▼ January
27,
2023
Janus
Investment Fund
Prospectus
Prospectus
|
|
Class D
Shares
Ticker |
|
Multi-Asset
U.S. Equity |
|
|
Janus
Henderson Balanced Fund |
JANBX |
|
Janus
Henderson Contrarian Fund |
JACNX |
|
Janus
Henderson Enterprise Fund |
JANEX |
|
Janus
Henderson Forty Fund |
JFRDX |
|
Janus
Henderson Growth and Income Fund |
JNGIX |
|
Janus
Henderson Research Fund |
JNRFX |
|
Janus
Henderson Triton Fund |
JANIX |
|
Janus
Henderson Venture Fund |
JANVX |
Eliminate
Paper Mail. Set up
e-Delivery of prospectuses, annual reports, and statements at janushenderson.com/edelivery.
The Securities and
Exchange Commission has not approved or disapproved of these securities or
passed on the accuracy or adequacy of this Prospectus. Any representation to the
contrary is a criminal offense.
This Prospectus describes
eight portfolios (each, a “Fund” and collectively, the “Funds”) of Janus
Investment Fund (the “Trust”). Janus Henderson Investors US LLC (the “Adviser”)
serves as investment adviser to each Fund.
The Funds
offer multiple classes of shares in order to meet the needs of various types of
investors. Only Class D Shares (the “Shares”) are offered by this Prospectus.
The Shares are offered directly through the Janus Henderson funds to eligible
investors by calling 1-800-525-3713 or at janushenderson.com/individual. The
Shares are not offered through financial intermediaries.
For the
purpose of this Prospectus, any reference to the “Janus Henderson funds” is
inclusive of all series of the Trust, collectively, unless otherwise noted in
this Prospectus.
Fund
summary
|
Ticker: |
JANBX |
Class
D Shares |
|
|
|
|
|
ANNUAL
FUND OPERATING EXPENSES
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Class
D |
|
Management
Fees |
|
0.55% |
|
Other
Expenses |
|
0.15% |
|
Total
Annual Fund Operating Expenses |
|
0.70% |
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
D Shares |
|
|
|
|
|
|
2 | Janus
Henderson Balanced Fund
|
|
3 | Janus
Henderson Balanced Fund
4 | Janus
Henderson Balanced Fund
5 | Janus
Henderson Balanced Fund
|
|
|
Annual
Total Returns for Class D Shares
(calendar year-end) |
 |
|
|
|
|
|
|
|
|
Average
Annual Total Returns
(periods ended 12/31/22) |
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Since
Inception
(9/1/92) |
|
Class
D Shares |
|
|
|
|
|
Return
Before Taxes |
– 16.59% |
6.62% |
8.35% |
9.28% |
|
Return
After Taxes on Distributions |
– 17.00% |
5.59% |
7.10% |
7.87% |
|
Return
After Taxes on Distributions and Sale of Fund Shares(1) |
– 9.58% |
5.03% |
6.45% |
7.46% |
|
S&P
500®
Index
(reflects
no deduction for expenses, fees, or taxes) |
– 18.11% |
9.42% |
12.56% |
9.74% |
|
Bloomberg
U.S. Aggregate Bond Index
(reflects
no deduction for expenses, fees, or taxes) |
– 13.01% |
0.02% |
1.06% |
4.54% |
|
Balanced
Index
(reflects
no deduction for expenses, fees, or taxes) |
– 15.52% |
5.49% |
7.51% |
7.68% |
(1)
6 | Janus
Henderson Balanced Fund
|
Management |
Investment
Adviser: Janus
Henderson Investors US LLC
Portfolio
Managers:
Jeremiah
Buckley, CFA, is
Executive Vice President and Co-Portfolio Manager of the Fund, which he has
co-managed since December 2015. Michael
Keough is
Executive Vice President and Co-Portfolio Manager of the Fund, which he has
co-managed since December 2019. Greg
Wilensky,
CFA, is
Executive Vice President and Co-Portfolio Manager of the Fund, which he has
co-managed since February 2020.
|
Purchase
and sale of Fund shares |
|
Minimum
Investment Requirements |
|
|
To
open a new regular Fund account |
$2,500 |
|
To
open a new regular Fund account with an automatic investment program of
$50 per month |
$100 |
|
To
open a new UGMA/UTMA account, Coverdell Education Savings Account, or a
retirement Fund account |
|
|
• without
an automatic investment program |
$1,000 |
|
• with
an automatic investment program of $50 per month |
$100 |
|
To
add to any existing type of Fund account without an automatic investment
program |
$50 |
You may generally
purchase, exchange, or redeem Fund Shares on any business day by written
request, wire transfer, telephone, and in most cases, online at
janushenderson.com/individual. You may conduct transactions by mail (Janus
Henderson, P.O. Box 219109, Kansas City, MO 64121-9109), or by telephone at
1-800-525-3713. Purchase, exchange, or redemption requests must be received in
good order by the Fund or its agents prior to the close of the trading session
of the New York Stock Exchange in order to receive that day’s net asset value.
For additional information, refer to “To Open an Account or Buy Shares,” “To
Exchange Shares,” and/or “To Sell Shares” in the Prospectus.
|
Tax
information |
The
Fund’s distributions are taxable, and will be taxed as ordinary income or
capital gains, unless you are investing through a tax-advantaged arrangement,
such as a 401(k) plan or an individual retirement account (in which case you may
be taxed upon withdrawal of your investment from such account).
|
Payments
to broker-dealers and other financial
intermediaries |
With
respect to share classes not offered in this Prospectus, the Fund or its
distributor (or its affiliates) pay select broker-dealer firms or other
financial intermediaries for the sale of Fund shares and related services. These
payments may create a
7 | Janus
Henderson Balanced Fund
conflict
of interest by influencing a broker-dealer or other intermediary or a
salesperson to recommend the Fund over another investment or to recommend one
share class over another.
8 | Janus
Henderson Balanced Fund
Fund
summary
|
Ticker: |
JACNX |
Class
D Shares |
|
|
|
|
|
ANNUAL
FUND OPERATING EXPENSES
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Class
D |
|
Management
Fees(1) |
|
0.70% |
|
Other
Expenses |
|
0.16% |
|
Total
Annual Fund Operating Expenses |
|
0.86% |
(1)
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
D Shares |
|
|
|
$ |
|
|
9 | Janus
Henderson Contrarian Fund
|
|
10 | Janus
Henderson Contrarian Fund
|
|
11 | Janus
Henderson Contrarian Fund
|
Annual
Total Returns for Class D Shares
(calendar year-end) |
 |
|
|
|
|
|
|
|
|
Average
Annual Total Returns
(periods ended 12/31/22) |
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Since
Inception
(2/29/00) |
|
Class
D Shares |
|
|
|
|
|
Return
Before Taxes |
– 21.54% |
10.76% |
10.39% |
7.58% |
|
Return
After Taxes on Distributions |
– 21.64% |
8.96% |
8.82% |
6.68% |
|
Return
After Taxes on Distributions and Sale of Fund Shares(1) |
– 12.68% |
8.20% |
8.16% |
6.26% |
|
S&P
500®
Index
(reflects
no deduction for expenses, fees, or taxes) |
– 18.11% |
9.42% |
12.56% |
6.64% |
(1)
12 | Janus
Henderson Contrarian Fund
|
Management |
Investment
Adviser: Janus
Henderson Investors US LLC
Portfolio
Manager:
Nick
Schommer, CFA, is
Executive Vice President and Portfolio Manager of the Fund, which he has managed
since July 2017.
|
Purchase
and sale of Fund shares |
|
Minimum
Investment Requirements |
|
|
To
open a new regular Fund account |
$2,500 |
|
To
open a new regular Fund account with an automatic investment program of
$50 per month |
$100 |
|
To
open a new UGMA/UTMA account, Coverdell Education Savings Account, or a
retirement Fund account |
|
|
• without
an automatic investment program |
$1,000 |
|
• with
an automatic investment program of $50 per month |
$100 |
|
To
add to any existing type of Fund account without an automatic investment
program |
$50 |
You may generally
purchase, exchange, or redeem Fund Shares on any business day by written
request, wire transfer, telephone, and in most cases, online at
janushenderson.com/individual. You may conduct transactions by mail (Janus
Henderson, P.O. Box 219109, Kansas City, MO 64121-9109), or by telephone at
1-800-525-3713. Purchase, exchange, or redemption requests must be received in
good order by the Fund or its agents prior to the close of the trading session
of the New York Stock Exchange in order to receive that day’s net asset value.
For additional information, refer to “To Open an Account or Buy Shares,” “To
Exchange Shares,” and/or “To Sell Shares” in the Prospectus.
|
Tax
information |
The
Fund’s distributions are taxable, and will be taxed as ordinary income or
capital gains, unless you are investing through a tax-advantaged arrangement,
such as a 401(k) plan or an individual retirement account (in which case you may
be taxed upon withdrawal of your investment from such account).
|
Payments
to broker-dealers and other financial
intermediaries |
With
respect to share classes not offered in this Prospectus, the Fund or its
distributor (or its affiliates) pay select broker-dealer firms or other
financial intermediaries for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing a broker-dealer or
other intermediary or a salesperson to recommend the Fund over another
investment or to recommend one share class over another.
13 | Janus
Henderson Contrarian Fund
Fund
summary
|
Ticker: |
JANEX |
Class
D Shares |
|
|
|
|
|
ANNUAL
FUND OPERATING EXPENSES
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Class
D |
|
Management
Fees |
|
0.64% |
|
Other
Expenses |
|
0.15% |
|
Total
Annual Fund Operating Expenses |
|
0.79% |
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
D Shares |
|
|
|
|
|
|
14 | Janus
Henderson Enterprise Fund
|
|
15 | Janus
Henderson Enterprise Fund
|
|
|
Annual
Total Returns for Class D Shares
(calendar year-end) |
 |
|
|
|
|
|
|
|
|
Average
Annual Total Returns
(periods ended 12/31/22) |
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Since
Inception
(9/1/92) |
|
Class
D Shares |
|
|
|
|
|
Return
Before Taxes |
– 16.05% |
9.67% |
13.02% |
10.92% |
|
Return
After Taxes on Distributions |
– 17.96% |
7.45% |
11.39% |
9.96% |
|
Return
After Taxes on Distributions and Sale of Fund Shares(1) |
– 8.16% |
7.60% |
10.68% |
9.52% |
|
Russell
Midcap®
Growth Index
(reflects
no deduction for expenses, fees, or taxes) |
– 26.72% |
7.64% |
11.41% |
9.83% |
(1)
16 | Janus
Henderson Enterprise Fund
|
Management |
Investment
Adviser: Janus
Henderson Investors US LLC
Portfolio
Managers:
Brian
Demain, CFA,
is Executive Vice President and Lead Portfolio Manager of the Fund, which he has
managed or co-managed since November 2007. Cody
Wheaton,
CFA, is Executive Vice President and Co-Portfolio Manager of the Fund, which he
has co-managed since July 2016.
|
Purchase
and sale of Fund shares |
|
Minimum
Investment Requirements |
|
|
To
open a new regular Fund account |
$2,500 |
|
To
open a new regular Fund account with an automatic investment program of
$50 per month |
$100 |
|
To
open a new UGMA/UTMA account, Coverdell Education Savings Account, or a
retirement Fund account |
|
|
• without
an automatic investment program |
$1,000 |
|
• with
an automatic investment program of $50 per month |
$100 |
|
To
add to any existing type of Fund account without an automatic investment
program |
$50 |
You may generally
purchase, exchange, or redeem Fund Shares on any business day by written
request, wire transfer, telephone, and in most cases, online at
janushenderson.com/individual. You may conduct transactions by mail (Janus
Henderson, P.O. Box 219109, Kansas City, MO 64121-9109), or by telephone at
1-800-525-3713. Purchase, exchange, or redemption requests must be received in
good order by the Fund or its agents prior to the close of the trading session
of the New York Stock Exchange in order to receive that day’s net asset value.
For additional information, refer to “To Open an Account or Buy Shares,” “To
Exchange Shares,” and/or “To Sell Shares” in the Prospectus.
|
Tax
information |
The
Fund’s distributions are taxable, and will be taxed as ordinary income or
capital gains, unless you are investing through a tax-advantaged arrangement,
such as a 401(k) plan or an individual retirement account (in which case you may
be taxed upon withdrawal of your investment from such account).
|
Payments
to broker-dealers and other financial
intermediaries |
With
respect to share classes not offered in this Prospectus, the Fund or its
distributor (or its affiliates) pay select broker-dealer firms or other
financial intermediaries for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing a broker-dealer or
other intermediary or a salesperson to recommend the Fund over another
investment or to recommend one share class over another.
17 | Janus
Henderson Enterprise Fund
Fund
summary
|
Ticker: |
JFRDX |
Class
D Shares |
|
|
|
|
|
ANNUAL
FUND OPERATING EXPENSES
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Class
D |
|
Management
Fees(1) |
|
0.55% |
|
Other
Expenses |
|
0.14% |
|
Total
Annual Fund Operating Expenses |
|
0.69% |
(1)
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
D Shares |
|
|
|
|
|
|
18 | Janus
Henderson Forty Fund
|
|
19 | Janus
Henderson Forty Fund
|
|
|
Annual
Total Returns for Class D Shares
(calendar year-end) |
 |
|
|
|
|
|
|
|
20 | Janus
Henderson Forty Fund
|
Average
Annual Total Returns
(periods ended 12/31/22) |
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Since
Inception
of
Predecessor Fund
(5/1/97) |
|
Class
D Shares |
|
|
|
|
|
Return
Before Taxes |
– 33.58% |
9.52% |
12.77% |
10.85% |
|
Return
After Taxes on Distributions |
– 33.59% |
7.82% |
9.54% |
9.52% |
|
Return
After Taxes on Distributions and Sale of Fund Shares(1) |
– 19.87% |
7.61% |
9.64% |
9.26% |
|
Russell
1000®
Growth Index
(reflects
no deduction for expenses, fees, or taxes) |
– 29.14% |
10.96% |
14.10% |
8.30% |
|
S&P
500®
Index
(reflects
no deduction for expenses, fees, or taxes) |
– 18.11% |
9.42% |
12.56% |
8.30% |
(1)
|
Management |
Investment
Adviser: Janus
Henderson Investors US LLC
Portfolio
Managers:
A.
Douglas Rao is Executive Vice
President and Co-Portfolio Manager of the Fund, which he has managed or
co-managed since June 2013. Brian
Recht is
Executive Vice President and Co-Portfolio Manager of the Fund, which he has
co-managed since March 2022. Nick
Schommer,
CFA, is Executive Vice President and Co-Portfolio Manager of the Fund, which he
has co-managed since January 2016.
|
Purchase
and sale of Fund shares |
|
Minimum
Investment Requirements |
|
|
To
open a new regular Fund account |
$2,500 |
|
To
open a new regular Fund account with an automatic investment program of
$50 per month |
$100 |
|
To
open a new UGMA/UTMA account, Coverdell Education Savings Account, or a
retirement Fund account |
|
|
• without
an automatic investment program |
$1,000 |
|
• with
an automatic investment program of $50 per month |
$100 |
|
To
add to any existing type of Fund account without an automatic investment
program |
$50 |
21 | Janus
Henderson Forty Fund
You may generally
purchase, exchange, or redeem Fund Shares on any business day by written
request, wire transfer, telephone, and in most cases, online at
janushenderson.com/individual. You may conduct transactions by mail (Janus
Henderson, P.O. Box 219109, Kansas City, MO 64121-9109), or by telephone at
1-800-525-3713. Purchase, exchange, or redemption requests must be received in
good order by the Fund or its agents prior to the close of the trading session
of the New York Stock Exchange in order to receive that day’s net asset value.
For additional information, refer to “To Open an Account or Buy Shares,” “To
Exchange Shares,” and/or “To Sell Shares” in the Prospectus.
|
Tax
information |
The
Fund’s distributions are taxable, and will be taxed as ordinary income or
capital gains, unless you are investing through a tax-advantaged arrangement,
such as a 401(k) plan or an individual retirement account (in which case you may
be taxed upon withdrawal of your investment from such account).
|
Payments
to broker-dealers and other financial
intermediaries |
With
respect to share classes not offered in this Prospectus, the Fund or its
distributor (or its affiliates) pay select broker-dealer firms or other
financial intermediaries for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing a broker-dealer or
other intermediary or a salesperson to recommend the Fund over another
investment or to recommend one share class over another.
22 | Janus
Henderson Forty Fund
Fund
summary
|
Ticker: |
JNGIX |
Class
D Shares |
|
|
|
|
|
ANNUAL
FUND OPERATING EXPENSES
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Class
D |
|
Management
Fees |
|
0.60% |
|
Other
Expenses |
|
0.15% |
|
Total
Annual Fund Operating Expenses |
|
0.75% |
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
D Shares |
|
|
|
|
|
|
|
|
23 | Janus
Henderson Growth and Income Fund
|
|
24 | Janus
Henderson Growth and Income Fund
|
Annual
Total Returns for Class D Shares
(calendar year-end) |
 |
|
|
|
|
|
|
|
|
Average
Annual Total Returns
(periods ended 12/31/22) |
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Since
Inception
(5/15/91) |
|
Class
D Shares |
|
|
|
|
|
Return
Before Taxes |
– 14.20% |
8.72% |
12.33% |
10.59% |
|
Return
After Taxes on Distributions |
– 15.50% |
7.30% |
10.90% |
9.44% |
|
Return
After Taxes on Distributions and Sale of Fund Shares(1) |
– 7.50% |
6.74% |
9.95% |
8.99% |
|
S&P
500®
Index
(reflects
no deduction for expenses, fees, or taxes) |
– 18.11% |
9.42% |
12.56% |
9.88% |
(1)
25 | Janus
Henderson Growth and Income Fund
|
Management |
Investment
Adviser: Janus
Henderson Investors US LLC
Portfolio
Manager:
Jeremiah
Buckley, CFA, is
Executive Vice President and Portfolio Manager of the Fund, which he has managed
or co-managed since July 2014.
|
Purchase
and sale of Fund shares |
|
Minimum
Investment Requirements |
|
|
To
open a new regular Fund account |
$2,500 |
|
To
open a new regular Fund account with an automatic investment program of
$50 per month |
$100 |
|
To
open a new UGMA/UTMA account, Coverdell Education Savings Account, or a
retirement Fund account |
|
|
• without
an automatic investment program |
$1,000 |
|
• with
an automatic investment program of $50 per month |
$100 |
|
To
add to any existing type of Fund account without an automatic investment
program |
$50 |
You may generally
purchase, exchange, or redeem Fund Shares on any business day by written
request, wire transfer, telephone, and in most cases, online at
janushenderson.com/individual. You may conduct transactions by mail (Janus
Henderson, P.O. Box 219109, Kansas City, MO 64121-9109), or by telephone at
1-800-525-3713. Purchase, exchange, or redemption requests must be received in
good order by the Fund or its agents prior to the close of the trading session
of the New York Stock Exchange in order to receive that day’s net asset value.
For additional information, refer to “To Open an Account or Buy Shares,” “To
Exchange Shares,” and/or “To Sell Shares” in the Prospectus.
|
Tax
information |
The
Fund’s distributions are taxable, and will be taxed as ordinary income or
capital gains, unless you are investing through a tax-advantaged arrangement,
such as a 401(k) plan or an individual retirement account (in which case you may
be taxed upon withdrawal of your investment from such account).
|
Payments
to broker-dealers and other financial
intermediaries |
With
respect to share classes not offered in this Prospectus, the Fund or its
distributor (or its affiliates) pay select broker-dealer firms or other
financial intermediaries for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing a broker-dealer or
other intermediary or a salesperson to recommend the Fund over another
investment or to recommend one share class over another.
26 | Janus
Henderson Growth and Income Fund
Fund
summary
|
Ticker: |
JNRFX |
Class
D Shares |
|
|
|
|
|
ANNUAL
FUND OPERATING EXPENSES
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Class
D |
|
Management
Fees(1) |
|
0.50% |
|
Other
Expenses |
|
0.14% |
|
Total
Annual Fund Operating Expenses |
|
0.64% |
(1)
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
D Shares |
|
|
|
|
|
|
27 | Janus
Henderson Research Fund
|
|
28 | Janus
Henderson Research Fund
|
|
|
Annual
Total Returns for Class D Shares
(calendar year-end) |
 |
|
|
|
|
|
|
|
29 | Janus
Henderson Research Fund
|
Average
Annual Total Returns
(periods ended 12/31/22) |
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Since
Inception
(5/3/93) |
|
Class
D Shares |
|
|
|
|
|
Return
Before Taxes |
– 29.96% |
8.07% |
11.87% |
10.71% |
|
Return
After Taxes on Distributions |
– 30.04% |
6.27% |
9.96% |
9.26% |
|
Return
After Taxes on Distributions and Sale of Fund Shares(1) |
– 17.69% |
6.36% |
9.53% |
8.92% |
|
Russell
1000®
Growth Index
(reflects
no deduction for expenses, fees, or taxes) |
– 29.14% |
10.96% |
14.10% |
9.65% |
|
S&P
500®
Index
(reflects
no deduction for expenses, fees, or taxes) |
– 18.11% |
9.42% |
12.56% |
9.67% |
(1)
|
Management |
Investment
Adviser: Janus
Henderson Investors US LLC
Portfolio
Management:
Matthew
Peron, the
Adviser’s Director of Research and Executive Vice President of the Fund,
provides general oversight of the Central Research Team and has done so since
April 2020.
|
Purchase
and sale of Fund shares |
|
Minimum
Investment Requirements |
|
|
To
open a new regular Fund account |
$2,500 |
|
To
open a new regular Fund account with an automatic investment program of
$50 per month |
$100 |
|
To
open a new UGMA/UTMA account, Coverdell Education Savings Account, or a
retirement Fund account |
|
|
• without
an automatic investment program |
$1,000 |
|
• with
an automatic investment program of $50 per month |
$100 |
|
To
add to any existing type of Fund account without an automatic investment
program |
$50 |
You may generally
purchase, exchange, or redeem Fund Shares on any business day by written
request, wire transfer, telephone, and in most cases, online at
janushenderson.com/individual. You may conduct transactions by mail (Janus
Henderson, P.O. Box 219109, Kansas City, MO 64121-9109), or by telephone at
1-800-525-3713. Purchase, exchange, or redemption requests must be received in
good order by the Fund or its agents prior to the close of the trading session
of the New York Stock Exchange in order to receive that day’s net asset value.
For additional information, refer to “To Open an Account or Buy Shares,” “To
Exchange Shares,” and/or “To Sell Shares” in the Prospectus.
30 | Janus
Henderson Research Fund
|
Tax
information |
The
Fund’s distributions are taxable, and will be taxed as ordinary income or
capital gains, unless you are investing through a tax-advantaged arrangement,
such as a 401(k) plan or an individual retirement account (in which case you may
be taxed upon withdrawal of your investment from such account).
|
Payments
to broker-dealers and other financial
intermediaries |
With
respect to share classes not offered in this Prospectus, the Fund or its
distributor (or its affiliates) pay select broker-dealer firms or other
financial intermediaries for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing a broker-dealer or
other intermediary or a salesperson to recommend the Fund over another
investment or to recommend one share class over another.
31 | Janus
Henderson Research Fund
Fund
summary
|
Ticker: |
JANIX |
Class
D Shares |
|
|
|
|
|
ANNUAL
FUND OPERATING EXPENSES
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Class
D |
|
Management
Fees |
|
0.64% |
|
Other
Expenses |
|
0.15% |
|
Total
Annual Fund Operating Expenses |
|
0.79% |
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
D Shares |
|
|
|
|
|
|
32 | Janus
Henderson Triton Fund
|
|
33 | Janus
Henderson Triton Fund
|
|
|
Annual
Total Returns for Class D Shares
(calendar year-end) |
 |
|
|
|
|
|
|
|
34 | Janus
Henderson Triton Fund
|
Average
Annual Total Returns
(periods ended 12/31/22) |
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Since
Inception
(2/25/05) |
|
Class
D Shares |
|
|
|
|
|
Return
Before Taxes |
– 23.68% |
5.04% |
10.52% |
10.87% |
|
Return
After Taxes on Distributions |
– 24.76% |
3.00% |
8.69% |
9.48% |
|
Return
After Taxes on Distributions and Sale of Fund Shares(1) |
– 13.26% |
3.94% |
8.46% |
9.09% |
|
Russell
2500TM
Growth Index
(reflects
no deduction for expenses, fees, or taxes) |
– 26.21% |
5.97% |
10.62% |
8.80% |
|
Russell
2000®
Growth Index
(reflects
no deduction for expenses, fees, or taxes) |
– 26.36% |
3.51% |
9.20% |
7.63% |
(1)
|
Management |
Investment
Adviser: Janus
Henderson Investors US LLC
Portfolio
Managers:
Jonathan
D. Coleman,
CFA, is Executive Vice President and Lead Portfolio Manager of the Fund, which
he has managed or co-managed since May 2013. Scott
Stutzman,
CFA, is Executive Vice President and Co-Portfolio Manager of the Fund, which he
has co-managed since July 2016.
|
Purchase
and sale of Fund shares |
|
Minimum
Investment Requirements |
|
|
To
open a new regular Fund account |
$2,500 |
|
To
open a new regular Fund account with an automatic investment program of
$50 per month |
$100 |
|
To
open a new UGMA/UTMA account, Coverdell Education Savings Account, or a
retirement Fund account |
|
|
• without
an automatic investment program |
$1,000 |
|
• with
an automatic investment program of $50 per month |
$100 |
|
To
add to any existing type of Fund account without an automatic investment
program |
$50 |
You may generally
purchase, exchange, or redeem Fund Shares on any business day by written
request, wire transfer, telephone, and in most cases, online at
janushenderson.com/individual. You may conduct transactions by mail (Janus
Henderson, P.O. Box 219109, Kansas City, MO 64121-9109), or by telephone at
1-800-525-3713. Purchase, exchange, or redemption requests must be received in
good order by the Fund or its agents prior to the close of the trading session
of
35 | Janus
Henderson Triton Fund
the New
York Stock Exchange in order to receive that day’s net asset value. For
additional information, refer to “To Open an Account or Buy Shares,” “To
Exchange Shares,” and/or “To Sell Shares” in the Prospectus.
|
Tax
information |
The
Fund’s distributions are taxable, and will be taxed as ordinary income or
capital gains, unless you are investing through a tax-advantaged arrangement,
such as a 401(k) plan or an individual retirement account (in which case you may
be taxed upon withdrawal of your investment from such account).
|
Payments
to broker-dealers and other financial
intermediaries |
With
respect to share classes not offered in this Prospectus, the Fund or its
distributor (or its affiliates) pay select broker-dealer firms or other
financial intermediaries for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing a broker-dealer or
other intermediary or a salesperson to recommend the Fund over another
investment or to recommend one share class over another.
36 | Janus
Henderson Triton Fund
Fund
summary
|
Ticker: |
JANVX |
Class
D Shares |
|
|
|
|
|
ANNUAL
FUND OPERATING EXPENSES
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Class
D |
|
Management
Fees |
|
0.64% |
|
Other
Expenses |
|
0.15% |
|
Total
Annual Fund Operating Expenses |
|
0.79% |
|
|
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
D Shares |
|
|
|
|
|
|
37 | Janus
Henderson Venture Fund
|
|
38 | Janus
Henderson Venture Fund
|
|
|
Annual
Total Returns for Class D Shares
(calendar year-end) |
 |
|
|
|
|
|
|
|
39 | Janus
Henderson Venture Fund
|
Average
Annual Total Returns
(periods ended 12/31/22) |
|
|
|
|
|
|
1
Year |
5
Years |
10
Years |
Since
Inception
(4/30/85) |
|
Class
D Shares |
|
|
|
|
|
Return
Before Taxes |
– 24.17% |
5.60% |
10.51% |
11.41% |
|
Return
After Taxes on Distributions |
– 24.94% |
3.78% |
8.53% |
9.30% |
|
Return
After Taxes on Distributions and Sale of Fund Shares(1) |
– 13.77% |
4.31% |
8.25% |
9.19% |
|
Russell
2000®
Growth Index
(reflects
no deduction for expenses, fees, or taxes) |
– 26.36% |
3.51% |
9.20% |
7.75% |
|
Russell
2000®
Index
(reflects
no deduction for expenses, fees, or taxes) |
– 20.44% |
4.13% |
9.01% |
9.16% |
(1)
|
Management |
Investment
Adviser: Janus
Henderson Investors US LLC
Portfolio
Managers:
Jonathan
D. Coleman,
CFA, is Executive Vice President and Lead Portfolio Manager of the Fund, which
he has managed or co-managed since May 2013. Scott
Stutzman,
CFA, is Executive Vice President and Co-Portfolio Manager of the Fund, which he
has co-managed since July 2016.
|
Purchase
and sale of Fund shares |
|
Minimum
Investment Requirements |
|
|
To
open a new regular Fund account |
$2,500 |
|
To
open a new regular Fund account with an automatic investment program of
$50 per month |
$100 |
|
To
open a new UGMA/UTMA account, Coverdell Education Savings Account, or a
retirement Fund account |
|
|
• without
an automatic investment program |
$1,000 |
|
• with
an automatic investment program of $50 per month |
$100 |
|
To
add to any existing type of Fund account without an automatic investment
program |
$50 |
You may generally
purchase, exchange, or redeem Fund Shares on any business day by written
request, wire transfer, telephone, and in most cases, online at
janushenderson.com/individual. You may conduct transactions by mail (Janus
Henderson, P.O. Box 219109, Kansas City, MO 64121-9109), or by telephone at
1-800-525-3713. Purchase, exchange, or redemption requests must be received in
good order by the Fund or its agents prior to the close of the trading session
of the New York Stock Exchange in order to receive that day’s net asset value.
For additional information, refer to “To Open an Account or Buy Shares,” “To
Exchange Shares,” and/or “To Sell Shares” in the Prospectus.
40 | Janus
Henderson Venture Fund
|
Tax
information |
The
Fund’s distributions are taxable, and will be taxed as ordinary income or
capital gains, unless you are investing through a tax-advantaged arrangement,
such as a 401(k) plan or an individual retirement account (in which case you may
be taxed upon withdrawal of your investment from such account).
|
Payments
to broker-dealers and other financial
intermediaries |
With
respect to share classes not offered in this Prospectus, the Fund or its
distributor (or its affiliates) pay select broker-dealer firms or other
financial intermediaries for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing a broker-dealer or
other intermediary or a salesperson to recommend the Fund over another
investment or to recommend one share class over another.
41 | Janus
Henderson Venture Fund
Additional
information about the Funds
Please
refer to the following important information when reviewing the “Fees and
Expenses of the Fund” table in each Fund Summary of the Prospectus. The fees and expenses
shown were determined based on average net assets as of the fiscal year ended
September 30, 2022.
•
“Annual
Fund Operating Expenses” are paid out of a Fund’s assets and include fees for
portfolio management and administrative services, including recordkeeping,
accounting, and other shareholder services, as well as reimbursement to the
Adviser of its out-of-pocket costs for services as administrator. You do not pay
these fees directly but, as the Example in each Fund Summary shows, these costs
are borne indirectly by all shareholders.
•
The
“Management Fee” is the investment advisory fee rate paid by each Fund to the
Adviser. Janus Henderson Contrarian Fund, Janus Henderson Forty Fund, and Janus
Henderson Research Fund each pay an investment advisory fee rate that adjusts up
or down by a variable rate of up to 0.15% (assuming constant assets) on a
monthly basis based upon the Fund’s performance relative to its benchmark index
during a measurement period. This base fee rate, prior to any performance
adjustment, is 0.64% for each of Janus Henderson Contrarian Fund, Janus
Henderson Forty Fund, and Janus Henderson Research Fund. Refer to “Management
Expenses” in this Prospectus for additional information with further description
in the Statement of Additional Information (“SAI”).
•
“Other
Expenses”
°
include
an administrative services fee based on the average daily net assets of Class D
Shares for shareholder services provided by Janus Henderson Services US LLC (the
“Transfer Agent”), the Funds’ transfer agent, 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% |
°
include acquired fund
fees and expenses, which are indirect expenses a Fund may incur as a result of
investing in shares of an underlying fund, to the extent such expenses are less
than 0.01%. “Acquired Fund” refers to any underlying fund (including, but not
limited to, exchange-traded funds) in which a fund invests or has invested
during the period. To the extent that a Fund invests in Acquired Funds, the
Fund’s “Total Annual Fund Operating Expenses” may not correlate to the “Ratio of
gross expenses to average net assets” presented in the Financial Highlights
tables because that ratio includes only the direct operating expenses incurred
by the Fund, not the indirect costs of investing in Acquired Funds. Such amounts
are less than 0.01%.
°
may
include reimbursement to the Transfer Agent of its out-of-pocket costs for
arranging for the provision by third parties of certain servicing to
shareholders.
°
include custodian fees
and expenses, legal and auditing fees, printing and mailing costs of sending
reports and other information to existing shareholders, and Independent
Trustees’ fees and expenses.
•
The Adviser has
contractually agreed to waive and/or reimburse each Fund’s “Total Annual Fund
Operating Expenses” to certain limits for at least a one-year period commencing
on January 27, 2023. The expense
limits are described in the “Management Expenses” section of this Prospectus.
Because a fee waiver will have a positive effect upon a fund’s performance, a
fund that pays a performance-based investment advisory fee may experience a
performance adjustment that is considered favorable to the Adviser as a result
of a fee waiver that is in place during the period when the performance
adjustment applies.
•
All
expenses in a Fund’s “Fees and Expenses of the Fund” table are shown without the
effect of expense offset arrangements. Pursuant to such arrangements, credits
realized as a result of uninvested cash balances are used to reduce custodian
and transfer agent expenses.
The
Funds’ Board of Trustees (“Trustees”) may change each Fund’s investment
objective or non-fundamental principal investment strategies without a
shareholder vote. A Fund will notify you in writing at least 60 days before
making any such change it considers material. To the extent that a Fund has an
80% investment policy, the Fund will provide shareholders with at least 60 days’
notice prior to changing this policy. If there is a material change to a Fund’s
investment objective or
42 | Janus
Investment Fund
principal
investment strategies, you should consider whether the Fund remains an
appropriate investment for you. There is no guarantee that a Fund will achieve
its investment objective.
Unless otherwise stated,
the following section provides additional information about the investment
strategies and general policies that are summarized in the Fund Summary
sections, including the types of securities each Fund may invest in when
pursuing its investment objective. This section also describes investment
strategies and policies that the Funds may use to a lesser extent. These
non-principal investment strategies and policies may become more important in
the future since a Fund’s composition can change over time. Except for the
Funds’ policies with respect to illiquid investments,
borrowing,
and derivatives use, the percentage limitations included in these policies and
elsewhere in this Prospectus and/or the SAI normally apply only at the time of
purchase of a security. So, for example, if a Fund exceeds a limit, other than
illiquid investments,
borrowing,
and derivatives use, as a result of market fluctuations or the sale of other
securities, it will not be required to dispose of any securities. The “Glossary
of Investment Terms” includes descriptions of investment terms used throughout
the Prospectus.
Security
Selection
Janus
Henderson Balanced Fund pursues its investment
objective by normally investing 35-65% of its assets in equity securities and
the remaining assets in fixed-income securities and cash equivalents. In
choosing investments for the Fund, the portfolio manager who focuses on the
equity portion of the Fund applies a “bottom up” approach and looks at companies
one at a time to determine if a company is an attractive investment opportunity
and if it is consistent with the Fund’s investment policies. Factors that the
equity portfolio manager may consider in his fundamental analysis include a
company’s revenue growth potential, returns on capital, and balance sheet
flexibility. The equity portfolio manager will generally consider selling a
security when, among other things, it reaches or exceeds its targeted value, the
investment thesis for owning the position has changed, or to rebalance industry
or sector weightings. The portfolio managers who focus on the fixed-income
portion of the Fund use research-driven, “top-down” and “bottom-up” factors to
identify and manage exposure to risks across sectors, industries, and individual
investments. The fixed-income portfolio managers evaluate expected risk-adjusted
returns on a portfolio and position level by analyzing fundamentals, valuations,
and market technical indicators.
Janus
Henderson Contrarian Fund pursues
its investment objective by normally investing at least 80% of its net assets
(plus any borrowings for investment purposes) in equity securities with the
potential for long-term growth of capital. The portfolio manager seeks to invest
in companies where the stock price trades at a significant discount to the
portfolio manager’s estimate of fair value and whose intrinsic value the
portfolio manager believes will grow over time. The portfolio manager applies a
“bottom up” approach in choosing investments. In other words, the portfolio
manager looks at companies one at a time to determine if a company is an
attractive investment opportunity and if it is consistent with the Fund’s
investment policies. In conducting the “bottom up” analysis, the portfolio
manager seeks to identify durable businesses whose stocks are available at
market prices below the portfolio manager’s estimate of their intrinsic value,
whose intrinsic value is expected to grow over time, and whose management teams
are aligned with shareholders. The portfolio manager will generally consider
selling a stock when, in the portfolio manager’s opinion, the business shows
declining fundamentals, the stock is overvalued, or if the investing thesis for
owning the stock has changed.
Janus
Henderson Enterprise Fund may invest substantially
all of its assets in common stock selected for their growth potential. The
portfolio managers apply a “bottom up” approach in choosing investments. In
other words, the portfolio managers look at companies one at a time to determine
if a company is an attractive investment opportunity and if it is consistent
with the Fund’s investment policies. Attributes considered in the process of
securities selection may include sustainable growth, return on invested capital,
attractive valuation, strength of management, and competitive positioning. The
Fund will generally consider selling a stock when, in the portfolio managers’
opinion, there is a change in the company’s or industry’s fundamentals, there is
a deterioration in a company’s competitive positioning, or if a company reaches
or exceeds its targeted value. The Fund will also consider selling a stock if a
company’s market capitalization exceeds the top of the medium-sized company
range.
Janus
Henderson Forty Fund pursues its investment
objective by normally investing primarily in a portfolio of 30-40 common stocks
selected for their growth potential. The portfolio managers apply a “bottom up”
approach that focuses on fundamental research and considers, among other
factors, a company’s sustainable competitive advantages, long-term growth
potential, and shareholder value. The Fund will generally consider selling a
security when, in the portfolio managers’ opinion, there is a deterioration in a
company’s financial, the investment thesis for owning the position has changed,
or if the security exceeds its targeted value.
43 | Janus
Investment Fund
Janus
Henderson Growth and Income Fund pursues its investment
objective by normally investing in dividend-paying common stocks with strong
growth potential. The portfolio manager applies a “bottom up” approach in
choosing investments. In other words, the portfolio manager looks at companies
one at a time to determine if a company is an attractive investment opportunity
and if it is consistent with the Fund’s investment policies. Factors that the
portfolio manager may consider in his fundamental analysis include a company’s
returns on capital, balance sheet flexibility, and dividend growth potential.
The portfolio manager will generally consider selling a security when, among
other things, it reaches or exceeds its targeted value, the investment thesis
for owning the position has changed, or to rebalance industry or sector
weightings.
The Adviser’s equity
research analysts, overseen by the Portfolio Oversight Team led by the Adviser’s
Director of Research Matthew Peron (the “Central Research Team”), select
investments for Janus
Henderson Research Fund that reflect the Central
Research Team’s high-conviction investment ideas in all market capitalizations
and styles. The Central Research Team, comprised of sector specialists, conducts
fundamental analysis with a focus on “bottom up” research, quantitative
modeling, and valuation analysis and rate their stocks based upon
attractiveness. Stocks considered to be attractive may have all or some of the
following characteristics: (i) good and preferably growing free cash flow, (ii)
strong and defensible market position, (iii) healthy risk/return profile, (iv)
exemplary governance, and (v) attractive valuation. Analysts bring their
high-conviction ideas to their respective sector teams. Sector teams compare the
appreciation and risk potential of each of the team’s high-conviction ideas and
construct a sector portfolio that is intended to maximize the best risk-reward
opportunities. The Central Research Team and Mr. Peron participate in the
portfolio construction process as part of their oversight function. Although the
Central Research Team may find high-conviction investment ideas anywhere in the
world, the Central Research Team emphasizes investments in securities of
U.S.-based issuers. Positions may be sold when, among other things, there is no
longer high conviction in the return potential of the investment, if the risk
characteristics have caused a re-evaluation of the opportunity, or if the
investment thesis for owning a position has changed. This may occur if the stock
has appreciated and reflects the anticipated value, if another company
represents a better risk-reward opportunity, or if the investment’s fundamental
characteristics deteriorate. Securities may also be sold from the portfolio to
rebalance sector weightings.
Janus
Henderson Triton Fund pursues its investment
objective by investing at least 50% of its equity assets in small- and
medium-sized companies. The Fund may also invest in larger companies with strong
growth potential. The portfolio managers apply a “bottom up” approach in
choosing investments. In other words, the portfolio managers look at companies
one at a time to determine if a company is an attractive investment opportunity
and if it is consistent with the Fund’s investment policies. Factors that the
portfolio managers may consider in their fundamental analysis include a
company’s valuation, operating margins, or returns on capital. The portfolio
managers will generally consider selling a position when, among other things,
there is a deterioration in a company’s competitive position or financials, a
company reaches or exceeds its targeted value, or if a company’s market
capitalization exceeds the top of the small- and medium-sized range.
Janus
Henderson Venture Fund pursues its investment
objective by investing at least 50% of its equity assets in small-sized
companies. The Fund may also invest in larger companies with strong growth
potential. The portfolio managers of apply a “bottom up” approach in choosing
investments. In other words, the portfolio managers look at companies one at a
time to determine if a company is an attractive investment opportunity and if it
is consistent with the Fund’s investment policies. Factors that the portfolio
managers may consider in their fundamental analysis include a company’s
valuation, operating margins, or returns on capital. The portfolio managers will
generally consider selling a position when, among other things, there is a
deterioration in a company’s competitive position or financials, a company
reaches or exceeds its targeted value, or if a company’s market capitalization
exceeds the top of the small-sized range.
Cash
Position
The Funds
may not always stay fully invested. For example, when the portfolio managers
and/or investment personnel
believe
that market conditions are unfavorable for investing, or when they are otherwise
unable to locate attractive investment opportunities, a Fund’s cash or similar
investments may increase. Due to differing investment strategies, the cash
positions among the Funds may vary significantly. When a Fund’s investments in
cash or similar investments increase, it may not participate in market advances
or declines to the same extent that it would if the Fund remained more fully
invested. To the extent a Fund invests its uninvested cash through a sweep
program (meaning its uninvested cash is pooled with uninvested cash of other
funds and invested in certain securities such as repurchase agreements), it is
subject to the risks of the account or fund into which it is investing,
including liquidity issues that may delay the Fund from accessing its
cash.
In
addition, a Fund may temporarily increase its cash position under certain
unusual circumstances, such as to protect its assets or maintain liquidity in
certain circumstances to meet unusually large redemptions. A Fund’s cash
position may also
44 | Janus
Investment Fund
increase
temporarily due to unusually large cash inflows. Under unusual circumstances
such as these, a Fund may invest up to 100% of its assets in cash or similar
investments. In this case, the Fund may take positions that are inconsistent
with its investment policies. As a result, the Fund may not achieve its
investment objective.
Consideration
of ESG Factors
The portfolio managers
and/or investment personnel of Janus
Henderson Enterprise Fund, Janus Henderson Growth and Income Fund, Janus
Henderson Research Fund, Janus Henderson Triton Fund, Janus Henderson Venture
Fund, and
the equity portion of Janus
Henderson Balanced Fund may consider one or more
environmental, social, and governance (“ESG”) factors alongside other
fundamental characteristics considered in the investment research process. In
the portfolio managers’ and/or investment personnel’s view, ESG factors, along
with other attributes relevant to fundamental analysis, could potentially impact
investment risk and/or returns. The identification of an ESG risk factor will
not necessarily exclude a particular security or sector that, in the portfolio
managers’ and/or investment personnel’s view, is otherwise suitable for
investment. To facilitate the assessment of ESG factors, the portfolio managers
and/or investment personnel use a mix of third-party data and internally
generated analyses and may engage directly with companies. ESG factors may or
may not be relevant or considered for each and every investment decision
depending on the portfolio managers’ and/or investment personnel’s perspective.
The portfolio managers and/or investment personnel may assess the relevance of
ESG factors to their fundamental research process differently across issuers,
sectors, regions, and asset classes.
Derivatives
A Fund may invest in
derivatives, which are financial instruments whose value is derived from, or
directly linked to, an underlying asset, instrument, currency, or index. A Fund
may take long and short positions in derivatives. Derivatives can be used for
hedging purposes or for non-hedging purposes, such as seeking to earn income and
enhance return, to protect unrealized gains, or to avoid realizing losses. Such
techniques may also be used to adjust currency exposure relative to a benchmark
index, to gain exposure to the market pending investment of cash balances, or to
meet liquidity needs.
Emerging
Markets
Within
the parameters of its specific investment policies, each 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 a Fund may invest include frontier market
countries, the economies of which are less developed than other emerging market
countries. Frontier market countries typically are located in the Asia-Pacific
region, Central and Eastern Europe, the Middle East, Central and South America,
and Africa.
ESG
Integration
The portfolio managers
who focus on the fixed-income portion of Janus
Henderson Balanced Fund integrate ESG factors by
incorporating ESG information into the Fund’s investment process. The
fixed-income portfolio managers focus on the ESG factors they consider most
likely to have a material impact on the financial performance of the issuers in
the Fund’s portfolio, which includes identifying material ESG risk factors
attributable to a particular sector, industry, or issuer. The fixed-income
portfolio managers believe that an issuer’s ESG practices may have an impact,
positive or negative, on the issuer’s long-term financial performance, and, at
their discretion, engage with an issuer’s management to encourage improved ESG
practices. ESG factors are one of many considerations in the investment
decision-making process and may not be determinative in deciding to include or
exclude an investment from the portfolio.
Foreign
Securities
Certain Funds may invest
in foreign securities. The portfolio managers and/or investment personnel seek
investments that meet the selection criteria, regardless of where an issuer or
company is located. Foreign securities are generally selected on a
security-by-security basis without regard to any predetermined allocation among
countries or geographic regions. However, certain factors, such as expected
levels of inflation, government policies influencing business conditions, the
outlook for currency relationships, and prospects for economic growth among
countries, regions, or geographic areas, may warrant greater consideration in
selecting foreign securities. The
Funds
may at times
have significant foreign exposure, including exposure to emerging
markets.
High-Yield/High-Risk
Bonds
Within the
parameters
of its
specific investment
policies,
certain
Funds may
invest in bonds that are rated below investment grade,
such
as
BB+ or lower
by Standard & Poor’s Ratings Services (“Standard & Poor’s”) and Fitch,
Inc. (“Fitch”), or Ba1 or
45 | Janus
Investment Fund
lower by Moody’s
Investors Service, Inc. (“Moody’s”), or is an unrated bond of similar quality.
Lower rated bonds have a higher degree of credit
risk than
higher quality bonds. A Fund may also invest in unrated bonds of foreign and
domestic issuers.
Illiquid
Investments
A Fund
will not acquire any illiquid investment if, immediately after the acquisition,
the Fund would have invested more than 15% of its net assets in illiquid
investments that are assets. An illiquid investment is any investment that a
Fund reasonably expects cannot be sold or disposed of in current market
conditions in seven calendar days or less without the sale or disposition
significantly changing the market value of the investment.
Initial
Public Offerings and Secondary Offerings
A Fund may purchase
shares issued as part of, or a short period after, a company’s IPO, and may at
times dispose of those shares shortly after their acquisition. An IPO is the
first sale of stock by a private company to the public. IPOs are often issued by
smaller, younger companies seeking the capital to expand, but can also be done
by large privately-owned companies looking to become publicly traded. A Fund may
also purchase shares in offerings made by companies that are publicly traded
(“secondary offerings”). Secondary offerings may be made by companies for a
number of reasons, including as part of a refinancing, to raise capital for
growth, and/or to provide existing shareholders with a way to register and sell
restricted shares.
Leverage
Certain of a Fund’s
investments, including derivatives and short sale transactions, involve the use
of leverage. Leverage is investment exposure which exceeds the initial amount
invested. Leverage occurs when a Fund increases its assets available for
investment using derivatives,
short
sales,
when-issued,
delayed delivery, or forward commitment transactions, or other similar
transactions. The use of other investment techniques
can also
create a leveraging effect on a Fund.
Loans
Janus
Henderson Balanced Fund may invest in various commercial loans, including bank
loans, bridge loans, debtor-in-possession (“DIP”) loans, mezzanine loans, and
other fixed and floating rate loans. These loans may be acquired through loan
participations and assignments or on a when-issued basis. Commercial loans will
comprise no more than 20% of the Fund’s
total
assets.
Bank
Loans. Bank
loans are obligations of companies or other entities entered into in connection
with recapitalizations, acquisitions, and refinancings. The Fund’s investments
in bank loans are generally acquired as a participation interest in, or
assignment of, loans originated by a lender or other financial institution.
These investments may include institutionally-traded floating and fixed-rate
debt securities.
Bridge
Loans. Bridge
loans are short-term loan arrangements typically made by a borrower in
anticipation of receiving intermediate-term or long-term permanent financing.
Most bridge loans are structured as floating-rate debt with step-up provisions
under which the interest rate on the bridge loan increases the longer the loan
remains outstanding. In addition, bridge loans commonly contain a conversion
feature that allows the bridge loan investor to convert its loan interest to
senior exchange notes if the loan has not been prepaid in full on or prior to
its maturity date. Bridge loans typically are structured as senior loans, but
may be structured as junior loans.
DIP
Loans. DIP loans
are issued in connection with restructuring and refinancing transactions. DIP
loans are loans to a debtor-in-possession in a proceeding under the U.S.
bankruptcy code that have been approved by the bankruptcy court. DIP loans are
typically fully secured by a lien on the debtor’s otherwise unencumbered assets
or secured by a junior lien on the debtor’s encumbered assets (so long as the
loan is fully secured based on the most recent current valuation or appraisal
report of the debtor). DIP loans are often required to close with certainty and
in a rapid manner to satisfy existing creditors and to enable the issuer to
emerge from bankruptcy or to avoid a bankruptcy proceeding.
Mezzanine
Loans. Mezzanine
loans are a hybrid of debt and equity financing that is typically used to fund
the expansion of existing companies. A mezzanine loan is composed of debt
capital that gives the lender the right to convert to an ownership or equity
interest in the company if the loan is not paid back in time and in full.
Mezzanine loans typically are the most subordinated debt obligation in an
issuer’s capital structure.
46 | Janus
Investment Fund
Mortgage-
and Asset-Backed Securities
A 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 by the full
faith and credit of the U.S. Government, which means that the U.S. Government
guarantees that the interest and principal will be paid when due. Fannie Mae and
Freddie Mac securities are not backed by the full faith and credit of the U.S.
Government.
A Fund
may also purchase 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 a Fund’s yield and
return.
Nondiversification
Diversification is a way
to reduce risk by investing in a broad range of stocks or other securities.
Janus
Henderson Contrarian Fund and Janus
Henderson Forty Fund are classified as
nondiversified. A fund that is classified as nondiversified has the ability to
take larger positions in securities than a fund that is classified as
diversified. This gives a fund which is classified as nondiversified more
flexibility to focus its investments in companies that the portfolio managers
have identified as the most attractive for the investment objective and strategy
of the fund. However, because the appreciation or depreciation of a single
security may have a greater impact on the net asset value of a fund which is
classified as nondiversified, its share price can be expected to fluctuate more
than a comparable fund which is classified as diversified. This fluctuation, if
significant, may affect the performance of the fund.
Portfolio
Turnover
In
general, each Fund intends to purchase securities for long-term investment,
although, to a limited extent, a Fund may purchase securities in anticipation of
relatively short-term gains. Short-term transactions may also result from
liquidity needs, securities having reached a price or yield objective, changes
in interest rates or the credit standing of an issuer, or by reason of economic
or other developments not foreseen at the time of the initial investment
decision. A Fund may also sell one security and simultaneously purchase the same
or a comparable security to take advantage of short-term differentials in bond
yields or securities prices. Portfolio turnover is affected by market
conditions, changes in the size of a Fund (including due to shareholder
purchases and redemptions), the nature of a Fund’s investments, and the
investment style of the portfolio managers and/or investment personnel. Changes
are normally made in a Fund’s portfolio whenever the portfolio managers and/or
investment personnel believe such changes are desirable. Portfolio turnover
rates are generally not a factor in making buy and sell decisions for the
Funds.
Increased
portfolio turnover may result in higher costs for brokerage commissions, dealer
mark-ups, and other transaction costs, and may also result in taxable capital
gains. Higher costs associated with increased portfolio turnover also may have a
negative effect on a Fund’s performance. The “Financial Highlights” section of
this Prospectus shows the Funds’ historical turnover rates.
REITs
and Real
Estate-Related Securities
A 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, preferred stocks, and other
securities, including, but not limited to, mortgage-backed securities, real
estate-backed securities, securities of REITs and similar REIT-like entities
(such as real estate operation companies (“REOCs”)). A REIT is an entity that
invests in real estate-related projects, such as properties, mortgage loans, and
construction loans. REITs are often categorized as equity REITs, mortgage REITs,
and hybrid REITs. An equity REIT, the most common type of REIT, invests
primarily in the fee ownership of land and buildings. An equity REIT derives its
income primarily from rental income but may also realize capital gains or losses
by selling real estate properties in its portfolio that have appreciated or
depreciated in value. A mortgage REIT invests primarily in mortgages on real
estate, which may secure construction,
development,
or long-term
loans. A mortgage REIT generally derives its income from interest payments on
the credit it has extended. A hybrid REIT combines the characteristics of equity
REITs and mortgage REITs, generally by holding both ownership interests and
mortgage interests in real estate.
Similar to REITs, REOCs
are publicly-traded real estate companies that typically engage in the
development, management or financing of real estate, such as homebuilders, hotel
management companies, land developers and brokers. REOCs, however,
47 | Janus
Investment Fund
have not elected (or are
not eligible) to be taxed as a REIT. The reasons for not making such an election
include the (i) availability of tax-loss carry-forwards, (ii) operation in
non-REIT-qualifying lines of business, and (iii) ability to retain earnings.
Instead, REOCs are generally structured as “C” corporations under the Internal
Revenue Code of 1986, as amended, and, as a result, are not required to
distribute any portion of their income. In this regard, although REOCs do not
receive the same favorable tax treatment that is accorded to REITs, REOCs are
typically subject to fewer restrictions than REITS, including the ability to
retain and/or reinvest funds from operations and more flexibility in terms of
the real estate investments they can make.
Securities
Lending
A Fund may seek to earn
additional income through lending its securities to certain qualified
broker-dealers and institutions on a short-term or long-term basis, in an amount
equal to up to one-third of its total assets as determined at the time of the
loan origination. When a Fund lends its securities, it receives collateral
(including cash collateral), at least equal to the value of securities loaned.
The Fund may earn income by investing this collateral in one or more affiliated
or non-affiliated cash management vehicles or in time deposits. It is also
possible that, due to a decline in the value of a cash management vehicle in
which collateral is invested, the Fund may lose money. There is also the risk
that when portfolio securities are lent, the securities may not be returned on a
timely basis, and the Fund may experience delays and costs in recovering the
security or gaining access to the collateral provided to the Fund to
collateralize the loan. 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. The Adviser intends to manage a
portion of the cash collateral in an affiliated cash management vehicle and will
receive an investment advisory fee for managing such assets.
Short
Sales
The Funds
may invest in short positions through short sales of stocks and structured
products, and through derivatives that include swaps, uncovered written calls,
and futures. With the exception of Janus Henderson Balanced Fund, each Fund’s
gross notional exposure to short positions may not exceed 10% of each Fund’s net
assets. Janus Henderson Balanced Fund’s gross notional exposure to short
positions may not exceed 50% of the net assets in the Fund’s fixed-income
portion, and may not exceed 10% of the net assets in the Fund’s equity
portion.
A Fund
may also engage in short sales “against the box” and options for hedging
purposes that are not subject to the limits set forth above. Short sales against
the box involve selling short a security that a Fund owns, or the Fund has the
right to obtain the amount of the security sold short at a specified date in the
future. A Fund may also enter into a short sale to hedge against anticipated
declines in the market price of a security or to reduce portfolio
volatility.
A short
sale is generally a transaction in which a Fund sells a security it does not own
or have the right to acquire (or that it owns but does not wish to deliver) in
anticipation that the market price of that security will decline. To complete
the transaction, the Fund must borrow the security to make delivery to the
buyer. The Fund is then obligated to replace the security borrowed by purchasing
the security at the market price at the time of replacement. A short sale is
subject to the risk that if the price of the security sold short increases in
value, the Fund will incur a loss because it will have to replace the security
sold short by purchasing it at a higher price. In addition, the Fund may not
always be able to close out a short position at a particular time or at an
acceptable price. A lender may request, or market conditions may dictate, that
the borrowed securities be returned to the lender on short notice, and the Fund
may have to buy the borrowed securities at an unfavorable price. If this occurs
at a time when other short sellers of the same security also want to close out
their positions, a “short squeeze” can occur, which means that the demand is
greater than the supply for the stock sold short. If a short squeeze occurs, it
is more likely that the Fund will have to cover its short sale at an unfavorable
price and potentially reduce or eliminate any gain, or cause a loss, as a result
of the short sale. Because there is no upper limit to the price a borrowed
security may reach prior to closing a short position, a Fund’s losses are
potentially unlimited in a short sale transaction. A Fund’s gains and losses
will also be decreased or increased, as the case may be, by the amount of any
dividends, interest, or expenses, including transaction costs and borrowing
fees, the Fund may be required to pay in connection with a short sale. Such
payments may result in the Fund having higher expenses than a Fund that does not
engage in short sales and may negatively affect the Fund’s
performance.
A Fund may enter into a
derivatives transaction
to
obtain short
investment exposure to an underlying reference asset. If the value of the
underlying reference asset on which a Fund has obtained a short investment
exposure increases, the Fund will
48 | Janus
Investment Fund
incur a loss.
This
potential loss is theoretically unlimited. A short exposure
through a
derivative also exposes a Fund to credit risk, counterparty risk, and leverage
risk.
Special
Purpose Acquisition Companies
Certain
Funds may invest in stock, warrants, and other securities of special purpose
acquisition companies (“SPACs”) or similar entities that pool funds to seek
potential acquisition opportunities. Unless and until an acquisition is
completed, a SPAC typically invests its assets (less a portion retained to cover
expenses) in U.S. Government securities, money market fund securities, and cash.
If an acquisition that meets the requirements for the SPAC is not completed
within a pre-established period of time (typically two years), the invested
funds are returned to the SPAC’s shareholders. Because SPACs and similar
entities are in essence blank check companies without an operating history or
ongoing business other than seeking acquisitions, the value of a SPAC’s
securities is particularly dependent on the ability of the SPAC’s management to
timely identify and complete a profitable acquisition. Some SPACs may pursue
acquisitions only within certain industries or regions, which may increase the
volatility of their prices. To the extent the SPAC is invested in cash or
similar securities while awaiting an acquisition opportunity, a Fund’s ability
to meet its investment objective may be negatively impacted. In addition, some
SPACs may be traded in the over-the-counter market and may be considered
illiquid and/or be subject to restrictions on resale.
Special
Situations
The Funds
may invest in companies that demonstrate special situations or turnarounds,
meaning companies that have experienced significant business problems but are
believed to have favorable prospects for recovery. For example, a special
situation or turnaround may arise when, in the opinion of a Fund’s portfolio
managers and/or investment personnel, the securities of a particular issuer will
be recognized as undervalued by the market and appreciate in value due to a
specific development with respect to that issuer. Special situations may include
significant changes in a company’s allocation of its existing capital, a
restructuring of assets, or a redirection of free cash flow. For example,
issuers undergoing significant capital changes may include companies involved in
spin-offs, sales of divisions, mergers or acquisitions, companies involved in
bankruptcy proceedings, or companies initiating large changes in their debt to
equity ratio. Companies that are redirecting cash flows may be reducing debt,
repurchasing shares, or paying dividends. Special situations may also result
from: (i) significant changes in industry structure through regulatory
developments or shifts in competition; (ii) a new or improved product, service,
operation, or technological advance; (iii) changes in senior management or other
extraordinary corporate event; (iv) differences in market supply of and demand
for the security; or (v) significant changes in cost structure. Investments in
“special situations” companies can present greater risks than investments in
companies not experiencing special situations, and a Fund’s performance could be
adversely impacted if the securities selected decline in value or fail to
appreciate in value.
Swap
Agreements
Certain
Funds may utilize swap agreements including, but not limited to, credit default
swaps, equity swaps, inflation index swaps, interest rate and currency swaps,
total return swaps (including fixed-income total return swaps), and swaps on
exchange-traded funds, as a means to gain exposure to certain companies or
countries, and/or to “hedge” or protect their portfolios from adverse movements
in securities prices, the rate of inflation, or interest rates. Swaps may also
be used for capital appreciation. Swap agreements are two-party contracts to
exchange one set of cash flows for another. Swap agreements entail the risk that
a party will default on its payment obligations to a 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 a 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. Various types of swaps such
as credit default, equity, interest rate, and total return are described in the
“Glossary of Investment Terms.”
TBA
Commitments
A Fund
may enter into “to be announced” or “TBA” commitments. TBA commitments 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. At the time the TBA
commitment is made, the transaction is recorded and thereafter the value of such
securities is reflected each day in determining a Fund’s net asset value
(“NAV”). Because a Fund is generally not required to pay for the security until
the settlement date, if the Fund remains substantially fully invested at a time
when TBA commitment purchases are outstanding, the purchases may result in a
form of leverage.
49 | Janus
Investment Fund
U.S.
Government Securities
Each
Fund, particularly Janus Henderson Balanced Fund, may invest in U.S. Government
securities. U.S. Government securities include those issued directly by the U.S.
Treasury and those issued or guaranteed by various U.S. Government agencies and
instrumentalities. Some government securities are backed by the full faith and
credit of the United States. Other government securities are backed only by the
rights of the issuer to borrow from the U.S. Treasury. Others are supported by
the discretionary authority of the U.S. Government to purchase the obligations.
Certain other government securities are supported only by the credit of the
issuer. For securities not backed by the full faith and credit of the United
States, a Fund must look principally to the agency or instrumentality issuing or
guaranteeing the securities for repayment and may not be able to assert a claim
against the United States if the agency or instrumentality does not meet its
commitment. Such securities may involve increased risk of loss of principal and
interest compared to government debt securities that are backed by the full
faith and credit of the United States.
Because
of the rising U.S. Government debt burden, it is possible that the U.S.
Government may not be able to meet its financial obligations or that securities
issued or backed by the U.S. Government may experience credit downgrades. Such a
credit event may adversely affect the financial markets.
Other
Types of Investments
Unless otherwise stated
within its specific investment policies, each Fund may also invest in other
types of domestic and foreign securities and use other investment strategies.
These securities and strategies are not intended to be principal investment
strategies of the Funds. If successful, they may benefit the Funds by earning a
return on the Funds’ assets or reducing risk; however, they may not achieve the
Funds’ investment objectives. These securities and strategies may
include:
•
debt
securities (such as bonds, notes, sovereign debt, and
debentures)
•
other investment
companies (such as exchange-traded funds (“ETFs”))
•
preferred
stocks and securities convertible into common stocks or preferred
stocks
•
indexed/structured
securities (such as commercial and residential mortgage- and asset-backed
securities)
•
securities
purchased on a when-issued, delayed delivery, or forward commitment
basis
•
equity
and fixed-income securities issued in private placement
transactions
The value
of your investment will vary over time, sometimes significantly, and you may
lose money by investing in the Funds. To varying degrees, the Funds may invest
in stocks, fixed-income securities, money market instruments or cash/cash
equivalents, and derivatives. The following information is intended to help you
better understand some of the risks of investing in the Funds, including those
risks that are summarized in the Fund Summary sections. This information also
includes descriptions of other risks a Fund may be subject to as a result of
additional investment strategies and general policies that may apply to the
Fund. The impact of the following risks on a Fund may vary depending on the
Fund’s investments. The greater the Fund’s investment in a particular security,
the greater the Fund’s exposure to the risks associated with that security.
Before investing in a Fund, you should consider carefully the risks that you
assume when investing in the Fund.
Convertible
Securities Risk. A Fund
may invest in securities that are convertible into preferred and common stocks,
and thus, is subject to the risks of investments in both debt and equity
securities. The market value of convertible securities tends to decline as
interest rates increase and, conversely, tends to increase as interest rates
decline. In addition, because of the conversion feature, the market value of
convertible securities tends to vary with fluctuations in the market value of
the underlying preferred and common stocks and, therefore, also will react to
variations in the general market for equity securities.
Counterparty
Risk. Fund
transactions involving a counterparty are subject to the risk that the
counterparty or a third party will not fulfill its obligation to a 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 a
Fund. A
Fund may be unable to recover its investment from the counterparty or may obtain
a limited recovery, and/or recovery may be delayed. A Fund may be exposed to
counterparty risk to the extent it participates in lending its securities to
50 | Janus
Investment Fund
third
parties and/or cash sweep arrangements whereby the Fund’s cash balance is
invested in one or more types of cash management vehicles or in time deposits.
In addition, a Fund may be exposed to counterparty risk through its investments
in certain securities, including, but not limited to, repurchase agreements,
debt securities, and derivatives (including various types of swaps, futures, and
options). Each 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 a Fund focuses its transactions with a limited
number of counterparties, it will have greater exposure to the risks associated
with one or more counterparties.
Credit
Quality Risk. Through a
Fund’s investments in fixed-income securities, a Fund is subject to the risks
associated with the credit quality of the issuers of those fixed-income
securities. Credit quality measures the likelihood that the issuer or borrower
will meet its obligations on a bond. One of the fundamental risks is credit
risk, which is the risk that an issuer will be unable to make principal and
interest payments when due, or default on its obligations. Higher credit risk
may negatively impact a Fund’s returns and yield.
Many
fixed-income securities receive credit ratings from services such as Standard
& Poor’s, Fitch, and Moody’s. These services assign ratings to securities by
assessing the likelihood of issuer default. The lower a bond issue is rated by
an agency, the more credit risk it is considered to represent. Lower rated
instruments and securities generally pay interest at a higher rate to compensate
for the associated greater risk. Interest rates can fluctuate in response to
economic or market conditions, which can result in a fluctuation in the price of
a security and impact a Fund’s return and yield. If a security has not received
a rating, a Fund must rely upon the Adviser’s credit assessment, which if
incorrect can also impact the Fund’s returns and yield. Please refer to the
“Explanation of Rating Categories” section of the SAI for a description of bond
rating categories.
Credit
Risk Transfer Securities Risk. Credit risk transfer
securities (“CRTs”) are unguaranteed and unsecured debt securities that are
commonly issued by a government sponsored entity. CRTs are not directly linked
to or backed by the underlying mortgage loans, so investors such as a Fund have
no direct recourse to the underlying mortgage loans in the event of a default.
The risks associated with CRTs are different from the risks associated with
investments in mortgage-backed securities issued by government sponsored
entities or private issuers because some or all of the mortgage default or
credit risk associated with the underlying mortgage loans is transferred to
investors. Additional risks associated with investments in CRTs may include
valuation risk, mortgage credit risk, liquidity risk, and prepayment
risk.
Derivatives
Risk. Derivatives
can be volatile and involve risks in addition to the risks of the underlying
referenced securities or asset. Gains or losses from a derivative investment can
be substantially greater than the derivative’s original cost, and can therefore
involve leverage. Leverage may cause a Fund to be more volatile than if it had
not used leverage.
The Funds may use short
sales, futures, options, swap agreements (including, but not limited to, equity,
interest rate, credit default, and total return), and other derivative
instruments individually or in combination to “hedge” or protect their
portfolios from adverse movements in securities prices and interest rates. The
Funds may also use a variety of currency hedging techniques, including the use
of forward currency contracts, to manage currency risk. There is no guarantee
that a portfolio manager’s and/or investment personnel’s use of derivative
investments will benefit the Funds. A Fund’s performance could be worse than if
the Fund had not used such instruments. Use of such investments may instead
increase risk to the Fund, rather than reduce risk. Derivatives can be
complex instruments and may involve analysis that differs from that required for
other investment types used by a Fund. If the value of a derivative does not
correlate well with the particular market or other asset class to which the
derivative is intended to provide exposure, the derivative may not produce the
anticipated result. Derivatives can also reduce the opportunity for gain or
result in losses by offsetting positive returns in other
investments.
Derivatives
entail the risk that the counterparty will default on its payment
obligations.
If the
counterparty to a derivative transaction defaults, a Fund would risk the loss of
the net amount of the payments that it contractually is entitled to receive. To
the extent a Fund enters into short derivative positions, a Fund may be exposed
to risks similar to those associated with short sales, including the risk that a
Fund’s losses are theoretically unlimited.
•
Currency
Futures Risk. Currency
futures are similar to forward foreign currency exchange contracts, and pose
similar risks, except that futures contracts are standardized, exchange-traded
contracts while forward foreign currency exchange contracts are traded in the
over-the-counter market. The use of currency futures contracts may substantially
change a Fund’s exposure to currency exchange rates and could result in losses
to a Fund if currencies do not perform as anticipated. Currency markets
generally are not as regulated as securities markets. In addition, currency
rates may fluctuate significantly over short periods of time, and can reduce
returns. Currency futures may also involve leverage risk.
51 | Janus
Investment Fund
•
Forward
Foreign Currency Exchange Contract Risk. Forward
foreign currency exchange contracts (“forward currency contracts”) involve the
risk that unanticipated changes in currency prices may negatively impact a
Fund’s performance. Moreover, there may be an imperfect correlation between a
Fund’s portfolio holdings of securities quoted or denominated in a particular
currency and any forward currency contracts entered into by the Fund, which will
expose the Fund to risk of foreign exchange loss. The trading markets for
forward currency contracts offer less protection against defaults than trading
in currency instruments on an exchange. Because a forward currency contract is
not guaranteed by an exchange or clearinghouse, a default on the contract could
result in losses to a Fund and may force the Fund to cover its purchase or sale
commitments, if any, at the current market price. In addition, forward currency
contract markets can experience periods of illiquidity, which could prevent a
Fund from divesting of a forward currency contract at the optimal time and may
adversely affect a Fund’s returns and net asset value.
•
Interest
Rate Swaps Risk. The
Fund’s use of interest rate swaps involves investment techniques and risks
different from those associated with ordinary portfolio security transactions.
Interest rate swaps may result in potential losses if interest rates do not move
as expected or if the counterparties are unable to satisfy their
obligations.
•
Index
Credit Default Swaps Risk. If a Fund
holds a long position in an index credit default swap (“CDX”), the Fund would
indirectly bear its proportionate share of any expenses paid by a CDX. By
investing in CDXs, a 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, a Fund will have
contractual remedies pursuant to the agreements related to the transaction. CDXs
also bear the risk that a Fund will not be able to meet its obligation to the
counterparty.
Emerging
Markets Risk. Within
the parameters of its specific investment policies, each 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 Index.
To the extent that a 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
than in more developed markets, making these investments potentially more
volatile in price and less liquid than investments in developed securities
markets, resulting in greater risk to investors. There is a risk in developing
countries that a 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 a Fund’s investments.
The
securities markets of many of these emerging market countries may also be
smaller, less liquid, and subject to greater price volatility than those in the
United States. In the event of a default on any investments in foreign debt
obligations, it may be more difficult for a Fund to obtain or to enforce a
judgment against the issuers of such securities. In addition, a 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 a Fund invests a significant
portion of its assets in the securities of emerging markets 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. A Fund may be subject to emerging
markets risk to the extent that it invests in securities of issuers or companies
which are not considered to be from emerging markets, but which have customers,
products, or transactions associated with emerging markets. Some of the risks of
investing directly in emerging market securities may be reduced when a Fund
invests indirectly in such securities through various other investment vehicles
including derivatives, but such investments also involve other
risks.
Emerging
market countries in which a Fund may invest include frontier market countries,
which generally have smaller economies and even less developed capital markets
than traditional developing markets, and, as a result, the risks of investing in
developing market countries are magnified in frontier market countries. The
magnification of risks are the result of: potential for extreme price volatility
and illiquidity in frontier markets; government ownership or control of parts of
private sector and of certain companies; trade barriers, exchange controls,
managed adjustments in relative currency values and other protectionist measures
imposed or negotiated by other countries; and the relatively new and unsettled
securities laws in many frontier market countries.
52 | Janus
Investment Fund
ESG
Integration Risk. The portfolio managers
who focus on the fixed-income portion of Janus
Henderson Balanced Fund
integrate
ESG factors by incorporating ESG information into the Fund’s investment process.
As a result, the Fund may have different exposures to certain industries,
sectors, or regions relative to its benchmark index and/or similar funds that do
not consider ESG factors. This may in turn cause the Fund to underperform
relative to its benchmark index or similar funds that do not consider ESG
factors. In addition, information related to ESG factors provided by issuers and
third parties, upon which the portfolio managers who focus on the fixed-income
portion of the Fund may rely, continues to develop, and may be incomplete,
inaccurate, use different methodologies or be applied differently across issuers
and industries. Further, the regulatory landscape regarding ESG investing in the
United States is still developing and future rules and regulations may require
the Fund to modify or alter its investment process.
Eurozone
Risk. A number of countries in
the European Union (“EU”) have experienced, and may continue to experience,
severe economic and financial difficulties. In particular, many EU nations are
susceptible to economic risks associated with high levels of debt, notably due
to investments in sovereign debt. These events have adversely affected the
exchange rate of the euro and may continue to significantly affect European
countries. As a result, financial markets in the EU have been subject to
increased volatility and declines in asset values and liquidity. Responses to
these financial problems by European governments, central banks, and others,
including austerity measures and reforms, may not work, may result in social
unrest, and may limit future growth and economic recovery or have other
unintended consequences. All of these developments may continue to significantly
affect the economies of all EU countries, which in turn may have a material
adverse effect on a Fund’s investments in such countries, other countries that
depend on EU countries for significant amounts of trade or investment, or
issuers with exposure to debt issued by certain EU countries.
Exchange-Traded
Funds Risk. The Funds may invest in
ETFs to gain exposure to a particular portion of the market. ETFs are typically
open-end investment companies, which may seek to track the performance of a
specific index or be actively managed. ETFs are traded on a national securities
exchange at market prices that may vary from the net asset value of their
underlying investments. Accordingly, there may be times when an ETF trades at a
premium or discount to its net asset value. When a Fund invests in an ETF, in
addition to directly bearing the expenses associated with its own operations, it
will bear a pro rata portion of the ETF’s expenses. As a result, the cost of
investing in a Fund may be higher than the cost of investing directly in ETFs
and may be higher than other mutual funds that invest directly in stocks and
bonds. ETFs also involve the risk that an active trading market for an ETF’s
shares may not develop or be maintained. Similarly, because the value of ETF
shares depends on the demand in the market, a Fund may not be able to purchase
or sell an ETF at the most optimal time, which could adversely affect the Fund’s
performance. In addition, ETFs that track particular indices may be unable to
match the performance of such underlying indices due to the temporary
unavailability of certain index securities in the secondary market or other
factors, such as discrepancies with respect to the weighting of
securities.
The ETFs
in which a Fund invests are subject to specific risks, depending on the
investment strategy of the ETF. In turn, a
Fund will
be subject to substantially the same risks as those associated with direct
exposure to the securities or commodities held by the ETF. Because a Fund may
invest in a broad range of ETFs, such risks may include, but are not limited to,
leverage risk, foreign exposure risk, and commodity-linked investments risk. To
the extent a Fund invests in fixed-income ETFs, it will be indirectly exposed to
the same risks described under “Fixed-Income Securities Risk.”
Fixed-Income
Securities Risk. The
Funds, particularly Janus Henderson Balanced Fund, may hold debt and other
fixed-income securities. Typically, the values of fixed-income securities change
inversely with prevailing interest rates. Therefore, a fundamental risk of
fixed-income securities is interest rate risk, which is the risk that the value
of such securities will generally decline as prevailing interest rates rise,
which may cause a Fund’s net asset value to likewise decrease. How specific
fixed-income securities may react to changes in interest rates will depend on
the specific characteristics of each security. For example, while securities
with longer maturities and durations tend to produce higher yields, they also
tend to be more sensitive to changes in prevailing interest rates and are
therefore more volatile than shorter-term securities and are subject to greater
market fluctuations as a result of changes in interest rates. However,
calculations of maturity and duration may be based on estimates and may not
reliably predict a security’s price sensitivity to changes in interest rates. In
addition, different interest rate measures (such as short- and long-term
interest rates and U.S. and non-U.S. interest rates), or interest rates on
different types of securities or securities of different issuers, may not
necessarily change in the same amount or in the same direction. Investments in
fixed-income securities with very low or negative interest rates may diminish a
Fund’s yield and performance.
Fixed-income
securities are also subject to credit risk, which is the risk that the credit
strength of an issuer of a fixed-income security will weaken and/or that the
issuer will be unable to make timely principal and interest payments and that
the
53 | Janus
Investment Fund
security may go into
default. In addition, there is prepayment risk, which is the risk that during
periods of falling interest rates, certain debt obligations may be paid off
quicker than originally anticipated, which may cause a Fund to reinvest its
assets in securities with lower yields, resulting in a decline in a Fund’s
income or return potential. Fixed-income securities may also be subject to
valuation risk and liquidity risk. Valuation risk is the risk that one or more
of the fixed-income securities in which a Fund invests are priced differently
than the value realized upon such security’s sale. In times of market
instability, valuation may be more difficult. Valuation may also be affected by
changes in the issuer’s financial strength, the market’s perception of such
strength, or in the credit rating of the issuer of the security. Liquidity risk
is the risk that fixed-income securities may be difficult or impossible to sell
at the time that a portfolio manager would like or at the price a
portfolio
manager believes the security is currently worth. Consequently, the Fund may
have to accept a lower price to sell a security, sell other securities to raise
cash, or give up an investment opportunity, any of which could have a negative
effect on the Fund’s performance. In unusual market conditions, even normally
liquid securities may be affected by a degree of liquidity risk. To the extent a
Fund invests in fixed-income securities in a particular industry or economic
sector, its share values may fluctuate in response to events affecting that
industry or sector. Securities underlying mortgage- and asset-backed securities,
which may include subprime mortgages, also may be subject to a higher degree of
credit risk, valuation risk, and liquidity risk. To the extent that a Fund
invests in derivatives tied to fixed-income securities, the Fund may be more
substantially exposed to these risks than a fund that does not invest in such
derivatives.
The market
for certain fixed-income securities may become illiquid under adverse market or
economic conditions independent of any specific adverse changes in the
conditions of a particular issuer. Similarly, the amount of assets deemed
illiquid remaining within a Fund may also increase, making it more difficult to
meet shareholder redemptions and further adversely affecting the value of the
Fund.
Foreign
Exposure Risk. Within the parameters of
its specific investment policies, each Fund may invest in foreign equity and
debt securities either indirectly (e.g., depositary receipts, depositary shares,
and passive foreign investment companies) or directly in foreign markets,
including emerging markets. Additional risks may be present with respect to
investments in securities of issuers or companies that are economically tied to
different countries throughout the world. An issuer is deemed to be economically
tied to a country or countries if one or more of the following tests are met:
(i) the issuer is organized in, or its primary business office or principal
trading market of its equity is located in, the country; (ii) a majority of the
issuer’s revenues are derived from one or more countries; or (iii) a majority of
the issuer’s assets are located in one or more countries. Investments in foreign
securities, including securities of foreign and emerging market governments, may
involve greater risks than investing in domestic securities because a Fund’s
performance may depend on factors other than the performance of a particular
company. These factors include:
•
Currency
Risk. As long
as a Fund holds a foreign security, its value will be affected by the value of
the local currency relative to the U.S. dollar. When a Fund sells a foreign
currency denominated security, its value may be worth less in U.S. dollars even
if the security increases in value in its home country. U.S. dollar-denominated
securities of foreign issuers may also be affected by currency risk, as the
value of these securities may also be affected by changes in the issuer’s local
currency.
•
Political
and Economic Risk. Foreign
investments may be subject to increased political and economic risks, including
the imposition of economic and other sanctions. Sanctions imposed by the U.S.
Government on other countries or persons or issuers operating in such countries
could restrict a Fund’s ability to buy affected securities or force a Fund to
dispose of any affected securities it has previously purchased at an inopportune
time. As a result, a Fund may experience a greater risk of loss with respect to
securities impacted by such sanctions.
Political
and economic risks may be heightened in emerging markets, which may have
relatively unstable governments, immature economic structures, national policies
restricting investments by foreigners, social instability, and different and/or
developing legal systems. In some countries, there is the risk that the
government may take over the assets or operations of a company or that the
government may impose withholding and other taxes or limits on the removal of a
Fund’s assets from that country. In addition, the economies of emerging markets
may be predominantly based on only a few industries, may be highly vulnerable to
changes in local or global trade conditions, and may suffer from extreme and
volatile debt burdens or inflation rates.
•
Regulatory
Risk. There may
be less government supervision of foreign markets. As a result, foreign issuers
may not be subject to the uniform accounting, auditing, and financial reporting
standards and practices applicable to domestic issuers, and there may be less
publicly available information about foreign issuers.
54 | Janus
Investment Fund
•
Foreign
Market Risk. Foreign
securities markets, particularly those of emerging market countries, may be less
liquid and more volatile than domestic markets. These securities markets may
trade a small number of securities, may have a limited number of issuers and a
high proportion of shares, or may be held by a relatively small number of
persons or institutions. Local securities markets may be unable to respond
effectively to increases in trading volume, potentially making prompt
liquidation of substantial holdings difficult or impossible at times. It is also
possible that certain markets may require payment for securities before
delivery, and delays may be encountered in settling securities transactions. In
some foreign markets, there may not be protection against failure by other
parties to complete transactions. It may not be possible for a
Fund to
repatriate capital, dividends, interest, and other income from a particular
country or governmental entity. In addition, securities of issuers located in or
economically tied to countries with emerging markets may have limited
marketability and may be subject to more abrupt or erratic price movements which
could also have a negative effect on a
Fund.
Such factors may hinder a Fund’s ability to buy and sell emerging market
securities in a timely manner, affecting the Fund’s investment strategies and
potentially affecting the value of the Fund.
•
Geographic
Concentration Risk. To the
extent that a Fund invests a substantial amount of its assets in issuers located
in a single country or region, the economic, political, social, regulatory, or
other developments or conditions within such country or region will generally
have a greater effect on the Fund than they would on a more geographically
diversified fund, which may result in greater losses and volatility. 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 a Fund’s performance.
•
Transaction
Costs. Costs of
buying, selling, and holding foreign securities, including brokerage, tax, and
custody costs, may be higher than those involved in domestic
transactions.
High-Yield/High-Risk
Bond Risk. High-yield/high-risk
bonds (also known as “junk” bonds) are bonds rated below investment grade by the
primary rating agencies such as Standard & Poor’s, Fitch, and Moody’s or are
unrated bonds of similar quality. The value of lower quality bonds generally is
more dependent on credit risk than investment grade bonds. Issuers of
high-yield/high-risk bonds may not be as strong financially as those issuing
bonds with higher credit ratings and are more vulnerable to real or perceived
economic changes, political changes, or adverse developments specific to the
issuer. In addition, the junk bond market can experience sudden and sharp price
swings.
The
secondary market on which high-yield securities are traded is less liquid than
the market for investment grade securities. The lack of a liquid secondary
market may have an adverse impact on the market price of the security.
Additionally, it may be more difficult to value the securities because valuation
may require more research, and elements of judgment may play a larger role in
the valuation because there is less reliable, objective data
available.
Please
refer to the “Explanation of Rating Categories” section of the SAI
for a description of bond rating categories.
Industry
and Sector Risk. Industry
and sector risk is the possibility that a group of related securities will
decline in price due to industry-specific or economic sector-specific
developments. Companies in the same or similar industries and economic sectors
may share common characteristics and are more likely to react similarly to
industry-specific market or economic developments. Each Fund’s investments, if
any, in multiple companies in a particular industry or economic sector may
increase that Fund’s exposure to industry and sector risk.
Inflation
Risk. Inflation creates
uncertainty over the future real value of an investment (the value after
adjusting for inflation). The real value of certain assets or real income from
investments will be less in the future as inflation decreases the value of
money. As inflation increases, the present value of a Fund’s assets and
distributions may decline. This risk is more prevalent with respect to debt
securities held by a Fund. Inflation rates may change frequently and drastically
as a result of various factors, including unexpected shifts in the domestic or
global economy. Moreover, a Fund’s investments may not keep pace with inflation,
which may result in losses to Fund shareholders or adversely affect the real
value of shareholders’ investment in a Fund. Fund shareholders’ expectation of
future inflation can also impact the current value of a Fund’s portfolio,
resulting in lower asset values and potential losses. This risk may be elevated
compared to historical market conditions because of recent monetary policy
measures and the current interest rate environment.
Inflation-Related
Investments Risk. Inflation-linked bonds
(including Treasury Inflation-Protected Securities, also known as TIPS), and
other inflation-linked securities normally will decline in value when real
interest rates rise. In certain interest
rate
environments,
such as when
real interest rates are rising faster than nominal interest rates,
inflation-indexed bonds may experience greater losses than other fixed-income
securities with similar durations. Except for a Fund’s investments in TIPS,
55 | Janus
Investment Fund
which are
guaranteed as to principal by the U.S. Treasury, the inflation-adjusted
principal value of inflation-linked bonds repaid at maturity may be less than
the original principal. Because of their inflation-linked adjustment feature,
inflation-linked bonds typically have lower yields than conventional fixed-rate
securities. In the event of deflation, where prices decline over time, the
principal and income of inflation-linked bonds will likely decline, resulting in
losses to a Fund.
Initial
Public Offering and Secondary Offering Risk. A Fund’s purchase of
shares issued in an IPO exposes it to the risks associated with companies that
have little operating history as public companies, as well as to the risks
inherent in those sectors of the market where these new issuers operate.
Attractive IPOs are often oversubscribed and may not be available to the Funds,
or may be available only in very limited quantities. The market for IPO issuers
has been volatile, and share prices of newly public companies have fluctuated up
and down significantly over short periods of time. Although IPO investments may
have had a positive impact on certain Funds’ performance in the past, there can
be no assurance that the Funds will identify favorable IPO investment
opportunities in the future. In addition, under certain market conditions, a
relatively small number of companies may issue securities in IPOs. Similarly, as
the number of Funds to which IPO securities are allocated increases, the number
of securities issued to any one Fund may decrease. In addition, as a Fund
increases in size, the impact of IPOs on the Fund’s performance will generally
decrease.
A Fund
may purchase shares in secondary offerings. Secondary offerings may expose a
Fund to some of the risks of IPOs. Participation in secondary offerings may have
a magnified impact on the performance of a fund to the extent that it has a
small asset base and the fund may not experience similar performance as its
assets grow. Secondary offering shares frequently are volatile in price. As a
result, a Fund may hold secondary offering shares for a very short period of
time. This may increase the portfolio turnover rate of the Fund and may lead to
increased expenses for the Fund, such as commissions and transaction costs. In
addition, secondary offering shares can experience an immediate drop in value if
the demand for the securities does not continue to support the offering
price.
Interest
Rate Risk. Generally,
a fixed-income security will increase in value when prevailing interest rates
fall and decrease in value when prevailing interest rates rise. Longer-term
securities are generally more sensitive to interest rate changes than
shorter-term securities, but they generally offer higher yields to compensate
investors for the associated risks. High-yield bond prices and floating rate
debt security prices are generally less directly responsive to interest rate
changes than investment grade issues or comparable fixed rate securities, and
may not always follow this pattern. The Funds may use futures, swaps, options,
and other derivatives to manage interest rate risk. The income component of
Janus Henderson Balanced Fund’s holdings includes fixed-income securities. The
income component of Janus Henderson Growth and Income Fund’s holdings may
include fixed-income securities.
Leverage
Risk. Some transactions may
give rise to a form of economic leverage.
These
transactions may include,
among
others,
derivatives,
and may
expose a Fund to greater risk and increase its costs. The use of leverage may
cause a Fund to liquidate portfolio positions when it may not be advantageous to
do so to satisfy its obligations or
to meet the
applicable requirements
of
the
Investment Company Act of 1940,
as amended,
and the rules thereunder. Increases and decreases in the value of a Fund’s
portfolio will be magnified when the Fund uses leverage.
LIBOR
Replacement Risk. Janus Henderson Balanced
Fund may invest in certain debt securities, derivatives, or other financial
instruments that utilize the London InterBank Offered Rate (“LIBOR”) as a
reference rate for various rate calculations. The U.K. Financial Conduct
Authority has ceased to publish or maintain as representative many LIBOR
settings and will phase out certain other commonly-used U.S. dollar LIBOR
settings as of June 30, 2023. The elimination of LIBOR or other reference rates
and the transition process away from LIBOR could adversely impact (i) volatility
and liquidity in markets that are tied to these reference rates, (ii) the market
for, or value of, specific securities or payments linked to those reference
rates, (iii) the availability or terms of borrowing or refinancing, or (iv) the
effectiveness of hedging strategies. For these and other reasons, the
elimination of LIBOR or other reference rates may adversely affect a Fund’s
performance and/or net asset value. Alternatives to LIBOR are established or in
development in most major currencies including the Secured Overnight Financing
Rate (“SOFR”) that is intended to replace the U.S. dollar LIBOR.
The
effect of the discontinuation of LIBOR or other reference rates on a Fund will
vary depending on, among other things (i) existing fallback or termination
provisions in individual contracts and (ii) whether, how, and when industry
participants develop and adopt new reference rates and fallbacks for both legacy
and new products and instruments. Accordingly, it is difficult to predict the
full impact of the transition away from LIBOR or other reference rates on a Fund
until new reference rates and fallbacks for both legacy and new products,
instruments, and contracts are commercially accepted.
56 | Janus
Investment Fund
Liquidity
Risk. A Fund
may invest in securities or instruments that do not trade actively or in large
volumes, and may make investments that are less liquid than other investments.
Also, a Fund may make investments that may become less liquid in response to
market developments or adverse investor perceptions. Investments that are
illiquid or that trade in lower volumes may be more difficult to value. When
there is no willing buyer and investments cannot be readily sold at the desired
time or price, a Fund may have to accept a lower price or may not be able to
sell the security or instrument at all. Investments in foreign securities,
particularly those of issuers located in emerging market countries, tend to have
greater exposure to liquidity risk than domestic securities. In unusual market
conditions, even normally liquid securities may be affected by a degree of
liquidity risk (i.e., if the number and capacity of traditional market
participants is reduced). An inability to sell one or more portfolio positions
can adversely affect a Fund’s value or prevent such Fund from being able to take
advantage of other investment opportunities. Liquidity risk may be increased to
the extent that a Fund invests in restricted securities that are deemed to be
illiquid investments.
Liquidity
risk may also refer to the risk that a Fund will not be able to pay redemption
proceeds within the allowable time period because of unusual market conditions,
an unusually high volume of redemption requests, or other reasons. While
a
Fund may
pay redemptions in-kind, a Fund may instead choose to raise cash to meet
redemption requests through the sale of portfolio securities or permissible
borrowings. If a Fund is forced to sell securities at an unfavorable time and/or
under unfavorable conditions, such sales may adversely affect the Fund’s net
asset value, may increase brokerage costs, and may result in taxable capital
gains.
Loan
Risk. Janus
Henderson Balanced Fund may invest in various commercial loans. The risks of
such investments vary, depending on the type of loans underlying the
investments, as described below.
•
Bank
Loan Risk. The bank
loans in which Janus Henderson Balanced Fund invests may be denominated in U.S.
or non-U.S. currencies, including the euro. Bank loans are obligations of
companies or other entities entered into in connection with recapitalizations,
acquisitions, and refinancings. The Fund’s investments in bank loans are
generally acquired as a participation interest in, or assignment of, loans
originated by a lender or other financial institution. These investments may
include institutionally-traded floating and fixed-rate debt securities. The bank
loans underlying these securities often involve borrowers with low credit
ratings whose financial conditions are troubled or uncertain, including
companies that are highly leveraged or in bankruptcy proceedings. Participation
interests and assignments involve credit, interest rate, and liquidity risk.
Some participation interests and assignments may not be considered “securities,”
and purchasers, such as the Fund, therefore may not be entitled to rely on the
anti-fraud protections of the federal securities laws. Additionally, because the
Adviser, in the course of investing the Fund’s assets in loans, may have access
to material non-public information regarding the borrower, the ability of the
Fund to purchase or sell publicly-traded securities of such borrowers may be
restricted. In addition, to the extent the Fund invests in non-U.S. bank loan
investments, those investments also are subject to the risks of foreign
investment, including Eurozone risk.
If the
Fund purchases a participation interest, it may only be able to enforce its
rights through the lender and may assume the credit risk of both the borrower
and the lender. There are also risks involved in purchasing assignments. If a
loan is foreclosed, the Fund may become part owner of any collateral securing
the loan and may bear the costs and liabilities associated with owning and
disposing of any collateral. The Fund could be held liable as a co-lender. In
addition, there is no assurance that the liquidation of any collateral from a
secured loan would satisfy a borrower’s obligations or that any collateral could
be liquidated. There may be a number of intermediate participants in bank loan
transactions and loan agreements that have specific rights, obligations, terms,
and conditions. As such, any number of factors in an investment in bank loans
could cause the Fund to lose income or principal on a particular investment,
which in turn could affect the Fund’s returns, and you could lose
money.
Interest
rates on floating rate bank loans adjust with interest rate changes and/or
issuer credit quality, and unexpected changes in such rates could result in
losses to the Fund. Additionally, borrowers may pay back principal in whole or
part, prior to scheduled due dates. Such prepayment may result in the Fund
realizing less income on a particular investment and replacing the floating rate
bank loan with a less attractive security, which may provide less return to the
Fund.
Bank
loans are generally less liquid than many other fixed-income securities and may
be subject to restrictions on resale. Transactions in bank loans may take more
than seven days to settle. As a result, the proceeds related to the sale of bank
loans may not be available to make additional investments or to meet the Fund’s
redemption obligations until a substantial period after the sale of the loans.
To the extent that extended settlement creates short-term liquidity needs, the
Fund may
57 | Janus
Investment Fund
satisfy
these needs by holding additional cash or selling other investments (potentially
at an inopportune time, which could result in losses to the Fund).
The Fund
may not be able to identify and invest in attractive floating rate bank loans,
such as senior loans, as the market for such investments may be limited in
certain economic conditions or because of a high number of potential purchasers
of assignments and participations. The Fund may also invest in other floating
rate debt securities or other investments. For example, the Fund may invest in
junior or subordinated loans or unsecured loans. Such loans may not provide
desired returns or may increase the potential for loss of income or principal.
Bank loan investments may be generally considered speculative and risks arising
from the Fund’s investments in bank loans may be similar to those of investments
in “junk” bonds or below investment grade investments. The Fund’s investments in
bank loans may be more sensitive to economic changes, political changes, or
adverse developments specific to the borrower than higher quality
investments.
•
Bridge
Loan Risk. Investments
in bridge loans subject the Fund to certain risks in addition to those described
above. In addition, any delay in obtaining permanent financing subjects the
bridge loan investor to increased risk. A borrower’s use of bridge loans also
involves the risk that the borrower may be unable to locate permanent financing
to replace the bridge loan, which may impair the borrower’s perceived
creditworthiness.
•
DIP
Loan Risk. Investments in DIP loans
are subject to the risk that the entity will not emerge from bankruptcy and will
be forced to liquidate its assets. In the event of liquidation, the Fund’s only
recourse will be against the property securing the DIP loan.
•
Mezzanine
Loan Risk. Mezzanine
loans generally are rated below investment grade, and frequently are unrated.
Because mezzanine loans typically are the most subordinated debt obligation in
an issuer’s capital structure, they are subject to the additional risk that the
cash flow of the related borrower and any property securing the loan may be
insufficient to repay the loan after the related borrower pays off any senior
obligations. Mezzanine loans, which are usually issued in private placement
transactions, may be considered illiquid. In addition, they are often used by
smaller companies that may be highly leveraged, and in turn may be subject to a
higher risk of default. Investment in mezzanine loans is a specialized practice
that depends more heavily on independent credit analysis than investments in
other fixed-income securities.
Market
Risk. The value of a 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 a 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 net asset value 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 a Fund and its investments, a
Fund’s ability to meet redemption requests, and the processes and operations of
a Fund’s service providers, including the Adviser.
•
Russia/Ukraine
Invasion. Russia launched a
large-scale invasion of Ukraine on February 24, 2022. The extent and duration of
the military action, resulting sanctions and resulting future market disruptions
in the region are impossible to predict, but could be significant and have a
severe adverse effect on the region, including significant negative impacts on
the economy and the markets for certain securities and commodities, such as oil
and natural gas, as well as other sectors.
Money
Market Fund Investment Risk. A Fund
may have cash balances that have not been invested in portfolio securities,
which 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, as part of a cash sweep program. By investing in a money
market fund, a Fund will be exposed to the investment risks of the money market
fund in direct proportion to such investment. The
58 | Janus
Investment Fund
money market fund may not
achieve its investment objective and
a
Fund
may lose
money. To the extent a Fund transacts in instruments such as derivatives, such
Fund may hold investments, which may be significant, in money market fund shares
to cover its obligations resulting from such Fund’s investments in derivatives.
An investment in a money market fund is not a bank deposit and is not insured or
guaranteed by any bank, the Federal Deposit Insurance Corporation or any other
government agency. There can be no assurance that a money market fund will
maintain a $1.00 per share net asset value (“NAV”) at all times. Factors that
could adversely affect the value of a money market fund’s shares include, among
other things, a sharp rise in interest rates, an illiquid market for the
securities held by the money market fund, a high volume of redemption activity
in a fund’s shares, and a credit event or credit rating downgrade affecting one
or more of the issuers of securities held by the money market fund. In addition,
the failure of even an unrelated money market fund to maintain a stable NAV
could create a widespread risk of increased redemption pressures on all money
market funds, potentially jeopardizing the stability of their NAVs. Certain
money market funds have in the past failed to maintain stable NAVs, and there
can be no assurance that such failures and resulting redemption pressures will
not impact money market funds in the future.
Rules
adopted by the Securities and Exchange Commission (the “SEC”) require, among
other things, certain money market funds to cause transactions in shares of
these funds to be effected using a fund’s NAV per share calculated out to the
fourth decimal point (e.g., $1.0000 instead of $1.00). “Government Money Market
Funds” and “Retail Money Market Funds” as defined in Rule 2a-7 under the
Investment Company Act of 1940, as amended, are not subject to the floating NAV
requirements. In addition, certain money market funds may impose a fee upon sale
of shares or may temporarily suspend the ability to sell shares of the money
market fund if the money market fund’s liquidity falls below required minimums
because of market conditions or other factors.
There can
be no assurance that a Fund’s investments in money market funds are not
adversely affected by reforms to money market regulation that may be adopted by
the SEC or other regulatory authorities.
In addition to the fees
and expenses that a Fund directly bears, a Fund indirectly bears the fees and
expenses of any money market fund in which it invests.
Mortgage-
and Asset-Backed Securities Risk. Rising
interest rates tend to extend the duration of, or reduce the rate of prepayments
on, both commercial mortgage-backed securities (“CMBS”) and residential
mortgage-backed securities (“RMBS”), making them more sensitive to changes in
interest rates (“extension risk”). As a result, in a period of rising interest
rates, the price of mortgage-backed securities may fall, causing a Fund that
holds mortgage-backed securities to exhibit additional volatility.
Mortgage-backed securities are also subject to prepayment risk. When interest
rates decline, borrowers may pay off their mortgages sooner than expected. This
can reduce a Fund’s returns because the Fund will have to reinvest that money at
lower prevailing interest rates. Investments in certain mortgage-backed
securities, including those comprised of subprime mortgages, may be subject to a
higher degree of credit risk, valuation risk, and liquidity risk than various
other types of fixed-income securities. 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.
CMBS are
subject to certain other risks. The market for CMBS developed more recently than
that for RMBS and is relatively small in terms of outstanding principal amount
of issues compared to the RMBS market. CMBS are also subject to risks associated
with a lack of standardized terms, shorter maturities than residential mortgage
loans, and payment of all or substantially all of the principal at maturity,
rather than regular amortization of principal. Moreover, the type and use of a
particular commercial property may add to the risk of CMBS investments. Adverse
changes in economic conditions and circumstances are more likely to have an
adverse impact on mortgage-backed securities secured by loans on commercial
properties than on those secured by residential properties.
Similarly,
the value of a Fund’s investments in asset-backed securities may be adversely
affected by changes in interest rates, factors concerning the interests in and
structure of the issuer or originator of the receivables, the creditworthiness
of the entities that provide any supporting letters of credit, surety bonds, or
other credit or liquidity enhancements, and/or the market’s assessment of the
quality of the underlying assets. Generally, the originating bank or credit
provider is neither the obligor nor the guarantor of the security, and interest
and principal payments ultimately depend upon payment of the underlying loans by
individuals. A Fund could incur a loss if the underlying loans are not paid. In
addition, most asset-backed securities are subject to prepayment risk in a
declining interest rate environment. The impact of prepayments on the
59 | Janus
Investment Fund
value of
asset-backed securities may be difficult to predict and may result in greater
volatility. Rising interest rates tend to extend the duration of asset-backed
securities, making them more volatile and sensitive to changing interest
rates.
Nondiversification
Risk. Janus
Henderson Contrarian Fund and Janus
Henderson Forty Fund are classified as
nondiversified under the Investment Company Act of 1940, as amended. As a
result, an increase or decrease in the value of a single security held by a Fund
may have a greater impact on the Fund’s net asset value and total return. Being
nondiversified may also make a Fund more susceptible to financial, economic,
political, or other developments that may impact a security. Although each Fund
may satisfy the requirements for a diversified fund, and has from time to time
operated as diversified, each Fund’s nondiversified classification gives the
Fund’s portfolio manager more flexibility to hold larger positions in securities
than a fund that is classified as diversified.
Portfolio
Management Risk. The Funds are actively
managed investment portfolios and are therefore subject to the risk that the
investment strategies and research process employed for the Funds may fail to
produce the intended results. A Fund may underperform its benchmark index or
other mutual funds with similar investment objectives.
Private
Placements and Other Restricted Securities Risk. Investments in private
placements and other restricted securities could decrease a Fund’s liquidity
profile or prevent a Fund from disposing of them promptly at advantageous
prices. Private placements and restricted securities may be less liquid than
other investments because such securities may not always be readily sold in
broad public markets and may have no active trading market. As a result, they
may be difficult to value because market quotations may not be readily
available. Transaction costs may be higher for these securities, and a Fund may
get only limited information about the issuer of a private placement or other
restricted security.
REIT
Risk. To the extent that a Fund
holds REITs and REIT-like entities, it may be subject to the additional risks
associated with REIT and REIT-like investments. REITs and REIT-like entities are
subject to heavy cash flow dependency to allow them to make distributions to
their shareholders. The prices of equity REITs are affected by changes in the
value of the underlying property owned by the REITs, changes in capital markets
and interest rates, management skill in running a REIT, and the creditworthiness
of the REIT. The prices of mortgage REITs are affected by the quality of any
credit they extend, the creditworthiness of the mortgages they hold, as well as
by the value of the property that secures the mortgages. In addition, mortgage
REITs (similar to direct investments in mortgage-backed securities) are subject
to prepayment risk. Equity REITs and mortgage REITs are subject to heavy cash
flow dependency, defaults by borrowers, and self-liquidation. There is also the
risk that borrowers under mortgages held by a REIT or lessees of a property that
a REIT owns may be unable to meet their obligations to the REIT. In the event of
a default by a borrower or lessee, the REIT may incur substantial costs
associated with protecting its investments. While equity REITs and mortgage
REITs may provide exposure to a large number of properties, such properties may
be concentrated in a particular industry, region, or housing type, making such
investments more vulnerable to unfavorable developments to economic or market
events. Certain “special purpose” REITs in which a Fund may invest focus their
assets in specific real property sectors, such as hotels, shopping malls,
nursing homes, or warehouses, and are therefore subject to the specific risks
associated with adverse developments in these sectors. A Fund’s shareholders
will indirectly bear their proportionate share of the REIT’s expenses, in
addition to their proportionate share of the Fund’s expenses. The value of
investments in REOCs will generally be affected by the same factors that
adversely affect REIT investments; however, REOCs may also be adversely affected
by income streams derived from businesses other than real estate
ownership.
Additionally, a REIT that
fails to comply with federal tax requirements affecting REITs may be subject to
federal income taxation, or the federal tax requirement that a REIT distribute
substantially all of its net income to its shareholders may result in a REIT
having insufficient capital for future expenditures. REITs are also subject to
certain provisions under federal tax law and the failure of a company to qualify
as a REIT could have adverse consequences for a Fund, including significantly
reducing the return to the Fund on its investment in such company.
Small-
and Mid-Sized Companies Risk. A Fund’s
investments in securities issued by small- and mid-sized companies, which can
include smaller, start-up companies offering emerging products or services, may
involve greater risks than are customarily associated with larger, more
established companies. For example, while small- and mid-sized companies may
realize more substantial growth than larger or more established issuers, they
may also suffer more significant losses as a result of their narrow product
lines, limited operating history, greater exposure to competitive threats,
limited financial resources, limited trading markets, and the potential lack of
management depth. Securities issued by small- and mid-sized companies tend to be
more volatile and somewhat more speculative than securities issued by larger or
more established companies and may underperform as compared to the securities of
larger or more established companies. These holdings are also subject to wider
60 | Janus
Investment Fund
price
fluctuations and tend to be less liquid than stocks of larger or more
established companies, which could have a significant adverse effect on a Fund’s
returns, especially as market conditions change.
Sovereign
Debt Risk. A 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 certain
emerging market 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 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. A 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 a Fund invests in non-U.S. sovereign debt, it may be
subject to currency risk.
TBA
Commitments Risk. A Fund may enter into “to
be announced” or “TBA” commitments. Although TBA securities must meet
industry-accepted “good delivery” standards, there can be no assurance that a
security purchased on a forward commitment basis will ultimately be issued or
delivered by the counterparty. If the counterparty to a transaction fails to
deliver the securities, a Fund could suffer a loss. Because TBA commitments do
not require the delivery of a specific security, the characteristics of a
security delivered to a Fund may be less favorable than expected. There is a
risk that the security that a Fund buys will lose value between the purchase and
settlement dates. When a Fund sells a TBA security prior to settlement, it does
not participate in future gains or losses with respect to the security. A Fund
is generally not required to pay for the TBA security until the settlement date
and, as a result, if the Fund remains substantially fully invested at a time
when TBA commitment purchases are outstanding, the purchases may result in a
form of leverage.
Warrants
and Rights Risk. The
price, performance and liquidity of warrants and rights to purchase equity
securities are typically linked to the underlying stock. These instruments have
many characteristics of convertible securities and, similarly, will react to
variations in the general market for equity securities. Rights are similar to
warrants, but normally have a short duration and are distributed directly by the
issuer to its shareholders. Rights and warrants have no voting rights, receive
no dividends and have no rights with respect to the assets of the
issuer.
61 | Janus
Investment Fund
Management
of the Funds
Janus Henderson Investors
US LLC (the “Adviser”), 151 Detroit Street, Denver, Colorado 80206-4805, is the
investment adviser to each Fund. The Adviser is responsible for the day-to-day
management of the Funds’ investment portfolios and furnishes continuous advice
and recommendations concerning the Funds’ investments. The Adviser also provides
certain administration and other services and is responsible for other business
affairs of each Fund.
The
Adviser (together with its predecessors and affiliates) has served as investment
adviser to the Janus Henderson mutual funds since 1970 and currently serves as
investment adviser to all of the Janus Henderson mutual funds as well as the
Janus Henderson exchange-traded funds, acts as subadviser for a number of
private-label mutual funds, and provides separate account advisory services for
institutional accounts and other unregistered products.
The Trust
and the Adviser have received an exemptive order from the SEC that permits the
Adviser, subject to the approval of the Trustees, to appoint or replace certain
subadvisers to manage all or a portion of a Fund’s assets and enter into, amend,
or terminate a subadvisory agreement with certain subadvisers without obtaining
shareholder approval (a “manager-of-managers structure”). The
manager-of-managers structure applies to subadvisers that are not affiliated
with the Trust or the Adviser (“non-affiliated subadvisers”), as well as any
subadviser that is an indirect or direct “wholly-owned subsidiary” (as such term
is defined by the Investment Company Act of 1940, as amended) of the Adviser or
of another company that, indirectly or directly, wholly owns the Adviser
(collectively, “wholly-owned subadvisers”).
Pursuant
to the order, the Adviser, with the approval of the Trustees, has the discretion
to terminate any subadviser and allocate and, as appropriate, reallocate a
Fund’s assets among the Adviser and any other non-affiliated subadvisers or
wholly-owned subadvisers (including terminating a non-affiliated subadviser and
replacing it with a wholly-owned subadviser). To the extent that a Fund’s assets
are allocated to one or more subadvisers, the Adviser, subject to oversight by
the Trustees, would have the responsibility to oversee such subadviser(s) to a
Fund and to recommend for approval by the Trustees, the hiring, termination, and
replacement of a subadviser for a Fund. In the event that the Adviser hires a
subadviser pursuant to the manager-of-managers structure, the affected Janus
Henderson fund would provide shareholders with information about the subadviser
and subadvisory agreement within 90 days.
Shareholders
of each Fund, with the exception of Janus Henderson Balanced Fund, Janus
Henderson Contrarian Fund, Janus Henderson Enterprise Fund, and Janus Henderson
Triton Fund, have approved the use of a manager-of-managers
structure.
The
Adviser furnishes certain administration, compliance, and accounting services to
the Funds, including providing office space for the Funds and providing
personnel to serve as officers to the Funds. The Funds reimburse the Adviser for
certain of its costs in providing these services (to the extent the Adviser
seeks reimbursement and such costs are not otherwise waived). These costs
include some or all of the salaries, fees, and expenses of the Adviser employees
and Fund officers, including the Funds’ Chief Compliance Officer and compliance
staff, that provide specified administration and compliance services to the
Funds. The Funds pay 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
provides to the Funds.
Each Fund pays the
Adviser an investment advisory fee and incurs expenses, including administrative
services fees payable pursuant to the Transfer Agency Agreement, custodian fees
and expenses, legal and auditing fees, printing and mailing costs of sending
reports and other information to existing shareholders, and Independent
Trustees’ fees and expenses. Each Fund’s investment advisory fee is calculated
daily and paid monthly. Each Fund’s advisory agreement details the investment
advisory fee and other expenses that each Fund must pay.
The
following tables reflect each Fund’s contractual investment advisory fee rate or
base fee rate, as applicable (expressed as an annual rate), as well as the
actual investment advisory fee rate paid by each Fund to the Adviser (gross and
net of fee waivers).
Fixed-Rate
Investment Advisory Fee
The
Funds reflected below pay an
investment advisory fee at a fixed rate based on each Fund’s average daily net
assets.
62 | Janus
Investment Fund
|
Fund
Name |
Average
Daily
Net
Assets
of
the Fund |
Contractual
Investment
Advisory
Fee (%)
(annual
rate) |
Actual
Investment
Advisory
Fee
Rate(1)
(%) (for
the
fiscal year ended
September
30, 2022 |
|
Janus
Henderson Balanced Fund |
All Asset
Levels |
0.55 |
0.55 |
|
Janus
Henderson Enterprise Fund |
All Asset
Levels |
0.64 |
0.64 |
|
Janus
Henderson Growth and Income Fund |
All Asset
Levels |
0.60 |
0.60 |
|
Janus
Henderson Triton Fund |
All Asset
Levels |
0.64 |
0.64 |
|
Janus
Henderson Venture Fund |
All Asset
Levels |
0.64 |
0.64 |
(1)
The Adviser has agreed to
waive its investment advisory fee and/or reimburse operating expenses to the
extent that each Fund’s total annual fund operating expenses (excluding
shareholder services fees, such as transfer agency fees (including out-of-pocket
costs), brokerage commissions, interest, dividends, taxes, acquired fund fees
and expenses, and extraordinary expenses) exceed certain levels for at least a
one-year period commencing on January 27, 2023. Application of
an expense waiver and its effect on annual fund operating expenses is reflected,
when applicable, in the “Fees and Expenses of the Fund” table in each Fund
Summary of the Prospectus, and additional information is included under “Expense
Limitations” below. The waivers are reflected in the actual investment advisory
fee rates shown.
Performance-Based
Investment Advisory Fee
As
reflected in the table below, Janus Henderson Contrarian Fund, Janus Henderson
Research Fund, and Janus Henderson Forty Fund each pay an investment advisory
fee rate that may adjust up or down based on each Fund’s performance relative to
the cumulative investment record of its benchmark index over a rolling 36-month
performance measurement period. The second column in the table below shows each
Fund’s base fee rate. The third column shows the full performance rate for
outperformance or underperformance during the measurement period relative to
each Fund’s respective benchmark index. The fourth column shows the performance
adjusted investment advisory fee rate, which is equal to each Fund’s base fee
rate plus or minus the performance adjustment over the period without any fee
waivers. The fifth column shows the actual investment advisory fee rate, which
is equal to each Fund’s base fee rate plus or minus the performance adjustment
over the period and includes any applicable fee waiver. This fifth column shows
the actual amount of the investment advisory fee rate paid by each Fund as of
the end of the fiscal year.
As an
example, if a Fund outperformed its benchmark index over the performance
measurement period by its full performance rate (listed in the table below), the
advisory fee would increase by 0.15% (assuming constant assets). Conversely, if
a Fund underperformed its benchmark index over the performance measurement
period by its full performance rate (listed in the table below), the advisory
fee would decrease by 0.15% (assuming constant assets). Actual performance
within the full range of the full performance rate may result in positive or
negative incremental adjustments to the advisory fee of greater or less than
0.15%. Additional details discussing the performance fee are included below with
further description in the SAI.
|
Fund
Name |
Base
Fee
Rate
(%) |
Full
Performance
Rate
vs.
Benchmark
Index |
Performance
Adjusted
Investment
Advisory
Fee
Rate
(%) |
Actual
Investment
Advisory
Fee
Rate(1)
(%) (for
the
fiscal year ended
September
30, 2022) |
|
Janus
Henderson Contrarian Fund |
0.64 |
± 7.00% |
0.70 |
0.70 |
|
Janus
Henderson Research Fund |
0.64 |
± 5.00% |
0.50 |
0.50 |
|
Janus
Henderson Forty Fund |
0.64 |
± 8.50% |
0.55 |
0.55 |
(1)
The Adviser has agreed to
waive its investment advisory fee and/or reimburse operating expenses to the
extent that each Fund’s total annual fund operating expenses (excluding any
performance adjustments to management fees, shareholder servicing fees, such as
transfer agency fees (including out-of-pocket costs), brokerage commissions,
interest, dividends, taxes, acquired fund fees and expenses, and extraordinary
expenses) exceed certain levels for at least a one-year period commencing on
January 27, 2023. Application of
an expense waiver and its effect on annual fund operating expenses is reflected,
when applicable, in the “Fees and Expenses of the Fund” table in each Fund
Summary of the Prospectus, and additional information is included under “Expense
Limitations” below. The waivers and any applicable performance adjustments are
reflected in the actual investment advisory fee rates
shown.
For Janus
Henderson Contrarian Fund, Janus Henderson Research Fund, and Janus Henderson
Forty Fund, the investment advisory fee rate is determined by calculating a base
fee (shown in the previous table) and applying a performance
63 | Janus
Investment Fund
adjustment
(described in further detail below). The performance adjustment either increases
or decreases the base fee depending on how well each Fund has performed relative
to its benchmark index as shown below:
|
Fund
Name |
Benchmark
Index |
|
Janus
Henderson Contrarian Fund |
S&P
500 Index |
|
Janus
Henderson Research Fund |
Russell
1000 Growth Index |
|
Janus
Henderson Forty Fund |
Russell
1000 Growth Index |
The
calculation of the performance adjustment applies as follows:
Investment
Advisory Fee = Base Fee Rate +/– Performance Adjustment
The
investment advisory fee rate paid to the Adviser by each Fund in the table above
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 (“Base Fee Rate”), plus or minus (2) a
performance-fee adjustment (“Performance Adjustment”) calculated by applying a
variable rate of up to 0.15% (positive or negative) to the Fund’s average daily
net assets during the applicable performance measurement period. The performance
measurement period generally is the previous 36 months, although no Performance
Adjustment is made until a Fund’s performance-based fee structure has been in
effect for at least 12 months.
No
Performance Adjustment is applied unless the difference between a 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. 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 a
Fund is calculated net of expenses whereas a 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 Base Fee Rate is calculated and accrued daily. The Performance
Adjustment is calculated monthly in arrears and is accrued throughout the month.
The investment advisory fee is paid monthly in arrears. Under extreme
circumstances involving underperformance by a rapidly shrinking Fund, the dollar
amount of the Performance Adjustment could be more than the dollar amount of the
Base Fee Rate. In such circumstances, the Adviser would reimburse the applicable
Fund.
The
application of an expense limit, if any, will have a positive effect upon a
Fund’s performance and may result in an increase in the Performance Adjustment.
It is possible that the cumulative dollar amount of additional compensation
ultimately payable to the Adviser may, under some circumstances, exceed the
cumulative dollar amount of management fees waived by the Adviser.
The
investment performance of a Fund’s Class A Shares (waiving the upfront sales
load) for the performance measurement period is used to calculate the
Performance Adjustment. After the Adviser determines whether a particular Fund’s
performance was above or below its benchmark index by comparing the investment
performance of the Fund’s load-waived Class A Shares against the cumulative
investment record of that Fund’s benchmark index, the Adviser applies the same
Performance Adjustment (positive or negative) across each other class of shares
of the Fund, as applicable. It is not possible to predict the effect of the
Performance Adjustment on future overall compensation to the Adviser since it
depends on the performance of each Fund relative to the record of the Fund’s
benchmark index and future changes to the size of each Fund.
A
discussion regarding the basis for the Trustees’ approval of the Funds’
investment advisory agreements is included in each
Fund’s
annual report (for the period ending September 30) and semiannual report (for
the period ending March 31) to shareholders. You can request the Funds’ annual
or semiannual reports (as they become available), free of charge, by contacting
a Janus Henderson representative at 1-800-525-3713. The reports are also
available, free of charge, at janushenderson.com/reports.
64 | Janus
Investment Fund
Expense
Limitations
The Adviser has
contractually agreed to waive the advisory fee payable by each Fund
and/or
reimburse expenses in an amount equal to the amount, if any, that the Fund’s
total annual fund operating expenses, including the investment advisory fee, but
excluding any performance adjustments to management fees, shareholder servicing
fees, such as transfer agency fees (including out-of-pocket costs), brokerage
commissions, interest, dividends, taxes, acquired fund fees and expenses, and
extraordinary expenses, exceed the annual rate shown below. The Adviser has
agreed to continue each waiver for at least a one-year period commencing on
January 27, 2023. For information about how the expense limit affects the total
expenses of each Fund, if applicable, see the “Fees and Expenses of the Fund”
table in each Fund Summary of the Prospectus.
|
Fund
Name |
Expense
Limit Percentage (%) |
|
Janus
Henderson Balanced Fund |
0.68 |
|
Janus
Henderson Contrarian Fund(1)
|
0.75 |
|
Janus
Henderson Enterprise Fund |
0.80 |
|
Janus
Henderson Forty Fund(1)
|
0.68 |
|
Janus
Henderson Growth and Income Fund |
0.67 |
|
Janus
Henderson Research Fund(1)
|
0.68 |
|
Janus
Henderson Triton Fund(2) |
0.86 |
|
Janus
Henderson Venture Fund(2) |
0.86 |
(1)
The Fund
pays an investment advisory fee rate that may adjust up or down based on the
Fund’s performance relative to its benchmark index during a measurement period.
Because a fee waiver will have a positive effect upon the Fund’s performance, a
fee waiver that is in place during the period when the performance adjustment
applies may affect the performance adjustment in a way that is favorable to the
Adviser.
(2)
The previous expense
limit (for the one-year period commencing January 28, 2022) was
0.92%.
Janus
Henderson Balanced Fund
Co-Portfolio
Managers Jeremiah Buckley, Michael Keough, and Greg Wilensky are responsible for
the day-to-day management of the Fund. Messrs. Keough and Wilensky focus on the
fixed-income portion of the Fund. Mr. Buckley focuses on the equity portion of
the Fund.
Jeremiah
Buckley, CFA, is
Executive Vice President and Co-Portfolio Manager of Janus Henderson Balanced
Fund, which he has co-managed since December 2015. Mr. Buckley is also Portfolio
Manager of other Janus Henderson accounts. He holds a Bachelor of Arts degree in
Economics from Dartmouth College, where he graduated Phi Beta Kappa. Mr. Buckley
holds the Chartered Financial Analyst designation.
Michael
Keough is
Executive Vice President and Co-Portfolio Manager of Janus Henderson Balanced
Fund, which he has co-managed since December 2019. Mr. Keough is also Portfolio
Manager of other Janus Henderson accounts. He joined the Adviser in January
2007. Mr. Keough holds a Bachelor of Science degree in Business/Management from
the United States Air Force Academy.
Greg
Wilensky,
CFA, is Head of U.S. Fixed Income of Janus Henderson Investors. He is Executive
Vice President and Co-Portfolio Manager of Janus Henderson Balanced Fund, which
he has co-managed since February 2020. Mr. Wilensky is also Portfolio Manager of
other Janus Henderson accounts. Prior to joining the Adviser in January 2020,
he
was Director
and Lead Portfolio Manager of the U.S. Multi-Sector Fixed Income team at
AllianceBernstein since 2007. Mr.
Wilensky
holds a Bachelor of Science degree in Business Administration from Washington
University and a Master’s degree in Business Administration from the University
of Chicago. He
holds the
Chartered Financial Analyst designation.
Janus
Henderson Contrarian Fund
Nick
Schommer,
CFA, is Executive Vice President and Portfolio Manager of Janus Henderson
Contrarian Fund, which he has managed since July 2017. Mr. Schommer is also
Portfolio Manager of other Janus Henderson accounts. He holds a Bachelor of
Science degree in Chemistry from the U.S. Military Academy at West Point, where
he was recognized as a Distinguished Cadet and Phi Kappa Phi, and a Master of
Business Administration degree from the UCLA Anderson School of Management. Mr.
Schommer holds the Chartered Financial Analyst designation.
65 | Janus
Investment Fund
Janus
Henderson Enterprise Fund
Co-Portfolio Managers
Brian Demain and Cody Wheaton are responsible for the day-to-day management of
the Fund. Mr. Demain, as Lead Portfolio Manager, has the authority to exercise
final decision-making on the overall portfolio.
Brian
Demain, CFA,
is Executive Vice President and Lead Portfolio Manager of Janus Henderson
Enterprise Fund, which he has managed or co-managed since November 2007. Mr.
Demain is also Portfolio Manager of other Janus Henderson accounts. He holds a
Bachelor of Arts degree (summa cum laude) in Economics from Princeton
University, where he was a recipient of the Daniel L. Rubinfeld ’67 Prize in
Empirical Economics for his senior thesis. Mr. Demain holds the Chartered
Financial Analyst designation.
Cody
Wheaton, CFA, is
Executive Vice President and Co-Portfolio Manager of Janus Henderson Enterprise
Fund, which he has co-managed since July 2016. Mr. Wheaton is also Portfolio
Manager of other Janus Henderson accounts and performs duties as an analyst. He
holds Bachelor of Arts degrees in Economics and Government from Dartmouth
College. Mr. Wheaton holds the Chartered Financial Analyst
designation.
Janus
Henderson Forty Fund
Co-Portfolio Managers A.
Douglas Rao, Brian Recht, and Nick Schommer jointly share responsibility for the
day-to-day management of the Fund, with no limitation on the authority of one
co-portfolio manager in relation to the others.
A.
Douglas Rao is
Executive Vice President and Co-Portfolio Manager of Janus Henderson Forty Fund,
which he has managed or co-managed since June 2013. Mr. Rao is also Portfolio
Manager of other Janus Henderson accounts. He holds a Bachelor of Arts degree in
History from the University of Virginia and a Master of Business Administration
degree from the University of California, Los Angeles.
Brian
Recht is
Executive Vice President and Co-Portfolio Manager of Janus Henderson Forty Fund,
which he has co-managed since March 2022. Mr. Recht is also Portfolio Manager of
other Janus Henderson accounts and performs duties as an analyst. He joined the
Adviser in 2015. Mr. Recht holds a Bachelor of Arts degree (summa cum laude) in
Government from Dartmouth College where he was a member of Phi Beta Kappa. He
also holds a Master of Business Administration degree from the Stanford Graduate
School of Business and a Juris Doctorate from Stanford Law School.
Nick
Schommer, CFA, is
Executive Vice President and Co-Portfolio Manager of Janus Henderson Forty Fund,
which he has co-managed since January 2016. Mr. Schommer is also Portfolio
Manager of other Janus Henderson accounts. He holds a Bachelor of Science degree
in Chemistry from the U.S. Military Academy at West Point, where he was
recognized as a Distinguished Cadet and Phi Kappa Phi, and a Master of Business
Administration degree from the UCLA Anderson School of Management. Mr. Schommer
holds the Chartered Financial Analyst designation.
Janus
Henderson Growth and Income Fund
Jeremiah
Buckley, CFA, is
Executive Vice President and Portfolio Manager of Janus Henderson Growth and
Income Fund, which he has managed or co-managed since July 2014. Mr. Buckley is
also Portfolio Manager of other Janus Henderson accounts. He holds a Bachelor of
Arts degree in Economics from Dartmouth College, where he graduated Phi Beta
Kappa. Mr. Buckley holds the Chartered Financial Analyst
designation.
Janus
Henderson Research Fund
The
Central Research Team selects investments for Janus Henderson Research Fund and
has done so since February 2006. The Central Research Team consists of the
Adviser’s equity research analysts overseen by the Portfolio Oversight Team led
by Matthew Peron.
Matthew
Peron is the
Adviser’s Director of Research and Executive Vice President of Janus Henderson
Research Fund. Mr. Peron is primarily responsible for the day-to-day operations
of the Fund. He leads the Portfolio Oversight Team that reviews the Fund’s
risks, overall structure, and guidelines and has done so since April 2020. Mr.
Peron is also Portfolio Manager of other Janus Henderson accounts. He holds a
Bachelor of Science degree in Electrical Engineering from Swarthmore College and
a Master of Business Administration degree from the University of Chicago. Prior
to joining the Adviser in April 2020, Mr. Peron was Chief Investment Officer for
City National Rochdale since 2018. Prior to serving in that role, he
held various
positions at Northern Trust, including serving as Executive Vice President and
Managing Director of Global Equity, and as a member of the asset allocation
committee.
66 | Janus
Investment Fund
Janus
Henderson Triton Fund and Janus Henderson Venture Fund
Co-Portfolio Managers
Jonathan D. Coleman and Scott Stutzman are responsible for the day-to-day
management of the Funds. Mr. Coleman, as Lead Portfolio Manager, has the
authority to exercise final decision-making on the overall
portfolios.
Jonathan
D. Coleman,
CFA, is Executive Vice President and Lead Portfolio Manager of Janus Henderson
Triton Fund and Janus Henderson Venture Fund, which he has managed or co-managed
since May 2013. Mr. Coleman is also Portfolio Manager of other Janus Henderson
accounts. He holds a Bachelor of Arts degree in Political Economy and Spanish
from Williams College, where he was a member of Phi Beta Kappa. Mr. Coleman
holds the Chartered Financial Analyst designation.
Scott
Stutzman, CFA, is
Executive Vice President and Co-Portfolio Manager of Janus Henderson Triton Fund
and Janus Henderson Venture Fund, which he has co-managed since July 2016. Mr.
Stutzman is also Portfolio Manager of other Janus Henderson accounts and
performs duties as an analyst. He holds a Bachelor of Science degree in
Industrial Engineering and Management Sciences from Northwestern University, and
a Master of Business Administration degree, with a concentration in Finance,
from Columbia University. Mr. Stutzman holds the Chartered Financial Analyst
designation.
Information
about the portfolio managers’ and/or investment personnel’s compensation
structure and other accounts managed, as well as the aggregate range of their
individual ownership in the Fund(s) that they manage and certain other mutual
funds advised by the Adviser, is included in the SAI.
Conflicts
of Interest
The
Adviser manages other funds and numerous other accounts, which may include
separate accounts and other pooled investment vehicles, such as hedge funds.
Side-by-side management of multiple accounts, including the management of a cash
collateral pool for securities lending and investing the Janus Henderson funds’
cash, may give rise to conflicts of interest among those accounts, and may
create potential risks, such as the risk that investment activity in one account
may adversely affect another account. For example, short sale activity in an
account could adversely affect the market value of long positions in one or more
other accounts (and vice versa). Side-by-side management may raise additional
potential conflicts of interest relating to the allocation of investment
opportunities and the aggregation and allocation of trades. Additionally, the
Adviser manages the Janus Henderson “funds of funds,” which are funds that
invest primarily in other mutual funds that are managed by the Adviser. Because
the Adviser manages the Janus Henderson “funds of funds” and the Janus Henderson
funds, it is subject to certain potential conflicts of interest when allocating
the assets of a Janus Henderson “fund of funds” among such Janus Henderson
funds. To the extent that a Fund is an underlying fund in a Janus Henderson
“fund of funds,” a potential conflict of interest arises when allocating the
assets of the Janus Henderson “fund of funds” to that Fund. Purchases and
redemptions of fund shares by a Janus Henderson “fund of funds” due to
reallocations or rebalancings may result in a fund having to sell securities or
invest cash when it otherwise would not do so. Such transactions could
accelerate the realization of taxable income if sales of securities resulted in
gains. In addition, redemptions by a Janus Henderson “fund of funds” could cause
actual expenses to increase, or could result in a Fund’s current expenses being
allocated over a smaller asset base, which may lead to an increase in the Fund’s
expense ratio. The impact of these transactions is likely to be greater when a
Janus Henderson “fund of funds” purchases, redeems, or owns a substantial
portion of a Fund’s shares. A further discussion of potential conflicts of
interest and a discussion of certain procedures intended to mitigate such
potential conflicts are contained in the Funds’ SAI.
67 | Janus
Investment Fund
|
CLOSED
FUND POLICIES |
A Fund may limit sales of
its Shares to new investors. If sales of a Fund are limited, it is expected that
existing shareholders invested in the Fund would be permitted to continue to
purchase Shares through their existing Fund accounts and to reinvest any
dividends or capital gains distributions in such accounts, absent highly unusual
circumstances. Requests for new accounts into a closed fund would be reviewed by
management, taking into consideration eligibility requirements and whether the
addition to the fund is believed to negatively impact existing fund
shareholders. The closed fund may decline opening new accounts, including
eligible new accounts, if it would be in the best interests of the fund and its
shareholders. If applicable, additional information regarding general policies
and exceptions can be found in a closed fund’s prospectuses.
|
LIQUIDATION/REORGANIZATION
OF A FUND |
It is
important to know that, pursuant to the Trust’s Amended and Restated Agreement
and Declaration of Trust, the Trustees have the authority to merge, liquidate,
and/or reorganize a Fund into another fund without seeking shareholder vote or
consent.
|
DISTRIBUTION
OF THE Funds |
The Funds
are distributed by Janus Henderson Distributors US LLC (the “Distributor”),
which is a member of the Financial Industry Regulatory Authority, Inc.
(“FINRA”). To obtain information about FINRA member firms and their associated
persons, you may contact FINRA at www.finra.org, or 1-800-289-9999.
68 | Janus
Investment Fund
|
Distributions |
To avoid taxation of the
Funds, the Internal Revenue Code of 1986, as amended (the “Internal Revenue
Code”), requires each
Fund to
distribute all or substantially all of its net investment income and any net
capital gains realized on its investments at least annually. A return of capital
distribution is tax-free to the extent of your basis in your shares and
thereafter is treated as a capital gain if you hold your shares as a capital
asset. Because a return of capital distribution reduces the basis of your
shares, a return of capital distribution may result in a higher capital gain or
a lower capital loss when you sell your shares held in a taxable account.
Distributions are made at the class level, so they may vary from class to class
within a single Fund.
Distribution
Schedule
Dividends
from net investment income for Janus Henderson Balanced Fund and Janus Henderson
Growth and Income Fund are normally declared and distributed in March, June,
September, and December. Dividends from net investment income for each of the
other Funds are normally declared and distributed in December. In addition,
distributions of net capital gains are normally declared and distributed in
December. If necessary, dividends and net capital gains may be distributed at
other times as well.
How
Distributions Affect a
Fund’s NAV
Distributions
are paid to shareholders as of the record date of a distribution of a Fund,
regardless of how long the Shares have been held. Undistributed dividends and
net capital gains are included in each Fund’s daily net asset value (“NAV”). The
share price of a Fund drops by the amount of the distribution, net of any
subsequent market fluctuations. For example, assume that on December 31, a Fund
declared a dividend in the amount of $0.25 per share. If the Fund’s share price
was $10.00 on December 30, the Fund’s share price on December 31 would be $9.75,
barring market fluctuations. You should be aware that distributions from a
taxable mutual fund do not increase the value of your investment and may create
income tax obligations.
“Buying
a Dividend”
If you
purchase shares of a Fund just before a distribution, you will pay the full
price for the shares and receive a portion of the purchase price back as a
taxable distribution. This is referred to as “buying a dividend.” In the above
example, if you bought shares on December 30, you would have paid $10.00 per
share. On December 31, the Fund would pay you $0.25 per share as a dividend and
your shares would now be worth $9.75 per share. Unless your account is set up as
a tax-advantaged account, dividends paid to you would be included in your gross
income for federal income tax purposes, even though you may not have
participated in the increase in NAV of the Fund, whether or not you reinvested
the dividends. You should consult with your tax adviser as to potential tax
consequences of any distributions that may be paid shortly after
purchase.
For your
convenience, distributions of net investment income and net capital gains are
automatically reinvested in additional Shares of the Fund. To receive
distributions in cash, contact a Janus Henderson representative at
1-800-525-3713. Whether reinvested or paid in cash, the distributions may be
subject to taxes, unless your shares are held in a qualified tax-advantaged plan
or account.
|
Distribution
Options |
When you
open an account, it will automatically provide for reinvestment of all
distributions. If you have a non-retirement account, you may change your
distribution option at any time by logging on to janushenderson.com/individual,
by calling a Janus Henderson representative, or by writing to the Funds at one
of the addresses listed in the Shareholder’s Manual section of this Prospectus.
The Funds offer the following options:
Reinvestment
Option. You may
reinvest your income dividends and capital gains distributions in additional
shares.
Cash
Option. You may
receive your income dividends and capital gains distributions in
cash.
Reinvest
and Cash Option. You may
receive either your income dividends or capital gains distributions in cash and
reinvest the other in additional shares.
Redirect
Option. You may
direct your dividends or capital gains distributions to purchase shares of
another Janus Henderson fund.
69 | Janus
Investment Fund
The Funds
reserve the right to reinvest uncashed dividend and distribution checks into
your open non-retirement account at the NAV next computed after the check is
cancelled. Subsequent distributions may also be reinvested. For more
information, refer to “Shareholder Services and Account Policies.”
|
TAXES |
As with
any investment, you should consider the tax consequences of investing in the
Funds. The following is a general discussion of certain federal income tax
consequences of investing in the Funds. The discussion does not apply to
qualified tax-advantaged accounts or other non-taxable entities, nor is it a
complete analysis of the federal income tax implications of investing in the
Funds. You should consult your tax adviser regarding the effect that an
investment in a Fund may have on your particular tax situation, including the
federal, state, local, and foreign tax consequences of your
investment.
Taxes
on Distributions
Distributions by the
Funds are subject to federal income tax, regardless of whether the distribution
is made in cash or reinvested in additional shares of a Fund. Distributions from
net investment income (which includes dividends, interest, and realized net
short-term capital gains), other than qualified dividend income, are taxable to
shareholders as ordinary income. Distributions of qualified dividend income are
taxed to individuals and other noncorporate shareholders at long-term capital
gain rates, provided certain holding period and other requirements are
satisfied. Distributions of net capital gain (i.e., the excess of net long-term
capital gain over net short-term capital loss) are taxable as long-term capital
gain, regardless of how long a shareholder has held Fund shares. In certain
states, a portion of the distributions (depending on the sources of
a
Fund’s
income) may be exempt from state and local taxes. Individuals, trusts, and
estates whose income exceeds certain threshold amounts are subject to an
additional 3.8% Medicare contribution tax on net investment income. Net
investment income includes dividends paid by a Fund and capital gains from any
sale or exchange of Fund shares. A Fund’s net investment income and capital
gains are distributed to (and may be taxable to) those persons who are
shareholders of the Fund at the record date of such payments. Although a Fund’s
total net income and net realized gain are the results of its operations, the
per share amount distributed or taxable to shareholders is affected by the
number of Fund shares outstanding at the record date. Distributions declared to
shareholders of record in October, November, or December and paid on or before
January 31 of the succeeding year will be treated for federal income tax
purposes as if received by shareholders on December 31 of the year in which the
distribution was declared. Generally, account tax information will be made
available to shareholders on or before February 15 of each year. Information
regarding distributions may also be reported to the Internal Revenue Service
(the “IRS”). A portion of a Fund’s distributions received from REITs may be
classified as a return of capital for federal income tax purposes. As a result,
the Fund is more likely to make distributions that are treated as returns of
capital, and possibly in greater amounts, than a fund that does not invest in
REITs.
Distributions
made by a Fund with respect to Shares purchased through a qualified retirement
plan will generally be exempt from current taxation if left to accumulate within
the qualified plan. Generally, withdrawals from qualified plans may be subject
to federal income tax at ordinary income rates and, if made before age
59 1∕2, a 10%
penalty tax may be imposed. The federal income tax status of your investment
depends on the features of your qualified plan. For further information, please
contact your tax adviser.
Taxes
on Sales or Exchanges
Any time
you sell or exchange shares of a Fund in a taxable account, it is considered a
taxable event. For federal income tax purposes, an exchange is treated the same
as a sale. Depending on the purchase price and the sale price, you may have a
gain or loss on the transaction. The gain or loss will generally be treated as a
long-term capital gain or loss if you held your shares for more than one year
and if not held for such period, as a short-term capital gain or loss. Any tax
liabilities generated by your transactions are your responsibility. Your ability
to deduct capital losses may be limited under the Internal Revenue
Code.
The Funds may be required
to withhold U.S. federal income tax on all distributions and redemption proceeds
to shareholders who fail to provide their correct taxpayer identification
number, fail to make certain required certifications, or who have been notified
by the IRS that they are subject to backup withholding. The current backup
withholding rate is applied.
If a
shareholder does not meet the requirements of the Foreign Account Tax Compliance
Act (“FATCA”), a Fund may be required to impose a 30% U.S. withholding tax on
distributions and proceeds from the sale or other disposition of shares in the
Fund. FATCA withholding will generally apply to payments of dividends from net
investment income, payments of gross proceeds from sales of Fund shares, and
distributions of net capital gains. Proposed Treasury regulations, however,
generally
70 | Janus
Investment Fund
eliminate
withholding under FATCA on gross proceeds, which include certain capital gains
distributions and gross proceeds from a sale or disposition of Fund shares.
Taxpayers generally may rely on these proposed Treasury regulations until final
Treasury regulations are issued. Shareholders should consult their individual
tax advisers regarding the possible implications of FATCA.
For
Shares purchased on or after January 1, 2012 and sold thereafter from a taxable
account, the Janus Henderson funds will report cost basis information to you and
to the IRS. Each Fund will permit shareholders to elect their preferred cost
basis method. In the absence of an election, the Fund will use an average cost
basis method. Please consult your tax adviser to determine the appropriate cost
basis method for your particular tax situation and to learn more about how the
cost basis reporting laws apply to you and your investments.
Taxation
of the Funds
Dividends,
interest, and some capital gains received by the Funds on foreign securities may
be subject to foreign tax withholding or other foreign taxes. If a Fund is
eligible, it may from year to year make the election permitted under Section 853
of the Internal Revenue Code to pass through such taxes to shareholders as a
foreign tax credit. If a Fund makes such election, foreign taxes paid by the
Fund will be reported to shareholders as income and shareholders may claim a tax
credit or deduction for such taxes, subject to certain limitations. If such an
election is not made, any foreign taxes paid or accrued will represent an
expense to the Funds.
Certain
fund transactions may involve short sales, futures, options, swap agreements,
hedged investments, and other similar transactions, and may be subject to
special provisions of the Internal Revenue Code that, among other things, can
potentially affect the character, amount, and timing of distributions to
shareholders, and utilization of capital loss carryforwards. The Funds will
monitor their transactions and may make certain tax elections and use certain
investment strategies where applicable in order to mitigate the effect of these
tax provisions, if possible.
The Funds
do not expect to pay any federal income or excise taxes because they intend to
meet certain requirements of the Internal Revenue Code, including the
distribution each year of substantially all their net investment income and net
capital gains. It is important that the Funds meet these requirements so that
any earnings on your investment will not be subject to federal income tax twice.
If a Fund invests in partnerships, it may be subject to state tax
liabilities.
71 | Janus
Investment Fund
Shareholder’s
manual
This
Shareholder’s Manual is for those shareholders investing directly with the
Funds. This section will help you become familiar with the different types of
accounts you can establish with the Adviser. It also explains in detail the wide
array of services and features you can establish on your account, as well as
describes account policies and fees that may apply to your account. Account
policies (including fees), services, and features may be modified or
discontinued without shareholder approval or prior notice.
With
certain exceptions, the Funds are generally available only to shareholders
residing in the United States and employees of the Adviser or its affiliates.
For purposes of this policy, the Funds require that a shareholder and/or entity
be a U.S. citizen residing in the United States or a U.S. Territory (including
overseas U.S. military or diplomatic addresses) or a resident alien residing in
the United States or a U.S. Territory with a valid U.S. Taxpayer Identification
Number to open an account with a Fund.
The Funds
offer multiple classes of shares in order to meet the needs of various types of
investors. You
should carefully consider which class of shares to purchase. Certain classes
have higher expenses than other classes, which may lower the return on your
investment. If you
would like additional information about the other available share classes,
please call 1-800-525-3713.
Online – janushenderson.com – 24
hours a day, 7 days a week
At
janushenderson.com/individual*
existing shareholders can:
•
Obtain
Fund information and performance
•
View your
personalized performance
•
Review
your account or your complete portfolio
•
Buy,
exchange, and sell Janus Henderson funds
•
Update
personal information
•
Receive
electronic daily transaction confirmations, quarterly and year-end statements,
semiannual and annual reports, prospectuses, and tax forms
•
Analyze
the fees associated with your investment
(www.finra.org/fundanalyzer)
•
Open a
new account
*
Certain
account or transaction types may be restricted from being processed through
janushenderson.com. If you would like more information about these restrictions,
please contact a Janus Henderson representative.
|
Janus
Henderson XpressLinetm
1-888-979-7737
•
24-hour automated phone system
Janus
Henderson Representatives
1-800-525-3713
TDD
For
the speech and hearing impaired.
1-800-525-0056 |
Mailing
Address
Janus
Henderson
P.O.
Box 219109
Kansas
City, MO 64121-9109
For
Overnight Mail
Janus
Henderson
430
W 7th Street, Suite 219109
Kansas
City, MO 64105-1407 |
|
Minimum
Investments* |
|
To
open a new regular Fund account |
$2,500 |
|
To
open a new regular Fund account with an automatic investment program of
$50 per month |
$100 |
|
To
open a new UGMA/UTMA account, Coverdell Education Savings Account, or a
retirement Fund account |
|
|
• without
an automatic investment program |
$1,000 |
|
• with
an automatic investment program of $50 per month |
$100 |
|
To
add to any existing type of Fund account without an automatic investment
program |
$50 |
72 | Janus
Investment Fund
*
The Funds
reserve the right to change the amount of these minimums from time to time or to
waive them in whole or in part. Participants in certain retirement plans,
including but not limited to, Janus Henderson prototype Money Purchase Pension
and Profit Sharing plans, SEP IRAs, SARSEP IRAs, or outside qualified retirement
plans, may not be subject to the stated minimums. Employees of JHG and its
subsidiaries may open Fund accounts for $100.
Minimum
Investment Requirements
Due to the
proportionately higher costs of maintaining small accounts, the Funds reserve
the right to deduct an annual $25 minimum balance fee per Fund account (paid to
the Transfer Agent) with values below the minimums described under “Minimum
Investments” or to close Fund accounts valued at less than $100. This policy may
not apply to accounts that fall below the minimums solely as a result of market
value fluctuations or to those accounts not subject to a minimum investment
requirement. The fee or account closure will occur during the fourth quarter of
each calendar year. You will
receive
written notice before we charge the $25 fee or close your account so that you
may increase your account balance to the required minimum provided you meet
certain residency eligibility requirements. Please note that you may incur a tax
liability as a result of the fee being charged or the redemption.
|
Available
Incentive Programs |
Bonus
Program for Taxable Account Purchases and Tax-Advantaged Account
Transfers/Rollovers
Through the Transfer
Agent’s Bonus Program, the Transfer Agent will pay a bonus of up to $2,500 to
you for making certain eligible purchases of Fund shares in taxable accounts or
transfers/rollovers from a non-Janus Henderson fund account into a Janus
Henderson fund tax-advantaged account. The Bonus Program is valid with an
eligible purchase or transfer/rollover of $20,000 or more. If you meet the
eligibility requirements for the Bonus Program and enroll in it, the Transfer
Agent will deposit a bonus payment into your Fund account within approximately
30 days after the deposit of eligible funds in good order and receipt of a
signed contract governing the Bonus Program. An investor must keep the eligible
purchase in the account for a period of 360 calendar days in order to retain the
bonus payment. Any sale of the qualifying purchase amount (in whole or in part),
transfer, or closure of the account within the 360 calendar day period may
result in forfeiture of the bonus payment. Any decline in an account’s value due
solely to market value fluctuations will not result in the forfeiture of the
bonus payment. Only taxable account purchases or transfers/rollovers to
tax-advantaged accounts that are made on or after January 1, 2023 through
December 31, 2023 are eligible for a bonus payment. The eligible period for the
Bonus Program may be extended beyond this time frame at the sole discretion of
the Transfer Agent. Before enrolling in the Bonus Program, consult with your tax
advisor about the appropriate tax treatment for the bonus offer and any tax
implications associated with the receipt of a bonus payment. The Transfer Agent
reserves the right to change the terms, restrict, or revoke this Bonus Program
at any time without advance notice.
You can
request more information about the Transfer Agent’s Bonus Program and
eligibility requirements for taxable accounts by contacting a Janus Henderson
representative at 1-800-525-3713 or by visiting www.janushenderson.com/bonus.
You can request more information about the Bonus Program for tax-advantaged
account transfers/rollovers by contacting a Janus Henderson Direct Rollover
Specialist at 1-800-379-7603 or by visiting
www.janushenderson.com/bonus.
Contribution
Match Payments
Investors that
transfer/rollover assets from a non-Janus Henderson fund account into a
tax-advantaged account are also eligible for the Transfer Agent’s Contribution
Match Program. To receive a Transfer Agent’s Contribution Match payment, (i) the
value of your tax-advantaged account must remain equal to or greater than the
value of the eligible transfer/rollover (but not including any losses due solely
to market value fluctuations) for 12 months following the receipt of your
transfer/rollover in good order and receipt of a signed contract governing the
Contribution Match Program, and (ii) you must provide instructions to the
Transfer Agent on how to invest these payments. The Transfer Agent’s
Contribution Match payments will commence at the end of the first quarter in
2024 following an eligible contribution during the first quarter of 2024 into a
Janus Henderson fund tax-advantaged account. The eligible period for the
Transfer Agent’s Contribution Match payments may be extended beyond this time
frame at the sole discretion of the Transfer Agent. The Transfer Agent will
match a percentage of these contributions based on the aggregate value of
eligible 2023 rollover or asset transfer amounts, and provide a matching
contribution in an amount up to ten percent of your contribution. Before
enrolling in the Contribution Match Program, consult with your tax advisor about
the appropriate tax treatment for the Transfer Agent’s Contribution Match
payments and any tax implications associated with the receipt of a Contribution
Match payment. The Transfer Agent reserves the right to change the terms,
restrict, or revoke the Contribution Match Program at any time without advance
notice.
You can
request more information about the Contribution Match Program and eligibility
requirements by contacting a Janus Henderson Direct Rollover Specialist at
1-800-379-7603 or by visiting www.janushenderson.com/bonus.
73 | Janus
Investment Fund
New
Shareholder Incentive Program
New
investors that are referred to Janus Henderson funds by an existing shareholder
are eligible to participate in the Transfer Agent’s New Shareholder Incentive
Program. After the new investor has completed the required Referral Program
Contract, the Transfer Agent will fund the $100 initial investment required for
new investors who have been referred through the New Shareholder Incentive
Program, provided that new investors enroll in Janus Henderson’s automatic
investment program in an amount equal to at least $50 per month. New investors
will forfeit the $100 contributed by the Transfer Agent if their account is
closed or if their automatic monthly investment program payment is terminated
within two years from the date the initial investment was made.
Investor-initiated amounts outside of the initial investment are redeemable at
any time at net asset value. Before enrolling in the New Shareholder Incentive
Program, new investors should consult with their tax advisor about the
appropriate tax treatment for participating in the New Shareholder Incentive
Program and any tax implications associated with the receipt of the $100 initial
investment. The Transfer Agent reserves the right to change the terms, restrict,
or revoke the New Shareholder Incentive Program at any time without advance
notice.
You can
request more information about the Transfer Agent’s New Shareholder Incentive
Program by contacting a Janus Henderson representative at 1-800-525-3713 or by
visiting www.janushenderson.com/bonus.
|
Types
of Account Ownership |
Please
refer to janushenderson.com/individual for the appropriate account application
and for information related to maintaining an account.
Individual
or Joint Ownership
Individual
accounts are owned by one person. Joint accounts have two or more
owners.
Trust
An
established trust can open an account. The names of each trustee, the name of
the trust, and the date of the trust agreement must be included on the
application.
Business
Accounts
Corporations
and partnerships may also open an account. The application must be signed by an
authorized officer of the corporation or a general partner of the
partnership.
|
Tax-Advantaged
Accounts |
Please
refer to janushenderson.com/individual for the appropriate account application
and for information related to maintaining an account. Certain tax-advantaged
accounts can only be maintained via written request. Please contact a Janus
Henderson representative for more information.
If you
are eligible, you may set up one or more tax-advantaged accounts. A
tax-advantaged account allows you to shelter your investment income and capital
gains from current income taxes. A contribution to certain of these plans may
also be tax deductible. The types of tax-advantaged accounts that may be opened
with Janus Henderson are described below. Investors should consult their tax
adviser or legal counsel before selecting a tax-advantaged account.
Investing
for Your Retirement
Please
visit janushenderson.com/individual or call a Janus Henderson representative for
more complete information regarding the different types of IRAs available.
Distributions from these plans may be subject to income tax and generally to an
additional tax if withdrawn prior to age 59 1∕2 and used
for a nonqualifying purpose.
Traditional
and Roth IRAs
Both IRAs
allow most individuals with earned income to contribute up to the lesser of
$6,000 or 100% of compensation, with future years increased by cost-of-living
adjustments. In addition, IRA holders age 50 or older may contribute $1,000 more
than these limits.
Simplified
Employee Pension (“SEP”) IRA
This plan
allows small business owners (including sole proprietors) to make tax-deductible
contributions for themselves and any eligible employee(s). A SEP requires an IRA
(a “SEP-IRA”) to be set up for each SEP participant.
74 | Janus
Investment Fund
Profit
Sharing or Money Purchase Pension Plans
These
plans are open to corporations, partnerships, and small business owners
(including sole proprietors) for the benefit of their
employees and themselves. You may only maintain this type of account via written
request. Please contact a Janus Henderson representative for more
information.
|
Accounts
for the Benefit of a Child |
Custodial
Accounts (UGMA or UTMA)
An
UGMA/UTMA account is a custodial account managed for the benefit of a
minor.
Coverdell
Education Savings Account
This
tax-advantaged plan allows individuals, subject to certain income limitations,
to contribute up to $2,000 annually on behalf of
any child under the age of 18. Contributions are also allowed on behalf of
children with special needs beyond age 18. Distributions are generally tax-free
when used for qualified education expenses.
Please
refer to the following for information regarding opening an account and
conducting business with Janus Henderson.
|
To
Open an Account or Buy Shares |
New
accounts can be opened via written request or online. Please visit janushenderson.com/individual
or contact a Janus Henderson representative for more information.
As
previously noted, with certain exceptions, the Funds
are generally available only to shareholders residing in the United States.
Unless you meet certain residency eligibility requirements, you may not be able
to open an account or buy additional shares.
By
Mail/In Writing
•
To open
your Fund account, complete and sign the appropriate application. Make your
check payable to Janus Henderson or elect a one-time electronic withdrawal from
your bank account as noted on the appropriate application.
•
To buy
additional shares, complete the remittance slip accompanying your confirmation
statement. If you are making a purchase into a retirement account, please
indicate whether the purchase is a rollover or a current or prior year
contribution. Send your check and remittance slip or written instructions to the
address listed on the slip.
Online
•
You may
open a new account or buy additional shares in an existing Fund account (note
that certain account or transaction types may be restricted from being processed
through janushenderson.com). You may elect to have Janus Henderson
electronically withdraw funds from your designated bank account. A real-time
confirmation of your transaction will be provided via
janushenderson.com/individual.
By
Telephone
•
For an
existing account, you may use Janus Henderson XpressLine to buy shares 24 hours
a day, or you may call a Janus Henderson representative during normal business
hours. Janus Henderson will electronically withdraw funds from your designated
bank account.
•
You may
also buy shares by wiring money from your bank account to your Fund account. For
wiring instructions, call a Janus Henderson representative.
By
Automated Investments
•
To buy
additional shares through the Automatic Investment Program, you select the
frequency with which your money ($50 minimum) will be electronically transferred
from your bank account to your Fund account. Certain tax-advantaged accounts are
not eligible for automated investments.
•
You may
buy additional shares using Payroll Deduction if your employer can initiate this
type of transaction. You may have all or a portion of your paycheck ($50
minimum) invested directly into your Fund account.
Note: For more information, refer to “Paying for Shares.”
75 | Janus
Investment Fund
|
To
Exchange Shares |
As
previously noted, with certain exceptions, the Funds are generally available
only to shareholders residing in the United States. Unless you meet certain
residency eligibility requirements, the exchange privilege may not be
available.
Online
•
Exchanges
may generally be made online at
janushenderson.com/individual.
By
Telephone
•
Generally
all accounts are automatically eligible to exchange shares by telephone. To
exchange all or a portion of your shares into any other available Janus
Henderson fund, call Janus Henderson XpressLine
or a
Janus Henderson representative.
By
Mail/In Writing
•
To
request an exchange in writing, please follow the instructions in “Written
Instructions.”
By
Systematic Exchange
•
You
determine the amount of money you would like automatically exchanged from one
Fund account to another on any day of the month.
Note: For more information, refer to “Exchanges.”
|
To
Sell Shares |
As
previously noted, with certain exceptions, the Funds are generally available
only to shareholders residing in the United States. Unless you meet certain
residency eligibility requirements, once you close your account, you may not
make additional investments in the Funds.
Online
•
Redemptions
may be made online at janushenderson.com/individual.
By
Telephone
•
Generally
all accounts are automatically eligible to sell shares by telephone. To sell all
or a portion of your shares, call Janus Henderson XpressLine or a Janus
Henderson representative. The Funds reserve the right to limit the dollar amount
that you may redeem from your account by telephone.
By
Mail/In Writing
•
To
request a redemption in writing, please follow the instructions in “Written
Instructions.”
By
Systematic Redemption
•
This
program allows you to sell shares worth a specific dollar amount from your Fund
account on a regular basis.
Note: For more information, refer to “Payment of Redemption Proceeds.”
The per share NAV for
each class is computed by dividing the total value of assets allocated to the
class, less liabilities allocated to that class, by the total number of
outstanding shares of the class. A Fund’s NAV is calculated as of the close of
the trading session of the New York Stock Exchange (“NYSE”) (normally 4:00 p.m.
New York time) each day that the NYSE is open (“business day”). However, the
time at which a Fund’s NAV is calculated may be changed if trading on the NYSE
is restricted, the NYSE closes at a different time, or as permitted by the SEC.
Foreign securities held by a Fund may be traded on days and at times when the
NYSE is closed and the NAV is therefore not calculated. Accordingly, the value
of a Fund’s holdings may change on days that are not business days in the United
States and on which you will not be able to purchase or redeem a Fund’s
Shares.
All
purchases, exchanges, and redemptions will be duly processed at the NAV as
described under “Policies in Relation to Transactions” after your request is
received in good order by a Fund or its agents.
76 | Janus
Investment Fund
Fund holdings
are valued
in accordance with policies and procedures established by the Adviser pursuant
to Rule 2a-5 under the Investment Company Act of 1940, as amended, and approved
by and subject to the oversight of the Trustees (the “Valuation Procedures”). To
the extent available, domestic and foreign equity securities traded on a
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. Most fixed-income securities
are typically valued using an evaluated bid price supplied by an
Adviser-approved pricing service that is intended to reflect market value. The
evaluated bid price is an evaluation that may consider factors such as security
prices, yields, maturities, and ratings. Certain short-term instruments maturing
within 60 days or less may be valued at amortized cost, which approximates
market value. If a market quotation or evaluated price for a security is not
readily available or is deemed unreliable, or if an event that is expected to
affect the value of the security occurs after the close of the principal
exchange or market on which the security is traded, and before the close of the
NYSE, a fair value of the security will be determined in good faith by the
Adviser pursuant to the Valuation Procedures. Such events include, but are not
limited to: (i) a significant event that may affect the securities of a single
issuer, such as a merger, bankruptcy, or significant issuer-specific
development; (ii) an event that may affect an entire market, such as a natural
disaster or significant governmental action; (iii) a non-significant event such
as a market closing early or not opening, or a security trading halt; and (iv)
pricing of a non-valued security and a restricted or non-public security. This
type of fair valuation may be more commonly used with foreign equity securities,
but it may also be used with, among other things, thinly-traded domestic
securities or fixed-income securities. 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. For valuation purposes, quotations of foreign portfolio securities,
other assets and liabilities, and forward contracts stated in foreign currency
are generally translated into U.S. dollar equivalents at the prevailing market
rates. The Valuation Procedures provide for the use of systematic fair valuation
models provided by an independent pricing service to value foreign equity
securities in order to adjust for stale pricing, which may occur between the
close of certain foreign exchanges and the close of the NYSE.
The
methodologies employed when fair valuing Fund holdings may change from time to
time. Because fair value pricing involves subjective judgments, it is possible
that the fair value determination for a security may be different than the value
that could be realized when selling that security.
Due to the subjective
nature of systematic fair valuation,
the value of
a particular security may be different from the last quoted market price.
Systematic fair valuation may reduce arbitrage activity involving the frequent
buying and selling of mutual fund shares by investors seeking to take advantage
of a perceived lag between a change in the value of a Fund’s portfolio
securities and the reflection of such change in a Fund’s NAV, as further
described in the “Excessive Trading” section of this Prospectus. While funds
that invest in foreign securities may be at a greater risk for arbitrage
activity, such activity may also arise in funds which do not invest in foreign
securities, for example, when trading in a security held by a fund is halted and
does not resume prior to the time the fund calculates its NAV (referred to as
“stale pricing”). Funds that hold thinly-traded securities, such as certain
small-capitalization securities or high-yield fixed-income securities, may be
subject to attempted use of arbitrage techniques. To the extent that
the
valuation of
a security is different from the security’s market value, short-term arbitrage
traders buying and/or selling shares of a Fund may dilute the NAV of the Fund,
which negatively impacts long-term shareholders. The Valuation
Procedures
and the Trust’s excessive trading policies and procedures may not completely
eliminate short-term trading in certain omnibus accounts and other accounts
traded through intermediaries.
The value of the
securities of other mutual funds held by a 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.
Generally, futures
contracts and/or options on futures are valued at the actual settlement price on
valuation date on the exchange as reported by an approved vendor. In the event
actual settlement price is unavailable or is deemed unreliable, then the
reported settlement price (there can be different settlement prices at different
times), early settlement price or the last trade price shall be used. Option
contracts are valued using an evaluated price from an approved vendor. Evaluated
prices can be derived using an option pricing model, including inputs derived
from volatility surfaces, market data and characteristics of the portfolio
investment. In cases when an approved vendor cannot provide coverage for an
option, a broker quotation or an internal valuation using the Black-Scholes
model, or other appropriate option pricing model shall be used. Index swaps,
credit default swaps, and interest rate swaps are typically valued using an
evaluated price from an approved vendor. Evaluated prices will generally have a
fixed and floating leg with the present value of each being calculated based on
the terms of the trade.
77 | Janus
Investment Fund
Policies
in Relation to Transactions
All requests, including
but not limited to, exchanges between a Fund and other Janus Henderson funds,
purchases by check or automated investment, redemptions by wire transfer, ACH
transfer, or check, must be received in good order by the Fund or its agents
prior to the close of the trading session of the NYSE (normally 4:00 p.m. New
York time) in order to receive that day’s NAV. Transaction requests submitted in
writing and mailed to Janus Henderson’s P.O. Box, once delivered, are considered
received for processing the following business day. Transactions involving funds
which pay dividends will generally begin to earn dividends, as applicable, on
the first bank business day following the date of purchase.
The Funds
pay 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% |
These
administrative services fees are paid by Class D Shares of each Fund. The
Transfer Agent provides or arranges for the provision of shareholder services
including, but not limited to, recordkeeping, accounting, answering inquiries
regarding accounts, transaction processing, transaction confirmations, and the
mailing of prospectuses and shareholder reports.
With
respect to other share classes not offered in this Prospectus, the Adviser or
its affiliates pay fees, from their own assets, to certain brokerage firms,
banks, financial advisors, retirement plan service providers, and other
financial intermediaries that sell the Janus Henderson funds for distribution,
marketing, promotional, or related services, and/or for providing recordkeeping,
subaccounting, transaction processing, other shareholder or administrative
services (including payments for processing transactions via the National
Securities Clearing Corporation (“NSCC”) or other means), and the Committee on
Uniform Security Identification Procedures (“CUSIP”) and fund setup fees, in
connection with investments in the Janus Henderson funds. These fees are in
addition to any fees that may be paid by the Janus Henderson funds for certain
of these types of services or other services. Shareholders investing through an
intermediary should consider whether such arrangements exist when evaluating any
recommendations from an intermediary and when considering which share class of a
fund is most appropriate.
In
addition, the Adviser or its affiliates periodically share certain marketing
expenses with selected intermediaries, or pay for or sponsor informational
meetings, seminars, client awareness events, support for marketing materials,
sales reporting, or business building programs for such financial intermediaries
to raise awareness of the Funds. The Adviser or its affiliates make payments to
participate in selected intermediary marketing support programs which may
provide the Adviser or its affiliates with one or more of the following
benefits: attendance at sales conferences, participation in meetings or training
sessions, access to or information about intermediary personnel, use of an
intermediary’s marketing and communication infrastructure, fund analysis tools,
data, business planning and strategy sessions with intermediary personnel,
information on industry- or platform-specific developments, trends and service
providers, and other marketing-related services. Such payments may be in
addition to, or in lieu of, the payments described above. These payments are
intended to promote the sales of Janus Henderson funds and to reimburse
financial intermediaries, directly or indirectly, for the costs that they or
their salespersons incur in connection with educational seminars, meetings, and
training efforts about the Janus Henderson funds to enable the intermediaries
and their salespersons to make suitable recommendations, provide useful
services, and maintain the necessary infrastructure to make the Janus Henderson
funds available to their customers.
The
receipt of (or prospect of receiving) payments described above may provide a
financial intermediary and its salespersons with an incentive to favor sales of
Janus Henderson funds’ shares over sales of other mutual funds (or non-mutual
fund investments) or to favor sales of one class of Janus Henderson funds’
shares over sales of another Janus Henderson funds’ share class, with respect to
which the financial intermediary does not receive such payments or receives them
in a lower amount. The receipt of these payments may cause certain financial
intermediaries to elevate the prominence of the Janus Henderson funds within
such financial intermediary’s organization by, for example, placement on a list
of preferred or
78 | Janus
Investment Fund
recommended
funds and/or the provision of preferential or enhanced opportunities to promote
the Janus Henderson funds in various ways within such financial intermediary’s
organization.
From time
to time, certain financial intermediaries approach the Adviser to request that
the Adviser make contributions to certain charitable organizations. In these
cases, the Adviser’s contribution may result in the financial intermediary, or
its salespersons, recommending Janus Henderson funds over other mutual funds (or
non-mutual fund investments).
The
payment arrangements described above will not change the price an investor pays
for Shares nor the amount that a Janus Henderson fund receives to invest on
behalf of the investor. You should consider whether such arrangements exist when
evaluating any recommendations from an intermediary to purchase or sell Shares
of the Funds and, if applicable, when considering which share class of a Fund is
most appropriate for you.
As
previously noted, with certain exceptions, the Funds are generally available
only to shareholders residing in the United States. Unless you meet certain
residency eligibility requirements, you may not be able to buy
shares.
Please
note the following when purchasing Shares:
•
Cash,
credit cards, third party checks (with certain limited exceptions), travelers
cheques, credit card checks, line of credit checks, or money orders will not be
accepted.
•
All
purchases must be made in U.S. dollars and checks must be drawn on U.S. banks or
an accepted non-U.S. bank.
•
Purchases
initiated using a bill-pay service (or an equivalent) and presented either
electronically or in the form of a check are considered direct deposit
transactions.
•
When
purchasing Shares through the Automatic Investment Program, your automatic
investment selection(s) will generally be active within three days following
receipt of your authorization for the date and amount you specify. If no date or
dollar amount is specified on your application, investments of $50 will be made
on the 20th of each month. If the balance in the Janus Henderson fund account
you are buying into falls to zero as the result of a redemption, exchange, or
minimum balance fee, your Automatic Investment Program will be
discontinued.
•
We may
make additional attempts to debit your predesignated bank account for automated
investments that initially fail. You are liable for any costs associated with
these additional attempts. If your automated investment fails, you may purchase
Shares of the Funds by submitting good funds via another method accepted by the
Funds (e.g., by wire transfer). In this case, your purchase will be processed at
the next NAV determined after we receive good funds, not at the NAV available as
of the date of the original request.
•
Each Fund
reserves the right to reject any purchase order, including exchange purchases,
for any reason. The Funds are not intended for excessive trading. For more
information about the Funds’ policy on excessive trading, refer to “Excessive
Trading.”
•
If
all or a portion of a purchase is received for investment without a specific
fund designation, for investment in one of our closed funds, or for investment
in a fund that is not yet available for public sale, the undesignated amount or
entire investment, as applicable, will be invested in Janus Henderson Government
Money Market Fund. For investments without a specific fund designation, where
you own a single Fund account with a current balance greater than zero, the
investment will be applied to that Fund account. For investments without a
specific fund designation, where you own two or more Fund accounts with current
balances greater than zero, and for investments in closed funds, unless you
later direct Janus Henderson to (i) buy shares of another Janus Henderson fund
or (ii) sell shares of Janus Henderson Government Money Market Fund and return
the proceeds (including any dividends earned) to you, Janus Henderson will treat
your inaction as approval of the purchase of Janus Henderson Government Money
Market Fund. If you hold shares of a closed fund and submit an order directly to
Janus Henderson for your account in that closed fund, your account must be open
and your order must clearly indicate that you are currently a shareholder of the
closed fund, or your money will be invested in Janus Henderson Government Money
Market Fund. If you submit an order to buy shares of a fund that is not yet
available for investment (during a subscription period), your investment will be
held in Janus Henderson Government Money Market Fund until the new fund’s
commencement of operations. At that time, your investment (including any
dividends) will be automatically exchanged from Janus Henderson Government Money
Market Fund to the new fund. All orders for purchase, exchange, or redemption
will receive the NAV as described under “Policies in Relation to
Transactions.”
79 | Janus
Investment Fund
•
For Fund
purchases by check, if your check does not clear for any reason, your purchase
will be cancelled.
•
If your purchase is
cancelled for any reason, you will be responsible for any losses or fees imposed
by your bank and any losses incurred by
a
Fund as a
result.
A
Fund may
redeem shares held in your account to cover any losses it incurs if your
purchase is cancelled.
In
compliance with the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (“USA PATRIOT
Act”), the Adviser is required to verify certain information on your account
application as part of its Anti-Money Laundering Program. You will be required
to provide your full name, date of birth, Social Security number, and permanent
street address to assist in verifying your identity. You may also be asked to
provide documents that may help to establish your identity. For investors other
than individuals: When you open an account, you will be asked for the name of
the entity, its principal place of business, and taxpayer identification number,
and you may be requested to provide information on persons with authority or
control over the account, or persons who own (whether directly, indirectly, or
beneficially) 25% or more of the entity, such as name, permanent street address,
date of birth, and Social Security number. Until verification of an identity is
made, the Adviser may temporarily limit additional share purchases. In addition,
the Adviser may close an account if it is unable to verify a shareholder’s
identity. Please contact a Janus Henderson representative if you need additional
assistance when completing your application or additional information about the
Anti-Money Laundering Program.
In an
effort to ensure compliance with this law, the Adviser’s Anti-Money Laundering
Program (the “Program”) provides for the development of internal practices,
procedures and controls, designation of anti-money laundering compliance
officers, an ongoing training program, and an independent audit function to
determine the effectiveness of the Program.
The Funds
have also adopted an identity theft policy (“Red Flag Policy”) to detect,
prevent, and mitigate patterns, practices, or specific activities that indicate
the possible existence of identity theft. The Funds are required by law to
obtain certain personal information which will be used to verify your identity.
The Red Flag Policy applies to the opening of Fund accounts and activity with
respect to existing accounts.
As
previously noted, with certain exceptions, the Funds are generally available
only to shareholders residing in the United States. Unless you meet certain
residency eligibility requirements, the exchange privilege may not be
available.
Please
note the following when exchanging Shares:
•
An
exchange represents the redemption (or sale) of shares from one Fund and the
purchase of shares of another Fund, which may produce a taxable gain or loss in
a non-retirement account.
•
You may
generally exchange Shares of a Fund for Shares of the same class of any other
fund in the Trust, with the exception of the Janus Henderson money market funds.
Only accounts beneficially owned by natural persons will be allowed to exchange
to Janus Henderson Money Market Fund; all other account types can only exchange
to Janus Henderson Government Money Market Fund.
•
You may
also exchange shares of one class for another class of shares within the same
fund, provided the eligibility requirements of the class of shares to be
received are met. A Fund’s fees and expenses differ between share classes.
Exchanging from a direct share class to one held through an intermediary
typically results in increased expenses. This is because share classes
distributed through intermediaries include additional fees for administration
and/or distribution to pay for services provided by intermediaries. Please read
the Prospectus for the share class you are interested in prior to investing in
that share class.
•
New
regular Janus Henderson fund accounts established by exchange must be opened
with $2,500 or the total account value if the value of the Janus Henderson fund
account you are exchanging from is less than $2,500 ($100 for new regular Fund
accounts with an automatic investment program of $50 per month). (If your Janus
Henderson fund account balance does not meet the minimum investment
requirements, you may be subject to an annual minimum balance fee or account
closure. For more information, refer to “Minimum Investment
Requirements.”)
•
UGMA/UTMA
accounts, Traditional or Roth IRAs, Simplified Employee Pension IRAs, and
Coverdell Education Savings Accounts established by exchange must meet the
minimum investment requirements previously described. If the value of the Janus
Henderson fund account you are exchanging from is less than the stated minimum,
you must exchange the entire
80 | Janus
Investment Fund
balance.
(If your Janus Henderson fund account balance does not meet the minimum
investment requirements, you may be subject
to an annual minimum balance fee or account closure. For more information, refer
to “Minimum Investment Requirements.”)
•
New Janus
Henderson fund non-retirement accounts established by an exchange (or exchange
purchases to an existing Roth IRA) resulting from a required minimum
distribution from a retirement account do not have an initial minimum investment
requirement. (If your Janus Henderson fund account balance does not meet the
minimum investment requirements, you may be subject to an annual minimum balance
fee or account closure. For more information, refer to “Minimum Investment
Requirements.”)
•
Exchanges
between existing Janus Henderson fund accounts must meet the $50 subsequent
investment requirement.
•
For
Systematic Exchanges, if no date is specified on your request, systematic
exchanges will be made on the 20th of each month. You may establish this option
for as little as $100 per exchange. If the balance in the Janus Henderson fund
account you are exchanging from falls below the Systematic Exchange amount, all
remaining shares will be exchanged and your Systematic Exchange Program will be
discontinued.
•
The
exchange privilege is not intended as a vehicle for short-term or excessive
trading. A Fund may suspend or terminate the exchange privilege of any investor
who is identified as having a pattern of short-term trading. Different
restrictions may apply if you invest through an intermediary.
•
Each Fund
reserves the right to reject any exchange request and to modify or terminate the
exchange privilege at any time.
•
With
certain exceptions, exchanges between Janus Henderson fund accounts will be
accepted only if the registrations are identical. If you are exchanging into a
closed Janus Henderson fund, you will need to meet criteria for investing in the
closed fund. For more information, refer to Closed Fund Policies in the “Other
Information” section of this Prospectus.
•
If the
shares you are exchanging are held in certificate form, you must return the
certificate to Janus Henderson prior to making any exchanges. Shares are no
longer available in certificate form.
Note:
For the fastest and easiest way to exchange shares, log on to janushenderson.com/individual*
24 hours a day, 7 days a week.
*
Certain
account types and transactions are not available via janushenderson.com. For
more information, access janushenderson.com/individual or refer to this
Shareholder’s Manual.
As
previously noted, with certain exceptions, the Funds
are generally available only to shareholders residing in the United States.
Unless you meet certain residency eligibility requirements, once you close your
account, you may not make additional investments in the Funds.
By
Electronic Transfer – Generally
all accounts are automatically eligible for the electronic redemption option if
bank information is provided.
•
Next
Day Wire Transfer – Your
redemption proceeds can be electronically transferred to your predesignated bank
account on the next bank business day after receipt of your redemption request
(wire transfer). You may be charged a fee for each wire transfer, and your bank
may charge an additional fee to receive the wire.
•
ACH
(Automated Clearing House) Transfer – Your redemption
proceeds can be electronically transferred to your predesignated bank account on
or about the next bank business day
after receipt of your redemption request. There is no fee associated with this
type of electronic transfer.
By
Check – Redemption
proceeds will be sent to the shareholder(s) of record at the address of record
normally within seven days after receipt of a valid redemption request. During
the 10 days following an address change, requests for redemption checks to be
sent to a new address require a signature guarantee.
By
Systematic Redemption – If no
date is specified on your request, systematic redemptions will be made on or
about the 24th of each month. If the balance in the Janus Henderson fund account
you are selling from falls to zero, your Systematic Redemption Program will be
discontinued.
81 | Janus
Investment Fund
The
Funds
typically expect to meet redemption requests by paying out proceeds from cash or
cash equivalent portfolio holdings, or by selling portfolio holdings. In
stressed market conditions, and other appropriate circumstances, redemption
methods may include borrowing funds or redeeming in-kind.
Generally,
orders to sell Shares may be initiated at any time at janushenderson.com/individual,
by telephone, or in writing. Certain accounts may require a written request. If
the Shares being sold were purchased by check or automated investment, the Funds
can delay the payment of your redemption proceeds for up to 15 days from the day
of purchase to allow the purchase to clear. In addition, there may be a delay in
the payment of your redemption proceeds if you request a redemption by
electronic transfer and your bank information is new. Unless you provide
alternate instructions, your proceeds will be invested in Shares of Janus
Henderson Government Money Market Fund during the 15-day hold
period.
Each Fund
reserves the right to postpone payment of redemption proceeds for up to seven
calendar days. Additionally, the right to require the Funds to redeem their
Shares may be suspended, or the date of payment may be postponed beyond seven
calendar days, whenever: (i) trading on the NYSE is restricted, as determined by
the SEC, or the NYSE is closed (except for holidays and weekends); (ii) the SEC
permits such suspension and so orders; or (iii) an emergency exists as
determined by the SEC so that disposal of securities or determination of NAV is
not reasonably practicable. A
temporary hold may also be placed on the disbursement of redemption proceeds
from an account if there is a reasonable belief that financial exploitation of a
Specified Adult has occurred, is occurring, has been attempted, or will be
attempted, as described under “Temporary Suspension of Services.”
Note:
For the fastest and easiest way to redeem shares, log on to janushenderson.com/individual*
24 hours a day, 7 days a week.
*
Certain
account types and transactions are not available via janushenderson.com. For
more information, access janushenderson.com/individual or refer to this
Shareholder’s Manual.
Large
Shareholder Redemptions
Certain
large shareholders, such as other funds, individuals, accounts, and the
affiliates
of the Adviser, may from time to time own (beneficially or of record) or control
a significant percentage of a Fund’s Shares. Redemptions by these large
shareholders of their holdings in a Fund may cause the Fund to sell portfolio
securities at times when it would not otherwise do so, which may negatively
impact the Fund’s NAV and liquidity. Similarly, large Fund share purchases may
adversely affect a Fund’s performance to the extent that the Fund is delayed in
investing new cash and is required to maintain a larger cash position than it
ordinarily would. These transactions may also accelerate the realization of
taxable income to shareholders if such sales of investments result in gains, and
may also increase transaction costs. In addition, a large redemption could
result in a
Fund’s
current expenses being allocated over a smaller asset base, which could lead to
an increase in the Fund’s expense ratio.
Redemptions
In-Kind
Shares
normally will be redeemed for cash, although each Fund retains the right to
redeem some or all of its shares in-kind under
unusual circumstances, in order to protect the interests of remaining
shareholders, to accommodate a request by a particular shareholder that does not
adversely affect the interests of the remaining shareholders, or in connection
with the liquidation of a fund, by delivery of securities selected from its
assets at its discretion. However, each Fund is required to redeem shares solely
for cash up to the lesser of $250,000 or 1% of the NAV of that Fund during any
90-day period for any one shareholder. Should redemptions by any shareholder
exceed such limitation, a Fund will have the option of redeeming the excess in
cash or in-kind. In-kind payment means payment will be made in portfolio
securities rather than cash, and may potentially include illiquid investments.
Illiquid investments may not be able to be sold quickly or at a price that
reflects full value, or there may not be a market for such investments, which
could cause the redeeming shareholder to realize losses on the investment if it
is sold at a price lower than that at which it had been valued. If a Fund makes
an in-kind payment, the redeeming shareholder might incur brokerage or other
transaction costs to convert the securities to cash, whereas such costs are
borne by the Fund for cash redemptions. Redemptions in-kind are taxable for
federal income tax purposes in the same manner as redemptions for cash and
subsequent sale of securities received in-kind may result in taxable gains for
federal income tax purposes.
While
a Fund
may pay redemptions in-kind, a Fund may instead choose to raise cash to meet
redemption requests through the sale of fund securities or permissible
borrowings. If a Fund is forced to sell securities at an unfavorable time and/or
under
82 | Janus
Investment Fund
unfavorable
conditions, such sales may adversely affect the Fund’s NAV and may increase
brokerage costs and accelerate the recognition of taxable income.
|
Written
Instructions |
To redeem
or exchange all or part of your Shares in writing, your request should be sent
to one of the addresses listed under “Doing Business with Janus Henderson.”
Requests or documents received in a language other than English may be
inadvertently delayed or returned due to an inability to accurately translate
the intended instructions. Please include the following information:
•
the name
of the Janus Henderson fund(s) being redeemed or exchanged;
•
the
account number(s);
•
the
amount of money or number of shares being redeemed or exchanged;
•
the
name(s) on the account;
•
the
signature(s) of one or more registered account owners; and
•
your
daytime telephone number.
|
Signature
Guarantee |
A
signature guarantee for each registered account owner is required if any
of the following is applicable:
•
You
request a redemption by check above a certain dollar amount.
•
You would
like a check made payable to anyone other than the shareholder(s) of
record.
•
You would
like a check mailed to an address that has been changed within 10 days of the
redemption request.
•
You would
like a check mailed to an address other than the address of record.
•
You would
like your redemption proceeds sent to a bank account other than a bank account
of record.
The
Funds reserve the right to require a signature guarantee under other
circumstances or to reject or delay a redemption on certain legal
grounds.
A
signature guarantee may be refused if any of
the following is applicable:
•
It does
not appear valid or in good form.
•
The
transaction amount exceeds the surety bond limit of the signature
guarantee.
•
The
guarantee stamp has been reported as stolen, missing, or
counterfeit.
How
to Obtain a Signature Guarantee
A
signature guarantee assures that a signature is genuine. The signature guarantee
protects shareholders from unauthorized account transfers. The following
financial institutions may guarantee signatures: banks, savings and loan
associations, trust companies, credit unions, broker-dealers, and member firms
of a national securities exchange. Call your financial institution to see if it
has the ability to guarantee a signature. A
signature guarantee cannot be provided by a notary public.
Excessive
and Short-Term Trading Policies and Procedures
The
Trustees have adopted policies and procedures with respect to short-term and
excessive trading of Fund shares (“excessive trading”). The Funds are intended
for long-term investment purposes, and the Funds will take reasonable steps to
attempt to detect and deter short-term and excessive trading. Transactions
placed in violation of the Funds’ exchange limits or excessive trading policies
and procedures may be cancelled or rescinded by a Fund by the next business day
following receipt by the Fund. The trading history of accounts determined to be
under common ownership or control within any of the Janus Henderson funds may be
considered in enforcing these policies and procedures. Direct investors should
be aware that the Funds are also available for purchase through third party
intermediaries. As described below, the Funds may not be able to identify all
instances of excessive trading or completely eliminate the possibility of
excessive trading. In particular, it may be difficult to identify excessive
trading in certain omnibus accounts and other accounts traded through
intermediaries. By their nature, omnibus accounts, in which purchases and
redemptions of the Funds’ shares by multiple investors are aggregated by the
intermediary and presented to the Funds on a net basis, may effectively conceal
the identity of individual investors and
83 | Janus
Investment Fund
their
transactions from the Funds and their agents. This makes the elimination of
excessive trading in the accounts impractical without the assistance of the
intermediary.
The
Janus Henderson funds attempt to deter excessive trading through at least the
following methods:
•
exchange
limitations as described under “Exchanges”;
•
fair valuation of
securities as described under “Pricing of Fund Shares”; and
•
trade monitoring and
transaction restrictions as described below.
The Funds monitor for
patterns of shareholder short-term trading and may suspend or permanently
terminate the purchase and exchange privilege of any investor who is identified
as having a pattern of short-term trading. The Funds at all times reserve the
right to reject any purchase or exchange request and to modify or terminate the
purchase and exchange privileges for any investor for any reason without prior
notice, in particular, if the trading activity in the account(s) is deemed to be
disruptive to a Fund.
The
Funds’ Trustees may approve from time to time a redemption fee to be imposed by
any Janus Henderson fund, subject to 60 days’ notice to shareholders of that
fund.
Investors in other share
classes who place transactions through the same financial intermediary on an
omnibus basis may be deemed part of a group for the purpose of the Funds’
excessive trading policies and procedures and may be rejected in whole or in
part by a Fund. Transactions accepted by a financial intermediary in violation
of the Funds’ excessive trading policies may be cancelled or revoked by a Fund
by the next business day following receipt by that Fund.
In an attempt to deter
excessive trading in omnibus accounts, the Funds or their agents may require
intermediaries to impose restrictions on the trading activity of accounts traded
through those intermediaries. Such restrictions may include, but are not limited
to, requiring that trades be placed by U.S. mail, prohibiting future purchases
by investors who have recently redeemed Fund shares, requiring intermediaries to
report information about customers who purchase and redeem large amounts, and
similar restrictions. The Funds’ ability to impose such restrictions with
respect to accounts traded through particular intermediaries may vary depending
on the systems’ capabilities, applicable contractual and legal restrictions, and
cooperation of those intermediaries.
Generally,
the Funds’ excessive trading policies and procedures do not apply to (i) a money
market fund, although money market funds at all times reserve the right to
reject any purchase request (including exchange purchases) for any reason
without prior notice; (ii) transactions in the Janus Henderson funds by a Janus
Henderson “fund of funds,” which is a fund that primarily invests in other Janus
Henderson funds; (iii) periodic rebalancing and identifiable transactions by
certain funds of funds and asset allocation programs to realign portfolio
investments with existing target allocations; and (iv) systematic purchase,
exchange, or redemption programs.
The
Funds’ policies and procedures regarding excessive trading may be modified at
any time by the Funds’ Trustees.
Excessive
Trading Risks
Excessive
trading may present risks to a Fund’s long-term shareholders. Excessive trading
into and out of a Fund may disrupt portfolio investment strategies, may create
taxable gains to remaining Fund shareholders, and may increase Fund expenses,
all of which may negatively impact investment returns for all remaining
shareholders, including long-term shareholders.
Funds that invest in
foreign securities may be at a greater risk for excessive trading. Investors may
attempt to take advantage of anticipated price movements in securities held by a
fund based on events occurring after the close of a foreign market that may not
be reflected in the fund’s NAV (referred to as “price arbitrage”). Such
arbitrage opportunities may also arise in funds which do not invest in foreign
securities, for example, when trading in a security held by a fund is halted and
does not resume prior to the time the fund calculates its NAV (referred to as
“stale pricing”). Funds that hold thinly-traded securities, such as certain
small-capitalization securities, may be subject to attempted use of arbitrage
techniques. To the extent that a Fund’s valuation of a security differs from the
security’s market value, short-term arbitrage traders may dilute the NAV of a
Fund, which negatively impacts long-term shareholders. There is potential for
short-term arbitrage trades to dilute the value of shares held by a Fund despite
the Funds’ adoption of policies and procedures intended to reduce the Fund’s
exposure to price arbitrage, stale pricing, and other potential pricing
inefficiencies.
There is no assurance
that the policies and procedures adopted by the Funds to detect and deter
excessive trading will be effective in all circumstances. For example, for share
classes sold through financial intermediaries, the Funds may be unable to
completely eliminate the possibility of excessive trading in certain omnibus
accounts and other accounts traded through
84 | Janus
Investment Fund
intermediaries.
Omnibus accounts may effectively conceal the identity of individual investors
and their transactions from the Funds and their agents. This makes the Funds’
identification of excessive trading transactions in the Funds through an omnibus
account difficult and makes the elimination of excessive trading in the account
impractical without the assistance of the intermediary. Although the Funds
encourage intermediaries to take necessary actions to detect and deter excessive
trading, some intermediaries may be unable or unwilling to do so, and
accordingly, the Funds cannot eliminate completely the possibility of excessive
trading.
Shareholders
that invest through an omnibus account should be aware that they may be subject
to the policies and procedures of their financial intermediary with respect to
excessive trading in the Funds.
|
Availability
of Portfolio Holdings
Information |
The
Mutual Fund Holdings Disclosure Policies and Procedures adopted by the Adviser
and all mutual funds managed within the Janus Henderson fund complex are
designed to be in the best interests of the funds and to protect the
confidentiality of the funds’ portfolio holdings. The following describes
policies and procedures with respect to disclosure of portfolio
holdings.
•
Full
Holdings. A
schedule of each Fund’s portfolio holdings, consisting of at least the names of
the holdings, is generally available on a monthly basis with a 30-day lag and is
posted under Full Holdings for each Fund at janushenderson.com/reports. A
complete schedule of each Fund’s portfolio holdings is also available
semiannually and annually in shareholder reports and, after the first and third
fiscal quarters, in Form N-PORT. Information reported in shareholder reports and
in Form N-PORT will be made publicly available within 60 days after the end of
the respective fiscal quarter. Each Fund’s shareholder reports and Form N-PORT
filings are available on the SEC’s website at http://www.sec.gov. In addition,
each Fund’s shareholder reports are available without charge, upon request, by
calling a Janus Henderson representative at 1-800-525-3713 (toll
free).
•
Top
Holdings. Each
Fund’s top portfolio holdings, in order of position size and as a percentage of
a Fund’s total portfolio, are available monthly with a 15-day
lag.
•
Other
Information. Each Fund
may occasionally provide security breakdowns (e.g., industry, sector, regional,
market capitalization, and asset allocation) and specific portfolio level
performance attribution information and statistics monthly with a 15-day lag.
Top/bottom equity securities and/or fixed-income issuers ranked by performance
attribution, including the percentage attribution to Fund performance, average
Fund weighting, and other relevant data points, may be provided monthly with a
15-day lag.
The Adviser may exclude
from publication on its websites all or any portion of portfolio holdings or
change the time periods of disclosure as deemed necessary to protect the
interests of the Janus Henderson funds. Under extraordinary circumstances,
exceptions to the Mutual Fund Holdings Disclosure Policies and Procedures may be
made by the head of the applicable investment unit or a delegate, in
consultation with the Funds’ Chief Compliance Officer or a delegate. Such
exceptions may be made without prior notice to shareholders. A summary of the
Funds’ portfolio holdings disclosure policies and procedures, which includes a
discussion of any exceptions, is contained in the Funds’ SAI.
Address
Changes
For the
easiest way to change the address on your account, visit
janushenderson.com/individual. You may also call a Janus Henderson
representative or send a written request signed by one or more shareholder(s) of
record. Include the name of the Janus Henderson fund(s) you hold, the account
number(s), the name(s) on the account, and both the old and new addresses.
Certain options may be suspended for 10 days following an address change unless
a signature guarantee is provided.
Bank
Account Changes
For the easiest way to
change your bank account of record or add new bank account information to your
account, visit janushenderson.com/individual. You may also send a written
request signed by the shareholder of record or by each shareholder of record if
more than one. Certain accounts may require a written notice and, in some
instances, bank privileges may not be available. If multiple account owners are
named on the added bank account, at least one name on the bank account must
match one name on the Fund account. There may be a delay in the payment of your
redemption proceeds if you request a redemption by electronic transfer to a new
bank or bank account.
85 | Janus
Investment Fund
You may revoke the
authorization to use your bank account information at any time by visiting
janushenderson.com/individual, or by sending a written request by mail (Janus
Henderson, P.O. Box 219109, Kansas City, MO 64121-9109), or by telephone at
1-800-525-3713. Your request will be processed within a reasonable amount of
time upon its receipt.
Distributions
Generally,
all income dividends and capital gains distributions will automatically be
reinvested in your Fund account. If you wish to change your distribution option,
please visit janushenderson.com/individual, call a Janus Henderson
representative, or send a written request signed by one or more shareholder(s)
of record.
Your
non-retirement Fund account distribution checks may be reinvested in your Fund
account if you do not cash them within one year of the date they were written.
No interest will accrue on amounts represented by uncashed distribution or
redemption checks.
Involuntary
Redemptions
The Funds
reserve the right to close an account if the shareholder is deemed to engage in
activities which are illegal or otherwise believed to be detrimental to the
Funds. This includes, but is not limited to, accounts that a Fund or its agents
believe are engaged in market timing. Any time shares are redeemed in a taxable
account, it is considered a taxable event. You are responsible for any tax
liabilities associated with an involuntary redemption of your
account.
Lost
(Unclaimed/Abandoned) Accounts
It is
important that the Funds maintain a correct address for each shareholder. An
incorrect address may cause a shareholder’s account statements and other
mailings to be returned to the Funds as undeliverable. Based upon statutory
requirements for returned mail, the Adviser will attempt to locate the
shareholder or rightful owner of the account. If the Adviser is unable to locate
the shareholder, then the Adviser is legally obligated to deem the property
“unclaimed” or “abandoned,” and subsequently escheat (or transfer) unclaimed
property (including shares of a mutual fund) to the appropriate state’s
unclaimed property administrator in accordance with statutory requirements.
Further, your mutual fund account may be deemed “unclaimed” or “abandoned,” and
subsequently transferred to your state of residence if no activity (as defined
by that state) occurs within your account during the time frame specified in
your state’s unclaimed property laws. The shareholder’s last known address of
record determines which state has jurisdiction. Interest or income is not earned
on redemption or distribution check(s) sent to you during the time the check(s)
remained uncashed.
Online
and Telephone Transactions
You may
initiate many transactions through janushenderson.com/individual or by calling
Janus Henderson XpressLine. You may also contact a Janus Henderson
representative. Generally all new accounts automatically receive online and
telephone transaction privileges including redemption privileges. If you do not
want to receive these privileges, please call a Janus Henderson representative.
The Funds and their agents will not be responsible for any losses, costs, or
expenses resulting from unauthorized transactions when reasonable procedures
designed to verify the identity of the online user or caller are
followed.
Your
ability to access your account or transact business electronically may be
impacted due to unexpected circumstances, such as system outages, or during
periods of increased web activity. For example, periods of substantial market
change or other unexpected events can contribute to high call volumes, which may
delay your ability to reach a Janus Henderson representative by
telephone.
If you experience
difficulty transacting business with us through a particular method, please
consider using an alternate method, such as visiting
janushenderson.com/individual, calling Janus Henderson XpressLine, contacting a
Janus Henderson representative by telephone, or sending written instructions to
complete your transaction. Please remember that purchase, exchange, or
redemption requests must be received in good order by a Fund or its agents prior
to the close of the trading session of the NYSE in order to receive that day’s
NAV.
Your
account information, including online credentials, should be kept private, and
you should immediately review any account statements that you receive from Janus
Henderson. Someone other than you could act on your account if that person is
able to provide the required identifying information. Contact Janus Henderson
immediately about any transactions you believe to be unauthorized.
86 | Janus
Investment Fund
Registration
Changes
To change
the name on an account, the shares are generally transferred to a new account.
In some cases, legal documentation may be required. Please visit
janushenderson.com/individual or call a Janus Henderson representative for
further instructions.
Statements,
Reports, and Prospectuses
We will send you a
confirmation upon the completion of individual account transactions. We will
also send
you
quarterly
account statements detailing financial transactions on
open
accounts processed year-to-date. Systematic transactions
are
confirmed on
quarterly statements unless otherwise requested.
Confirmations and
quarterly account statements will be sent to the account address of record
unless you have elected to receive online statements. The Funds reserve the
right to charge a fee for additional account statement requests.
At account setup, or any
time thereafter, you may elect (at janushenderson.com/edelivery) to discontinue
physical delivery of quarterly account statements and/or confirmations, and
instead receive an e-mail notification when they are available online. All
statements are available online regardless of your delivery option elections (to
view, you must first establish online access at
janushenderson.com/individual).
The Funds
produce shareholder reports that include a complete list of each of the Funds’
portfolio holdings semiannually, and update their prospectus annually. Beginning
on January 1, 2021, as permitted by regulations adopted by the SEC, paper copies
of the Funds’ shareholder reports are no longer sent by mail, unless you
specifically request paper copies of the reports by contacting a Janus Henderson
representative. Instead, the reports are made available on a website, and you
will be notified by mail each time a report is posted and provided with a
website link to access the report. You may elect to receive shareholder reports
and prospectus updates electronically at janushenderson.com/edelivery. The
Funds’ fiscal year ends September 30.
Unless
you instruct Janus Henderson otherwise by contacting a Janus Henderson
representative, the Funds will mail only one report or prospectus to your
address of record (“household”), even if more than one person in your household
has a Fund account. This process, known as “householding,” reduces the amount of
mail you receive and helps lower Fund expenses. If you decide that you no longer
want the mailing of these documents to be combined with the other members of
your household, please call a Janus Henderson representative or send a written
request signed by one or more shareholder(s) of record. Individual copies will
be sent within thirty (30) days after the Funds receive your
instructions.
Taxpayer
Identification Number
On the
application or other appropriate forms, you may be asked to certify that your
Social Security or employer identification number is correct and that you are
not subject to backup withholding for failing to report income to the IRS. If
you are subject to backup withholding, or you did not certify your taxpayer
identification number, the IRS requires the Funds to withhold a certain
percentage (at the currently applicable rate) of any dividends paid and
redemption or exchange proceeds. In addition to this backup withholding, you may
be subject to a $50 fee to reimburse the Funds for any penalty that the IRS may
impose.
Temporary
Suspension of Services
The Funds
or their agents may, in case of emergency, temporarily suspend telephone
transactions and other shareholder services. As previously noted, the Funds may
postpone payment of redemption proceeds for up to seven calendar days. In
addition, the right to require the Funds to redeem their Shares may be suspended
or the date of payment may be postponed beyond seven calendar days whenever: (i)
trading on the NYSE is restricted, as determined by the SEC, or the NYSE is
closed (except for holidays and weekends); (ii) the SEC permits such suspension
and so orders; or (iii) an emergency exists as determined by the SEC so that
disposal of securities or determination of NAV is not reasonably practicable.
The exchange privilege may also be suspended in these circumstances.
In addition, a temporary
hold may be placed on the disbursement of redemption proceeds from an account if
there is a reasonable belief that financial exploitation of a Specified Adult
(as defined below) has occurred, is occurring, has been attempted, or will be
attempted. This temporary delay will be for an initial period of no more than 15
business days while we conduct an internal review of the facts and circumstances
of the suspected financial exploitation. If our internal review supports our
belief that actual or attempted financial exploitation has occurred or is
occurring, we may extend the hold for up to 10 additional business days. Both
the initial and subsequent hold on the disbursement may be terminated or
extended by a state regulator or an agency or court of competent jurisdiction.
For purposes of this paragraph, the term “Specified Adult” refers to an
individual who is (i) a natural person age 65 and older, or (ii) a natural
person age 18 and older who is
87 | Janus
Investment Fund
reasonably believed to
have a mental or physical impairment that renders the individual unable to
protect his or her own interests. We may not be aware of factors suggesting
financial exploitation of a Specified Adult and may not be able to identify
Specified Adults in all circumstances. Furthermore, we are not required to delay
the disbursement of redemption proceeds and do not assume any obligation to do
so.
88 | Janus
Investment Fund
The
financial highlights tables are intended to help you understand the Funds’
financial performance for each fiscal period shown. Items “Net asset value,
beginning of period” through “Net asset value, end of period” reflect financial
results for a single Fund Share. The gross expense ratio reflects expenses prior
to any expense offset arrangement and waivers (reimbursements), if applicable.
The net expense ratio reflects expenses after any expense offset arrangement and
waivers (reimbursements), if applicable. The information for the Funds for the
fiscal periods ended September 30 has been audited by PricewaterhouseCoopers
LLP, whose report, along with the Funds’ financial statements, is included in
the Annual Report, which is available upon request, and incorporated by
reference into the SAI.
The total
returns in the tables represent the rate that an investor would have earned (or
lost) on an investment in Class D
Shares of
the Funds (assuming reinvestment of all dividends and
distributions).
Janus
Henderson Balanced Fund – Class D
|
|
Years ended
September 30 | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Net
Asset Value, Beginning of Period |
$44.40 |
$38.89 |
$35.54 |
$35.30 |
$32.52 |
Income/(Loss)
from Investment Operations: |
|
|
|
|
|
|
Net
investment income/(loss)(1) |
0.41 |
0.42 |
0.56 |
0.68 |
0.58 |
|
Net
realized and unrealized gain/(loss) |
(6.68) |
6.04 |
3.77 |
1.82 |
3.89 |
|
Total
from Investment Operations |
(6.27) |
6.46 |
4.33 |
2.50 |
4.47 |
Less
Dividends and Distributions: |
|
|
|
|
|
|
Dividends
(from net investment income) |
(0.41) |
(0.49) |
(0.59) |
(0.67) |
(0.58) |
|
Distributions
(from capital gains) |
(1.68) |
(0.46) |
(0.39) |
(1.59) |
(1.11) |
|
Return
of capital |
— |
— |
— |
— |
— |
|
Total
Dividends and Distributions |
(2.09) |
(0.95) |
(0.98) |
(2.26) |
(1.69) |
|
Net
Asset Value, End of Period |
$36.04 |
$44.40 |
$38.89 |
$35.54 |
$35.30 |
|
Total
Return* |
(14.97)% |
16.80% |
12.39% |
7.95% |
14.10% |
Net
Assets, End of Period (in thousands) |
$1,946,256 |
$2,362,421 |
$2,022,689 |
$1,860,900 |
$1,761,817 |
|
Average
Net Assets for the Period (in thousands) |
$2,286,371 |
$2,246,350 |
$1,895,563 |
$1,759,287 |
$1,667,210 |
|
Ratios
to Average Net Assets**: |
|
|
|
|
|
Ratio
of Gross Expenses |
0.70% |
0.70% |
0.71% |
0.72% |
0.71% |
|
Ratio
of Net Expenses (After Waivers and Expense Offsets) |
0.70% |
0.70% |
0.71% |
0.72% |
0.71% |
|
Ratio
of Net Investment Income/(Loss) |
0.98% |
0.99% |
1.54% |
2.00% |
1.71% |
|
Portfolio
Turnover Rate |
79%(2) |
60%(2) |
90%(2) |
81%(2) |
88% |
*
Total return includes
adjustments in accordance with generally accepted accounting principles required
at the year or period end and are not annualized for periods of less than one
full year.
**
Annualized for periods of
less than one full year.
(1)
Per share amounts are
calculated based on average shares outstanding during the year or
period.
(2)
Portfolio Turnover Rate
excludes TBA (to be announced) purchase and sales commitments.
89 | Janus
Investment Fund
Janus
Henderson Contrarian Fund – Class D
|
|
Years ended
September 30 | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Net
Asset Value, Beginning of Period |
$31.54 |
$22.56 |
$21.70 |
$21.65 |
$19.97 |
Income/(Loss)
from Investment Operations: |
|
|
|
|
|
|
Net
investment income/(loss)(1) |
0.09 |
0.10 |
0.17 |
0.16 |
0.11 |
|
Net
realized and unrealized gain/(loss) |
(7.79) |
9.33 |
3.19 |
1.37 |
3.11 |
|
Total
from Investment Operations |
(7.70) |
9.43 |
3.36 |
1.53 |
3.22 |
Less
Dividends and Distributions: |
|
|
|
|
|
|
Dividends
(from net investment income) |
(0.09) |
(0.14) |
(0.18) |
(0.06) |
(0.07) |
|
Distributions
(from capital gains) |
(2.74) |
(0.31) |
(2.32) |
(1.42) |
(1.47) |
|
Return
of capital |
— |
— |
— |
— |
— |
|
Total
Dividends and Distributions |
(2.83) |
(0.45) |
(2.50) |
(1.48) |
(1.54) |
|
Net
Asset Value, End of Period |
$21.01 |
$31.54 |
$22.56 |
$21.70 |
$21.65 |
|
Total
Return* |
(26.60)% |
42.18% |
16.29% |
8.99% |
17.20% |
Net
Assets, End of Period (in thousands) |
$2,122,792 |
$3,021,999 |
$2,152,848 |
$1,988,711 |
$1,925,749 |
|
Average
Net Assets for the Period (in thousands) |
$2,758,198 |
$2,773,321 |
$1,994,412 |
$1,855,826 |
$1,841,765 |
|
Ratios
to Average Net Assets**: |
|
|
|
|
|
Ratio
of Gross Expenses |
0.86% |
0.90% |
0.72% |
0.71% |
0.65% |
|
Ratio
of Net Expenses (After Waivers and Expense Offsets) |
0.86% |
0.90% |
0.72% |
0.71% |
0.65% |
|
Ratio
of Net Investment Income/(Loss) |
0.33% |
0.34% |
0.83% |
0.80% |
0.53% |
|
Portfolio
Turnover Rate |
48% |
37% |
68% |
76% |
59% |
*
Total return includes
adjustments in accordance with generally accepted accounting principles required
at the year or period end and are not annualized for periods of less than one
full year.
**
Annualized for periods of
less than one full year.
(1)
Per share amounts are
calculated based on average shares outstanding during the year or
period.
90 | Janus
Investment Fund
Janus
Henderson Enterprise Fund – Class D
|
|
Years ended
September 30 | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Net
Asset Value, Beginning of Period |
$174.13 |
$142.10 |
$139.87 |
$134.99 |
$113.64 |
Income/(Loss)
from Investment Operations: |
|
|
|
|
|
|
Net
investment income/(loss)(1) |
0.18 |
0.25 |
0.33 |
0.37 |
0.23 |
|
Net
realized and unrealized gain/(loss) |
(28.23) |
45.06 |
8.20 |
11.50 |
23.31 |
|
Total
from Investment Operations |
(28.05) |
45.31 |
8.53 |
11.87 |
23.54 |
Less
Dividends and Distributions: |
|
|
|
|
|
|
Dividends
(from net investment income) |
(0.52) |
(0.46) |
(0.15) |
(0.19) |
(0.10) |
|
Distributions
(from capital gains) |
(24.67) |
(12.82) |
(6.15) |
(6.80) |
(2.09) |
|
Return
of capital |
— |
— |
— |
— |
— |
|
Total
Dividends and Distributions |
(25.19) |
(13.28) |
(6.30) |
(6.99) |
(2.19) |
|
Net
Asset Value, End of Period |
$120.89 |
$174.13 |
$142.10 |
$139.87 |
$134.99 |
|
Total
Return* |
(18.82)% |
32.99% |
6.15% |
10.22% |
20.99% |
Net
Assets, End of Period (in thousands) |
$1,937,787 |
$2,507,220 |
$1,983,824 |
$2,061,471 |
$1,973,861 |
|
Average
Net Assets for the Period (in thousands) |
$2,337,701 |
$2,394,871 |
$1,974,784 |
$1,930,540 |
$1,853,456 |
|
Ratios
to Average Net Assets**: |
|
|
|
|
|
Ratio
of Gross Expenses |
0.79% |
0.79% |
0.80% |
0.81% |
0.81% |
|
Ratio
of Net Expenses (After Waivers and Expense Offsets) |
0.79% |
0.79% |
0.80% |
0.81% |
0.81% |
|
Ratio
of Net Investment Income/(Loss) |
0.12% |
0.15% |
0.25% |
0.28% |
0.18% |
|
Portfolio
Turnover Rate |
9% |
12% |
14% |
13% |
13% |
*
Total return includes
adjustments in accordance with generally accepted accounting principles required
at the year or period end and are not annualized for periods of less than one
full year.
**
Annualized for periods of
less than one full year.
(1)
Per share amounts are
calculated based on average shares outstanding during the year or
period.
91 | Janus
Investment Fund
Janus
Henderson Forty Fund – Class D
|
|
Years ended
September 30 | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Net
Asset Value, Beginning of Period |
$54.28 |
$45.24 |
$35.99 |
$36.25 |
$32.02 |
Income/(Loss)
from Investment Operations: |
|
|
|
|
|
|
Net
investment income/(loss)(1) |
0.01 |
(0.15) |
—(2) |
0.09 |
0.04 |
|
Net
realized and unrealized gain/(loss) |
(16.58) |
13.04 |
11.86 |
2.18 |
7.15 |
|
Total
from Investment Operations |
(16.57) |
12.89 |
11.86 |
2.27 |
7.19 |
Less
Dividends and Distributions: |
|
|
|
|
|
|
Dividends
(from net investment income) |
(0.03) |
— |
(0.08) |
— |
(0.01) |
|
Distributions
(from capital gains) |
(5.21) |
(3.85) |
(2.53) |
(2.53) |
(2.95) |
|
Return
of capital |
— |
— |
— |
— |
— |
|
Total
Dividends and Distributions |
(5.24) |
(3.85) |
(2.61) |
(2.53) |
(2.96) |
|
Net
Asset Value, End of Period |
$32.47 |
$54.28 |
$45.24 |
$35.99 |
$36.25 |
|
Total
Return* |
(33.86)% |
30.00% |
34.88% |
8.03% |
24.06% |
Net
Assets, End of Period (in thousands) |
$8,069,316 |
$12,846,210 |
$10,287,828 |
$8,018,389 |
$7,842,180 |
|
Average
Net Assets for the Period (in thousands) |
$11,038,490 |
$11,890,281 |
$8,759,841 |
$7,517,796 |
$7,241,280 |
|
Ratios
to Average Net Assets**: |
|
|
|
|
|
Ratio
of Gross Expenses |
0.69% |
0.82% |
0.80% |
0.79% |
0.79% |
|
Ratio
of Net Expenses (After Waivers and Expense Offsets) |
0.69% |
0.82% |
0.80% |
0.75% |
0.73% |
|
Ratio
of Net Investment Income/(Loss) |
0.03% |
(0.29)% |
0.00%(3) |
0.27% |
0.13% |
|
Portfolio
Turnover Rate |
39% |
31% |
42% |
44% |
37% |
*
Total return includes
adjustments in accordance with generally accepted accounting principles required
at the year or period end and are not annualized for periods of less than one
full year.
**
Annualized for periods of
less than one full year.
(1)
Per share amounts are
calculated based on average shares outstanding during the year or
period.
(2)
Less than $0.005 on a per
share basis.
(3)
Less than
0.005%.
92 | Janus
Investment Fund
Janus
Henderson Growth and Income Fund – Class D
|
|
Years ended
September 30 | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Net
Asset Value, Beginning of Period |
$74.09 |
$59.87 |
$58.58 |
$59.27 |
$51.71 |
Income/(Loss)
from Investment Operations: |
|
|
|
|
|
|
Net
investment income/(loss)(1) |
0.74 |
0.67 |
0.93 |
1.09 |
1.01 |
|
Net
realized and unrealized gain/(loss) |
(10.34) |
16.11 |
2.54 |
2.28 |
8.51 |
|
Total
from Investment Operations |
(9.60) |
16.78 |
3.47 |
3.37 |
9.52 |
Less
Dividends and Distributions: |
|
|
|
|
|
|
Dividends
(from net investment income) |
(0.76) |
(0.70) |
(0.96) |
(1.09) |
(1.01) |
|
Distributions
(from capital gains) |
(3.76) |
(1.86) |
(1.22) |
(2.97) |
(0.95) |
|
Return
of capital |
— |
— |
— |
— |
— |
|
Total
Dividends and Distributions |
(4.52) |
(2.56) |
(2.18) |
(4.06) |
(1.96) |
|
Net
Asset Value, End of Period |
$59.97 |
$74.09 |
$59.87 |
$58.58 |
$59.27 |
|
Total
Return* |
(14.17)% |
28.63% |
6.07% |
6.71% |
18.69% |
Net
Assets, End of Period (in thousands) |
$3,529,397 |
$4,284,567 |
$3,506,038 |
$3,546,939 |
$3,508,493 |
|
Average
Net Assets for the Period (in thousands) |
$4,238,795 |
$4,038,177 |
$3,410,901 |
$3,396,252 |
$3,349,596 |
|
Ratios
to Average Net Assets**: |
|
|
|
|
|
Ratio
of Gross Expenses |
0.75% |
0.75% |
0.76% |
0.76% |
0.77% |
|
Ratio
of Net Expenses (After Waivers and Expense Offsets) |
0.75% |
0.75% |
0.76% |
0.76% |
0.77% |
|
Ratio
of Net Investment Income/(Loss) |
1.04% |
0.97% |
1.64% |
1.95% |
1.80% |
|
Portfolio
Turnover Rate |
17% |
11% |
24% |
13% |
13% |
*
Total return includes
adjustments in accordance with generally accepted accounting principles required
at the year or period end and are not annualized for periods of less than one
full year.
**
Annualized for periods of
less than one full year.
(1)
Per share amounts are
calculated based on average shares outstanding during the year or
period.
93 | Janus
Investment Fund
Janus
Henderson Research Fund – Class D
|
|
Years ended
September 30 | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Net
Asset Value, Beginning of Period |
$71.42 |
$59.86 |
$49.98 |
$53.74 |
$45.60 |
Income/(Loss)
from Investment Operations: |
|
|
|
|
|
|
Net
investment income/(loss)(1) |
0.02 |
(0.01) |
0.17 |
0.24 |
0.19 |
|
Net
realized and unrealized gain/(loss) |
(17.29) |
13.48 |
14.87 |
0.50 |
10.33 |
|
Total
from Investment Operations |
(17.27) |
13.47 |
15.04 |
0.74 |
10.52 |
Less
Dividends and Distributions: |
|
|
|
|
|
|
Dividends
(from net investment income) |
— |
(0.07) |
(0.23) |
(0.15) |
(0.12) |
|
Distributions
(from capital gains) |
(8.85) |
(1.84) |
(4.93) |
(4.35) |
(2.26) |
|
Return
of capital |
— |
— |
— |
— |
— |
|
Total
Dividends and Distributions |
(8.85) |
(1.91) |
(5.16) |
(4.50) |
(2.38) |
|
Net
Asset Value, End of Period |
$45.30 |
$71.42 |
$59.86 |
$49.98 |
$53.74 |
|
Total
Return* |
(27.96)% |
22.89% |
32.40% |
3.20% |
23.85% |
Net
Assets, End of Period (in thousands) |
$10,017,030 |
$14,715,777 |
$12,635,778 |
$10,221,640 |
$10,550,222 |
|
Average
Net Assets for the Period (in thousands) |
$13,156,776 |
$14,113,628 |
$11,047,912 |
$9,901,606 |
$9,778,967 |
|
Ratios
to Average Net Assets**: |
|
|
|
|
|
Ratio
of Gross Expenses |
0.64% |
0.66% |
0.66% |
0.69% |
0.72% |
|
Ratio
of Net Expenses (After Waivers and Expense Offsets) |
0.64% |
0.66% |
0.66% |
0.68% |
0.69% |
|
Ratio
of Net Investment Income/(Loss) |
0.03% |
(0.02)% |
0.32% |
0.50% |
0.39% |
|
Portfolio
Turnover Rate |
32% |
31% |
38% |
41% |
43% |
*
Total return includes
adjustments in accordance with generally accepted accounting principles required
at the year or period end and are not annualized for periods of less than one
full year.
**
Annualized for periods of
less than one full year.
(1)
Per share amounts are
calculated based on average shares outstanding during the year or
period.
94 | Janus
Investment Fund
Janus
Henderson Triton Fund – Class D
|
|
Years ended
September 30 | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Net
Asset Value, Beginning of Period |
$39.82 |
$30.99 |
$30.79 |
$33.89 |
$28.56 |
Income/(Loss)
from Investment Operations: |
|
|
|
|
|
|
Net
investment income/(loss)(1) |
(0.10) |
(0.14) |
(0.07) |
0.01 |
0.02 |
|
Net
realized and unrealized gain/(loss) |
(8.64) |
10.56 |
1.60 |
(1.21) |
6.77 |
|
Total
from Investment Operations |
(8.74) |
10.42 |
1.53 |
(1.20) |
6.79 |
Less
Dividends and Distributions: |
|
|
|
|
|
|
Dividends
(from net investment income) |
— |
— |
— |
— |
— |
|
Distributions
(from capital gains) |
(6.93) |
(1.59) |
(1.33) |
(1.90) |
(1.46) |
|
Return
of capital |
— |
— |
— |
— |
— |
|
Total
Dividends and Distributions |
(6.93) |
(1.59) |
(1.33) |
(1.90) |
(1.46) |
|
Net
Asset Value, End of Period |
$24.15 |
$39.82 |
$30.99 |
$30.79 |
$33.89 |
|
Total
Return* |
(26.39)% |
33.85% |
4.98% |
(2.41)% |
24.67% |
Net
Assets, End of Period (in thousands) |
$864,531 |
$1,289,904 |
$1,057,332 |
$1,191,950 |
$1,302,196 |
|
Average
Net Assets for the Period (in thousands) |
$1,111,102 |
$1,297,945 |
$1,088,543 |
$1,183,056 |
$1,190,715 |
|
Ratios
to Average Net Assets**: |
|
|
|
|
|
Ratio
of Gross Expenses |
0.79% |
0.78% |
0.80% |
0.80% |
0.80% |
|
Ratio
of Net Expenses (After Waivers and Expense Offsets) |
0.79% |
0.78% |
0.80% |
0.80% |
0.80% |
|
Ratio
of Net Investment Income/(Loss) |
(0.32)% |
(0.37)% |
(0.25)% |
0.04% |
0.07% |
|
Portfolio
Turnover Rate |
8% |
24% |
32% |
26% |
21% |
*
Total return includes
adjustments in accordance with generally accepted accounting principles required
at the year or period end and are not annualized for periods of less than one
full year.
**
Annualized for periods of
less than one full year.
(1)
Per share amounts are
calculated based on average shares outstanding during the year or
period.
95 | Janus
Investment Fund
Janus
Henderson Venture Fund – Class D
|
|
Years ended
September 30 | ||||
|
|
2022 |
2021 |
2020 |
2019 |
2018 |
|
Net
Asset Value, Beginning of Period |
$110.41 |
$84.98 |
$79.17 |
$90.73 |
$78.25 |
Income/(Loss)
from Investment Operations: |
|
|
|
|
|
|
Net
investment income/(loss)(1) |
(0.32) |
(0.47) |
(0.22) |
(0.08) |
(0.08) |
|
Net
realized and unrealized gain/(loss) |
(27.95) |
31.52 |
9.21 |
(4.75) |
16.67 |
|
Total
from Investment Operations |
(28.27) |
31.05 |
8.99 |
(4.83) |
16.59 |
Less
Dividends and Distributions: |
|
|
|
|
|
|
Dividends
(from net investment income) |
— |
— |
— |
— |
— |
|
Distributions
(from capital gains) |
(12.33) |
(5.62) |
(3.18) |
(6.73) |
(4.11) |
|
Return
of capital |
— |
— |
— |
— |
— |
|
Total
Dividends and Distributions |
(12.33) |
(5.62) |
(3.18) |
(6.73) |
(4.11) |
|
Net
Asset Value, End of Period |
$69.81 |
$110.41 |
$84.98 |
$79.17 |
$90.73 |
|
Total
Return* |
(28.42)% |
37.07% |
11.52% |
(3.87)% |
22.09% |
Net
Assets, End of Period (in thousands) |
$1,500,311 |
$2,228,324 |
$1,731,098 |
$1,668,639 |
$1,843,494 |
|
Average
Net Assets for the Period (in thousands) |
$1,877,171 |
$2,160,434 |
$1,645,324 |
$1,668,200 |
$1,712,398 |
|
Ratios
to Average Net Assets**: |
|
|
|
|
|
Ratio
of Gross Expenses |
0.79% |
0.78% |
0.80% |
0.80% |
0.80% |
|
Ratio
of Net Expenses (After Waivers and Expense Offsets) |
0.79% |
0.78% |
0.80% |
0.80% |
0.80% |
|
Ratio
of Net Investment Income/(Loss) |
(0.37)% |
(0.45)% |
(0.28)% |
(0.10)% |
(0.09)% |
|
Portfolio
Turnover Rate |
14% |
21% |
25% |
19% |
28% |
*
Total return includes
adjustments in accordance with generally accepted accounting principles required
at the year or period end and are not annualized for periods of less than one
full year.
**
Annualized for periods of
less than one full year.
(1)
Per share amounts are
calculated based on average shares outstanding during the year or
period.
96 | Janus
Investment Fund
This
glossary provides a more detailed description of some of the types of
securities, investment strategies, and other instruments in which the Funds may
invest, as well as some general investment terms. The Funds may invest in these
instruments to the extent permitted by their investment objectives and policies.
The Funds are not limited by this discussion and may invest in any other types
of instruments not precluded by the policies discussed elsewhere in this
Prospectus.
|
Equity
and Debt Securities |
Average-Weighted
Effective Maturity is a
measure of a bond’s maturity. The stated maturity of a bond is the date when the
issuer must repay the bond’s entire principal value to an investor. Some types
of bonds may also have an “effective maturity” that is shorter than the stated
date due to prepayment or call provisions. Securities without prepayment or call
provisions generally have an effective maturity equal to their stated maturity.
Average-weighted effective maturity is calculated by averaging the effective
maturity of bonds held by a Fund with each effective maturity “weighted”
according to the percentage of net assets that it represents.
Bank
loans
include institutionally-traded floating and fixed-rate debt securities generally
acquired as a participation interest in or assignment of a loan originated by a
lender or financial institution. Assignments and participations involve credit,
interest rate, and liquidity risk. Interest rates on floating rate securities
adjust with interest rate changes and/or issuer credit quality.
Bonds are debt securities
issued by a company, municipality, government, or government agency. The issuer
of a bond is required to pay the holder the amount of the loan (or par value of
the bond) at a specified maturity and to make scheduled interest
payments.
Common
stocks are
equity securities representing shares of ownership in a company and usually
carry voting rights and earn dividends. Unlike preferred stock, dividends on
common stock are not fixed but are declared at the discretion of the issuer’s
board of directors.
Convertible
securities are
preferred stocks or bonds that pay a fixed dividend or interest payment and are
convertible into common stock at a specified price or conversion
ratio.
Debt
securities are
securities representing money borrowed that must be repaid at a later date. Such
securities have specific maturities and usually a specific rate of interest or
an original purchase discount.
Depositary
receipts are
receipts for shares of a foreign-based corporation that entitle the holder to
dividends and capital gains on the underlying security. Receipts include those
issued by domestic banks (American Depositary Receipts), foreign banks (Global
or European Depositary Receipts), and broker-dealers (depositary
shares).
Duration is a
measurement of price sensitivity to interest rate changes. Unlike average
maturity, duration reflects both principal and interest payments. Generally, the
higher the coupon rate on a bond, the lower its duration will be. The duration
of a bond portfolio is calculated by averaging the duration of bonds held by a
Fund with each duration “weighted” according to the percentage of net assets
that it represents. Because duration accounts for interest payments, a Fund’s
duration is usually shorter than its average maturity. Securities with longer
durations tend to be more sensitive to changes in interest rates, and are
usually more volatile than securities with shorter duration. For example, the
price of a bond portfolio with an average duration of five years would be
expected to fall approximately 5% if interest rates rose by one percentage
point. A Fund with a longer portfolio duration is more likely to experience a
decrease in its share price as interest rates rise.
Equity
securities
generally include domestic and foreign common stocks; preferred stocks;
securities convertible into common stocks or preferred stocks; warrants to
purchase common or preferred stocks; and other securities with equity
characteristics.
Exchange-traded
funds (“ETFs”) are
index-based investment companies which hold substantially all of their assets in
securities with equity characteristics. As a shareholder of another investment
company, a Fund would bear its pro rata portion of the other investment
company’s expenses, including advisory fees, in addition to the expenses the
Fund bears directly in connection with its own operations.
Fixed-income
securities are
securities that pay a specified rate of return. The term generally includes
short-and long-term government, corporate, and municipal obligations that pay a
specified rate of interest, dividends, or coupons for a specified period of
time. Coupon and dividend rates may be fixed for the life of the issue or, in
the case of adjustable and floating rate securities, for a shorter
period.
97 | Janus
Investment Fund
High-yield/high-risk
bonds are
bonds that are rated below investment grade by the primary rating agencies
(i.e., BB+ or lower by Standard & Poor’s and Fitch, or Ba1 or lower by
Moody’s). Other terms commonly used to describe such bonds include “lower rated
bonds,” “non-investment grade bonds,” and “junk bonds.”
Mortgage-
and asset-backed securities are shares in a pool of
mortgages or other debt instruments. These securities are generally pass-through
securities, which means that principal and interest payments on the underlying
securities (less servicing fees) are passed through to shareholders on a pro
rata basis.
Passive
foreign investment companies (“PFICs”) are any
foreign corporations which generate certain amounts of passive income or hold
certain amounts of assets for the production of passive income. Passive income
includes dividends, interest, royalties, rents, and annuities. To avoid taxes
and interest that a Fund must pay if these investments are profitable, the
Fund
may make
various elections permitted by the tax laws. These elections could require that
a Fund recognize taxable income, which in turn must be distributed, before the
securities are sold and before cash is received to pay the
distributions.
Preferred
stocks are
equity securities that generally pay dividends at a specified rate and have
preference over common stock in the payment of dividends and liquidation.
Preferred stock generally does not carry voting rights.
Private
placements are
securities that are subject to legal and/or contractual restrictions on their
sales. These securities may not be listed on an exchange and may have no active
trading market. As a result of the absence of a public trading market, the
prices of these securities may be more volatile and more difficult to determine
than publicly traded securities and these securities may involve heightened risk
as compared to investments in securities of publicly traded
companies.
Real
estate investment trust (“REIT”) is an
investment trust that operates through the pooled capital of many investors who
buy its shares. Investments are in direct ownership of either income property or
mortgage loans. A REIT may be listed on an exchange or traded
over-the-counter.
Restricted
securities
are securities acquired through nonpublic transactions that have limitations on
their resale. Restricted securities are unregistered and may only be resold
under certain circumstances as noted in Rule 144A of the Securities Act of 1933,
as amended (the “1933 Act”).
Senior
securities
are securities that rank above an issuing company’s other securities in the
event of a bankruptcy or liquidation, which means a Fund would be in line to
receive repayment of its investment before certain of the company’s other
creditors.
“To
be announced” or “TBA” commitments 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. At the time the TBA
commitment is made, the transaction is recorded and thereafter the value of such
securities is reflected each day in determining a Fund’s net asset value
(“NAV”). Because a Fund is generally not required to pay for the security until
the settlement date, if the Fund remains substantially fully invested at a time
when TBA commitment purchases are outstanding, the purchases may result in a
form of leverage.
U.S.
Government securities include
direct obligations of the U.S. Government that are supported by its full faith
and credit. Treasury bills have initial maturities of less than one year,
Treasury notes have initial maturities of one to ten years, and Treasury bonds
may be issued with any maturity but generally have maturities of at least ten
years. U.S. Government securities also include indirect obligations of the U.S.
Government that are issued by federal agencies and government sponsored
entities. Unlike Treasury securities, agency securities generally are not backed
by the full faith and credit of the U.S. Government. Some agency securities are
supported by the right of the issuer to borrow from the Treasury, others are
supported by the discretionary authority of the U.S. Government to purchase the
agency’s obligations, and others are supported only by the credit of the
sponsoring agency.
Variable
and floating rate securities have variable or
floating rates of interest and, under certain limited circumstances, may have
varying principal amounts. Variable and floating rate securities pay interest at
rates that are adjusted periodically according to a specified formula, usually
with reference to some interest rate index or market interest rate. The floating
rate tends to decrease the security’s price sensitivity to changes in interest
rates.
Warrants are
securities, typically issued with preferred stock or bonds, which give the
holder the right to buy a proportionate amount of common stock at a specified
price. The specified price is usually higher than the market price at the time
of issuance of the warrant. The right may last for a period of years or
indefinitely.
98 | Janus
Investment Fund
|
Futures,
Options, and Other
Derivatives |
Credit
default swaps are a
specific kind of counterparty agreement that allows the transfer of third party
credit risk from one party to the other. One party in the swap is a lender and
faces credit risk from a third party, and the counterparty in the credit default
swap agrees to insure this risk in exchange for regular periodic
payments.
Derivatives are instruments that
have a value derived from, or directly linked to, an underlying asset (stock,
bond, commodity, currency, interest rate or market index). Types of derivatives
can include, but are not limited to options, forward currency contracts, swaps,
and futures contracts.
Equity
swaps involve
the exchange by two parties of future cash flow (e.g., one cash flow based on a
referenced interest rate and the other based on the performance of stock or a
stock index).
Forward
contracts are
contracts to purchase or sell a specified amount of a financial instrument for
an agreed upon price at a specified time. Forward contracts are not currently
exchange-traded and are typically negotiated on an individual basis. A Fund may
enter into forward currency contracts for investment purposes or to hedge
against declines in the value of securities denominated in, or whose value is
tied to, a currency other than the U.S. dollar or to reduce the impact of
currency appreciation on purchases of such securities. It may also enter into
forward contracts to purchase or sell securities or other financial
indices.
Futures
contracts are
contracts that obligate the buyer to receive and the seller to deliver an
instrument or money at a specified price on a specified date. A Fund may buy and
sell futures contracts on foreign currencies, securities, and financial indices
including indices of U.S. Government, foreign government, equity, or
fixed-income securities. A Fund may also buy options on futures contracts. An
option on a futures contract gives the buyer the right, but not the obligation,
to buy or sell a futures contract at a specified price on or before a specified
date. Futures contracts and options on futures are standardized and traded on
designated exchanges. To the extent a Fund engages in futures contracts on
foreign exchanges, such exchanges may not provide the same protection as U.S.
exchanges.
Indexed/structured
securities
are typically short- to intermediate-term debt securities whose value at
maturity or interest rate is linked to currencies, interest rates, equity
securities, indices, commodity prices, or other financial indicators. Such
securities may be positively or negatively indexed (e.g., their value may
increase or decrease if the reference index or instrument appreciates).
Indexed/structured securities may have return characteristics similar to direct
investments in the underlying instruments and may be more volatile than the
underlying instruments.
Interest
rate swaps involve
the exchange by two parties of their respective commitments to pay or receive
interest (e.g., an exchange of floating rate payments for fixed rate
payments).
Options are the
right, but not the obligation, to buy or sell a specified amount of securities
or other assets on or before a fixed date at a predetermined price. A Fund may
purchase and write put and call options on securities, securities indices, and
foreign currencies. A Fund may purchase or write such options individually or in
combination.
Total
return swaps involve
an exchange by two parties in which one party makes payments based on a set
rate, either fixed or variable, while the other party makes payments based on
the return of an underlying asset, which includes both the income it generates
and any capital gains over the payment period. A fixed-income total return swap
may be written on many different kinds of underlying reference assets, and may
include different indices for various kinds of debt securities (e.g., U.S.
investment grade bonds, high-yield bonds, or emerging market
bonds).
|
Other
Investments, Strategies, and/or
Techniques |
Cash
sweep program is an arrangement in
which a Fund’s uninvested cash balance is used to purchase shares of affiliated
or non-affiliated money market funds or cash management pooled investment
vehicles that operate pursuant to the provisions of the Investment Company Act
of 1940, as amended, that govern the operation of money market funds at the end
of each day.
Diversification is a classification
given to a fund under the Investment Company Act of 1940,
as amended.
Funds are classified as either diversified or nondiversified. To be classified
as diversified under the Investment
Company Act
of 1940, as amended, a fund may not, with respect to 75% of its total assets,
invest more than 5% of its total assets in any issuer and may not own more than
10% of the outstanding voting securities of an issuer. A fund that is classified
as nondiversified
under the
Investment
Company Act
of 1940, as amended, on the other hand, has the flexibility to take larger
positions in securities than a fund that is classified as diversified. However,
because the appreciation or depreciation of a single security
99 | Janus
Investment Fund
may have
a greater impact on the net asset value of a fund which is classified as
nondiversified, its share price can be expected to fluctuate more than a
comparable fund which is classified as diversified.
Leverage is investment exposure
which exceeds the initial amount invested. Leverage occurs when a Fund increases
its assets available for investment using derivatives or other similar
transactions. In addition, other investment techniques, such as short sales, can
create a leveraging effect.
Market
capitalization is the
most commonly used measure of the size and value of a company. It is computed by
multiplying the current market price of a share of the company’s stock by the
total number of its shares outstanding. Market capitalization is an important
investment criterion for certain funds, while others do not emphasize
investments in companies of any particular size.
Repatriation is the
ability to move liquid financial assets from a foreign country to an investor’s
country of origin.
Repurchase
agreements
involve the purchase of a security by a Fund and a simultaneous agreement by the
seller (generally a bank or dealer) to repurchase the security from the Fund at
a specified date or upon demand. This technique offers a method of earning
income on idle cash.
Short
sales in
which a Fund may engage may be either “short sales against the box” or other
short sales. Short sales against the box involve selling short a security that a
Fund owns, or the Fund has the right to obtain the amount of the security sold
short at a specified date in the future. A Fund may also enter into a short sale
to hedge against anticipated declines in the market price of a security or to
reduce portfolio volatility. If the value of a security sold short increases
prior to the scheduled delivery date, the Fund loses the opportunity to
participate in the gain.
When-issued,
delayed delivery, and forward commitment transactions generally involve the
purchase of a security with payment and delivery at some time in the future –
i.e., beyond normal settlement. New issues of stocks and bonds, private
placements, and U.S. Government securities may be sold in this
manner.
100 | Janus
Investment Fund
You
can make inquiries and request other information, including a Statement
of Additional Information, annual report, or semiannual report (as they become
available), free of charge, by contacting a Janus Henderson representative at
1-800-525-3713. The Funds’ Statement of Additional Information and most recent
annual and semiannual reports are also available, free of charge, at
janushenderson.com/reports.
Additional
information about the Funds’ investments is available in the Funds’ annual and
semiannual reports. In the Funds’ annual reports, you will find a discussion of
the market conditions and investment strategies that significantly affected the
Funds’ performance during their last fiscal period.
The
Statement of Additional Information provides detailed information about
the Funds and is incorporated into this Prospectus by reference. Reports and
other information about the Funds are available on the Electronic Data Gathering
Analysis and Retrieval (EDGAR) Database on the SEC’s website at
http://www.sec.gov. You may obtain copies of this information, after paying a
duplicating fee, by electronic request at the following e-mail address:
[email protected].
janushenderson.com
P.O. Box
219109
Kansas City, MO 64121-9109
1-800-525-3713
Kansas City, MO 64121-9109
1-800-525-3713
The
Trust’s Investment Company Act File No. is 811-1879.