Janus Announces Second Quarter 2005 Financial Results.DENVER Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. -- Second Quarter GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Earnings of $0.12 Per Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. Share and Adjusted Earnings of $0.11 Per Diluted Share Long-Term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. Net Outflows of $2.1 Billion for Quarter; $0.1 Billion Excluding ING Redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. Janus Janus, in astronomy Janus (jā`nəs), in astronomy, one of the named moons, or natural satellites, of Saturn. Also known as Saturn X (or S10), Janus is an irregularly shaped (nonspherical) body measuring about 122 mi (196 km) by 119 mi Investment Fund ("JIF See GIF. ") Equity Funds Continue Strong Investment Performance Janus Capital Group Janus Capital Group Inc. is a public company headquarted in Denver, CO, US. It was founded in 1969. It provides risk-managed investment strategies. As of June 30, 2007, Janus managed $190. Inc. (NYSE NYSE See: New York Stock Exchange :JNS JNS Journal of Neurosurgery JNS Jump If No Sign JNS Narssaq, Greenland (Airport Code) JNS Journal of Neoplatonic Studies JNS Justification for New Start ) today reported second quarter GAAP net income of $25.7 million, or $0.12 per diluted share, compared with net income of $19.6 million, or $0.09 per diluted share, in the first quarter of 2005. To provide a more comparable basis for evaluating Janus' operating results and financial performance over time, Janus management analyzes results after adjusting for certain items that are neither ongoing nor operational in nature. (Please refer to the reconciliation of GAAP to adjusted financials on pages 9 and 10.) Excluding these items, second quarter 2005 adjusted net income was $24.7 million, or $0.11 per diluted share, compared with $24.1 million, or $0.11 per diluted share, in the first quarter of 2005. Investment Management operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: on a GAAP basis for the second quarter of 2005 were 21.0% compared with 20.6% in the first quarter of 2005. Investment Management operating margins on an adjusted basis for the second quarter of 2005 were 23.0% compared with 21.6% in the first quarter of 2005. Janus Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Scheid For Scheid in Germany, see Scheid, Germany. Scheid is a municipality in the district of Hinterrhein in the Swiss canton of Graubünden. said that despite promising trends the company still needs to improve certain financial indicators, especially its investment management margin. "We've we've Contraction of we have. we've have set very ambitious goals for turning the tide on flows and our results this quarter show that we're we're Contraction of we are. we're we are headed in the right direction," Scheid said. "The modest increase in our adjusted investment management operating margin is good news, but we clearly aren't aren't Contraction of are not. See Usage Note at ain't. aren't are not aren't be where we need to be. We're committed to improving our margins -- and we're planning to do so without compromising fund performance or the investments we've made to expand our distribution." Flows and Assets Under Management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. Average assets under management in the second quarter were $129.3 billion versus $133.8 billion in the first quarter of 2005. At June June: see month. 30, 2005, assets under management (AUM Aum (ä·ōōmˑ), n.pr 1. in Ayurveda, the subtle, noiseless cosmic vibration in which consciousness existed in the beginning, before the elements appeared. ) were $130.3 billion compared with $131.8 billion at March 31, 2005. The change in assets in the second quarter reflects long-term net outflows of $2.1 billion (including ING), disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of Vontobel assets in the amount of $0.2 billion, money market net outflows of $1.8 billion and market appreciation of $2.6 billion. Long-term net outflows of $2.1 billion were relatively flat compared with net outflows of $1.9 billion in the first quarter of 2005. Excluding the previously disclosed ING dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). redemption of $2.0 billion, net outflows for the second quarter were $0.1 billion. INTECH's strong investment performance in the mathematical discipline led to net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $3.8 billion in the quarter compared with $2.0 billion in the first quarter. INTECH INTECH Institute for New Technologies assets under management at June 30, 2005, were $31.7 billion, double its asset base from the beginning of the second quarter of 2004. A breakdown breakdown /break·down/ (brak´doun) 1. the act or process of ceasing to function. 2. an often sudden collapse in health. 3. loss of self-control. of flows by channel can be found on page 11 and details on flows by discipline can be found on page 12. Investment Management Investment Management performance remained strong in the second quarter. As of June 30, 2005, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 65% of the funds in the company's primary retail fund family, Janus Investment Funds Noun 1. investment funds - money that is invested with an expectation of profit investment assets - anything of material value or usefulness that is owned by a person or company (JIF), were in the top half of their Lipper Business Description Lipper, Inc., a subsidiary of Reuters provides mutual and hedge fund information, analytical tools, data and commentary. Lipper's benchmarking provides a guidepost to asset managers, fund companies, financial intermediaries, traditional media, categories on a one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants total return basis. More than 59% of the JIF funds were in the top half of their Lipper categories on a three-year total return basis. Detailed Lipper rankings and performance data for all JIF funds begins on page 13. Key highlights of investment performance as of quarter-end included: --90% of JIF funds rank in the top half of their Lipper categories since portfolio manager inception INCEPTION. The commencement; the beginning. In making a will, for example, the writing is its inception. 3 Co. 31 b; Plowd. 343. Vide Consummation; Progression. . --The Janus Adviser (JAD (Joint Application Development) An approach to systems analysis and design introduced by IBM in 1977 that emphasizes teamwork between user and technician. Small groups meet to determine system objectives and the business transactions to be supported. ) Forty Fund I-share class is the number-one large-cap Large-cap A stock with a high level of capitalization, usually at least $5 billion market value. large-cap 1. Of or relating to the common stock of a big corporation that has considerable retained earnings and a large amount of growth fund in its Lipper category on a one-year, total-return basis. --The Janus Twenty Fund and the Janus Contrarian Contrarian An investment style that goes against prevailing market trends by buys assets that are performing poorly and selling when they perform well. Notes: A contrarian investor believes that the people who say the market is going up do so only when they are fully Fund both performed in the top 1% of funds in their respective Lipper categories on a one-year basis and in the top 3% and 2%, respectively, on a three-year basis. --Janus Overseas Fund moved to the first Lipper quartile Quartile A statistical term describing a division of observations into four defined intervals based upon the values of the data and how they compare to the entire set of observations. Notes: Each quartile contains 25% of the total observations. for one- and three-year performance as of June 30, 2005, after finishing in the fourth quartile for one-year performance as of March 31, 2005. Janus President and Chief Investment Officer Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Black said the company's investment performance reflects its ability to leverage Janus' research expertise and broader stock coverage. "Given our continued strong performance, we believe Janus is well positioned when growth investing Growth Investing A strategy whereby an investor seeks out stocks with what they deem good growth potential. In most cases a growth stock is defined as a company whose earnings are expected to grow at an above-average rate than its industry or the overall market. returns to favor," Black said. "In our primary fund family, 81% of our Janus-managed equity funds ranked in the first or second Lipper quartiles for their categories for the one-year period ended June 30, 2005. For the three-year period, 63% of those funds finished in the top two Lipper quartiles based on total returns." Financial Discussion - Second Quarter 2005 vs. First Quarter 2005
Financial Highlights
(dollars in millions except per
share data or as noted)
GAAP Results Adjusted Results
Three Months Ended Three Months Ended
-------------------- ------------------
June 30, March 31, June 30, March 31,
2005 2005 2005 2005
--------- ---------- -------- ---------
Investment Management Segment
--------------------------------------
Average Assets($ bn) $129.3 $133.8 $129.3 $133.8
Ending AUM ($ bn) $130.3 $131.8 $130.3 $131.8
Revenues $208.7 $216.0 $208.7 $216.0
Operating Expenses 164.8 171.6 160.6 169.4
Operating Income 43.9 44.4 48.1 46.6
Operating Margin 21.0% 20.6% 23.0% 21.6%
Consolidated Net income 25.7 19.6 24.7 24.1
Diluted earnings per share $0.12 $0.09 $0.11 $0.11
Common Stock Repurchases
(shares mm) 3.8 7.0 3.8 7.0
$ mm Shares Repurchased $55.3 $100.0 $55.3 $100.0
Adjusted Investment Management Segment Second quarter 2005 adjusted operating margins improved to 23.0% from 21.6% in the first quarter, despite a revenue decline of $7.3 million from $216.0 million in the first quarter of 2005 to $208.7 million in the second quarter of 2005. The decline in revenues reflects a reduction in average assets under management and a decline in performance fees due to timing of contracts at INTECH. Adjusted operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased $8.8 million, principally due to decreases in compensation, advertising and general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . Advertising expenses for the second half of 2005 should decrease further to be in the range of $3 million to $4 million for the period. Printing and Fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. Segment Janus' Printing and Fulfillment business, Rapid Solutions Group, had an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $4.1 million in the second quarter of 2005 compared with a $3.1 million loss in the first quarter of 2005. The second quarter loss was primarily driven by expected lower seasonal volumes. Capital and Liquidity At June 30, 2005, Janus had stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of $2.6 billion, cash and investments of $904.9 million and $376.9 million of debt outstanding. As part of the company's active management of its capital and liquidity position, Janus repurchased $55.3 million of its common shares in the second quarter (3.8 million shares) at an average price of $14.55 per share. Since July July: see month. 2004, when the Board of Directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the current $500 million share repurchase plan share repurchase plan A corporation's plan for buying back a predetermined number of its own shares in the open market. Institution of a share repurchase plan derives from management's view that the company has limited outside investment opportunities and , Janus has repurchased $238.9 million (or 16.4 million shares) in the public markets at an average price of $14.54. Second Quarter 2005 Earnings Call Information Janus Capital Group will discuss its results during a conference call on Thursday Thursday: see week. , July 28, at 10:00 a.m. Eastern Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time. The call-in call-in adj. Being in a format such that listeners or viewers are invited to have their telephone conversations with the host or guests on a show broadcast to other listeners: a call-in radio show. n. number will be 877-301-7574. Anyone outside the U.S. or Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of should call 706-643-3623. The slides used during the presentation will be available in the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Janus Capital Group Web site (www.janus.com) approximately one hour prior to the call. For those unable to join the conference call at the scheduled time In rallying, the Scheduled Time of any crew is the time, calculated at the beginning of the event, that they should arrive at any given control. It is different from Due Time in that Due Time is dynamic, ie it can change throughout the event as competitors drop time; whereas , an audio replay will be available on www.janus.com/ir. About Janus Capital Group Inc. Based in Denver, Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , Janus Capital Group Inc. is a leading asset manager offering individual investors and institutional clients complementary asset management disciplines through the firm's global distribution network. Janus Capital Group consists of Janus Capital Management LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , Enhanced Investment Technologies, LLC (INTECH), and Capital Group Partners, Inc. In addition, Janus Capital Group owns 30% of Perkins Per·kins , Frances 1882-1965. American social reformer and public official. As U.S. secretary of labor (1933-1945) she was the first woman to hold a cabinet position. , Wolf, McDonnell and Company, LLC. Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. containing this and other information, please call Janus at 800-525-3713 or download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. the file from www.janus.com. Read it carefully before you invest or send money. Data presented reflects past performance, which is no guarantee of future results. Rankings referenced exclude money markets. Funds distributed by Janus Distributors LLC (4/05). This press release includes statements concerning potential future events involving Janus Capital Group Inc. that could differ materially from the events that actually occur. The differences could be caused by a number of factors including those factors identified in Janus' Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2004, on file with the Securities and Exchange Commission (Commission file no. 001-15253). Many of these factors are beyond the control of the Company and its management. Any forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. contained in this release are as of the date on which such statements were made. The Company assumes no duty to update them, even if experience, unexpected events, or future changes make it clear that any projected results expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. therein will not be realized.
JANUS CAPITAL GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
GAAP BASIS
(dollars in millions, except per share data)
Three Months Ended
---------------------------------------
June March Dec. Sept. June
30, 31, 31, 30, 30,
2005 2005 2004 2004 2004
------- ------- ------- ------- -------
Investment Management
Revenues:
Investment management fees $167.3 $173.1 $176.5 $170.2 $187.9
Shareowner servicing fees and
other 41.4 42.9 45.0 45.0 47.3
------- ------- ------- ------- -------
Total 208.7 216.0 221.5 215.2 235.2
------- ------- ------- ------- -------
Investment Management Operating
Expenses:
Employee compensation and
benefits 69.4 71.3 61.4 56.7 70.7
Long-term incentive
compensation 18.5 19.0 37.1 22.0 25.4
Marketing and fulfillment 9.0 9.7 9.2 6.5 8.8
Distribution 25.9 27.1 29.5 29.2 31.6
Depreciation and amortization 9.4 10.2 11.1 11.5 12.3
General, administrative and
occupancy 38.6 32.1 39.1 31.8 35.2
Restructuring and impairments - 5.5 - 10.2 -
Provision for mutual fund
investigation, net of
recoveries (6.0) (3.3) - - 6.0
------- ------- ------- ------- -------
Total 164.8 171.6 187.4 167.9 190.0
------- ------- ------- ------- -------
Investment Management Operating
Income 43.9 44.4 34.1 47.3 45.2
Printing and Fulfillment
Revenue 20.6 23.0 18.3 22.6 23.6
Printing and Fulfillment
Operating Expenses 22.8 24.2 24.7 25.0 25.3
Printing and Fulfillment
Intangibles Amortization 1.9 1.9 1.9 1.9 1.9
------- ------- ------- ------- -------
Printing and Fulfillment
Operating Loss (4.1) (3.1) (8.3) (4.3) (3.6)
Interest expense (7.2) (7.2) (7.2) (4.8) (11.6)
Gain on disposition of DST
common shares - - - - 228.0
Loss on early extinguishment
of debt - - - - (55.5)
Other, net 11.4 9.3 8.6 4.9 2.9
Income tax benefit (provision) (15.7) (21.4) (7.7) 5.5 (78.7)
Equity in earnings of
unconsolidated affiliates 1.7 1.7 1.8 1.6 1.6
Minority interest in
consolidated earnings (4.3) (4.1) (3.1) (2.9) (2.2)
------- ------- ------- ------- -------
Net Income $25.7 $19.6 $18.2 $47.3 $126.1
======= ======= ======= ======= =======
----------------------------------------------------------------------
Basic earnings per share
Weighted average common shares
outstanding (in millions) 221.0 226.0 228.7 231.8 232.2
Basic earnings per share $0.12 $0.09 $0.08 $0.20 $0.54
Diluted earnings per share
Weighted average diluted
common shares outstanding (in
millions) 221.8 227.1 229.9 233.0 234.0
Diluted earnings per share $0.12 $0.09 $0.08 $0.20 $0.54
JANUS CAPITAL GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
ADJUSTED BASIS
(dollars in millions, except per share data)
Three Months Ended
---------------------------------------
June March Dec. Sept. June
30, 31, 31, 30, 30,
2005 2005 2004 2004 2004
------- ------- ------- ------- -------
Investment Management
Revenues:
Investment management fees $167.3 $173.1 $176.5 $170.2 $187.9
Shareowner servicing fees and
other 41.4 42.9 45.0 45.0 47.3
------- ------- ------- ------- -------
Total 208.7 216.0 221.5 215.2 235.2
------- ------- ------- ------- -------
Investment Management Operating
Expenses:
Employee compensation and
benefits 66.2 71.3 61.4 54.1 52.5
Long-term incentive
compensation 18.5 19.0 22.1 22.0 22.0
Marketing and fulfillment 9.0 9.7 9.2 6.5 8.8
Distribution 25.9 27.1 29.5 29.2 31.6
Depreciation and amortization 9.4 10.2 11.1 11.5 12.3
General, administrative and
occupancy 31.6 32.1 39.1 31.8 35.2
------- ------- ------- ------- -------
Total 160.6 169.4 172.4 155.1 162.4
------- ------- ------- ------- -------
Investment Management Operating
Income 48.1 46.6 49.1 60.1 72.8
Printing and Fulfillment
Revenue 20.6 23.0 18.3 22.6 23.6
Printing and Fulfillment
Operating Expenses 22.8 24.2 22.5 25.0 25.3
Printing and Fulfillment
Intangibles Amortization 1.9 1.9 1.9 1.9 1.9
------- ------- ------- ------- -------
Printing and Fulfillment
Operating Loss (4.1) (3.1) (6.1) (4.3) (3.6)
Interest expense (7.2) (7.2) (7.2) (7.3) (11.6)
Other, net 5.6 5.2 8.6 4.9 2.9
Income tax provision (15.1) (15.0) (14.3) (21.8) (23.5)
Equity in earnings of
unconsolidated affiliates 1.7 1.7 1.8 1.6 1.6
Minority interest in
consolidated earnings (4.3) (4.1) (3.1) (2.9) (2.2)
------- ------- ------- ------- -------
Net Income $24.7 $24.1 $28.8 $30.3 $36.4
======= ======= ======= ======= =======
----------------------------------------------------------------------
Basic earnings per share
Weighted average common shares
outstanding (in millions) 221.0 226.0 228.7 231.8 232.2
Basic earnings per share $0.11 $0.11 $0.13 $0.13 $0.16
Diluted earnings per share
Weighted average diluted
common shares outstanding (in
millions) 221.8 227.1 229.9 233.0 234.0
Diluted earnings per share $0.11 $0.11 $0.13 $0.13 $0.16
JANUS CAPITAL GROUP INC.
Non-GAAP Reconciliations
(dollars in millions, except per share data)
Janus management analyzes historical results after adjusting for
certain items that are not ongoing or are non-operational in nature.
The company believes that excluding these items is useful to
management and investors because it provides a more comparable basis
for evaluating Janus' operating results and financial performance over
time. Internally, these adjusted results are used to evaluate the
performance of the company.
Three Months Ended June 30, 2005
--------------------------------------------------------
Investment Printing
Investment Non-GAAP Management and Adjusted
Management Adjustments Adjusted Fulfillment Total
---------- ----------- ---------- ----------- --------
Revenues $208.7 $- $208.7 $20.6 $229.3
Operating
expenses 62.8 - 62.8 24.7 87.5
Employee
compensation
and benefits 69.4 (3.2)(1) 66.2 - 66.2
General,
adminis-
trative and
occupancy 38.6 (7.0)(2) 31.6 - 31.6
Provision for
mutual fund
investigation,
net of
recoveries (6.0) 6.0 (3) - - -
---------- ----------- ---------- ----------- --------
Total 164.8 (4.2) 160.6 24.7 185.3
---------- ----------- ---------- ----------- --------
Operating
Income
(Loss) 43.9 4.2 48.1 (4.1) 44.0
Operating
Margin 21.0% 23.0% -19.9% 19.2%
Interest
expense (7.2) - (7.2) - (7.2)
Other income
(expense) 11.1 (5.8)(4) 5.3 0.3 5.6
Income tax
benefit
(provision) (17.1) 0.6 (5) (16.5) 1.4 (15.1)
Equity
earnings
in unconsol-
idated
affiliates 1.7 - 1.7 - 1.7
Minority
interest in
consolidated
earnings (4.3) - (4.3) - (4.3)
---------- ----------- ---------- ----------- --------
Net Income
(Loss) $28.1 $(1.0) $27.1 $(2.4) $24.7
========== =========== ========== =========== ========
Diluted
Earnings
(Loss) per
Share $0.13 $- $0.12 $(0.01) $0.11
Average Assets
Under
Management
(Billions) $129.3
Three Months Ended March 31, 2005
--------------------------------------------------------
Investment Printing
Investment Non-GAAP Management and Adjusted
Management Adjustments Adjusted Fulfillment Total
---------- ----------- ---------- ----------- --------
Revenues $216.0 $- $216.0 $23.0 $239.0
Operating
expenses 169.4 - 169.4 26.1 195.5
Restructuring
and
impairments 5.5 (5.5)(6) - - -
Provision
for mutual
fund invest-
igation (3.3) 3.3 (3) - - -
---------- ----------- ---------- ----------- --------
Total 171.6 (2.2) 169.4 26.1 195.5
---------- ----------- ---------- ----------- --------
Operating
Income
(Loss) 44.4 2.2 46.6 (3.1) 43.5
Operating
Margin 20.6% 21.6% -13.5% 18.2%
Interest
expense (7.2) - (7.2) - (7.2)
Other income
(expense) 9.0 (4.1)(4) 4.9 0.3 5.2
Income tax
benefit
(provision) (22.4) 6.4 (5) (16.0) 1.0 (15.0)
Equity
earnings
in unconsol-
idated
affiliates 1.7 - 1.7 - 1.7
Minority
interest in
consolidated
earnings (4.1) - (4.1) - (4.1)
---------- ----------- ---------- ----------- --------
Net Income
(Loss) $21.4 $4.5 $25.9 $(1.8) $24.1
========== =========== ========== =========== ========
Diluted
Earnings
(Loss) per
Share $0.09 $0.02 $0.11 $(0.01) $0.11
Average Assets
Under
Management
(Billions) $133.8
Three Months Ended December 31, 2004
---------------------------------------------------
Investment Printing
Investment Non-GAAP Management and
Management Adjustments Adjusted Fulfillment
----------- ------------ ---------- -----------
Revenues $221.5 $- $221.5 $18.3
Operating
expenses 150.3 - 150.3 24.4
Long-term
incentive
compensation 37.1 (15.0)(7) 22.1 -
Restructuring
and impairments - - - 2.2
----------- --------- ---------- -----------
Total 187.4 (15.0) 172.4 26.6
----------- --------- ---------- -----------
Operating
Income (Loss) 34.1 15.0 49.1 (8.3)
Operating
Margin 15.4% 22.2% -45.4%
Other income
(expense) - - - 0.1
Income tax
benefit
(provision) (11.1) (5.7)(5) (16.8) 3.4
----------- --------- ---------- -----------
Net Income
(Loss) $23.0 $9.3 $32.3 $(4.8)
=========== ========= ========== ===========
Diluted Earnings
(Loss) per
Share $0.10 $0.04 $0.14 $(0.02)
Average Assets
Under Management
(Billions) $134.9
Three Months Ended December 31, 2004
(Continued)
-------------------------------------------
Printing
and
Non-GAAP Fulfillment Adjusted
Adjustments Adjusted Total
-------------- ------------ ------------
Revenues $- $18.3 $239.8
Operating
expenses - 24.4 174.7
Long-term incentive
compensation - - 22.1
Restructuring and
impairments (2.2)(12) - -
---------- ------------ ------------
Total (2.2) 24.4 196.8
---------- ------------ ------------
Operating
Income
(Loss) 2.2 (6.1) 43.0
Operating
Margin -33.3% 17.9%
Other income
(expense) - 0.1 0.1
Income tax benefit
(provision) (0.9)(5) 2.5 (14.3)
---------- ------------ ------------
Net Income
(Loss) $1.3 $(3.5) $28.8
========== ============ ============
Diluted Earnings (Loss)
per Share $0.01 $(0.01) $0.13
See notes to non-GAAP adjustments on the following page
JANUS CAPITAL GROUP INC.
Non-GAAP Reconciliations (continued)
(dollars in millions, except per share data)
Three Months Ended September 30, 2004
------------------------------------------------------
Investment Printing
Investment Non-GAAP Management and Adjusted
Management Adjustments Adjusted Fulfillment Total
---------- ----------- ---------- ----------- --------
Revenues $215.2 $- $215.2 $22.6 $237.8
Operating
expenses 101.0 - 101.0 26.9 127.9
Employee
compensation
and benefits 56.7 (2.6)(8) 54.1 - 54.1
Restructuring
and
impairments 10.2 (10.2)(9) - - -
---------- ------- ---------- ----------- --------
Total 167.9 (12.8) 155.1 26.9 182.0
---------- ------- ---------- ----------- --------
Operating
Income
(Loss) 47.3 12.8 60.1 (4.3) 55.8
Operating
Margin 22.0% 27.9% -19.0% 23.5%
Interest
expense (4.8) (2.5)(5) (7.3) - (7.3)
Other income
(expense) 4.7 - 4.7 0.2 4.9
Income tax
benefit
(provision) 3.8 (27.3)(5) (23.5) 1.7 (21.8)
Equity earnings
in
unconsolidated
affiliates 1.6 - 1.6 - 1.6
Minority
interest in
consolidated
earnings (2.9) - (2.9) - (2.9)
---------- ------- ---------- ----------- --------
Net Income
(Loss) $49.7 $(17.0) $32.7 $(2.4) $30.3
========== ======= ========== =========== ========
Diluted
Earnings
(Loss) per
Share $0.21 $(0.07) $0.14 $(0.01) $0.13
Average Assets
Under
Management
(Billions) $129.2
Three Months Ended June 30, 2004
------------------------------------------------------
Investment Printing
Investment Non-GAAP Management and Adjusted
Management Adjustments Adjusted Fulfillment Total
---------- ----------- ---------- ----------- --------
Revenues $235.2 $- $235.2 $23.6 $258.8
Operating
expenses 94.5 - 94.5 25.4 119.9
Employee
compensation
and benefits 70.7 (18.2)(8) 52.5 1.8 54.3
Long-term
incentive
compensation 18.8 (3.4)(8) 15.4 - 15.4
Provision for
mutual fund
investigation 6.0 (6.0)(3) - - -
---------- ------- ---------- ----------- --------
Total 190.0 (27.6) 162.4 27.2 189.6
---------- ------- ---------- ----------- --------
Operating
Income
(Loss) 45.2 27.6 72.8 (3.6) 69.2
Operating
Margin 19.2% 31.0% -15.3% 26.7%
Interest
expense (11.6) - (11.6) - (11.6)
Gain on the
disposal of
DST common
shares 228.0 (228.0)(10) - - -
Loss on early
extinguishment
of debt (55.5) 55.5 (11) - - -
Other income
(expense) 2.5 - 2.5 0.4 2.9
Income tax
benefit
(provision) (79.7) 55.2 (5) (24.5) 1.0 (23.5)
Equity earnings
in
unconsolidated
affiliates 1.6 - 1.6 - 1.6
Minority
interest in
consolidated
earnings (2.2) - (2.2) - (2.2)
---------- ------- ---------- ----------- --------
Net Income
(Loss) $128.3 $(89.7) $38.6 $(2.2) $36.4
========== ======= ========== =========== ========
Diluted
Earnings
(Loss) per
Share $0.55 $(0.38) $0.16 $(0.01) $0.16
Average Assets
Under
Management
(Billions) $138.6
(1) Severance charge related to the departure of the CFO.
(2) Accruals related to litigation reserves.
(3) Insurance recoveries of $6.0 million in Q1 2005 and $8.4 million
in Q2 2005 for costs incurred related to the mutual fund
investigation, net of Q1 2005 and Q2 2005 ongoing legal fees,
respectively.
(4) Realized gain on the sale of investments. In the first and second
quarters, the Company reduced its seed capital investments by
$22.8 million and $26.0 million, respectively. This reduction in
seed capital produced after-tax gains of $2.5 million and $3.6
million in Q1 2005 and Q2 2005, respectively.
(5) Includes tax effect of adjustments. Q3 2004 includes the reversal
of a $22.5 million tax contingency and related accrued interest of
$2.5 million.
(6) Charges related to the closure of a Bay Isle Financial LLC
facility in Oakland, California, severance of a Bay Isle portfolio
manager and impairment of intangibles associated with the loss of
institutional accounts.
(7) Equity awards granted on a vested basis in 2004.
(8) Charges related to severance payments and the accelerated vesting
of restricted stock as a result of executive level departures
including Janus' former CEO during Q2 2004.
(9) Charge of $8.2 million related to the closure of Janus' Austin,
Texas facility in 2001 and the pretax loss of $2.0 million from
the sale of Bay Isle Financial LLC's Private Client Asset
Management Division.
(10) Pretax gain of $228.0 million from the sale of 7.4 million shares
of DST to an unrelated third party.
(11) Loss of $55.5 million primarily related to the premium paid to
exchange old for new notes with lower interest rates.
(12) Charges related to the closure of a non-strategic facility.
JANUS CAPITAL GROUP INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
June 30, December 31,
2005 2004
----------- --------------
Assets
Cash and cash equivalents $575.9 $527.1
Other current assets 270.2 538.2
Investments and other assets 322.0 240.9
Property and equipment, net 61.0 62.0
Intangibles and goodwill, net 2,388.7 2,399.4
----------- --------------
Total Assets $3,617.8 $3,767.6
=========== ==============
Liabilities and Stockholders' Equity
Debt $376.9 $377.5
Other liabilities 208.2 219.8
Deferred income taxes 402.2 435.8
Stockholders' equity 2,630.5 2,734.5
----------- --------------
Total Liabilities and Stockholders'
Equity $3,617.8 $3,767.6
=========== ==============
UNAUDITED CONDENSED CONSOLIDATED
CASH FLOW INFORMATION
(dollars in millions)
Three Months Ended
---------------------------------------
June 30, March 31, June 30,
Cash provided by (used in) 2005 2005 2004
------------ ----------- ------------
Operating activities $100.1 $43.8 $45.0
Investing activities 83.4 (5.8) 315.4
Financing activities (62.4) (110.3) (538.3)
------------ ----------- ------------
Net change during period $121.1 $(72.3) $(177.9)
============ =========== ============
ASSETS BY CHANNEL
(dollars in billions)
Net Flows for the
Three Months Ended
-----------------------
June 30, June 30, March 31,
2005 2005 2005
--------- ----------- -----------
Retail $43.9 $(1.1) $(1.2)
Global Advisors (excluding
ING) 49.6 (2.2) (2.6)
Institutional 36.8 3.2 1.9
--------- ----------- -----------
Total $130.3 $(0.1) $(1.9)
========= =========== ===========
Note: Flows exclude institutional money market
JANUS CAPITAL GROUP INC.
ASSETS & FLOWS BY INVESTMENT DISCIPLINE
(dollars in billions)
Three Three Three Three Three
Months Months Months Months Months
Ended Ended Ended Ended Ended
-------- --------- -------- --------- ---------
June 30, Sept. 30, Dec. 31, March 31, June 30,
2004 2004 2004 2005 2005
-------- --------- -------- --------- ---------
Growth/Blend
Beginning of period
assets $78.9 $74.3 $68.2 $71.4 $66.3
Acquisitions
(dispositions) - - - - -
Sales 1.8 1.1 1.5 2.2 1.6
Redemptions 8.1 4.4 6.0 4.8 5.2
-------- --------- -------- --------- ---------
Net Sales
(redemptions) (6.3) (3.3) (4.6) (2.6) (3.7)
Market appreciation 1.6 (2.8) 7.9 (2.5) 2.0
-------- --------- -------- --------- ---------
End of period assets $74.3 $68.2 $71.4 $66.3 $64.7
======== ========= ======== ========= =========
Global/International
Beginning of period
assets $21.7 $16.9 $15.1 $14.6 $13.4
Acquisitions
(dispositions) - - - - -
Sales 0.5 0.3 0.3 0.4 0.3
Redemptions 3.4 1.8 2.4 1.5 1.9
-------- --------- -------- --------- ---------
Net Sales
(redemptions) (2.9) (1.6) (2.2) (1.2) (1.7)
Market appreciation (1.8) (0.2) 1.8 - (0.2)
-------- --------- -------- --------- ---------
End of period assets $16.9 $15.1 $14.6 $13.4 $11.5
======== ========= ======== ========= =========
Mathematical/
Quantitative(a)
Beginning of period
assets $15.5 $17.5 $20.1 $25.8 $27.6
Acquisitions
(dispositions) - - - - -
Sales 2.0 3.0 4.1 2.4 4.0
Redemptions 0.6 0.2 0.2 0.4 0.3
-------- --------- -------- --------- ---------
Net Sales
(redemptions) 1.4 2.8 3.9 2.0 3.8
Market appreciation 0.6 (0.1) 1.8 (0.3) 0.4
-------- --------- -------- --------- ---------
End of period assets $17.5 $20.1 $25.8 $27.6 $31.7
======== ========= ======== ========= =========
Fixed Income
Beginning of period
assets $6.7 $6.0 $5.9 $6.2 $5.9
Acquisitions
(dispositions) - - - - -
Sales 0.3 0.3 0.7 0.4 0.3
Redemptions 0.8 0.5 0.6 0.5 0.4
-------- --------- -------- --------- ---------
Net Sales
(redemptions) (0.5) (0.2) 0.1 (0.2) (0.2)
Market appreciation (0.1) 0.1 0.3 (0.1) 0.1
-------- --------- -------- --------- ---------
End of period assets $6.0 $5.9 $6.2 $5.9 $5.7
======== ========= ======== ========= =========
Value
Beginning of period
assets $9.2 $9.6 $9.1 $10.2 $10.2
Acquisitions
(dispositions) - (0.6) - - (0.2)
Sales 0.9 0.8 1.0 1.0 0.7
Redemptions 0.6 0.6 0.8 1.0 1.0
-------- --------- -------- --------- ---------
Net Sales
(redemptions) 0.3 0.2 0.1 0.1 (0.4)
Market appreciation 0.1 - 0.8 - 0.4
-------- --------- -------- --------- ---------
End of period assets $9.6 $9.1 $10.2 $10.2 $10.0
======== ========= ======== ========= =========
Money Market
Beginning of period
assets $13.0 $11.1 $11.8 $10.8 $8.5
Acquisitions
(dispositions) - - - - -
Sales 21.5 20.0 19.5 12.3 9.2
Redemptions 23.4 19.4 20.5 14.6 11.0
-------- --------- -------- --------- ---------
Net Sales
(redemptions) (1.9) 0.6 (1.0) (2.3) (1.8)
Market appreciation - - - - -
-------- --------- -------- --------- ---------
End of period assets $11.1 $11.8 $10.8 $8.5 $6.7
======== ========= ======== ========= =========
Total
Beginning of period
assets $145.0 $135.4 $130.2 $139.0 $131.8
Acquisitions
(dispositions) - (0.6) - - (0.2)
Sales 27.1 25.5 27.1 18.6 16.3
Redemptions 37.0 27.1 30.6 22.8 20.2
-------- --------- -------- --------- ---------
Net Sales
(redemptions) (9.9) (1.6) (3.5) (4.2) (3.9)
Market appreciation 0.3 (3.0) 12.3 (3.0) 2.6
-------- --------- -------- --------- ---------
End of period assets $135.4 $130.2 $139.0 $131.8 $130.3
======== ========= ======== ========= =========
Total Excluding Money
Markets
Beginning of period
assets $132.0 $124.3 $118.4 $128.2 $123.3
Acquisitions
(dispositions) - (0.6) - - (0.2)
Sales 5.6 5.5 7.5 6.3 6.9
Redemptions 13.6 7.7 10.1 8.2 9.0
-------- --------- -------- --------- ---------
Net Sales
(redemptions) (8.0) (2.2) (2.6) (1.9) (2.1)
Market appreciation 0.3 (3.0) 12.4 (3.0) 2.6
-------- --------- -------- --------- ---------
End of period assets $124.3 $118.4 $128.2 $123.3 $123.6
======== ========= ======== ========= =========
Total Excluding Mathematical/
Quantitative & Money Markets
Beginning of period
assets $116.5 $106.8 $98.3 $102.4 $95.7
Acquisitions
(dispositions) - (0.6) - - (0.2)
Sales 3.6 2.5 3.4 3.9 2.8
Redemptions 13.0 7.5 9.9 7.8 8.7
-------- --------- -------- --------- ---------
Net Sales
(redemptions) (9.4) (5.0) (6.5) (3.9) (5.9)
Market appreciation (0.3) (2.9) 10.6 (2.7) 2.2
-------- --------- -------- --------- ---------
End of period assets $106.8 $98.3 $102.4 $95.7 $91.9
======== ========= ======== ========= =========
Each line has been rounded on the schedule individually to increase
the accuracy of the amounts presented. Therefore totals and subtotals
may not foot.
(a) Market appreciation for the three months ended March 31, 2005 has
been restated from amounts previously disclosed reducing total
assets by $0.4 billion.
Janus Investment Fund Lipper Rankings Based
on Total Returns as of 6/30/05
------------------------------------------
1-Year 3-Year
-------------------- --------------------
Rank / Rank /
Lipper Percentile Total Percentile Total
Category Rank (%) Funds Rank (%) Funds
-------------------------------------------------------
Growth Funds
----------------------------------------------------------------------
Janus
Enterprise Mid-Cap
Fund Growth Funds 23 124 / 543 10 43 / 435
Janus Fund Large-Cap
Growth Funds 82 539 / 663 56 302 / 545
Janus Mercury Large-Cap
Fund Growth Funds 28 184 / 663 9 44 / 545
Janus Olympus Multi-Cap
Fund Growth Funds 47 197 / 419 72 257 / 358
Janus Orion Multi-Cap
Fund Growth Funds 9 35 / 419 8 28 / 358
Janus Twenty Large-Cap
Fund(1) Growth Funds 1 4 / 663 3 15 / 545
Janus Venture Small-Cap
Fund(1) Growth Funds 27 141 / 522 15 62 / 439
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus Balanced Balanced
Fund Funds 27 162 / 616 58 264 / 457
Janus Core Large-Cap
Equity Fund Core Funds 3 22 / 908 20 151 / 774
Janus Growth
and Income Large-Cap
Fund Core Funds 3 21 / 908 25 192 / 774
Janus Risk-
Managed Stock Multi-Cap
Fund Core Funds 10 70 / 751 - -
Janus
Contrarian Multi-Cap
Fund Core Funds 1 4 / 751 2 10 / 538
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Janus Federal
Tax-Exempt General Muni
Fund(2) Debt Funds 75 210 / 281 75 192 / 257
Janus Flexible Intermediate
Bond Fund(3) Inv Grade
Debt Funds 52 234 / 451 18 70 / 392
Janus High- High Current
Yield Fund Yield Funds 39 161 / 419 93 325 / 352
Janus Short- Short
Term Bond Investment
Fund Grade Debt
Funds 63 133 / 211 40 57 / 144
----------------------------------------------------------------------
International/Global Funds
----------------------------------------------------------------------
Janus Global Health/
Life Sciences Biotechnology
Fund Funds 27 48 / 180 48 75 / 157
Janus Global
Opportunities
Fund Global Funds 96 312 / 325 71 190 / 269
Janus Global Science &
Technology Technology
Fund Funds 37 105 / 284 72 191 / 265
Janus Overseas International
Fund Funds 2 17 / 856 24 167 / 714
Janus
Worldwide
Fund Global Funds 83 269 / 325 98 262 / 269
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Mid Cap
Value Fund - Mid-Cap Value
Inv(4) Funds 67 159 / 239 36 69 / 191
Janus Small
Cap Value
Fund - Small-Cap
Inv.(1,4) Core Funds 58 343 / 596 83 392 / 476
----------------------------------------------------------------------
Janus Investment Fund Lipper Rankings Based
on Total Returns as of 6/30/05
------------------------------------------
5-Year 10-Year
--------------------- --------------------
Rank / Rank /
Lipper Percentile Total Percentile Total
Category Rank (%) Funds Rank (%) Funds
-------------------------------------------------------
Growth Funds
----------------------------------------------------------------------
Janus
Enterprise Mid-Cap
Fund Growth Funds 92 282 / 306 57 65 / 114
Janus Fund Large-Cap
Growth Funds 64 273 / 432 44 62 / 140
Janus Mercury Large-Cap
Fund Growth Funds 72 311 / 432 9 12 / 140
Janus Olympus Multi-Cap
Fund Growth Funds 74 183 / 247 - -
Janus Orion Multi-Cap
Fund Growth Funds 39 95 / 247 - -
Janus Twenty Large-Cap
Fund(1) Growth Funds 62 266 / 432 2 2 / 140
Janus Venture Small-Cap
Fund(1) Growth Funds 65 206 / 320 41 37 / 90
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus Balanced Balanced
Fund Funds 54 198 / 367 6 9 / 163
Janus Core Large-Cap
Equity Fund Core Funds 19 116 / 618 - -
Janus Growth
and Income Large-Cap
Fund Core Funds 52 318 / 618 3 5 / 231
Janus Risk-
Managed Stock Multi-Cap
Fund Core Funds - - - -
Janus
Contrarian Multi-Cap
Fund Core Funds 24 89 / 382 - -
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Janus Federal
Tax-Exempt General Muni
Fund(2) Debt Funds 77 174 / 225 66 96 / 146
Janus Flexible Intermediate
Bond Fund(3) Inv Grade
Debt Funds 49 133 / 273 9 12 / 137
Janus High- High Current
Yield Fund Yield Funds 42 120 / 290 - -
Janus Short- Short
Term Bond Investment
Fund Grade Debt
Funds 51 55 / 107 26 15 / 58
----------------------------------------------------------------------
International/Global Funds
----------------------------------------------------------------------
Janus Global Health/
Life Sciences Biotechnology
Fund Funds 67 64 / 95 - -
Janus Global
Opportunities
Fund Global Funds - - - -
Janus Global Science &
Technology Technology
Fund Funds 66 121 / 185 - -
Janus Overseas International
Fund Funds 77 398 / 522 5 8 / 178
Janus
Worldwide
Fund Global Funds 96 188 / 196 41 27 / 66
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Mid Cap
Value Fund - Mid-Cap Value
Inv(4) Funds 16 16 / 101 - -
Janus Small
Cap Value
Fund - Small-Cap
Inv.(1,4) Core Funds 16 53 / 332 - -
----------------------------------------------------------------------
Percent of JIF Funds per Lipper Quartile based on
Total Returns
-------------------------------------------------
1-Year 3-Year 5-Year 10-Year
----------------------------------------------------------------------
1st Quartile 34.9% 45.5% 19.1% 50.0%
2nd Quartile 30.4 13.6 14.3 33.3
3rd Quartile 21.7 27.3 47.6 16.7
4th Quartile 13.0 13.6 19.0 0.0
----------------------------------------------------------------------
Janus Investment Fund Lipper Rankings Based
on Total Returns as of 6/30/05
------------------------------------------
1-Year 3-Year
-------------------- --------------------
Rank / Rank /
Lipper Percentile Total Percentile Total
Category Rank (%) Funds Rank (%) Funds
-------------------------------------------------------
Janus Adviser Funds - I Shares
Growth Funds
----------------------------------------------------------------------
Janus Adviser Large-Cap
Forty(5) Growth
Funds 1 1 / 663 8 42 / 545
----------------------------------------------------------------------
Janus Investment Fund Lipper Rankings Based
on Total Returns as of 6/30/05
------------------------------------------
5-Year 10-Year
--------------------- --------------------
Rank / Rank /
Lipper Percentile Total Percentile Total
Category Rank (%) Funds Rank (%) Funds
-------------------------------------------------------
Janus Adviser Funds - I Shares
Growth Funds
----------------------------------------------------------------------
Janus Adviser Large-Cap
Forty(5) Growth
Funds 10 41 / 432 - -
----------------------------------------------------------------------
Lipper Inc. - A Reuters Company, is a nationally recognized
organization that ranks the performance of mutual funds within a
universe of funds that have similar investment objectives. Rankings
are historical with capital gains and dividends reinvested.
1. Closed to new investors.
2. Effective 02/25/05, Sharon Pichler is no longer the portfolio
manager of Janus Federal Tax-Exempt Fund, and Doug Nelson is
now the Fund portfolio manager.
3. Effective February 28, 2005, Janus Flexible Income Fund changed its
name to Janus Flexible Bond Fund and added to its investment
policy to state that at least 80% of its net assets (plus
borrowings for investment purposes) will be invested in bonds.
4. Ranking is for the investor share class only; other classes may
have different performance characteristics.
5. Ranking is for I- share class only; other classes may have
different performance characteristics.
Data presented reflects past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. , may be worth more or less than their original cost. Due to market volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the , current performance may be higher or lower than the performance shown. Call 800-975-9932 or visit www.janus.com for performance current to the most recent month-end. See notes to performance on the following page.
Janus Investment Fund ("JIF")
Average Annual Total Returns (%) for
Periods Ended 6/30/05(1)
-------------------------------------
Life
Inception of
Date 1 Year 3 Year 5 Year 10 Year Fund
--------- ------ ------- ------- ------- ------
Growth Funds
----------------------------------------------------------------------
Janus Fund 2/70 (0.04) 5.26 (9.85) 7.42 13.83
Janus Twenty
Fund(2,3) 4/85 11.91 11.81 (9.64) 11.42 13.25
Janus Mercury Fund 5/93 4.62 9.57 (10.69) 9.61 12.40
Janus Olympus Fund 12/95 5.76 7.13 (11.47) -- 10.89
Janus Enterprise Fund 9/92 10.66 13.61 (13.80) 8.04 10.86
Janus Venture
Fund(2,4) 4/85 9.51 14.21 (5.61) 9.65 13.42
Janus Orion Fund(5) 6/00 11.88 13.87 (6.17) -- (6.17)
----------------------------------------------------------------------
Core Funds
----------------------------------------------------------------------
Janus Growth and Income
Fund 5/91 10.72 7.52 (3.37) 12.90 13.29
Janus Balanced Fund
(6) 9/92 7.73 6.56 1.48 10.78 11.24
Janus Contrarian
Fund(5) 2/00 18.75 16.93 3.99 -- 6.00
Janus Core Equity
Fund(7) 6/96 10.60 7.99 (0.80) -- 12.15
Janus Risk-Managed
Stock Fund(8,9) 2/03 12.78 -- -- -- 22.17
----------------------------------------------------------------------
International/Global
Funds
----------------------------------------------------------------------
Janus Worldwide
Fund(8) 5/91 5.81 2.75 (10.05) 7.90 10.62
Janus Overseas
Fund(4,5,8) 5/94 22.04 12.19 (4.94) 11.41 10.92
Janus Global Life
Sciences Fund(8) 12/98 7.16 9.57 (1.73) -- 10.00
Janus Global Technology
Fund(4,5,8) 12/98 (2.10) 6.27 (20.52) -- 0.73
Janus Global
Opportunities Fund(8) 6/01 1.97 7.83 -- -- 8.51
----------------------------------------------------------------------
Value Funds
----------------------------------------------------------------------
Janus Small Cap Value
Fund - Inv.(2,10) 10/87 10.05 10.11 14.60 16.23 14.63
Janus Mid Cap Value
Fund - Inv.(11) 8/98 12.26 14.53 16.38 -- 18.13
----------------------------------------------------------------------
Income Funds
----------------------------------------------------------------------
Janus Flexible Income
Fund(12,13,14) 7/87 6.17 6.22 6.73 6.98 7.89
Janus High-Yield
Fund(8,12,13,14) 12/95 9.35 9.30 6.36 -- 8.39
Janus Short-Term Bond
Fund(12,13,15) 9/92 1.97 2.75 4.33 5.11 4.81
Janus Federal Tax-
Exempt
Fund(12,13,15,16) 5/93 6.24 4.33 5.30 5.10 4.79
----------------------------------------------------------------------
Janus Adviser Funds - I Shares
Growth Funds
----------------------------------------------------------------------
Janus Adviser
Forty(3,17) 5/97 16.62 9.80 (3.30) -- 12.81
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Total return includes reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of dividends and capital gains. 1) All figures unaudited. 2) Closed to new investors. 3) Returns have sustained significant gains and losses due to market volatility in the health care sector. 4) This Fund has been significantly impacted, either positively or negatively, by investing in initial public offerings (IPOs). 5) This Fund may have significant exposure to emerging markets which may lead to greater price volatility. 6) Effective May 1, 2005, Karen Karen Any member of a variety of tribal peoples of southern Myanmar (Burma). Constituting the second largest minority in Myanmar, the Karen are not a unitary group in any ethnic sense, as they differ among themselves linguistically, religiously, and economically. L. Reidy is no longer the Portfolio Manager of the Janus Balanced Fund Balanced Fund A mutual fund that invests its assets into the money market, bonds, preferred stock, and common stock with the intention to provide both growth and income. Also known as an asset allocation fund. and Gibson Smith and Marc Pinto pinto Spotted horse, also called paint, piebald, skewbald, and other terms to describe variations in colour and markings. The American Indian ponies of the western U.S. were often pintos. Most pure-breed associations refuse to register horses with pinto colouring. are now co-managers of the Fund. 7) Effective May 1, 2005, Karen L. Reidy is no longer the Portfolio Manager of Janus Core Equity Fund and Minyoung Sohn SOHN Society of Otorhinolaryngology and Head-Neck Nurses SOHN Society of Occupational Health Nurses is now the Portfolio Manager of the Fund. 8) A 2% redemption fee Redemption fee A fee some mutual funds charge when an investor sells shares within a specified short period of time. may be imposed on shares held for 3 months or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower. 9) The voluntary waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. of the Fund's management fee terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: on June 25, 2004. Without such waivers total returns from inception to June 24, 2004, would have been lower. 10) Returns shown for Janus Small Cap Value Fund prior to April 21, 2003, are those of Berger Berger may refer to: Places
Berger is a relatively common last name. It means mountaineer in Dutch and German, and shepherd in French. Small Cap Value Fund. 11) Returns shown for Janus Mid Cap Value Fund prior to April 21, 2003, are those of Berger Mid Cap Value Fund. 12) Bond funds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds owned by the Fund. Unlike owning individual bonds, there are ongoing fees and expenses associated with owning shares of bonds funds. The return of principal is not guaranteed due to net asset value fluctuation Fluctuation A price or interest rate change. that is caused by changes in the price of specific bonds held in the Fund and selling of bonds within the fund by the Portfolio Manager. 13) As of June 30, 2005, 30-day SEC Yield was 3.60% on Janus Federal Tax-Exempt tax-ex·empt adj. 1. Not subject to taxation, as the capital or income of a philanthropic organization. 2. Producing interest that is exempt from income tax: tax-exempt bonds. n. Fund, 3.85% on Janus Flexible Bond Fund, 6.37% on Janus High-Yield Adj. 1. high-yield - yielding a large amount of agricultural or industrial production fruitful - productive or conducive to producing in abundance; "be fruitful and multiply" Fund and 3.45% on Janus Short-Term Bond Fund Short-term bond fund A bond mutual fund holding short to intermediate-term bonds that have maturities of three to five years. . 14) Adviser has agreed to waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered. For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such a portion of the Fund's expenses if they exceed the designated cap. If during the periods shown, the Fund's actual expenses exceeded the cap, its total return would have been lower. There were no waivers in effect for the most recent period presented. 15) Janus Capital has contractually con·trac·tu·al adj. Of, relating to, or having the nature of a contract. con·trac  tu·al·ly adv.Adv. 1. agreed to waive Janus Short-Term Bond Fund and Janus Federal Tax-Exempt Fund's total operating expenses to the levels indicated in the prospectus until at least March 1, 2006. Without such waivers, Janus Short-Term Bond Fund and Janus Federal Tax-Exempt Fund's yield would have been 2.46% and 2.40%, respectively, and total returns would have been lower. 16) Income may be subject to state or local taxes and to a limited extent certain federal tax. Capital gains are subject to federal, state and local taxes. 17) Janus Adviser Forty commenced operations on 8/1/00, after the reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. of the Retirement Shares of Janus Aspen aspen, in botany aspen: see willow. Aspen, city, United States Aspen (ăs`pən), city (1990 pop. 5,049), alt. 7,850 ft (2,390 m), seat of Pitkin co., S central Colo. Series into the Funds. The returns for the reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. Funds reflect the performance of the Retirement Shares of Janus Aspen Series prior to the reorganization. Differences between compared investments may include objectives, sales and management fees, liquidity, volatility, tax features and other features, which may result in differences in performance. A fund's performance may be affected by risks that include those associated with non-diversification, investments in foreign securities, non-investment grade debt securities, undervalued companies undervalued company A firm whose assets and potential earning power are not adequately reflected in its stock price. Although such firms are more likely to be subject to takeover attempts than others, determining whether a particular firm is actually or companies with a relatively small market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. . Please see a Janus prospectus for more detailed information. |
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