4.67) | |
| Total from Investment Operations | | 6.40 | | | (27.23) | | | 29.75 | | | 8.52 | | | (4.91) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Total Dividends and Distributions | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Net Asset Value, End of Period | | $69.91 | | | $66.65 | | | $106.21 | | | $82.08 | | | $76.74 | |
| Total Return* | | 9.83% | | | (28.58)% | | | 36.78% | | | 11.26% | | | (4.08)% | |
| Net Assets, End of Period (in thousands) | | $17,572 | | | $15,149 | | | $24,644 | | | $18,447 | | | $27,201 | |
| Average Net Assets for the Period (in thousands) | | $18,285 | | | $20,355 | | | $23,550 | | | $22,978 | | | $27,960 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.02% | | | 1.01% | | | 1.00% | | | 1.02% | | | 1.02% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.02% | | | 1.01% | | | 1.00% | | | 1.02% | | | 1.02% | |
| | Ratio of Net Investment Income/(Loss) | | (0.40)% | | | (0.59)% | | | (0.66)% | | | (0.49)% | | | (0.32)% | |
| Portfolio Turnover Rate | | 23% | | | 14% | | | 21% | | | 25% | | | 19% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $58.35 | | | $95.22 | | | $74.59 | | | $70.48 | | | $82.39 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.85) | | | (0.99) | | | (1.29) | | | (0.82) | | | (0.72) | |
| | Net realized and unrealized gain/(loss) | | 5.84 | | | (23.55) | | | 27.54 | | | 8.11 | | | (4.46) | |
| Total from Investment Operations | | 4.99 | | | (24.54) | | | 26.25 | | | 7.29 | | | (5.18) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Total Dividends and Distributions | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Net Asset Value, End of Period | | $60.20 | | | $58.35 | | | $95.22 | | | $74.59 | | | $70.48 | |
| Total Return* | | 8.77% | | | (29.11)% | | | 35.74% | | | 10.49% | | | (4.76)% | |
| Net Assets, End of Period (in thousands) | | $734 | | | $1,642 | | | $3,747 | | | $5,562 | | | $8,561 | |
| Average Net Assets for the Period (in thousands) | | $1,220 | | | $2,525 | | | $4,965 | | | $6,913 | | | $9,783 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.07% | | | 1.73% | | | 1.76% | | | 1.71% | | | 1.73% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.01% | | | 1.73% | | | 1.76% | | | 1.71% | | | 1.73% | |
| | Ratio of Net Investment Income/(Loss) | | (1.35)% | | | (1.31)% | | | (1.42)% | | | (1.18)% | | | (1.03)% | |
| Portfolio Turnover Rate | | 23% | | | 14% | | | 21% | | | 25% | | | 19% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $69.81 | | | $110.41 | | | $84.98 | | | $79.17 | | | $90.73 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.13) | | | (0.32) | | | (0.47) | | | (0.22) | | | (0.08) | |
| | Net realized and unrealized gain/(loss) | | 7.00 | | | (27.95) | | | 31.52 | | | 9.21 | | | (4.75) | |
| Total from Investment Operations | | 6.87 | | | (28.27) | | | 31.05 | | | 8.99 | | | (4.83) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Total Dividends and Distributions | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Net Asset Value, End of Period | | $73.54 | | | $69.81 | | | $110.41 | | | $84.98 | | | $79.17 | |
| Total Return* | | 10.06% | | | (28.42)% | | | 37.07% | | | 11.52% | | | (3.87)% | |
| Net Assets, End of Period (in thousands) | | $1,557,240 | | | $1,500,311 | | | $2,228,324 | | | $1,731,098 | | | $1,668,639 | |
| Average Net Assets for the Period (in thousands) | | $1,641,508 | | | $1,877,171 | | | $2,160,434 | | | $1,645,324 | | | $1,668,200 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.80% | | | 0.79% | | | 0.78% | | | 0.80% | | | 0.80% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | | | 0.79% | | | 0.78% | | | 0.80% | | | 0.80% | |
| | Ratio of Net Investment Income/(Loss) | | (0.18)% | | | (0.37)% | | | (0.45)% | | | (0.28)% | | | (0.10)% | |
| Portfolio Turnover Rate | | 23% | | | 14% | | | 21% | | | 25% | | | 19% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $70.32 | | | $111.10 | | | $85.45 | | | $79.57 | | | $91.10 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.11) | | | (0.30) | | | (0.44) | | | (0.19) | | | (0.04) | |
| | Net realized and unrealized gain/(loss) | | 7.06 | | | (28.15) | | | 31.71 | | | 9.25 | | | (4.76) | |
| Total from Investment Operations | | 6.95 | | | (28.45) | | | 31.27 | | | 9.06 | | | (4.80) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Total Dividends and Distributions | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Net Asset Value, End of Period | | $74.13 | | | $70.32 | | | $111.10 | | | $85.45 | | | $79.57 | |
| Total Return* | | 10.11% | | | (28.40)% | | | 37.13% | | | 11.55% | | | (3.82)% | |
| Net Assets, End of Period (in thousands) | | $210,384 | | | $220,157 | | | $363,007 | | | $287,582 | | | $315,109 | |
| Average Net Assets for the Period (in thousands) | | $237,418 | | | $294,435 | | | $357,200 | | | $292,611 | | | $318,833 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.76% | | | 0.75% | | | 0.75% | | | 0.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.76% | | | 0.75% | | | 0.75% | | | 0.75% | |
| | Ratio of Net Investment Income/(Loss) | | (0.14)% | | | (0.34)% | | | (0.42)% | | | (0.23)% | | | (0.05)% | |
| Portfolio Turnover Rate | | 23% | | | 14% | | | 21% | | | 25% | | | 19% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $71.17 | | | $112.20 | | | $86.18 | | | $80.15 | | | $91.63 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.03) | | | (0.22) | | | (0.35) | | | (0.12) | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | 7.15 | | | (28.48) | | | 31.99 | | | 9.33 | | | (4.77) | |
| Total from Investment Operations | | 7.12 | | | (28.70) | | | 31.64 | | | 9.21 | | | (4.75) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Total Dividends and Distributions | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Net Asset Value, End of Period | | $75.15 | | | $71.17 | | | $112.20 | | | $86.18 | | | $80.15 | |
| Total Return* | | 10.23% | | | (28.34)% | | | 37.25% | | | 11.65% | | | (3.74)% | |
| Net Assets, End of Period (in thousands) | | $322,200 | | | $335,608 | | | $565,040 | | | $454,982 | | | $411,523 | |
| Average Net Assets for the Period (in thousands) | | $352,422 | | | $458,042 | | | $572,312 | | | $430,317 | | | $365,491 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.67% | | | 0.67% | | | 0.66% | | | 0.66% | | | 0.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.67% | | | 0.66% | | | 0.66% | | | 0.67% | |
| | Ratio of Net Investment Income/(Loss) | | (0.04)% | | | (0.25)% | | | (0.33)% | | | (0.15)% | | | 0.03% | |
| Portfolio Turnover Rate | | 23% | | | 14% | | | 21% | | | 25% | | | 19% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | |
For a share outstanding during the year ended September 30 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $65.32 | | | $104.51 | | | $80.97 | | | $75.85 | | | $87.56 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.39) | | | (0.62) | | | (0.83) | | | (0.49) | | | (0.35) | |
| | Net realized and unrealized gain/(loss) | | 6.56 | | | (26.24) | | | 29.99 | | | 8.79 | | | (4.63) | |
| Total from Investment Operations | | 6.17 | | | (26.86) | | | 29.16 | | | 8.30 | | | (4.98) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Total Dividends and Distributions | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Net Asset Value, End of Period | | $68.35 | | | $65.32 | | | $104.51 | | | $80.97 | | | $75.85 | |
| Total Return* | | 9.67% | | | (28.70)% | | | 36.55% | | | 11.10% | | | (4.21)% | |
| Net Assets, End of Period (in thousands) | | $28,124 | | | $29,213 | | | $54,537 | | | $64,120 | | | $73,302 | |
| Average Net Assets for the Period (in thousands) | | $31,317 | | | $42,248 | | | $59,918 | | | $66,822 | | | $74,076 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.17% | | | 1.17% | | | 1.16% | | | 1.17% | | | 1.17% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.17% | | | 1.16% | | | 1.17% | | | 1.17% | |
| | Ratio of Net Investment Income/(Loss) | | (0.55)% | | | (0.75)% | | | (0.83)% | | | (0.65)% | | | (0.47)% | |
| Portfolio Turnover Rate | | 23% | | | 14% | | | 21% | | | 25% | | | 19% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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 | | 2023 | | | 2022 | | | 2021 | | | 2020 | | | 2019 | |
| Net Asset Value, Beginning of Period | | $68.27 | | | $108.38 | | | $83.59 | | | $78.01 | | | $89.60 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.21) | | | (0.41) | | | (0.58) | | | (0.30) | | | (0.16) | |
| | Net realized and unrealized gain/(loss) | | 6.86 | | | (27.37) | | | 30.99 | | | 9.06 | | | (4.70) | |
| Total from Investment Operations | | 6.65 | | | (27.78) | | | 30.41 | | | 8.76 | | | (4.86) | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Total Dividends and Distributions | | (3.14) | | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | |
| Net Asset Value, End of Period | | $71.78 | | | $68.27 | | | $108.38 | | | $83.59 | | | $78.01 | |
| Total Return* | | 9.96% | | | (28.51)% | | | 36.91% | | | 11.39% | | | (3.96)% | |
| Net Assets, End of Period (in thousands) | | $669,111 | | | $665,815 | | | $1,051,872 | | | $815,350 | | | $896,264 | |
| Average Net Assets for the Period (in thousands) | | $711,595 | | | $858,977 | | | $1,026,384 | | | $839,860 | | | $899,106 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.92% | | | 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) | | (0.28)% | | | (0.47)% | | | (0.57)% | | | (0.38)% | | | (0.20)% | |
| Portfolio Turnover Rate | | 23% | | | 14% | | | 21% | | | 25% | | | 19% | |
| | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or 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, 2023 |
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 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, 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 (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 Adviser will determine the market value of individual securities held by it by using prices provided by one or more Adviser-approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith 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 value of the securities of other mutual funds held by the Fund, if any, will be calculated using the NAV of such mutual funds, and the prospectuses for such mutual funds explain the circumstances under which they use fair valuation and the effects of using fair valuation. The value of the securities of any cash management pooled investment vehicles that operate as money market funds held by the Fund, if any, will be calculated using the NAV of such funds.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Janus Henderson Venture Fund
Notes to Financial Statements
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of September 30, 2023 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, 2023.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the
Janus Henderson Venture Fund
Notes to Financial Statements
date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Derivative Instruments
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the year ended September 30, 2023 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
The Fund may use derivative instruments for hedging purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative purposes (to earn income and seek to enhance returns). When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks.
Janus Henderson Venture Fund
Notes to Financial Statements
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.
· Credit Risk – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment.
· Equity Risk – the risk related to the change in value of equity securities as they relate to increases or decreases in the general market.
· Index Risk – if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.
· Interest Rate Risk – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk.
In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. Additionally, the Fund may deposit cash and/or treasuries as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on 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 Venture Fund
Notes to Financial Statements
and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE are used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The realized gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a forward currency contract is reported on the Statement of Operations (if applicable).
During the year, the Fund entered into forward currency contracts with the obligation to purchase foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
During the year, the Fund entered into forward currency contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
3. Other Investments and Strategies
Market Risk
The value of the Fund’s portfolio may decrease if the value of one or more issuers in the Fund’s portfolio decreases. Further, regardless of how well individual companies or securities perform, the value of the Fund’s portfolio could also decrease if there are deteriorating economic or market conditions, including, but not limited to, a general decline in prices on the stock markets, a general decline in real estate markets, a decline in commodities prices, or if the market favors different types of securities than the types of securities in which the Fund invests. If the value of the Fund’s portfolio decreases, the Fund’s NAV will also decrease, which means if you sell your shares in the Fund you may lose money. Market risk may affect a single issuer, industry, economic sector, or the market as a whole. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Social, political, economic and other conditions and events, such as natural disasters, health emergencies (e.g., epidemics and pandemics), terrorism, conflicts, including related sanctions, and social unrest, could reduce consumer demand or economic output, result in market closures, travel restrictions and/or quarantines, and generally have a significant impact on the global economies and financial markets.
• COVID-19 Pandemic. The effects of COVID-19 have contributed to increased volatility in global financial markets and have affected and may continue to affect certain countries, regions, issuers, industries and market sectors more dramatically than others. These conditions and events could have a significant impact on the Fund and its investments, the Fund’s ability to meet redemption requests, and the processes and operations of the Fund’s service providers, including the Adviser.
• Armed Conflict. Recent such examples include conflict, loss of life, and disaster connected to ongoing armed conflict between Russia and Ukraine in Europe and Hamas and Israel in the Middle East. The extent and duration of each conflict, resulting sanctions and resulting future market disruptions in each region are impossible to predict, but could be significant and have a severe adverse effect, including significant negative impacts on the U.S. and broader global economic environment and the markets for certain securities and commodities.
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.
Janus Henderson Venture Fund
Notes to Financial Statements
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
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
Janus Henderson Venture Fund
Notes to Financial Statements
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, 2023, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $22,504,093. Gross amounts of recognized liabilities for securities lending (collateral received) as of September 30, 2023 is $22,845,050, resulting in the net amount due to the counterparty of $340,957.
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, 2023” 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 0.86% 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 27, 2023. The previous expense limit (for the one-year period commencing January 28, 2022) was 0.92%. If applicable,
Janus Henderson Venture Fund
Notes to Financial Statements
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 $326,778 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 2023. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Services US 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 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
Janus Henderson Venture Fund
Notes to Financial Statements
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, 2023, the Distributor retained upfront sales charges of $1,351.
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, 2023.
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, 2023, redeeming shareholders of Class C Shares paid CDSCs of $74.
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, 2023 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, 2023 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 $427,388 were paid by the Trust to the Trustees under the Deferred Plan during the year ended September 30, 2023.
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
Janus Henderson Venture Fund
Notes to Financial Statements
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, 2023 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, 2023, the Fund engaged in cross trades amounting to $3,991,557 in purchases and $1,336,961 in sales, resulting in a net realized gain of $1,026,199. 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.
The Fund has elected to defer qualified late-year losses as noted in the table below. These losses will be deferred for tax purposes and recognized during the next fiscal year.
| | | | | | | |
| | | | Other Book | Net Tax | |
Undistributed
Ordinary Income | Undistributed
Long-Term Gains | Accumulated
Capital Losses | Loss Deferrals | to Tax
Differences | Appreciation/
(Depreciation) | |
$ - | $ 153,340,587 | $ - | $ (5,959,859) | $ (68,638) | $763,082,148 | |
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, 2023 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) |
$ 2,064,961,979 | $1,023,470,713 | $(260,388,565) | $ 763,082,148 |
Janus Henderson Venture Fund
Notes to Financial Statements
Information on the tax components of derivatives as of September 30, 2023 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 8,252,843 | $ - | $ - | $ - |
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, 2023 | |
Distributions | | |
From Ordinary Income | From Long-Term Capital Gains | Tax Return of Capital | Net Investment Loss | |
$ - | $ 122,593,858 | $ - | $ - | |
| | | | | |
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 | |
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. Capital has been adjusted by $8,398,189, all of which is long-term capital gain, for distributions in connection with Fund shares redemption (tax equalization).
Janus Henderson Venture Fund
Notes to Financial Statements
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Year ended September 30, 2023 | | Year ended September 30, 2022 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 77,028 | $ 5,466,572 | | 64,744 | $ 5,895,760 |
Reinvested dividends and distributions | 11,317 | 754,729 | | 30,916 | 2,759,573 |
Shares repurchased | (64,293) | (4,688,367) | | (100,381) | (8,776,798) |
Net Increase/(Decrease) | 24,052 | $ 1,532,934 | | (4,721) | $ (121,465) |
Class C Shares: | | | | | |
Shares sold | 6,155 | $ 384,701 | | 1,236 | $ 83,173 |
Reinvested dividends and distributions | 1,348 | 77,952 | | 5,446 | 428,187 |
Shares repurchased | (23,451) | (1,452,166) | | (17,892) | (1,348,830) |
Net Increase/(Decrease) | (15,948) | $ (989,513) | | (11,210) | $ (837,470) |
Class D Shares: | | | | | |
Shares sold | 330,352 | $ 25,165,166 | | 305,542 | $ 26,256,961 |
Reinvested dividends and distributions | 884,233 | 61,922,862 | | 2,468,740 | 230,407,525 |
Shares repurchased | (1,532,711) | (116,652,005) | | (1,463,023) | (127,312,749) |
Net Increase/(Decrease) | (318,126) | $(29,563,977) | | 1,311,259 | $129,351,737 |
Class I Shares: | | | | | |
Shares sold | 514,430 | $ 39,497,837 | | 445,613 | $ 39,292,085 |
Reinvested dividends and distributions | 138,314 | 9,762,171 | | 418,219 | 39,308,399 |
Shares repurchased | (945,596) | (73,055,915) | | (1,000,409) | (85,109,236) |
Net Increase/(Decrease) | (292,852) | $(23,795,907) | | (136,577) | $ (6,508,752) |
Class N Shares: | | | | | |
Shares sold | 862,123 | $ 66,958,880 | | 871,586 | $ 77,195,805 |
Reinvested dividends and distributions | 197,315 | 14,106,023 | | 633,783 | 60,253,745 |
Shares repurchased | (1,487,090) | (115,279,117) | | (1,826,045) | (156,732,223) |
Net Increase/(Decrease) | (427,652) | $(34,214,214) | | (320,676) | $(19,282,673) |
Class S Shares: | | | | | |
Shares sold | 143,131 | $ 10,159,490 | | 109,609 | $ 9,081,991 |
Reinvested dividends and distributions | 20,414 | 1,332,618 | | 69,333 | 6,073,592 |
Shares repurchased | (199,272) | (14,125,337) | | (253,566) | (20,629,160) |
Net Increase/(Decrease) | (35,727) | $ (2,633,229) | | (74,624) | $ (5,473,577) |
Class T Shares: | | | | | |
Shares sold | 653,783 | $ 48,901,383 | | 540,865 | $ 46,473,854 |
Reinvested dividends and distributions | 427,410 | 29,239,103 | | 1,248,594 | 114,071,542 |
Shares repurchased | (1,511,907) | (111,666,148) | | (1,742,321) | (148,829,062) |
Net Increase/(Decrease) | (430,714) | $(33,525,662) | | 47,138 | $ 11,716,334 |
7. Purchases and Sales of Investment Securities
For the year ended September 30, 2023, 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 |
$667,545,506 | $941,466,991 | $ - | $ - |
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.
9. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to September 30, 2023 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, 2023, the related statement of operations for the year ended September 30, 2023, the statements of changes in net assets for each of the two years in the period ended September 30, 2023, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2023 (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, 2023, 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, 2023 and the financial highlights for each of the five years in the period ended September 30, 2023 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, 2023 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 20, 2023
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; and (ii) 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.
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 (the “Adviser”) 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 9-10, 2022 and December 13-14, 2022, the Trustees evaluated the information provided by the Adviser and the independent fee consultant, as well as other information provided by the Adviser and the independent fee consultant during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser were fair and reasonable in light of the nature, extent, and quality of the services provided by the Adviser and its affiliates, 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 for the period from February 1, 2023 through February 1, 2024, 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 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, 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
Janus Henderson Venture Fund
Additional Information (unaudited)
Funds by the Adviser, 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 Janus Henderson Fund 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 their 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 to each Janus Henderson Fund were appropriate and consistent with the terms of the respective advisory 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 had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable fund 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, noting that: (i) for the 36 months ended May 31, 2022, approximately 38% of the Janus Henderson Funds were in the top two quartiles of their Broadridge peer groups; (ii) for the 36 months ended September 30, 2022, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar, and (iii) for the 12 months ended September 30, 2022, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance as reported by Morningstar.
The Trustees considered the performance of each Janus Henderson Fund, noting that performance may vary by share class, and noted the following with respect to the Funds:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance,
Janus Henderson Venture Fund
Additional Information (unaudited)
the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Developed World Bond Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 High-Yield Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 Life Sciences Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Sustainable Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted that 36 month-end performance was not yet available.
Janus Henderson Venture Fund
Additional Information (unaudited)
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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 first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder Fund), the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or were taking to improve performance, and that the performance trend was improving.
Janus Henderson Venture Fund
Additional Information (unaudited)
· 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, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2022 and the bottom Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the first Broadridge quartile for the 12 months ended May 31, 2022. 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 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· 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, 2022 and the third Broadridge quartile for the 12 months ended May 31, 2022. 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Small-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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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, the steps the Adviser had taken or was taking to improve performance, and that the performance trend is improving.
· 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, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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 Venture Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2022 and the second Broadridge quartile for the 12 months ended May 31, 2022. 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.
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, as applicable, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory agreement.
Janus Henderson Venture Fund
Additional Information (unaudited)
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. 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 6% under the average total expenses of the respective Broadridge peer group; and (3) the management fees for the Janus Henderson Funds, on average, were 5% under the average management fees for the respective Broadridge peer 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 Janus Henderson Funds with three or more years of performance history, 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, changes in portfolio management, relative average net asset levels, and the existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser 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 to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser (for which the Adviser 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 different from the retail fund market; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged in these other markets; and (4) as part of its 2022 review, 9 of 11 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser. The Trustees noted that for the two Janus Henderson Funds that did not, management fees for each were under the average of its 15(c) peer group.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2021 and noted the following with regard to each Janus Henderson Fund’s total expenses, net of applicable fee waivers (the Fund’s “total expenses”) as reflected in the comparative information provided by Broadridge:
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. 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 as shown were below the applicable fee limit.
Janus Henderson Venture Fund
Additional Information (unaudited)
· For Janus Henderson Global Allocation Fund – Moderate, 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.
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 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 Developed World Bond 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 Flexible 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, although this limit did not apply because the Fund’s total expenses as shown were 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 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 Multi-Sector Income Fund, the Trustees noted that, although the Fund’s 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 Short Duration Flexible 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.
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 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 Emerging Markets Fund, the Trustees noted that, although the Fund’s 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 European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s 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 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that, although the Fund’s 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 as shown were below the applicable fee limit.
Janus Henderson Venture Fund
Additional Information (unaudited)
· For Janus Henderson Global Research 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s 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 Sustainable Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group average 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Responsible International Dividend Fund (formerly the Janus Henderson Dividend & Income Builder 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
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 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 as shown were below the applicable fee limit.
U.S. Equity Funds
· For Janus Henderson Adaptive Risk Managed U.S. Equity Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 all 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 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 as shown were below the applicable fee limit.
Janus Henderson Venture Fund
Additional Information (unaudited)
· For Janus Henderson Forty Fund, the Trustees noted that, although the Fund’s 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 as shown were 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 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 as shown were below the applicable fee limit.
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Research Fund, the Trustees noted that, although the Fund’s 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 Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Triton 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
· For Janus Henderson Venture 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, although this limit did not apply because the Fund’s total expenses as shown were below the applicable fee limit.
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 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 as part of its 2022 review 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.
Janus Henderson Venture Fund
Additional Information (unaudited)
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser 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 charges 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, 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 June 2022 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 from the independent fee consultant’s report: (1) that 31% of Janus Henderson Funds had management fee breakpoints in place whereby investors pay lower management fees as fund AUM increases; (2) that 29% of Janus Henderson Funds have low flat-rate fees and performance fees where the Adviser is incentivized to invest in resources which drive Janus Henderson Fund performance; and (3) that 39% of Janus Henderson Funds have low flat-rate fees versus peers where investors pay low fixed fees when the Janus Henderson Fund is small/midsized and higher fees when the Janus Henderson Fund grows in assets. 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.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates 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 Janus Henderson 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. The Trustees concluded that the Adviser’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 pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson
Janus Henderson Venture Fund
Additional Information (unaudited)
Funds and the Adviser 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 benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser or other Janus Henderson Funds, and that the success of the Adviser could enhance the Adviser’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, 2023. 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, 2023:
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Capital Gain Distributions | $130,992,047 |
Dividends Received Deduction Percentage | 100% |
Qualified Dividend Income Percentage | 100% |
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 48 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). | 48 | 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). | 48 | 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). | 48 | 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). | 48 | Member of the Investment Committee for Cooper Union (private college) (since 2021) and Director of Brightwood Capital Advisors, LLC (since 2014). Formerly, Board Member, Van Alen Institute (nonprofit architectural and design organization) (2019-2022). |
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). | 48 | Advisory Board Member, Dome Construction (construction) (since 2023), 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). | 48 | 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. | 48 | 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). | 48 | 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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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 Lead Portfolio Manager
Janus Henderson Venture Fund | 5/13-Present | Portfolio Manager for other Janus Henderson accounts. |
Aaron Schaechterle
151 Detroit Street
Denver, CO 80206
DOB: 1984 | Executive Vice President and Co-Portfolio Manager
Janus Henderson Venture Fund | 9/23-Present | Portfolio Manager for other Janus Henderson accounts. Formerly, Vice President of corporate strategy and development at Glaukos Corporation (2021-2022) and analyst for Janus Henderson Investors (2014-2021). |
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). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period. |
Janus Henderson Venture Fund
Trustees and Officers (unaudited)
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OFFICERS |
Name, Address, and Age | Positions Held with the Trust | Term of Office* and Length of Time Served | Principal Occupations During the Past Five Years |
Kristin Mariani
151 Detroit Street
Denver, CO 80206
DOB: 1966 | Vice President and Chief Compliance Officer | 7/20-Present | Head of Compliance, North America at Janus Henderson Investors (since September 2020) and Chief Compliance Officer at Janus Henderson Investors US LLC (since September 2017). Formerly, Anti-Money Laundering Officer for the Trust and Janus Aspen Series (July 2020-December 2022), Global Head of Investment Management Compliance at Janus Henderson Investors (February 2019-August 2020), Vice President, Head of Global Distribution Compliance and Chief Compliance Officer at 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 Counsel, and Secretary | 12/20-Present | Managing Counsel (since 2020). 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). |
Ciaran Askin
151 Detroit Street
Denver, CO 80206
DOB: 1978 | Anti-Money Laundering Officer | 12/22-Present | Global Head of Financial Crime, Janus Henderson Investors (since 2022). Formerly, Global Head of Financial Crime for Invesco Ltd. (2017-2022). |
* 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 Mutual funds distributed by Janus Henderson Distributors US LLC |
| | | | 125-02-93056 11-23 |
(b) Not applicable.
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: Cheryl D. Alston , 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 38 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 $918,001 in fiscal 2023 and $862,380 in fiscal 2022.
(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 2023 and $0 in fiscal 2022.
(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 $255,683 in fiscal 2023 and $236,243 in fiscal 2022.
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 2023 and $0 in fiscal 2022.
(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 $255,683 in fiscal 2023 and $236,243 in fiscal 2022.
(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.
(i) Not applicable.
(j) Not applicable.
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 Registrant’s disclosure controls and procedures were effective to provide reasonable assurance that material information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
Remediation of Previously Reported Material Weakness in Internal Control Over Financial Reporting
Management has completed the remediation efforts relating to a previously reported material weakness in the Registrant’s internal controls over financial reporting. 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. As of September 30, 2022, management concluded that a material weakness existed in the design and operating effectiveness of controls of two funds of the Registrant, Janus Henderson Emerging Markets Fund and one fund which has since been reorganized into a different fund, together the “Funds”), 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. The material weakness 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 the Funds to correct a misclassification error within the statements of changes in net assets for the year ended September 30, 2020.
The steps management took to remediate this material weakness included instructing the sub-administrator to correct all open tax lots in the accounting records since the incorrect processing was first encountered. The sub-administrator confirmed that this correction was made effective as of September 30, 2022. 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. Additionally, a system-generated tax lot level report was developed by the sub-administrator. The report is extracted and reviewed monthly by the sub-administrator and management to ensure all zero-cost tax lots are accurate. Management has reviewed this key control and has determined the control is operating effectively and as designed.
As a result of these remediation activities, management has determined that the Registrant’s internal controls over financial reporting are designed appropriately and at a sufficient level of precision and have been operating effectively for a sufficient period, such that the material weakness previously identified as of September 30, 2022, has been remediated as of September 30, 2023.
(b) Changes in Internal Control
Other than the enhancements to controls noted above, there were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that has materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12 - Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
(a) Not applicable.
(b) Not applicable.
Item 13 - Exhibits
(a)(1) Not applicable because the Registrant has posted its Code of Ethics (as defined in Item 2(b) of Form N-CSR) on its website pursuant to paragraph (f)(2) of Item 2 of Form N-CSR.
(a)(2) Separate certifications for the Registrant's Principal Executive Officer and Principal Financial Officer, as required under Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached as Ex99CERT.
(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: November 29, 2023
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: November 29, 2023
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: November 29, 2023
