1995
Semiannual Report
JANUS EQUITY FUNDS
[LOGO]
Janus Fund
Janus Balanced Fund
Janus Enterprise Fund
Janus Growth and Income Fund
Janus Mercury Fund
Janus Overseas Fund
Janus Twenty Fund
Janus Venture Fund
Janus Worldwide Fund
<PAGE>
TABLE OF CONTENTS
Our Message to You ......................................................... 1
Portfolio Manager's Commentary and Schedule of Investments
Janus Fund ................................................................ 3
Janus Balanced Fund ....................................................... 7
Janus Enterprise Fund ..................................................... 11
Janus Growth and Income Fund .............................................. 14
Janus Mercury Fund ........................................................ 17
Janus Overseas Fund ....................................................... 21
Janus Twenty Fund ......................................................... 25
Janus Venture Fund ........................................................ 28
Janus Worldwide Fund ...................................................... 33
Notes to Schedule of Investments .......................................... 37
Statements of Operations .................................................. 38
Statements of Assets and Liabilities ...................................... 38
Statements of Changes in Net Assets ....................................... 40
Financial Highlights ...................................................... 42
Notes to Financial Statements ............................................. 44
Performance Information
The following pages include performance overview graphs that compare the
performance of a $10,000 investment in each fund, since its inception, to one or
more widely used market indexes. Each graph reflects the life-time performance
of the fund through April 30, 1995.
When comparing the performance of a fund to an index, keep in mind that
market indexes do not take into account brokerage commissions that would be
incurred if you purchased the individual securities that comprise the index.
They also do not includes taxes payable on dividends and interest payments, or
operating expenses necessary to maintain a portfolio investing in the index.
You will see average annual total returns quoted for each fund. Average
annual total return is calculated by taking the growth or decline in value of an
investment over a period of time, including reinvestment of dividends and
distributions, and then calculating the annual compound percentage rate that
would have produced the same result had the rate of growth been constant
throughout the period.
An Explanation of the Schedule of Investments
Following the Performance Overview is each fund's Schedule of Investments.
This schedule reports the industry concentrations and the different types of
securities held in the fund's portfolio on the last day of the reporting period.
Securities are usually listed by type (common stocks, corporate bonds, U.S.
government obligations, etc.) and by industry classification (banking,
communications, insurance, etc.).
The market value of each security represents its value on the last day of
the reporting period. Funds that own securities denominated in foreign
currencies convert the value of their securities into U.S. dollars. Funds that
invest primarily in foreign securities also provide a summary of investments by
country. This summary reports the fund's exposure to different countries by
indicating the percentage of securities invested in each country.
An Explanation of the Forward Foreign Currency Contract Table
A table listing forward foreign currency contracts will follow each fund's
Schedule of Investments (if applicable). Forward foreign currency contracts
represent agreements to deliver or receive a preset amount of currency at a
future date. Foreign currency contracts are used to hedge against foreign
currency risk in the fund's long-term holdings.
The table provides the foreign currency being sold and the settlement date,
the amount sold, the value of the currency in U.S. dollars, and the amount of
unrealized gain or loss. The amount of unrealized gain or loss reflects the
change in currency exchange rates from the time the contract was opened to the
last day of the reporting period.
Janus Funds April 30, 1995 Semiannual Report
<PAGE>
OUR MESSAGE TO YOU
Dear Shareholders:
With this edition of our semiannual report we are initiating a new format
for our shareholder letters. My letter to you will focus more on broad economic,
market, and performance issues. The individual fund letters will concentrate on
portfolio holdings, strategy, and performance. This will allow us to avoid
repeating economic and market background in each fund letter and to provide
additional room for portfolio information. We have also added topic headings in
an effort to make the letters more readable.
MANY INDEXES SET NEW RECORDS
U.S. Markets Were Strong. The story of the U.S. financial markets during
the six months ended April 30 was a welcome one for investors. Slowing economic
growth, low inflation, and declining interest rates teamed up with excellent
corporate profits to send many indexes into record territory. The Standard &
Poor's 500 Stock Index (the S&P 500 Index), which is made up of the stocks of
larger companies, registered a total return of 10.46%. In general, the rally was
focused on larger issues. The performance of smaller companies was only half as
strong: the Russell 2000 was up 5.36%. Helped by its large technology component,
the NASDAQ Composite gained 8.55%.
Bonds Performed Well Too. The bond market also rallied. The 30-year U.S.
Treasury Bond gained 11.21% on a total return basis, as the yield on the
benchmark bond fell from 7.97% to 7.34%.
Foreign Markets Lagged. Many foreign markets lagged the U.S. Measured in
U.S. dollars, the Morgan Stanley EAFE Index (EAFE), with net dividends
reinvested,* gained 1.24% for the period. (EAFE stands for Europe, Australia,
and the Far East.) Much of EAFE's gains were the result of the weak U.S. dollar.
Measured in local currencies, EAFE was down 6.50% during the period. In other
words, the dollar was off 7.74% against the local currencies represented in
EAFE.
ECONOMIC TRENDS
The Divergence Between Stocks and Bonds Was Resolved. For much of 1994
bonds remained in one of the steepest declines on record. Stocks, on the other
hand, rebounded in the second half of the year, supported by exceptionally
strong corporate earnings. In late November economic growth showed a few early
signs of slowing, and the troubling divergence between the stock and bond
markets was resolved. If the economy had not begun to slow, however, stocks
could have joined bonds in a continued downward slide.
Signs of Slower Growth. Fortunately economic growth did show signs of
deceleration near year end. The housing market lost momentum, and retail and
auto sales softened. Although the Federal Reserve Board continued to raise
short-term interest rates as late as February of 1995, intermediate and
long-term rates (5-30 years), which are controlled by market forces, peaked in
late November. This set in motion a rally in the bond and stock markets, which
perceived that higher rates were finally beginning to bite. Consumers were
spending less because higher interest rates had increased the cost of borrowing.
After a sizzling 5.1% growth rate in the fourth quarter of 1994, Gross Domestic
Product (GDP) slowed to a sustainable 2.8% in the first quarter of 1995.
A mature economy like our own cannot normally sustain growth of more than
2%-3% for very long without higher inflation. Inflation erodes the buying power
of both corporations and individuals, because they are forced to pay more for
products and services. The economy was clearly on the fast track in 1994. GDP
was topping 4%. To prevent inflation from getting on the fast track too, the
Federal Reserve pushed up short-term interest rates 7 times in a 12-month period
(February-February).
Inflation Remained Benign. Inflation did not accelerate, however. In fact,
a significant difference between this and previous recoveries was the absence of
price increases at the consumer level. The cost of raw materials had been
tending sharply higher, but the additional costs were not reaching the final
products (finished goods), due primarily to new efficiencies in the production
cycle. Corporations had become leaner, flexible, and more productive, often
through the increased utilization of new and powerful technology. International
competition had also kept labor costs at competitive levels.
The Argument for a "Soft Landing." These conditions have helped give rise
to the belief that our high-flying economy will experience a "soft landing," one
where growth will slow enough to eliminate the threat of inflation but not
enough to cause a recession.
If inflation remains low, it could mark an alteration in the pattern of
U.S. business cycles. A typical business cycle consists of a boom in the
economy, higher inflation as demand for products outstrips supply, a jump in
interest rates to slow growth, and then a bust, or recession. The economy flies
high, gets too hot, and crashes. But the newly developed flexibility in many
businesses now allows them to adjust quickly and absorb costs, while global
competition in labor and manufacturing have reduced their ability to raise
prices.
The Weak Dollar. The historic decline in the U.S. dollar against other
major currencies, such as the Japanese yen and the German mark, is also
producing some short-term benefits, especially to U.S. exporters and
multinationals. Their products are now cheaper and more competitive in foreign
markets as a result of the dollar's weakness. In addition, profits made overseas
can also be exchanged for more dollars when they are brought home, which
translates into greater earnings.
On the negative side, however, it now takes more dollars to purchase
imported goods in the U.S. The higher cost of foreign goods could eventually
fuel inflation. But this possibility seems remote, because the currencies of our
two largest trading partners, Mexico and Canada, have also declined, which has
kept their goods relatively inexpensive in the U.S.
- - ---------------
*Net dividends are those dividends that remain to be reinvested after foreign
tax obligations have been met. Tax obligations vary from country to country.
Janus Funds April 30, 1995 Semiannual Report
1
<PAGE>
OUR MESSAGE TO YOU
EQUITY MARKETS
Strong Market Sectors. The equity markets have responded to the changes in
the economy not only by posting higher prices, but also by honoring those
industries that should benefit from moderate growth and punishing those that may
not. Technology, which has played an important role in increasing productivity,
continued to lead the market, with an especially strong showing from
semi-conductors and chip manufacturers whose products have increased computing
power exponentially. Drug companies also did well. Many of these firms do
business overseas and should benefit from the drop in the dollar. Declining
interest rates helped financial stocks, and communications equipment continued
to surge in the face of global demand. Energy stocks gained due to the
perception that demand may have finally drawn down the longstanding oversupply
in the oil market.
Weak Sectors. Investors' belief that the economy was slowing pulled down
consumer stocks, including retailers and auto makers. Housing stocks declined in
the face of slowing growth in that market.
INTERNATIONAL MARKETS
Most Underperformed the U.S. The chart below illustrates how the S&P 500
Index performed on a percentage basis against EAFE for the six-month period.
EAFE is measured in U.S. dollars, but even with the decline in the dollar EAFE
lagged.
PERCENTAGE RETURNS (U.S. DOLLARS)
S&P 500 INDEX VS. MORGAN STANLEY EAFE INDEX
Indexed Price Performance, Base = 100
[line graph]
A graphic comparison of the percentage returns of S&P 500 Index and the Morgan
Stanley EAFE Index from November 1994 through April 1995. The S&P 500 Index is
represented by a solid green line. The Morgan Stanley EAFE Index is represented
by a solid black line. The "y" axis represents the Indexed Price Performance
range from 82 through 112. The "x" axis represents the computation period.
Source: Bridge Information Systems, Inc.
The dollar's weakness influenced returns in the major foreign markets where
Janus was invested during the last six months. As foreign currencies rose
against the dollar, foreign stocks posted substantial currency gains.
Europe. The economic cycle in Europe is several months behind the U.S.
European economies are still experiencing rapid growth and higher interest
rates. Markets have also been constrained by fear that the weak dollar will hurt
exporters.
Far East. These economies are still very vigorous, but markets have been
under pressure from the Japanese recession, which has reduced demand for their
products, and from the strong yen, which makes Japanese imports more expensive.
Hong Kong, whose currency is linked directly to the dollar, has been pushed
lower as the dollar weakened.
Latin America. Political turmoil in Mexico, combined with the devaluation
of the peso, continues to make that market uncertain, though it has rebounded
recently. Currency woes and concerns about the effect of the slumping Mexican
economy on trade have kept pressure on markets in the region.
HOW OUR FUNDS PERFORMED
Our Goal. As we have said before, our goal is to have all our funds perform
in the top quartile (25%) of their respective fund groups. This year our general
performance has been below that objective. We have been closer to the middle of
the pack than we would like.
We Were Defensive. Caution is one reason we have underperformed against a
number of our benchmark indexes. We did not become fully invested until we saw
clear signs that the economy was slowing. With GDP growing at over 5% at the end
of the year, we believed the risk of inflation, and higher interest rates, was
still substantial. Our current underperformance seems a relatively small price
to pay given the debilitating effect higher interest rates could have had on the
stock market as the year began.
European Exposure. A number of our funds have found exciting growth
opportunities in Europe. Many European stocks are selling at very low prices
compared to their rate of growth. We are holding these positions, even though
most have not performed well in the last six months.
Moderate Technology Positions. Technology stocks continue to lead the
market, but our exposure to this sector remains moderate relative to most of our
peers. In the past, technology has proved to be a highly cyclical business, with
frequent booms and busts. Products tend to have short, unpredictable life
cycles, which make for erratic earnings patterns. Maybe the industry is
stabilizing, but we are not convinced.
We appreciate your investment with Janus.
/s/ Thomas H. Bailey
Thomas H. Bailey
Chairman
Janus Funds April 30, 1995 Semiannual Report
2
<PAGE>
JANUS FUND Portfolio Manager, James P. Craig
PERFORMANCE
The Janus Fund had a total return of 6.22% for the six months ended April
30, 1995, while the broader market, as measured by the S&P 500 Index, was up
10.46%. Both returns include dividends reinvested.
The Fund underperformed because it was defensively positioned early in the
period, its foreign holdings were weak, and it had only moderate exposure to
technology.
Defensive Early. Our posture at year end was conservative. The economy was
growing rapidly and interest rates were much higher. Had the economy failed to
slow, stock prices would have come under severe pressure from rising interest
rates. We were willing to sacrifice some performance in order to protect
capital.
Foreign Holdings Lagged. The portfolio is over 17% invested abroad (versus
11.4% when the period began), mostly in the Netherlands, Sweden, Germany, and
the U.K. Earnings growth of large stable companies is available at a cheaper
price in Europe. In the past we have made good money when we have found growth
this inexpensive, but these stocks have lagged for most of the period.
(Performance has picked up recently, however.)
Technology. Technology is 10.5% of the portfolio. Tech again led the market
during the last six months, and our underweighting in this group was a drag on
performance.
THE PORTFOLIO
We became more fully invested during the period. Equity positions climbed
from 78% to 88%, a relatively high percentage historically. We have found a
number of good ideas among large growth stocks. Many of these stocks make up our
ten largest holdings, which are 30.7% of the portfolio, up from 25.3% at the end
of October, 1994.
Ten Largest Holdings April 30, 1995 October 31, 1994
- - -------------------- -------------- ----------------
General Motors E (EDS) 4.9% 1.7%
Astra 3.6% 2.0%
Roche 3.5% 0.2%
Wolters Kluwer 3.0% 2.8%
First Data 3.0% 2.5%
Citicorp 2.9% 3.8%
Pfizer 2.7% 2.5%
UNUM 2.4% 2.0%
General Re 2.4% 1.2%
Hercules 2.3% 2.0%
- - --------------------------------------------------------------------------------
PORTFOLIO THEMES
April 30, 1995 October 31, 1994
-------------- ----------------
Pharmaceuticals 11.6% 7.0%
Technology-Related 10.5% 6.0%
Insurance 8.5% 5.3%
Banking 6.5% 7.6%
Printing and Publishing 4.2% 4.3%
- - --------------------------------------------------------------------------------
Multinational Pharmaceuticals. Pfizer and Merck in the U.S., Astra in
Sweden, and Roche, which is Swiss, all offer solid growth at low price-earnings
multiples. Astra is perhaps the fastest grower, with its anti-ulcer drug, Losec,
selling well internationally and two new asthma drugs in the pipeline. Astra
should grow 20% annually for the next 3-4 years.
Outsourcing. The portfolio's largest position is EDS, a major competitor in
a rapidly growing industry: outsourcing. EDS is a data processing and
information management company that is currently part of GM, but will eventually
be spun off. The increasing complexity of computer systems often makes it more
cost-effective for businesses to outsource their information management and data
processing systems to companies like EDS. The company currently has $36 billion
in contracts, and is originating $8-$10 billion in new contracts per year.
First Data is another outsourcer that processes credit card data for banks
and other issuers. Volumes are growing at more than 20% a year as plastic
gradually replaces checks.
Insurance. UNUM is a large, well-run disability provider that has been
re-configuring its business after several difficult years and is now positioned
to grow its earnings. General Re is a reinsurer that is expanding from a solid
U.S. base into Europe via acquisitions.
Banking. Citicorp is a dominant presence in the credit card industry in the
U.S., but the company is also long-established in many emerging markets, where
it gathers assets and also provides a safe haven in times of instability.
Banking in general is currently being helped by lower interest rates and slower
economic growth.
Printing and Publishing. Two international commercial and legal publishers,
Wolters Kluwer and Elsevier, both headquartered in the Netherlands, are
profiting from a long-term industry consolidation. Last year Elsevier also
acquired Mead Data, the owner of the Lexis and Nexis data bases.
CHANGES IN THE PORTFOLIO
We sold a large part of our holdings in Gillette, Home Depot and Schwab at
a profit when the stocks reached our price targets. We added to the position in
SAP, a large German networking company that provides a fully integrated software
application package for business. SAP is another multinational competitor with a
significant presence in the U.S., and has performed well.
We took several losses late in 1994, when interest rates were rising and
market risk was high. We let Wal-Mart go because Sam's Club, its discount
business club, did not meet estimates. We also lost money on MCI Communications
when AT&T took market share from the company with a fierce advertising campaign.
And in April we were caught by the downdraft that hit HMOs (Health Maintenance
Organizations).
GOING FORWARD
Although our conservative posture cost us earlier in the period, it was a
small price to pay given the damage higher interest rates could have caused to
stock prices. As we have said before, we are not afraid to sacrifice some upside
performance in order to protect capital.
Thank you for your investment in Janus Fund.
Janus Funds April 30, 1995 Semiannual Report
3
<PAGE>
JANUS FUND Portfolio Manager, James P. Craig
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Fund and the S&P 500 Index. Janus Fund is represented by a solid green
line. The S&P 500 Index is represented by a solid black line. The "y" axis
reflects the value of the investment. The "x" axis reflects the computation
periods from inception, February 5, 1970, through April 30, 1995. The upper
right quadrant reflects the ending value of the hypothetical investment in Janus
Fund ($446,791) as compared to the S&P 500 Index ($162,554). There is a legend
in the upper left quadrant of the graph which indicates Janus Fund's one-year,
five-year, ten-year and since inception (February 5, 1970) average annual total
returns as 9.11%, 13.77%, 15.42% and 16.24%, respectively.
Source - Lipper Analytical Services, Inc. 1995. All returns reflect reinvested
dividends.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
JANUS FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Common Stock - 86.1%
Advertising - 0.1%
300,100 Catalina Marketing Corp.* $ 14,104,700
Aerospace and Defense - 0.8%
1,421,825 McDonnell Douglas Corp. 88,153,150
Auto Related - 0.3%
1,497,175 Harley-Davidson, Inc. 35,745,053
Banking - 6.2%
604,300 Bancorp Hawaii, Inc. 16,995,938
6,055,100 Bank of New York Co., Inc. 199,061,412
1,000,000 Chase Manhattan Corp. 43,750,000
6,384,500 Citicorp 296,081,187
923,475 First Bank System, Inc. 37,400,738
432,150 First Hawaiian, Inc. 11,127,863
520,400 First Interstate Bancorp 40,005,750
644,422,888
Beverages - 0.6%
1,603,600 PepsiCo, Inc. 66,749,850
Biotechnology - 0.5%
771,275 Amgen, Inc.* 56,062,052
Broadcast Media - 0.7%
675,000 British Sky Broadcasting Group PLC* 2,696,814
114,225 LIN Broadcasting Corp. 14,249,569
72,832 Viacom, Inc. - Class A* 3,414,000
1,237,813 Viacom, Inc. - Class B* 56,784,671
77,145,054
Brokerage - 0.8%
1,345,000 Merrill Lynch and Co., Inc. 61,197,500
550,387 Schwab (Charles) Corp. 18,850,755
80,048,255
Shares or
Principal Amount Market Value
- - ---------------- ------------
Business Services - 7.3%
1,500,025 Alco Standard Corp. $ 106,314,272
1,448,000 Automatic Data Processing, Inc. 93,034,000
5,455,075 First Data Corp. 306,847,969
1,580,915 First Financial Management Corp. 115,604,409
1,805,725 Manpower, Inc. 60,266,072
5,761,000 Reuters Holdings PLC 43,852,588
561,725 Reuters Holdings PLC (ADS) 25,558,487
751,477,797
Chemicals - 2.7%
4,780,125 Hercules, Inc. 238,408,734
500,000 IMC Global, Inc. 24,562,500
300,000 Rohm and Haas Co. 17,437,500
280,408,734
Computer Related - 7.4%
200,000 Ceridian Corp.* 6,900,000
1,019,500 Computer Sciences Corp.* 50,337,812
11,742,375 General Motors Corp. - Class E 507,857,719
1,635,400 Hewlett-Packard Co. 108,140,825
8,593,532 Olivetti Systems & Networks S.p.A.*,** 8,737,271
2,616,250 Oracle Systems Corp.* 79,795,625
13,591 SAP A.G.** 14,017,404
775,786,656
Conglomerates - 0.5%
13,154 BBC Brown Boveri A.G. 13,015,900
2,694,975 Westinghouse Electric Corp. 40,424,625
53,440,525
Consumer Goods - 2.1%
1,388,175 Dial Corp. 33,489,722
1,455,425 Duracell International, Inc. 64,038,700
589,335 Gillette Co. 48,325,470
856,000 McKesson Corp. 33,919,000
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
4
<PAGE>
JANUS FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Consumer Goods (continued)
453,275 Reebok International, Ltd.$ 14,164,844
427,400 Whirlpool Corp. 23,400,150
217,337,886
Drugs - 11.6%
12,619,623 Astra A.B., A - Free** 368,430,775
3,397,150 Merck & Co., Inc. 145,652,806
3,191,600 Pfizer, Inc. 276,472,350
59,437 Roche Holding A.G. 358,026,024
20,000 Schering A.G.** 14,835,918
700,000 SmithKline Beecham PLC (ADR) - Class A 27,212,500
300,000 Watson Pharmaceuticals, Inc.* 9,337,500
1,199,967,873
Electrical Equipment - 0.2%
700,000 General Instrument Corp.* 23,887,500
Electronics - 1.7%
500,000 General Motors Corp. - Class H 19,562,500
1,023,557 Philips Electronics N.V.** 39,022,781
1,074,900 Texas Instruments, Inc. 113,939,400
172,524,681
Energy - 0.2%
700,000 Repsol S.A. 22,254,663
Entertainment - 2.7%
1,820,725 Carnival Corp. - Class A 45,290,534
1,070,200 Circus Circus Enterprises, Inc.* 35,450,375
3,633,900 Walt Disney Co. (The) 201,227,213
281,968,122
Environmental Services - 0.4%
1,310,450 Browning-Ferris Industries, Inc. 43,244,850
Financial Services - 1.4%
517,400 Federal Home Loan Mortgage Corp. 33,760,350
1,035,300 Household International, Inc. 48,529,687
897,450 MGIC Investment Corp. 38,029,444
647,500 PMI Group, Inc. (The)* 24,119,375
144,438,856
Food Products - 2.5%
623,745 ConAgra, Inc. 20,739,521
1,130,425 Hershey Foods Corp. 59,347,312
2,162,650 Nabisco Holdings Corp. - Class A* 60,283,869
100,000 Nestle S.A. 97,900,262
400,000 Sara Lee Corp. 11,150,000
268,700 Wrigley (Wm) Jr., Co. 11,923,563
261,344,527
Healthcare - 1.5%
1,029,000 Abbott Laboratories 40,516,875
887,500 Johnson & Johnson 57,687,500
1,546,675 United Healthcare Corp. 56,066,969
154,271,344
Home Building - 0.1%
300,000 Clayton Homes, Inc. 5,062,500
Hotels and Lodging - 1.2%
89,875 Accor S.A. 10,305,886
254,800 Hospitality Franchise Systems, Inc. 7,739,550
1,631,750 Marriott International, Inc. 58,743,000
1,139,425 Promus Companies, Inc.* 43,867,862
120,656,298
Household Products - 1.5%
1,431,425 Colgate-Palmolive Co. 100,557,606
2,434,000 Newell Co. 57,503,250
158,060,856
Shares or
Principal Amount Market Value
- - ---------------- ------------
Insurance - 8.5%
926,825 ACE, Ltd. $ 24,560,863
2,393,550 Alexander & Alexander Services, Inc.# 57,146,006
1,493,325 American International Group, Inc. 159,412,444
1,946,800 General Re Corp. 247,973,650
597,500 Orion Capital Corp. 20,987,187
1,998,770 Progressive Corp. 75,453,568
1,000,000 Skandia Group Forsakrings A.B. 17,076,361
441,500 Transatlantic Holdings, Inc. 28,035,250
5,890,800 UNUM Corp.# 252,568,050
883,213,379
Machinery - 0.9%
500,000 AGCO Corp. 17,812,500
930,900 Deere & Co. 76,333,800
94,146,300
Manufacturing - 1.9%
1,423,875 American Standard Companies, Inc.* 37,554,703
667,575 Crown Cork & Seal Co., Inc.* 28,538,831
569,200 Fleetwood Enterprises, Inc. 13,091,600
860,400 PPG Industries, Inc. 33,878,250
19,241 Sidel, S.A. 5,621,493
150,000 Siemens A.G.** 72,809,232
191,494,109
Medical Equipment - 0.3%
386,725 Biomet, Inc.* 6,767,688
552,900 St. Jude Medical, Inc. 23,774,700
30,542,388
Mining - 0.4%
800,000 Potash Corporation of Saskatchewan, Inc. 42,500,000
Office Equipment and Supplies - 0.9%
600,000 Oce-Van Der Grinten N.V.** 29,752,705
500,300 Xerox Corp. 61,599,437
91,352,142
Packaging and Containers - 0.7%
3,378,800 Stone Container Corp.* 67,153,650
Paper Products - 2.6%
1,457,950 Georgia Pacific Corp. 115,724,781
2,903,375 James River Corp. 78,754,047
1,075,750 Minerals Technologies, Inc. 35,768,688
620,800 Union Camp Corp. 31,117,600
261,365,116
Printing and Publishing - 4.2%
8,866,770 Elsevier N.V.** 97,073,087
2,550,000 News Corp., Ltd. 12,392,235
1,067,500 News Corp., Ltd. (ADR) 20,816,250
3,807,633 Wolters Kluwer N.V.**,# 309,701,216
439,982,788
Railroads - 2.0%
694,125 Conrail, Inc. 37,916,578
6,514,325 Santa Fe Pacific Corp.* 152,272,347
295,050 Wisconsin Central Transportation Corp.* 16,836,291
207,025,216
Retail - 2.7%
2,282,375 Federated Department Stores, Inc.* 48,215,172
1,600,000 Home Depot, Inc. 66,800,000
2,612,650 Lowe's Companies, Inc. 75,440,269
400,000 Nine West Group, Inc.* 13,000,000
415,800 Rite Aid Corp. 9,667,350
1,903,500 Safeway, Inc.* 71,381,250
284,504,041
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
5
<PAGE>
JANUS FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Semiconductors - 0.3%
452,825 LSI Logic Corp.* $ 30,169,466
Technology - 1.2%
1,731,500 Cisco Systems, Inc.* 69,043,562
888,500 Millipore Corp. 54,531,688
123,575,250
Telecommunications - 1.0%
750,550 AirTouch Communications, Inc.* 20,171,031
1,186,000 Paging Network, Inc.* 32,615,000
1,267,025 Tele Danmark A/S (ADR) - Class B*,# 33,259,406
4,055,405 Vodafone Group PLC (ADR) 12,707,186
98,752,623
Textiles - 0.2%
706,525 Unifi, Inc. 17,751,441
Tire and Rubber Goods - 0.3%
648,959 Michelin B* 29,093,313
Toys - 1.8%
7,704,726 Mattel, Inc. 182,987,243
Transportation - 1.2%
1,667,000 AMR Corp.* 112,314,125
400,000 TNT Freightways Corp. 9,400,000
121,714,125
Total Common Stock (cost $7,700,454,328) 8,925,887,260
Preferred Stock - 2.0%
Banking - 0.3%
1,200,000 ConAgra Capital L.C., 7.2675%
Adjustable Rate - Series B 27,000,000
Computer Related - 1.6%
170,028 SAP A.G.** 168,004,587
Telecommunications - 0.1%
388,000 Nokia A.B. 15,830,793
Total Preferred Stock (cost $154,686,983) 210,835,380
Corporate Bonds - 0.1%
Packaging and Containers - 0.1%
$ 4,610,000 Stone Container Corp., 11.00%
senior subordinated notes, due 8/15/99 4,754,063
2,000,000 Stone Container Corp., 11.50%
debentures, due 9/1/99 2,065,000
Total Corporate Bonds (cost $6,672,206) 6,819,063
Shares or
Principal Amount Market Value
- - ---------------- ------------
U.S. Government Obligations - 8.0%
Federal Home Loan Mortgage Corp.
$ 70,000,000 5.87% - 5.875%, 5/11/95 $ 69,885,805
Federal National Mortgage Association:
125,000,000 5.83%, 5/2/95 124,979,757
80,000,000 5.82% - 5.86%, 5/3/95 79,974,045
50,000,000 5.85%, 5/9/95 49,935,000
150,000,000 5.89%, 5/10/95 149,779,125
100,000,000 5.85%, 5/11/95 99,837,500
50,000,000 5.86%, 5/15/95 49,886,055
50,000,000 5.86%, 5/26/95 49,796,528
U.S. Treasury Bills
50,000,000 5.54%, 5/4/95 49,976,500
U.S. Treasury Notes
100,000,000 4.125%, 5/31/95 99,862,000
Total U.S. Government Obligations (cost $824,046,224) 823,912,315
Short-Term Corporate Notes - 2.6%
Ford Motor Credit Co.
$ 109,200,000 5.85%, 5/1/95 109,200,000
General Electric Capital Corp.:
20,000,000 5.90%, 5/1/95 20,000,000
50,000,000 5.90%, 5/2/95 49,991,805
Household Finance Corp.
80,000,000 5.905%, 5/5/95 79,947,556
Norwest Corp.
10,000,000 5.95%, 5/19/95 9,970,250
Total Short-Term Corporate Notes
(amortized cost $269,109,611) 269,109,611
Repurchase Agreement - 0%
State Street Bank & Trust Co., 5.50%,
4,482,000 dated 4/28/95, maturing 5/1/95, to be
repurchased at $4,484,054, collateralized
by $4,730,000 in U.S. Treasury Notes,
5.125%, due 2/28/98, value $4,576,275 4,482,000
(cost $4,482,000)
Total Investments - 98.8% (total cost $8,959,451,352) 10,241,045,629
Cash, Receivables and Other Assets, net of Liabilities - 1.2% 126,925,983
Net Assets - 100% $10,367,971,612
FORWARD FOREIGN CURRENCY CONTRACTS
Open at April 30, 1995
<TABLE>
<CAPTION>
Currency Currency Unrealized
Fund Currency Sold and Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- - ---- --------------------------------- ---------- --------------- -----------
<S> <C> <C> <C> <C>
Janus Fund German Deutschemark 7/24/95 900,000,000 $ 651,465,798 $ (132,954)
Italian Lira 7/5/95 11,898,000,000 7,029,581 (190,274)
Swedish Krona 7/20/95 939,447,500 128,415,258 (954,762)
Swedish Krona 7/25/95 1,000,000,000 136,641,889 1,108,881
Swedish Krona 7/31/95 600,000,000 81,949,300 (268,862)
Swiss Franc 11/3/95 300,000,000 266,098,989 (39,175)
$1,271,600,815 $ (477,146)
</TABLE>
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
6
<PAGE>
JANUS BALANCED FUND Portfolio Manager, James P. Craig
PORTFOLIO PERFORMANCE
The Janus Balanced Fund had a total return of 6.18% for the six months
ended April 30, 1995, compared to a total return of 10.46%, for the S&P 500
Index, and a total return of 10.77% for the Lehman Brothers Long
Government/Corporate Bond Index. All returns include dividends reinvested. The
Fund underperformed for two reasons.
Defensive Early. Our posture at year end was conservative. The economy was
growing rapidly and interest rates were much higher. Had the economy failed to
slow, stock prices would have come under severe pressure from rising interest
rates. We were willing to sacrifice some performance in order to protect
capital.
Short Maturities. The fixed-income portion of the portfolio is invested at
the shorter end of the spectrum (2-5 years). This is a more conservative
strategy, and it has restrained performance in 1995. Long bonds are more
volatile than shorter maturities, both up and down, and so they appreciated more
than short maturities during the period. When we purchased our positions in
early 1995, their yields were very competitive with long-term bonds.
THE PORTFOLIO
Fixed-Income. As of April 30, the fixed-income portion of the Fund was
42.2% of assets.
Fixed-Income Holdings April 30, 1995 October 31, 1994
- - --------------------- -------------- ----------------
Cash & Cash Equivalents 8.1% 6.9%
Adjustable Rate Preferred Stock 5.2% 20.5%
Convertible Securities 1.5% 0.6%
U.S. Corporate Bonds 22.6% 0.3%
Foreign Corporate Bonds 0.9% 1.0%
Government Bonds 3.9% 19.5%
Bonds. We added corporate bonds to take advantage of their higher yields as
interest rates began to fall, while reducing the weighting in government bonds
and adjustable rate preferreds. Of our corporate position, 3.7% are
high-yield/high-risk (junk) bonds and the remaining 20.4% are investment grade
and convertible bonds.
Equities. The equity portion of the portfolio was 51.2% of assets at the
end of October, 1994, and rose to 57.7% during the period. The largest ten
positions currently make up 21.8% of portfolio assets.
Largest Ten Holdings April 30, 1995 October 31, 1994
- - -------------------- -------------- ----------------
General Motors E (EDS) 3.8% 1.9%
First Data 3.0% 2.5%
Astra 2.5% 1.7%
Santa Fe Pacific 2.2% 1.7%
Safeway 1.9% --
UNUM 1.9% 2.1%
Marriott International 1.7% --
PMI Group 1.7% --
Alexander & Alexander 1.6% 1.5%
Walt Disney 1.5% --
PORTFOLIO THEMES
We have a number of individual companies with very strong earnings
potential among our equity holdings. These companies fall under several themes.
April 30, 1995 October 31, 1994
-------------- ----------------
Business Services 7.6% 3.2%
Pharmaceuticals 6.3% 8.4%
Insurance 5.9% 5.8%
Banking 4.2% 3.2%
Outsourcing. Outsourcing of computer data and information processing is a
major portfolio theme. Our two largest holdings are EDS and First Data
Corporation, an outsourcer for banks and other credit card issuers. First Data
is benefiting from increasing transaction volume (about 20% annually) as plastic
replaces check-books. EDS currently has $36 billion in outsourcing contracts and
is originating $8-$10 billion in new contracts each year.
Multinational Pharmaceuticals. Astra, the Swedish drug manufacturer, is the
cheapest growth story in the industry. Its anti-ulcer drug, Losec, is selling
well internationally and the company has two new asthma drugs in the pipeline.
Another holding is Roche, the Swiss company we have owned for several years now.
Roche should grow at 20% for the next 3-4 years. We trimmed Pfizer when it
approached our price target.
Insurance. Although insurance stocks are not in favor right now, we think
we have found several companies with excellent prospects. UNUM, the group
disability provider, has restructured its business, and earnings should rebound
strongly over the next several years. Alexander & Alexander, a diversified
insurance broker, is also a restructuring story. New management has cut costs,
streamlined operations, and earnings momentum is now starting to build.
Banking. Citicorp is our largest position in the banking area. Citicorp has
a strong credit card business as well as an established presence in many
emerging economies, where, along with gathering assets, it acts as a safe haven
in times of instability.
OTHER PORTFOLIO CHANGES
We did well during the period with Compaq Computer and Household
International, a consumer finance company, which rallied with the surge in
demand for credit last year. McDonnell Douglas, the defense contractor, also
performed well. All these positions have been sold or trimmed.
We also sold the last of our Wal-Mart position at a loss, and continued to
liquidate our preferred stocks, including Chase Manhattan and Bear Stearns, the
institutional brokerage house.
THE BALANCED STRATEGY
We are optimstic about the large growth stocks we have been accumulating
during the past year. Many of these companies have been out of favor for several
years now, but should do well in a moderately growing economy. Our objective is
to produce solid and consistent returns, with less volatility than a pure growth
fund.
Thank you for investing in Janus Balanced Fund.
Janus Funds April 30, 1995 Semiannual Report
7
<PAGE>
JANUS BALANCED FUND Portfolio Manager, James P. Craig
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Balanced Fund, the S&P 500 Index and the Lehman Brothers Long
Government/Corporate Bond Index. Janus Balanced Fund is represented by a solid
green line, the S&P 500 Index is represented by a solid black line, and the
Lehman Brothers Long Government/Corporate Bond Index is represented by a solid
gray line. The "y" axis reflects the value of the investment. The "x" axis
reflects the computation periods from inception, September 1, 1992, through
April 30, 1995. The upper right quadrant reflects the ending value of the
hypothetical investment in Janus Balanced Fund ($13,365) as compared to the S&P
500 Index ($13,383) and the Lehman Brothers Long Government/Corporate Bond Index
($12,000). There is a legend in the upper left quadrant of the graph which
indicates Janus Balanced Fund's one-year and since inception (September 1, 1992)
average annual total returns as 7.33% and 11.49%, respectively.
Source - Lipper Analytical Services, Inc. 1995. All returns reflect reinvested
dividends.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
JANUS BALANCED FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Common Stock - 57.7%
Auto Related - 0.8%
35,000 Harley-Davidson, Inc. $ 835,625
Banking - 4.2%
30,000 Bank of New York Co., Inc. 986,250
10,000 Chase Manhattan Corp. 437,500
34,775 Citicorp 1,612,691
22,775 First Bank System, Inc. 922,388
10,525 First Hawaiian, Inc. 271,018
20,000 Peoples Heritage Financial Group, Inc. 275,000
4,504,847
Broadcast Media - 0.4%
24,500 Tele-Communications, Inc. - Class A* 468,563
Brokerage - 0.5%
8,275 J.P. Morgan & Co., Inc. 539,791
Business Services - 3.7%
56,620 First Data Corp. 3,184,875
10,000 Manpower, Inc. 333,750
11,275 Reuters Holdings PLC (ADS) 513,013
4,031,638
Computer Related - 4.2%
8,425 Computer Sciences Corp.* 415,984
95,950 General Motors Corp. - Class E 4,149,838
4,565,822
Conglomerates - 0.7%
47,450 Westinghouse Electric Corp. 711,750
Consumer Goods - 1.0%
24,125 Duracell International, Inc. 1,061,500
Shares or
Principal Amount Market Value
- - ---------------- ------------
Drugs - 6.3%
94,124 Astra A.B., A - Free** $ 2,747,957
31,675 Merck & Co., Inc. 1,358,065
12,125 Pfizer, Inc. 1,050,328
275 Roche Holding A.G.** 1,656,496
6,812,846
Electronics - 1.6%
6,000 Diebold, Inc. 249,000
12,725 Dionex Corp.* 528,088
15,000 General Motors Corp. - Class H 586,875
3,425 Texas Instruments, Inc. 363,050
1,727,013
Entertainment - 1.5%
30,050 Walt Disney Co. (The) 1,664,019
Environmental Services - 1.1%
35,300 Browning-Ferris Industries, Inc. 1,164,900
Financial Services - 3.3%
30,000 Finova Group, Inc. 1,012,500
9,200 Household International, Inc. 431,250
6,050 MGIC Investment Corp. 256,368
50,000 PMI Group, Inc. (The)* 1,862,500
3,562,618
Food Products - 1.5%
38,525 Nabisco Holdings Corp. - Class A* 1,073,884
18,725 Sara Lee Corp. 521,960
1,595,844
Healthcare - 0.4%
10,600 United Healthcare Corp. 384,250
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
8
<PAGE>
JANUS BALANCED FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Hotels and Lodging - 2.6%
52,000 Marriott International, Inc. $ 1,872,000
40,000 Prime Hospitality Corp.* 400,000
14,075 Promus Companies, Inc.* 541,888
2,813,888
Household Products - 1.1%
3,825 Colgate-Palmolive Co. 268,706
39,475 Newell Co. 932,597
1,201,303
Insurance - 5.9%
8,000 ACE, Ltd. 212,000
70,000 Alexander & Alexander Services, Inc. 1,671,250
6,525 American International Group, Inc. 696,543
7,875 General Re Corp. 1,003,078
20,250 Progressive Corp. 764,438
47,600 UNUM Corp. 2,040,850
6,388,159
Machinery - 1.0%
8,025 AGCO Corp. 285,891
9,725 Deere & Co. 797,450
1,083,341
Manufacturing - 1.4%
19,950 Crown Cork & Seal Co., Inc.* 852,863
2,475 PPG Industries, Inc. 97,453
1,855 Sidel, S.A. 541,961
1,492,277
Mining - 0.3%
7,000 Potash Corporation of Saskatchewan, Inc. 371,875
Packaging and Containers - 0.1%
325 Sealed Air Corp.* 13,884
Paper Products - 2.9%
13,925 Bowater, Inc. 532,630
8,900 Georgia Pacific Corp. 706,438
20,200 James River Corp. 547,925
41,800 Minerals Technologies, Inc. 1,389,850
3,176,843
Printing and Publishing - 1.5%
20,000 Wolters Kluwer N.V.** 1,626,739
Railroads - 2.2%
100,000 Santa Fe Pacific Corp.* 2,337,500
Retail - 3.7%
40,000 Federated Department Stores, Inc.* 845,000
10,825 Home Depot, Inc. 451,943
17,075 Nine West Group, Inc.* 554,938
56,000 Safeway, Inc.* 2,100,000
3,951,881
Technology - 1.1%
20,000 Millipore Corp. 1,227,500
Textiles - 1.0%
14,725 Unifi, Inc. 369,965
40,000 Warnaco Group, Inc. - Class A* 685,000
1,054,965
Toys - 1.2%
54,500 Mattel, Inc. 1,294,375
Transportation - 0.5%
8,050 AMR Corp.* 542,369
Total Common Stock (cost $55,925,339) 62,207,925
Shares or
Principal Amount Market Value
- - ---------------- ------------
Preferred Stock - 5.2%
Banking - 4.3%
150,000 ConAgra Capital L.C., 7.2675%
Adjustable Rate - Series B $ 3,375,000
51,603 Indosuez Holdings SCA (ADR)
10.375% - Series A+ 1,290,075
4,665,075
Computer Related - 0.9%
980 SAP A.G.** 968,338
Total Preferred Stock (cost $6,023,282) 5,633,413
Corporate and Convertible Bonds - 24.2%
Aerospace and Defense - 3.7%
$ 3,000,000 McDonnell Douglas Corp., 8.625%
senior notes, due 4/1/97 3,075,000
900,000 Rockwell International Corp., 7.625%
notes, due 2/17/98 912,375
3,987,375
Aircraft Leasing - 2.3%
2,430,000 International Lease Finance Corp., 7.50%
notes, due 3/1/99 2,442,150
Auto Related - 2.5%
2,630,000 Ford Motor Credit Corp., 7.875%
debentures, due 1/15/97 2,672,738
Banking - 2.8%
2,960,000 Norwest Corp., 7.70%
medium-term notes, due 11/15/97 3,004,400
Energy - 0.3%
310,000 Texas Eastern Transmission Corp., 10.00%
sinking fund debentures, due 10/1/11 328,600
Financial Services - 1.9%
2,000,000 General Electric Capital Corp., 8.00%
notes, due 1/15/98 2,047,500
Household Products - 2.5%
2,660,000 American Home Products Corp., 7.70%
notes, due 2/15/00 2,693,250
Insurance - 0.5%
600,000 Leucadia National Corp., 5.25%
convertible subordinated debentures,
due 2/1/03 570,000
Manufacturing - 0.3%
348,000 Great Dane Holdings, Inc., 12.75%
senior subordinated debentures, due 8/1/01 346,695
Packaging and Containers - 0.9%
900,000 Stone Container Corp., 11.50%
subordinated notes, due 9/1/99 929,250
Railroads - 2.6%
2,750,000 Southern Pacific Rail Corp., 9.375%
senior secured notes, due 8/15/05 2,770,625
Recreation - 1.0%
3,610,000 Coleman Worldwide Corp., zero coupon,
convertible liquid yield option notes,
due 5/27/13 1,042,388
Retail - 2.9%
3,110,000 Dayton Hudson Corp., 7.50%
notes, due 3/1/99 3,117,775
Total Corporate and Convertible Bonds (cost $25,580,203) 25,952,746
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
9
<PAGE>
JANUS BALANCED FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Foreign Dollar Bonds - 0.9%
$ 1,000,000 Kingdom of Sweden, 5.50%
debentures, due 12/1/95 (cost $1,005,602) $ 993,750
U.S. Government Obligations - 3.9%
U.S. Treasury Note
4,140,000 7.375%, 11/15/97 (cost $4,147,157) 4,204,004
Shares or
Principal Amount Market Value
- - ---------------- ------------
Short-Term Corporate Notes - 7.1%
American Express Credit Corp.
$ 3,000,000 5.85%, 5/1/95 $ 3,000,000
Chevron Oil Finance Co.
4,700,000 5.75%, 5/1/95 4,700,000
Total Short-Term Corporate Notes (amortized cost $7,700,000) 7,700,000
Total Investments - 99.0% (total cost $100,381,583) 106,691,838
Cash, Receivables and Other Assets, net of Liabilities - 1.0% 1,037,673
Net Assets - 100% $107,729,511
FORWARD FOREIGN CURRENCY CONTRACTS
Open at April 30, 1995
<TABLE>
<CAPTION>
Currency Currency Unrealized
Fund Currency Sold and Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- - ---- --------------------------------- ---------- --------------- -----------
<S> <C> <C> <C> <C>
Janus Balanced Fund German Deutschemark 7/24/95 4,155,000 $3,007,600 $ (614)
Swedish Krona 7/31/95 10,000,000 1,365,822 (4,481)
Swedish Krona 11/2/95 8,000,000 1,084,893 3,320
Swiss Franc 11/3/95 1,000,000 886,997 (130)
$6,345,312 $ (1,905)
</TABLE>
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
10
<PAGE>
JANUS ENTERPRISE FUND Portfolio Manager, James P. Goff
PERFORMANCE
During the six months ended April 30, 1995, the price divergence that had
developed between the stock and bond markets in late 1994 was resolved. In late
1994 stocks were near their old highs while bonds continued to decline. When
economic growth began to slow, interest rates declined and both markets rallied.
However, the Janus Enterprise Fund did not participate. The Fund was down
3.46% for the period, versus a total return of 10.46% for the S&P 500 Index,
both with dividends reinvested.
The Fund's underperformance this last six months was caused by earnings
disappointments in several key holdings, including Exide, a maker of automotive
and industrial batteries, APS Holdings, the owner of Big A Auto Parts, Paging
Network, the largest provider of paging services in the U.S., and Heilig Meyers,
a furniture retailer. We also did not own much technology, or any of the
airlines or oils, the "hot" groups during the period.
PORTFOLIO STRATEGY
Our approach to stock selection is eclectic. In terms of industry
weightings, we make no attempt to have the Fund "look like" the S&P 500 Index,
the economy as a whole, or to position the portfolio in groups that have
recently been strong performers. We look for outstanding individual businesses
that are for sale at low valuations relative to their growth prospects.
These companies tend to control their own destiny, and depend more on their
internal dynamics and less on the general state of the economy to increase
earnings and dominate their markets.
In addition, the portfolio is managed in a concentrated fashion, i.e., we
weight our best ideas more heavily. Currently the top ten holdings make up 43.2%
of assets. As a result, the Fund is more volatile than the general market.
While a concentrated investment strategy may have greater short-term risk
than a more diversified approach, it attempts to justify any additional risk and
volatility with greater rewards over time. Careful stock selection and intensive
research focused on fewer, and hopefully, better ideas are at the strategy's
core.
PORTFOLIO COMPOSITION
The portfolio was 84.5% invested in equities as of April 30. Foreign
securities made up 11.7% of holdings and were predominantly in Europe. The ten
largest positions are an eclectic group, in keeping with our stock-by-stock
investment approach.
Ten Largest Holdings April 30, 1995 October 31, 1994
- - -------------------- -------------- ----------------
R.P. Scherer 7.1% 3.5%
Minerals Technologies 6.0% 3.0%
APS Holdings 5.6% 7.0%
Insignia Financial Group 4.8% 4.6%
Trigen Energy 4.3% 1.5%
Paging Network 3.8% 4.7%
Kinnevik 3.3% 2.0%
Exide 3.0% 14.5%
Progressive 2.8% 4.2%
Home Depot 2.5% --
PORTFOLIO THEMES
April 30, 1995 October 31, 1994
-------------- ----------------
Telecommunications 15.8% 15.5%
Pharmaceuticals 10.1% 5.8%
Financial Services 9.2% 15.1%
Automotive-Related 10.7% 22.7%
Wireless Communications. Paging Network is developing an exciting new
product, a pager that is the equivalent of an answering machine, in
collaboration with Motorola. However, investors are not currently giving
Motorola's research and development much credence due to the company's failure
to develop a new cellular product.
Pharmaceuticals. We added to our position in R.P. Scherer, a company that
has 85% of the worldwide soft gelatin capsule market and is growing at 20%-25%
annually.
Financial Services. The group as a whole has performed well. Insignia
Financial is the largest property management and partnership adminstrator in the
U.S. It is growing via acquisitions and enjoying increasing market recognition.
Automotive After-Market. This theme was reduced during the period, largely
as a result of the decline in Exide. Exide was the Fund's largest position at
the beginning of the period. The company's earnings dropped when one of the
warmest winters on record in both the U.S. and Europe necessitated fewer battery
replacements. Exide is still among our top ten holdings, but we have trimmed the
position. The exceptionally warm winter in the U.S. also meant fewer car
repairs, and fewer parts sales for APS Holdings. Like Exide, the company
reported lower earnings, but the APS position was increased. (It is now a lower
percentage of assets due to its price decline.) We trimmed Littelfuse, a maker
of electrical fuses.
OTHER PORTFOLIO CHANGES
Heilig Meyers failed to meet earnings estimates and was liquidated. We also
trimmed Lone Star Steakhouse & Saloon when the stock approached our price
targets.
Two positions that performed well were Wisconsin Central, a short haul
railroad that dominates several key routes in the Midwest, and J.D. Wetherspoon,
a small, fast-growing chain of British pubs.
Finally, the position in Minerals Technology was increased. Minerals Tech
supplies precipitated calcium carbonate (PCC) to the paper industry. PCC
improves the quality and reduces the cost of paper.
GOING FORWARD
Despite the Fund's disappointing performance during the last six months, we
remain committed to our investment approach and are confident that this strategy
will produce good long-term results for shareholders who want an aggressive
growth fund.
We appreciate your continued investment in Janus Enterprise Fund.
Janus Funds April 30, 1995 Semiannual Report
11
<PAGE>
JANUS ENTERPRISE FUND Portfolio Manager, James P. Goff
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Enterprise Fund and the S&P 500 Index. Janus Enterprise Fund is
represented by a solid green line and the S&P 500 Index is represented by a
solid black line. The "y" axis reflects the value of the investment. The "x"
axis reflects the computation periods from inception, September 1, 1992, through
April 30, 1995. The upper right quadrant reflects the ending value of the
hypothetical investment in Janus Enterprise Fund ($16,140) as compared to the
S&P 500 Index ($13,383). There is a legend in the upper left quadrant of the
graph which indicates Janus Enterprise Fund's one-year and since inception
(September 1, 1992) average annual total returns as 14.21% and 19.66%,
respectively.
Source - Lipper Analytical Services, Inc. 1995. All returns reflect reinvested
dividends.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
JANUS ENTERPRISE FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Common Stock - 81.2%
Advertising - 0.5%
123,100 Katz Media Group, Inc.* $ 1,984,988
Auto Related - 10.7%
1,000,000 APS Holding Corp. - Class A*,# 22,375,000
275,075 AutoZone, Inc.* 6,361,109
318,655 Exide Corp.# 11,949,563
88,400 Harley Davidson, Inc. 2,110,550
42,796,222
Computer Related - 3.8%
15,225 Ceridian Corp.* 523,359
177,300 First Data Corp. 9,973,125
50,425 General Motors Corp. - Class E 2,180,881
34,250 Hewlett-Packard Co. 2,264,781
14,942,146
Conglomerates - 3.3%
381,659 Kinnevik A.B., B - Free** 13,244,931
Drugs - 10.1%
82,392 Astra A.B., A-Free** 2,405,440
589,800 R.P. Scherer Corp.* 28,162,950
773,805 TheraTech, Inc.*,# 9,769,288
40,337,678
Energy - 4.3%
888,000 Trigen Energy Corp.# 16,983,000
Financial Services - 9.3%
118,750 Franklin Resources, Inc. 4,779,688
546,450 Grupo Financiero Inbursa S.A. - Class C* 1,085,477
826,300 Insignia Financial Group, Inc. - Class A*,# 19,211,475
127,725 United Asset Management Corp. 4,789,688
250,000 World Acceptance Corp.* 7,062,500
36,928,828
Shares or
Principal Amount Market Value
- - ---------------- ------------
Food Products - 1.0%
166,100 J.P. Foodservice, Inc.* $ 2,055,488
69,400 Nabisco Holding Corp. - Class A* 1,934,525
3,990,013
Healthcare - 3.0%
414,775 Horizon Healthcare Corp.* 8,658,428
50 Horizon Mental Health Management, Inc.* 556
133,375 Sun Healthcare Group, Inc.* 3,217,672
11,876,656
Insurance - 4.6%
37,950 American International Group, Inc. 4,051,162
292,325 Progressive Corp. 11,035,269
69,475 Protective Life Corp. 3,152,428
18,238,859
Manufacturing - 0.8%
113,200 American Standard Companies, Inc.* 2,985,650
Medical Equipment - 1.3%
92,975 I-Stat Corp.* 2,173,291
33,975 STERIS Corp.* 1,342,012
46,525 Target Therapeutics, Inc.* 1,698,163
5,213,466
Paper Products - 7.4%
149,625 Bowater, Inc. 5,723,156
718,825 Minerals Technologies, Inc. 23,900,932
29,624,088
Pollution Control Equipment - 0.9%
829,000 Catalytica, Inc.*,# 3,626,875
Railroads - 1.4%
100,000 Wisconsin Central Transportation Corp.* 5,706,250
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
12
<PAGE>
JANUS ENTERPRISE FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Restaurants - 4.1%
41,025 Lone Star Steakhouse & Saloon, Inc.* $ 1,256,390
120,050 Outback Steakhouse, Inc.* 3,031,263
122,875 Papa John's International, Inc.* 4,254,547
1,000,000 Wetherspoon (J.D.) PLC** 7,918,066
16,460,266
Retail - 4.1%
100,000 Big B, Inc. 1,450,000
242,875 Home Depot, Inc. 10,140,031
229,150 Petco Animal Supplies, Inc.* 4,726,219
16,316,250
Telecommunications - 9.5%
374,100 AirTouch Communications, Inc.* 10,053,938
120,150 CommNet Cellular, Inc.* 3,123,900
430 DDI Corp.** 3,783,590
48,967 Korea Mobile Telecommunications, Inc.*,+ 1,432,285
90,350 Millicom International Cellular S.A.* 2,247,456
546,125 Paging Network, Inc.* 15,018,438
67,325 Vodafone Group PLC (ADR)** 2,145,985
37,805,592
Toys - 1.1%
184,718 Mattel, Inc. 4,387,053
Wholesale Distributors - 0%
200 Cardinal Health, Inc. 9,225
Total Common Stock (cost $300,679,582) 323,458,036
Shares or
Principal Amount Market Value
- - ---------------- ------------
Preferred Stock - 3.7%
Computer Related - 0.6%
2,457 SAP A.G.** $ 2,427,760
Telecommunications - 3.1%
298,661 Nokia A.B.** 12,185,671
Total Preferred Stock (cost $8,320,665) 14,613,431
Warrants - 1.9%
301,275 Littelfuse, Inc. - exp. 12/31/01*
(cost $4,460,449) 7,757,831
Short-Term Corporate Notes - 5.2%
General Electric Capital Corp.
$ 5,000,000 5.87%, 5/4/95 4,997,554
Household Finance Corp.
15,900,000 5.85%, 5/1/95 15,900,000
Total Short-Term Corporate Notes (amortized cost $20,897,554) 20,897,554
Total Investments - 92.0% (total cost $334,358,250) 366,726,852
Cash, Receivables and Other Assets, net of Liabilities - 8.0% 31,615,079
Net Assets - 100% $398,341,931
FORWARD FOREIGN CURRENCY CONTRACTS
Open at April 30, 1995
<TABLE>
<CAPTION>
Currency Currency Unrealized
Fund Currency Sold and Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- - ---- --------------------------------- ---------- --------------- -----------
<S> <C> <C> <C> <C>
Janus Enterprise Fund British Pound 7/3/95 2,992,186 $ 4,814,128 $ (33,512)
British Pound 1/24/96 2,673,600 4,275,889 (2,941)
Finnish Markka 7/12/95 3,596,530 844,157 (6,722)
Finnish Markka 7/31/95 13,557,784 3,182,877 26,446
Finnish Markka 1/24/96 14,754,450 3,465,113 (56,438)
German Deutschemark 5/17/95 2,600,000 1,876,173 (185,336)
Japanese Yen 7/21/95 297,231,550 3,532,562 115,777
Swedish Krona 7/12/95 5,200,000 711,208 (5,406)
Swedish Krona 7/31/95 48,512,314 6,625,917 (21,738)
Swedish Krona 1/24/96 38,522,750 5,187,131 (131,321)
$34,515,155 $ (301,191)
</TABLE>
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
13
<PAGE>
JANUS GROWTH AND INCOME FUND Portfolio Manager, Thomas F. Marsico
PERFORMANCE
The six month period saw a sharp rally that set new records in the domestic
financial markets. Slower economic growth sparked a decline in interest rates
and relieved inflationary pressure. The current conditions are extremely
favorable for stocks and bonds.
The Janus Growth and Income Fund returned 3.54% for the six-month period,
while the S&P 500 Index gained 10.46%, both with dividends reinvested.
The difference in performance was largely due to weakness in our financial
holdings during November and December. Lowes, another significant position, also
underperformed. Our results in 1995 have improved.
We are excited about the Janus Growth and Income Fund's prospects going
forward. The portfolio has undergone a moderate restructuring, and although the
emphasis is still squarely on large growth stocks, the income portion of the
Fund has grown.
THE PORTFOLIO
As of April 30, the Fund was 86.7% invested in stocks, down from 91.3% when
the period began. Foreign stocks totaled 6.6%.
The ten largest positions are 36.8% of the Fund.
Ten Largest Holdings April 30, 1995 October 31, 1994
- - -------------------- -------------- ----------------
American Express Decs 6.1% 5.4%
Pfizer 4.4% 3.3%
Hewlett Packard 3.9% 1.0%
Federal Home Loan Mortgage 3.6% 3.1%
Merrill Lynch 3.4% 2.6%
Philips Electronics 3.3% 3.0%
Texas Instruments 3.2% --
Coca-Cola 3.1% 2.8%
Lowe's 3.0% 4.6%
First Bank Systems 2.8% 2.5%
PORTFOLIO THEMES
The most significant theme in the portfolio is now technology, as evidenced
by two new names, Hewlett Packard and Texas Instruments, among our ten largest
positions. These companies are excellent competitors, and are facilitating the
boom in productivity that has helped drive the U.S. economic recovery.
April 30, 1995 October 31, 1994
-------------- ----------------
Technology-Related 16.6% 9.3%
Financial Services 11.5% 11.7%
Banking 8.5% 9.0%
Pharmaceuticals 7.4% 4.5%
Electronics 3.9% 4.1%
Retail 4.9% 11.3%
Another portfolio theme that spans most of the Fund's holdings is the
excellent competitive position of large multinationals, such as Coca-Cola,
Pfizer, Microsoft, Citicorp, and Merrill Lynch. Multinationals essentially own a
global franchise in their respective markets and have brand-name recognition
worldwide. As foreign economies become increasingly integrated, demand for
brand-name products should grow.
Technology-Related. Hewlett Packard, whose desk-top printers, PCs, and
workstations continue to gain market share, is the most significant new
position. But EDS (General Motors E) has also grown. EDS is a data processing
and information management outsourcer. The growing complexity of computer
operations has made it cheaper for many businesses to move management of
computer operations to an outside expert like EDS.
We made a profitable trade in another tech position, Compaq Computer, after
the stock moved up to our pricing target. We also sold Motorola at about
breakeven because the company had fallen behind schedule in developing new
cellular products.
Financial Services. American Express Decs, our largest position, are
convertible into the common stock of First Data Corporation, the credit card
processor, which was spun off by American Express. We trimmed Federal National
Mortgage Association.
Banking. Citicorp is a multinational whose credit card business is doing
well in this country, and whose long-established presence in many developing
economies positions it to participate in their growth, and also to act as a safe
haven during periods of instability. First Bank Systems is one of the
lowest-cost and best operated credit card processors in the Upper Midwest.
Pharmaceuticals. Astra (Swedish), Pfizer, and Merck are all meeting a
global demand for new medications. Astra's anti-ulcer drug, Losec, is selling
well internationally, and the company has two anti-asthma drugs in the pipeline.
The pipelines at Merck and Pfizer are also full.
Electronics. Diebold, a maker of electronic teller and other funds transfer
equipment, accounts for the increase in this group. Diebold is profiting from
the growth in automated financial transactions.
Retail. We have trimmed our position in Lowes Corp., the dominant
home-improvement chain in the Southeast. Business is brisk at Lowes' new
megastores, but the company has experienced a slowdown in sales growth due to
heavy rains in its Southeastern markets. We sold some of our Home Depot position
when the stock approached full pricing.
A NOTE ON PEPSI
Pepsico has been added to the portfolio. The company is making a
significant effort to enhance shareholder value. Pepsi is also extending its
global reach, as is Coca-Cola, and has been systematically restructuring,
putting more capital into its higher-return beverage and snack food operations
and franchising out less profitable locations at its Taco Bell, Kentucky Fried
Chicken and Pizza Hut chains.
CURRENT STRATEGY
The Janus Growth and Income Fund remains oriented toward large growth
stocks. We believe this will produce competitive results, with moderate income.
Thank you for your investment in Janus Growth and Income Fund.
Janus Funds April 30, 1995 Semiannual Report
14
<PAGE>
JANUS GROWTH AND INCOME FUND Portfolio Manager, Thomas F. Marsico
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Growth and Income Fund and the S&P 500 Index. Janus Growth and Income
Fund is represented by a solid green line and the S&P 500 Index is represented
by a solid black line. The "y" axis reflects the value of the investment. The
"x" axis reflects the computation periods from inception, May 15, 1991, through
April 30, 1995. The upper right quadrant reflects the ending value of the
hypothetical investment in Janus Growth and Income Fund ($16,017) as compared to
the S&P 500 Index ($15,645). There is a legend in the upper left quadrant of the
graph which indicates Janus Growth and Income Fund's one-year, three-year and
since inception (May 15, 1991) average annual total returns as 6.59%, 8.06% and
12.64%, respectively.
Source - Lipper Analytical Services, Inc. 1995. All returns reflect reinvested
dividends.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
JANUS GROWTH AND INCOME FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Common Stock - 78.9%
Aerospace and Defense - 0.6%
45,500 McDonnell Douglas Corp. $ 2,821,000
Banking - 8.5%
69,450 BankAmerica Corp. 3,437,775
100,000 Bank of New York Co., Inc. 3,287,500
223,925 Citicorp 10,384,522
330,450 First Bank System, Inc. 13,383,225
96,050 First Interstate Bancorp 7,383,844
14,200 Wells Fargo & Co. 2,355,425
40,232,291
Beverages - 3.5%
247,750 Coca-Cola Co. 14,400,469
54,800 PepsiCo, Inc. 2,281,050
16,681,519
Brokerage - 3.4%
352,150 Merrill Lynch and Co., Inc. 16,022,825
Business Services - 1.5%
128,775 First Data Corp. 7,243,594
Chemicals - 0.9%
89,000 Hercules, Inc. 4,438,875
Computer Related - 11.6%
76,000 America Online, Inc.* 3,524,500
100,000 Digital Equipment Corp.* 4,612,500
302,650 General Motors Corp. - Class E 13,089,613
278,750 Hewlett-Packard Co. 18,432,344
50,000 International Business Machines Corp. 4,731,250
127,050 Microsoft Corp.* 10,386,338
54,776,545
Shares or
Principal Amount Market Value
- - ---------------- ------------
Consumer Goods - 3.8%
6,600 Dial Corp. $ 159,225
125,000 Duracell International, Inc. 5,500,000
300,000 Tambrands, Inc. 12,487,500
18,146,725
Drugs - 7.4%
261,688 Astra A.B., A - Free** 7,639,999
150,000 Merck & Co., Inc. 6,431,250
240,425 Pfizer, Inc. 20,826,816
34,898,065
Electronics - 7.1%
73,800 Diebold, Inc. 3,062,700
399,743 Philips Electronics N.V. (ADR) 15,390,106
141,200 Texas Instruments, Inc. 14,967,200
33,420,006
Energy - 1.3%
86,900 Shell Transport & Trading Co. (ADR) 6,191,625
Entertainment - 3.6%
218,600 Circus Circus Enterprises, Inc.* 7,241,125
38,425 Mirage Resorts, Inc.* 1,152,750
152,775 Walt Disney Co. (The) 8,459,916
16,853,791
Environmental Services - 0.1%
20,500 Browning-Ferris Industries, Inc. 676,500
Financial Services - 5.4%
257,825 Federal Home Loan Mortgage Corp. 16,823,081
98,750 Federal National Mortgage Association 8,714,688
25,537,769
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
15
<PAGE>
JANUS GROWTH AND INCOME FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Food Products - 5.0%
463,275 Archer Daniels Midland Co.$ 8,454,769
81,000 Kellogg Co. 5,143,500
350,000 Nabisco Holdings Corp. - Class A* 9,756,250
23,354,519
Healthcare - 1.0%
75,000 PacifiCare Health Systems, Inc. - Class B* 4,650,000
Metals and Mining - 0.1%
8,275 Phelps Dodge Corp. 467,538
Paper Products - 1.6%
140,000 Boise Cascade Corp. 4,585,000
58,525 Willamette Industries, Inc. 2,999,405
7,584,405
Railroads - 0.6%
51,975 Conrail, Inc. 2,839,134
Recreation - 0%
3,700 Coleman Co., Inc.* 134,125
Restaurants - 2.0%
310,000 Lone Star Steakhouse & Saloon, Inc.* 9,493,750
Retail - 4.9%
209,871 Home Depot, Inc. 8,762,114
497,880 Lowe's Companies, Inc. 14,376,284
23,138,398
Semiconductors - 3.2%
100,000 Applied Materials, Inc.* 6,162,500
40,100 LSI Logic Corp.* 2,671,663
265,000 National Semiconductor Corp.* 6,061,874
14,896,037
Technology - 1.8%
25,000 Altera Corp.* 2,021,874
100,000 Cisco Systems, Inc.* 3,987,500
65,000 Silicon Graphics, Inc.* 2,437,500
8,446,874
Total Common Stock (cost $327,194,631) 372,945,910
Shares or
Principal Amount Market Value
- - ---------------- ------------
Preferred Stock - 7.8%
Financial Services - 6.1%
590,000 American Express Co. Exchange Notes, 6.25%
(Debt Exchangeable for Common Stock) $ 28,688,750
Telecommunications - 1.7%
54,113 Nokia A.B. 2,207,866
143,800 Nokia A.B. (ADR) 5,931,750
8,139,616
Total Preferred Stock (cost $29,571,289) 36,828,366
Corporate and Convertible Bonds - 4.5%
Aerospace and Defense - 1.5%
$ 7,000,000 Alliant Techsystems, Inc., 11.75%
senior subordinated notes, due 3/1/03+ 7,280,000
Environmental Services - 0.3%
1,500,000 Browning-Ferris Industries, Inc., 6.25%
convertible subordinated notes, due 3/1/03 1,488,750
Home Building - 2.3%
6,500,000 M.D.C. Holdings, Inc., 11.125%
senior notes, due 12/15/03 5,492,500
6,000,000 M.D.C. Holdings, Inc., 8.75% subordinated
convertible notes, due 12/15/05 5,250,000
10,742,500
Paper Products - 0.4%
1,650,000 Repap New Brunswick, Inc., 9.50%
senior floating notes, due 7/15/00 1,660,313
Total Corporate and Convertible Bonds (cost $21,445,305) 21,171,563
U.S. Government Obligations - 5.3%
U.S. Treasury Notes
25,000,000 7.25%, 11/30/96 (cost $24,871,452) 25,260,500
Short-Term Corporate Note - 5.0%
Chevron Oil Finance Co.
23,800,000 5.75%, 5/1/95 (amortized cost $23,800,000) 23,800,000
Total Investments - 101.5% (total cost $426,882,677) 480,006,339
Liabilities, net of Cash, Receivables and Other Assets - (1.5%) (7,258,535)
Net Assets - 100% $472,747,804
FORWARD FOREIGN CURRENCY CONTRACTS
Open at April 30, 1995
<TABLE>
<CAPTION>
Currency Currency Unrealized
Fund Currency Sold and Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- - ---- --------------------------------- ---------- --------------- -----------
<S> <C> <C> <C> <C>
Janus Growth and Income Fund Swedish Krona 7/18/95 45,636,143 $6,238,963 $(69,416)
</TABLE>
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
16
<PAGE>
JANUS MERCURY FUND Portfolio Manager, Warren B. Lammert
PERFORMANCE
The bond market rally that began in late November of 1994 brought renewed
vigor to the U.S. stock market, where the larger capitalization stocks in the
S&P 500 Index surged ahead 10.46% (with dividends reinvested) to new records
during the six months ended April 30, 1995. Janus Mercury Fund had a total
return of 7.25% for the period.
Performance was constrained by some of our smaller companies. Small stocks
lagged larger issues during the period.
However, our European holdings were the primary drag on performance, after
having a sensational run during 1994. European interest rates remained fairly
steady, although a rally began to take form in late March. The weakness in the
U.S. dollar helped to improve our performance in dollar terms, but it
contributed to a difficult period for the major European stock markets as
measured in local currencies. The dollar raised concerns about the
competitiveness of certain European exporters, although it is not a major issue
for the companies we own there.
COMPOSITION OF THE PORTFOLIO
Foreign holdings made up 31.6% of the portfolio at the end of April. The
Fund was 93.7% invested in equities, a high percentage of assets which reflects
our current positive view of the U.S. and European markets. The ten largest
positions accounted for 38.7% of assets.
Ten Largest Holdings April 30, 1995 October 31, 1994
- - -------------------- -------------- ----------------
Astra 7.5% 4.6%
Nokia 6.3% 6.8%
SAP 5.4% 4.1%
Kinnevik 4.0% 4.5%
LSI Logic 3.5% 1.5%
Federal Home Loan Mortgage 3.3% --
UNUM 2.7% --
Altera 2.2% --
News 2.2% --
General Motors E (EDS) 1.6% --
PORTFOLIO THEMES
April 30, 1995 October 31, 1994
-------------- ----------------
Technology-Related 25.0% 13.4%
Telecommunications 17.4% 17.3%
Pharmaceuticals 9.8% 8.0%
Insurance 4.9% 1.4%
Technology. Technology includes semiconductors and computer-related stocks.
SAP is now a major position. Headquartered in Germany, SAP dominates the
worldwide client-server software business, with integrated products linking
accounting, manufacturing, and personnel. SAP's competitive strengths are
driving explosive growth, with revenues in the most recent quarter ended in
March, 1995, up 72% and incoming orders up 135%.
LSI Logic remains a significant holding. LSI manufactures semiconductors
and has recently introduced a chip that is essentially a complete computer
system. New applications range from computer games to set-top cable boxes. Other
chip makers in the portfolio include Intel, Altera, and National Semiconductor.
During the period several stocks were trimmed or sold that had been good
performers but had approached our price targets. Among these were Motorola, the
semiconductor and cell phone manufacturer, and Softkey, a developer/distributor
of CD-ROM software.
Telecommunications. Nokia remains the largest telecom position. Though
Finnish, Nokia is an international operator, with 20% of the global cell phone
market. It is also a leading supplier of digital telecommunications
infrastructure equipment outside the U.S.
Kinnevik is also included in telecommunications. The company is a
conglomerate (paper and paper packaging) but has a fast-growing cellular and
media business that has taken a leadership position in the newly deregulated
Scandinavian markets.
A number of cellular service companies have been purchased during the
period. AirTouch is a leading supplier of cellular services in the Western U.S.
Vodaphone holds a similar position in the U.K., and Millicom is a growing
cellular presence in Asia and Latin America. Century Telephone serves rural
cellular markets in the Western U.S.
Pharmaceutical Companies. Astra, the Swedish multinational drug
manufacturer, is among the best growth stories in the industry, with Losec, its
anti-ulcer drug, now the largest-selling pharmaceutical in Europe, and
Pulmnicort, its asthma drug, driving the clinical trend toward treating asthma
with inhaled steroids as a primary therapy. Roche, the large, well-run Swiss
pharmaceutical company, is still a significant position. We also own SmithKline
Beecham from the U.K., and Pfizer in the U.S.
During the period Pharmacia Aktiabolag was cut when revenue growth fell
behind our expectations. R.P. Scherer was also trimmed when it hit our price
targets.
Insurance. We have found two individual companies selling at low
price-earnings multiples: UNUM, a well-managed disability insurer that is
rationalizing its product base and trimming costs; and Progressive, a leader in
substandard auto insurance.
GOING FORWARD
As 1994 came to an end, we became more positive on global markets in light
of the strength and duration of the U.S. bond rally. We are especially
enthusiastic about our overseas positions, which are inexpensive at current
levels.
Thank your for your investment in Janus Mercury Fund.
Janus Funds April 30, 1995 Semiannual Report
17
<PAGE>
JANUS MERCURY FUND Portfolio Manager, Warren B. Lammert
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Mercury Fund and the S&P 500 Index. Janus Mercury Fund is represented
by a solid green line and the S&P 500 Index is represented by a solid black
line. The "y" axis reflects the value of the investment. The "x" axis reflects
the computation periods from inception, May 3, 1993, through April 30, 1995. The
upper right quadrant reflects the ending value of the hypothetical investment in
Janus Mercury Fund ($15,144) as compared to the S&P 500 Index ($12,367). There
is a legend in the upper left quadrant of the graph which indicates Janus
Mercury Fund's one-year and since inception (May 3, 1993) average annual total
returns as 17.49% and 23.06%, respectively.
Source - Lipper Analytical Services, Inc. 1995. All returns reflect reinvested
dividends.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
JANUS MERCURY FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Common Stock - 81.9%
Auto Related - 0.9%
149,325 APS Holding Corp. - Class A* $ 3,341,147
150,000 Catena A.B., A - Free*,** 1,074,158
224,525 Copart, Inc.* 4,574,697
34,825 Wabash National Corp. 1,083,928
10,073,930
Banking - 1.0%
272,125 First Bank System, Inc. 11,021,063
Beverages - 0.3%
69,075 Canandaigua Wine Co., Inc. - Class A* 2,970,225
Broadcast Media - 0.3%
260,100 Central European Media Enterprises, Ltd.*,# 3,186,225
Brokerage - 1.0%
578,550 Lehman Brothers Holdings, Inc. 11,281,725
Business Services - 1.3%
247,300 First Data Corp. 13,910,625
5,350 Fiserv, Inc.* 141,775
14,052,400
Commercial Services - 0.3%
109,675 Olsten Corp. 3,742,659
Computer Related - 7.9%
37,475 Adobe Systems, Inc. 2,182,919
158,325 Ceridian Corp.* 5,462,213
184,550 Comverse Technology, Inc.* 2,768,250
382,100 CUC International, Inc.* 15,092,950
118,925 Digital Equipment Corp.* 5,485,416
402,025 General Motors Corp. - Class E 17,387,581
174,150 Hewlett-Packard Co. 11,515,669
186,950 Keane, Inc.* 4,720,488
90,525 Legent Corp.* 2,466,806
Shares or
Principal Amount Market Value
- - ---------------- ------------
Computer Related (continued)
200,000 NetManage, Inc.* $ 3,650,000
26,300 Oak Technology, Inc.* 726,538
3,298,718 Olivetti Systems & Networks S.p.A.*,** 3,353,893
17,450 Perceptron, Inc.* 327,188
359,750 Platinum Software Corp.* 3,597,500
241,500 Softkey International, Inc.* 5,916,750
123,850 Systemsoft Corp.* 1,610,050
35,425 System Software Associates, Inc. 890,053
87,154,264
Conglomerates - 4.0%
1,275,356 Kinnevik A.B., B - Free** 44,259,410
Drugs - 9.8%
2,825,860 Astra A.B., A - Free** 82,501,180
81,025 CIMA Labs, Inc.* 394,997
175,000 Noven Pharmaceuticals, Inc.* 1,487,500
63,275 Pfizer, Inc. 5,481,197
1,800 Roche Holding A.G.** 10,842,519
54,800 R.P. Scherer Corp.* 2,616,700
573,650 SmithKline Beecham PLC - Class A** 4,542,197
107,866,290
Electronics - 2.8%
104,800 General Instrument Corp.* 3,576,300
235,775 ITI Technologies, Inc.* 5,481,769
339,550 Itron, Inc.* 8,573,638
232,625 Pittway Corp. - Class A 10,119,188
73,200 StrataCom, Inc.* 2,690,100
30,440,995
Energy Services - 0.1%
83,525 Energy Service Co., Inc.* 1,399,044
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
18
<PAGE>
JANUS MERCURY FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Engineering and Construction - 1.1%
26,057 Metra OY - A** $ 1,075,372
259,068 Metra OY - B** 10,509,488
11,584,860
Entertainment - 0.6%
201,650 Circus Circus Enterprises, Inc.* 6,679,656
Environmental Services - 0.6%
605,443 Rentokil Group PLC** 2,516,451
150,000 United Waste Systems, Inc.* 4,237,500
6,753,951
Financial Services - 4.1%
561,275 Federal Home Loan Mortgage Corp. 36,623,194
114,300 Foothill Group, Inc. - Class A 2,486,025
1,962,375 Grupo Financiero Inbursa S.A. - Class C* 3,898,096
122,975 North American Mortgage Co. 2,213,550
45,220,865
Food Products - 2.4%
257,585 Cultor OY - Series I** 8,456,103
269,469 Cultor OY - Series II** 8,846,236
275,332 Huhtamaki Group - Series I** 8,909,584
26,211,923
Healthcare - 4.8%
268,450 Coram Healthcare Corp.* 5,503,225
142,775 Coventry Corp.* 3,355,213
216,850 Healthsource, Inc.* 7,779,494
96,850 Homedco Group, Inc.* 5,544,663
330,675 Horizon Healthcare Corp.* 6,902,841
25,000 Laser Vision Centers, Inc.* 218,750
200,250 PacifiCare Health Systems, Inc. - Class B* 12,415,500
218,725 Pacific Rehabilitation and Sports Medicine, Inc. 2,187,250
125,000 Professional Sports Care Management, Inc.* 1,468,750
307,400 Sun Healthcare Group, Inc.* 7,416,025
52,791,711
Home Building - 0.4%
180,000 Oakwood Homes Corp. 4,500,000
Insurance - 4.9%
24,075 CMAC Investment Corp. 890,775
39,450 General Re Corp. 5,024,944
8,975 Mercury General Corp. 275,981
442,300 Progressive Corp. 16,696,825
27,641 Trygg-Hansa Spp Holding, B - Free** 264,553
698,950 UNUM Corp. 29,967,481
53,120,559
Machinery - 0%
6,100 FSI International, Inc.* 283,650
Manufacturing - 0.5%
197,550 American Standard Companies, Inc.* 5,210,381
Medical Equipment - 4.7%
29,100 Arjo A.B.** 452,840
59,075 Boston Scientific Corp.* 1,609,794
30,000 Corvita Corp.* 131,250
14,200 Dentsply International, Inc. 500,550
504,475 I-Stat Corp.* 11,792,103
249,775 Nellcor, Inc.* 10,365,663
238,425 Pyxis Corp.* 4,738,697
290,775 Sofamor Danek Group, Inc.* 7,051,294
137,500 St. Jude Medical, Inc. 5,912,500
204,225 STERIS Corp.* 8,066,888
50,621,579
Mining - 1.1%
223,800 Potash Corporation of Saskatchewan, Inc. 11,889,375
Shares or
Principal Amount Market Value
- - ---------------- ------------
Packaging and Containers - 0.5%
251,450 Stone Container Corp.* $ 4,997,569
Paper Products - 2.5%
162,325 Boise Cascade Corp. 5,316,144
154,875 Bowater, Inc. 5,923,969
66,500 Georgia Pacific Corp. 5,278,438
150,000 Repap Enterprises, Inc.* 1,054,695
6,125,000 Rottneros Bruks A.B.*,**,# 9,868,828
27,442,074
Printing and Publishing - 2.7%
1,215,475 News Corp., Ltd. (ADR) 23,701,763
338,500 Valassis Communications, Inc.* 5,923,750
29,625,513
Railroads - 0.4%
44,675 Illinois Central Corp. 1,569,209
53,775 Wisconsin Central Transportation Corp.* 3,068,536
4,637,745
Restaurants - 0.1%
22,025 DavCo Restaurants, Inc.* 291,831
81,901 Wetherspoon (J.D.) PLC** 648,497
940,328
Retail - 2.3%
22,025 Central Tractor Farm & Country, Inc.* 280,819
348,525 Federated Department Stores, Inc.* 7,362,591
372,725 Lowe's Companies, Inc. 10,762,434
12,500 Neostar Retail Group, Inc.* 132,813
98,640 Orchard Supply Hardware Stores Corp.* 961,740
157,225 Safeway, Inc.* 5,895,938
25,396,335
Security Systems - 0.3%
116,517 Assa-Abloy A.B., B - Free*,** 505,444
104,917 Securitas A.B., B - Free** 3,149,749
3,655,193
Semiconductors - 6.9%
88,100 Applied Materials, Inc.* 5,429,163
113,500 Intel Corp. 11,619,563
578,100 LSI Logic Corp.* 38,515,913
62,700 Micron Technology, Inc. 5,157,075
676,025 National Semiconductor Corp.* 15,464,072
76,185,786
Technology - 4.2%
296,650 Altera Corp.* 23,991,569
125,000 Applied Digital Access, Inc.* 1,781,250
244,925 Ciber, Inc.*,# 3,306,488
252,325 Cisco Systems, Inc.* 10,061,459
168,227 Sensonor A.S.* 1,525,115
150,375 Silicon Graphics, Inc.* 5,639,063
46,304,944
Telecommunications - 7.1%
417,050 AirTouch Communications, Inc.* 11,208,219
16,627 Analog Devices, Inc.* 446,864
250,475 Century Telephone Enterprises 7,451,631
156,650 CommNet Cellular, Inc.* 4,072,900
590 DDI Corp.** 5,191,438
123,284 Korea Mobile Telecommunications, Inc.*,+ 3,606,057
57,125 MFS Communications Co., Inc.* 2,042,219
294,575 Millicom International Cellular S.A.* 7,327,553
545,090 Nordictel Holdings A.B.*,** 5,254,603
152,425 Paging Network, Inc.* 4,191,687
169,800 Telephone and Data Systems, Inc. 6,325,050
24,325 Tellabs, Inc.* 1,678,425
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
19
<PAGE>
JANUS MERCURY FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Telecommunications (continued)
184,350 USA Mobile Communications Holdings, Inc.* $ 2,765,250
456,750 Vodafone Group PLC (ADR)** 14,558,906
95,325 Wholesale Cellular U.S.A., Inc.* 1,763,513
77,884,315
Total Common Stock (cost $813,126,452) 899,386,542
Preferred Stock - 11.8%
Computer Related - 5.5%
60,210 SAP A.G. 59,493,472
Telecommunications - 6.3%
1,705,300 Nokia A.B.** 69,577,967
Total Preferred Stock (cost $98,146,591) 129,071,439
Shares or
Principal Amount Market Value
- - ---------------- ------------
Corporate Bonds - 0.1%
$ 1,500,000 Sholodge, Inc., 7.50%
convertible subordinated debentures,
due 5/1/04 (cost $1,500,000) $ 1,320,000
Short-Term Corporate Note - 3.3%
General Electric Capital Corp.
36,000,000 5.85%, 5/1/95 (amortized cost $36,000,000) 36,000,000
Repurchase Agreement - 0.2%
State Street Bank & Trust Co. 5.50%,
2,550,000 dated 4/28/95, maturing 5/1/95,
to be repurchased at $2,551,169,
collateralized by $2,690,000 in
U.S. Treasury Notes, 5.125%, due 2/28/98, 2,550,000
value $2,690,097 (cost $2,550,000)
Total Investments - 97.3% (total cost $951,323,043) 1,068,327,981
Cash, Receivables and Other Assets, net of Liabilities - 2.7% 29,231,759
Net Assets - 100% $1,097,559,740
<TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS
Open at April 30, 1995
<CAPTION>
Currency Currency Unrealized
Fund Currency Sold and Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- - ---- --------------------------------- ---------- --------------- -----------
<S> <C> <C> <C> <C>
Janus Mercury Fund British Pound 6/26/95 7,248,413 $ 11,663,421 $ (174,143)
Finnish Markka 6/26/95 47,513,595 11,149,762 (314,525)
Finnish Markka 7/11/95 114,057,129 26,770,203 (225,536)
Finnish Markka 7/12/95 67,900,000 15,937,096 (126,912)
German Deutschemark 5/9/95 6,740,000 4,861,512 (460,598)
German Deutschemark 6/8/95 6,500,000 4,695,175 (46,174)
German Deutschemark 6/16/95 34,385,270 24,846,644 (336,819)
German Deutschemark 7/12/95 4,483,400 3,243,435 12,247
Italian Lira 7/6/95 4,600,000,000 2,717,460 (79,391)
Japanese Yen 7/21/95 396,134,000 4,708,006 233,397
Swedish Krona 6/26/95 118,039,620 16,162,947 (83,446)
Swedish Krona 7/11/95 133,664,700 18,282,684 (243,045)
Swedish Krona 7/12/95 144,500,000 19,763,386 (150,221)
Swedish Krona 7/25/95 227,561,243 31,094,398 (644,090)
Swedish Krona 7/31/95 110,971,741 15,156,761 (49,727)
Swiss Franc 6/26/95 6,987,600 6,138,628 (100,781)
$217,191,518 $ (2,789,764)
</TABLE>
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
20
<PAGE>
JANUS OVERSEAS FUND Portfolio Manager, Helen Young Hayes
PERFORMANCE
Most overseas markets have lagged the rally in U.S. stocks. The Janus
Overseas Fund was down 1.54% during the six months ended April 30, 1995, versus
a gain of 1.24% for the Morgan Stanley EAFE Index. Both returns are with net
dividends reinvested.*
The Fund's moderate underperformance against the Index is in part due to
its large investment in Europe, where economies have remained robust and
interest rates have not declined as much as they have domestically. Still, our
European holdings are displaying exciting earnings growth that is inexpensive
compared to the cost of growth in much of the world. We are very encouraged
about these positions going forward.
Other investments that did not fare well during the period were in Latin
America and Japan, where sharp currency fluctuations kept stocks under pressure.
Hedging against declines in local currencies also held back Fund
performance. Earlier this year the dollar dropped to historic lows against the
Japanese yen and German mark. The dollar's weakness turned losses into gains for
the EAFE Index, because the local currencies in EAFE's various markets were
worth more weak U.S. dollars. Measured in local currencies, EAFE lost 6.50% for
the period, but it gained 1.24% (as reported above) when measured in dollars.
Although we hedged only moderately, our attempts to neutralize currency
fluctuations cost us, and we missed some of the gains reported in dollars.
COMPOSITION OF THE PORTFOLIO
The Fund was approximately 65.7% invested in equities at the end of April.
The portfolio was 52.3% in Europe and 6.7% in the Pacific Rim. Only 2.1% of the
portfolio was invested in the U.S. The five countries where we have the largest
investments totaled 41.9% of assets.
Top 5 Countries April 30, 1995 October 31, 1994
- - --------------- -------------- ----------------
Sweden 13.7% 22.1%
Germany 11.4% 6.2%
Netherlands 8.2% 8.1%
Japan 4.8% 4.4%
United Kingdom 3.8% 6.4%
The ten largest holdings made up 24.1% of assets.
Ten Largest Holdings April 30, 1995 October 31, 1994
- - -------------------- -------------- ----------------
Kinnevik 3.8% 5.4%
Astra 3.5% 5.0%
Roche Holdings 3.0% 1.0%
Getronics 2.3% --
Elsevier 2.2% 2.3%
Millicom International 2.1% 1.5%
Nestle 1.9% --
Nordictel Holdings 1.9% 3.9%
Siemens 1.7% --
Fielmann 1.7% --
PORTFOLIO THEMES
April 30, 1995 October 31, 1994
-------------- ----------------
Telecommunications 12.2% 25.4%
Pharmaceuticals 9.2% 14.9%
Printing & Publishing 4.0% 5.4%
Computer-Related 4.0% --
Telecommunications. Kinnevik is benefiting from deregulation in the rapidly
growing Swedish cellular phone market, as is Nordictel Holdings, another Swedish
cellular company. We have also added DDI, an independent Japanese long-distance
provider that is fast on its way to becoming a leading competitor in the booming
Japanese cellular market. The national cellular market in Japan has grown over
100% so far this year, and penetration rates are still only 3.5%, versus 10% in
the U.S. We also bought Millicom, a U.S.-based cellular and personal messaging
company with a strong presence in the emerging markets of Asia and Latin
America. Finally, we added Olivetti, the Italian computer and information
technology provider that is active throughout Europe and has a growing cellular
component to its business.
Our overall exposure to telecommunications was reduced during the period.
We trimmed our position in Nokia, the Finnish cellular phone and telecom
equipment manufacturer. We also sold Telex Chile, when we saw price competition
escalating. Finally, we took profits in Indosat, which was up over 30% from our
cost.
Multinational Pharmaceuticals. Two of our largest positions are Astra
(Swedish) and Roche (Swiss). Roche remains one of the best run companies we know
and is growing at 20%. It possesses a wide array of products and a full product
pipeline, including a new drug for transplant patients that should reduce the
rate of organ rejection. Astra is the fastest growing of the multinational drug
manufacturers, and its anti-ulcer drug, Losec, is selling well worldwide.
The pharmaceutical group was also trimmed during the period, largely as the
result of our sale of Pharmacia Aktiabolag, which we sold at about breakeven
when revenues fell behind our estimates.
Printing and Publishing. Our major holding is Elsevier (Netherlands). The
company is a dominant publisher of legal, scientific, medical, and professional
journals, and is benefiting from a consolidation in the industry. Last year
Elsevier acquired Mead Data, owner of the Lexis and Nexis data bases.
Computer-Related. We have added positions in Getronics and SAP. SAP is a
German multinational that provides the only fully integrated business software
applications package that ties together accounting, human resources, and
manufacturing. Getronics is a multinational information management and
consulting firm located in the Netherlands.
INTERNATIONAL STRATEGY
The Janus Overseas Fund looks for individual companies with good earnings
prospects. The portfolio invests primarily outside the U.S and attempts to
diversify its holdings geographically and by industry.
Thank you for your continued investment in Janus Overseas Fund.
- - -------------------
*Net dividends reinvested are the dividends that remain to be reinvested after
foreign tax obligations have been met. Such obligations vary from country to
country.
Janus Funds April 30, 1995 Semiannual Report
21
<PAGE>
JANUS OVERSEAS FUND Portfolio Manager, Helen Young Hayes
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Overseas Fund and the MSCI EAFE Index. Janus Overseas Fund is
represented by a solid green line and the MSCI EAFE Index is represented by a
solid black line. The "y" axis reflects the value of the investment. The "x"
axis reflects the computation periods from inception, May 2, 1994, through April
30, 1995. The upper right quadrant reflects the ending value of the hypothetical
investment in Janus Overseas Fund ($10,200) as compared to the MSCI EAFE Index
($10,516). There is a legend in the lower center of the graph which indicates
Janus Overseas Fund's total return from inception, May 2, 1994 to April 30, 1995
as 2.00%.
Source - Lipper Analytical Services, Inc. 1995. All returns reflect reinvested
dividends.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
JANUS OVERSEAS FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Common Stock - 63.1%
Auto Related - 0.9%
3,400 Bajaj Auto, Ltd. (GDR)* $ 87,380
13,000 Toyota Motor Corp.** 264,328
1,362 Varta A.G.*,** 258,353
610,061
Banking - 0.4%
12,755 Banco Commercial S.A. (GDR)*,+ 156,249
2,680 Banco Wiese (ADR) 24,124
2,747 Unidanmark A/S - Class A*,** 125,683
306,056
Broadcast Media - 1.9%
113,730 British Sky Broadcasting Group PLC*,** 454,383
34,219 Central European Media Enterprises, Ltd.* 419,183
8,975 Grupo Televisa S.A. de C.V. (GDR) 178,378
12,725 Scandinavian Broadcasting System S.A.* 302,219
1,354,163
Building Materials - 0.4%
110,000 PT Semen Cibinong 295,699
Business Services - 0.3%
21,512 Reuters Holding PLC** 163,749
1,700 Reuters Holding PLC (ADR) 77,350
241,099
Conglomerates - 4.1%
52,000 Citic Pacific, Ltd. 127,296
13,300 Grupo Carso S.A. de C.V. - Series A1* 72,484
79,051 Kinnevik A.B., B - Free** 2,743,352
2,943,132
Shares or
Principal Amount Market Value
- - ---------------- ------------
Computer Related - 3.5%
40,085 Getronics N.V. $ 1,639,231
859,466 Olivetti Systems & Networks S.p.A.* 873,842
2,513,073
Distribution - 0.1%
78,500 PT SMART Corp.+ 65,065
Drugs - 9.2%
1,400 Altana A.G.** 744,176
86,728 Astra A.B., A - Free** 2,532,030
2,324 Gehe A.G.** 998,993
355 Roche Holdings A.G.** 2,138,386
225 Schering A.G.** 166,904
6,580,489
Electronics - 2.0%
31,000 Hitachi, Ltd.** 315,161
30,000 Matsushita Electrical Industrial Co.** 502,973
15,938 Philips Electronics N.V. 607,631
1,425,765
Energy - 3.9%
11,794 Compagnie Francaise de Petroleum
Total S.A. - Class B 736,630
9,095 OMV A.G.* 940,428
34,870 Repsol S.A.** 1,108,600
2,785,658
Engineering and Construction - 1.2%
1,889 Metra OY - A** 77,959
19,490 Metra OY - B** 790,642
868,601
Entertainment and Gaming - 1.1%
78,700 Tabcorp Holdings, Ltd.* 180,351
33,071 Thorn EMI PLC** 605,764
786,115
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
22
<PAGE>
JANUS OVERSEAS FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Environmental Services - 0.5%
84,699 Rentokil Group PLC** $ 352,041
Financial Services - 0.5%
12,000 First Pacific Co. 9,844
4,375 Grupo Financiero GBM
Atlantico S.A. de C.V. - Class L* 3,580
6,453 Internationale Nederlanden Group N.V.** 339,938
34,000 JCG Holdings, Ltd. 19,106
372,468
Food Products - 3.4%
9,500 Cultor OY - Series I** 311,870
13,089 Cultor OY - Series II** 429,691
10,655 Huhtamaki Group - Series I** 344,790
1,398 Nestle S.A.** 1,368,646
2,454,997
Heavy Machinery - 0.4%
35,000 Mitsubishi Heavy Industries, Ltd.** 253,864
Hotels and Lodging - 1.0%
5,717 Accor S.A. 655,563
4,324 Indian Hotels Co., Ltd. (GDS)* 72,211
727,774
Household Products - 0.5%
325 Amway Asia Pacific, Ltd. 11,659
10,000 Amway Japan, Ltd.** 372,176
383,835
Insurance - 0.1%
8,368 Trygg-Hansa Spp Holding, B - Free** 80,090
Investment Company - 0.1%
11,900 First NIS Regional Fund*,+ 38,675
Manufacturing - 2.2%
208 Mannesmann A.G.** 56,407
950 Sidel, S.A. 277,554
2,525 Siemens A.G.** 1,225,622
1,559,583
Medical Equipment - 1.4%
38,800 Elekta Instrument A.B.*,** 972,471
Mining - 0.5%
9,552 SGL Carbon A.G.*,**,+ 380,978
Office Equipment - 1.1%
15,410 Oce-Van Der Grinten N.V. 764,148
Paper Products - 0.3%
115,910 Rottneros Bruks A.B.*,** 186,758
Printing and Publishing - 3.8%
3,487 Aamulehti Yhtymae OY - Series II** 70,319
141,663 Elsevier N.V. 1,550,921
117,654 News Corp., Ltd. 571,763
27,675 News Corp., Ltd. (ADR) 539,663
2,732,666
Restaurants - 1.5%
131,902 Wetherspoon (J.D.) PLC** 1,044,409
Retail - 2.0%
26,131 Elkjop Norge A.S. 457,026
10,068 Hennes & Mauritz A.B., B-Free** 680,767
317 Interdiscount Holding, Ltd.*,** 303,688
4,635 Sears Roebuck de Mexico - Series B1* 16,997
1,458,478
Shares or
Principal Amount Market Value
- - ---------------- ------------
Security Systems - 1.6%
38,877 Securitas A.B., B-Free** $ 1,167,140
Technology - 1.6%
31,900 ASM Lithography Holding N.V.* 883,372
30,632 Sensonor A.S.* 277,704
1,161,076
Telecommunications - 8.4%
14,600 Benpres Holding Corp. (GDR)+ 102,200
1,475 Compania de Telefonos de Chile (ADR) 101,775
132 DDI Corp.** 1,161,474
400 Grupo Iusacell S.A. de C.V. - Series L (ADR)* 5,800
7,787 Korea Mobile Telecommunications, Inc.*,+ 227,770
60,500 Millicom International Cellular S.A.* 1,504,938
61 Nippon Telephone & Telegraph Corp.** 538,918
141,039 Nordictel Holdings A.B.*,** 1,359,599
39,200 Tele Danmark A/S (ADR) - Class B*,** 1,029,000
6,031,474
Tire and Rubber Goods - 1.0%
16,006 Michelin B* 717,561
Tobacco - 1.2%
142,000 PT Hanjaya Mandala Sampoerna*,+ 833,423
Utilities-Electric - 1.0%
286,786 Consolidated Electric Power Asia, Ltd. 627,958
6,600 Huaneng Power International, Inc. (ADR)* 95,700
723,658
Total Common Stock (cost $42,663,062) 45,172,543
Preferred Stock - 2.6%
Computer Related - 0.5%
373 SAP A.G.** 368,561
Medical Equipment - 0.2%
249 Fresenius A.G.** 157,140
Printing and Publishing - 0.2%
30,827 News Corp., Ltd. 136,130
Retail - 1.7%
28,901 Fielmann A.G.*,** 1,181,887
Telecommunications - 0%
5,000 Telecomunicacoes Brasileiras S.A. 179
Utilities-Electric - 0%
21,000 Centrais Electricas Brasileiras S.A. - Class B 5,686
Total Preferred Stock (cost $1,547,724) 1,849,583
U.S. Government Obligations - 23.7%
Federal Home Loan Mortgage Corp.
$ 1,000,000 5.87%, 5/11/95 998,369
Federal National Mortgage Association:
8,000,000 5.82%, 5/3/95 7,997,413
1,000,000 5.83%, 5/4/95 999,514
5,000,000 5.85%, 5/9/95 4,993,500
2,000,000 5.85%, 5/11/95 1,996,750
Total U.S. Government Obligations
(amortized cost $16,985,546) 16,985,546
Short-Term Corporate Notes - 7.8%
General Electric Capital Corp.
2,600,000 5.85%, 5/1/95 2,600,000
Household Finance Corp.
3,000,000 5.90%, 5/2/95 2,998,525
Total Short-Term Corporate Notes
(amortized cost $5,598,525) 5,598,525
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
23
<PAGE>
JANUS OVERSEAS FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Repurchase Agreement - 1.8%
State Street Bank & Trust Co. 5.50%,
$ 1,318,000 dated 4/28/95, maturing 5/1/95,
to be repurchased at $1,318,604,
collateralized by $1,390,000 in
U.S. Treasury Notes, 5.125%, due 2/28/98, $ 1,318,000
value $1,344,825 (cost $1,318,000)
Total Investments - 99.0% (total cost $68,112,857) 70,924,197
Cash, Receivables and Other Assets, net of Liabilities - 1.0% 732,859
Net Assets - 100% $71,657,056
SUMMARY OF INVESTMENTS BY COUNTRY
April 30, 1995
Country % of Investment Securities Market Value
- - ------- -------------------------- ------------
Australia 2.0% $ 1,427,907
Austria 1.3% 940,428
Brazil 0.1% 5,865
Chile 0.1% 101,775
China 0.1% 95,700
Denmark 1.6% 1,154,683
Finland 2.9% 2,025,271
France 3.4% 2,387,308
Germany 11.4% 8,096,590
Hong Kong 1.1% 784,204
India 0.2% 159,591
Indonesia 1.7% 1,194,187
Italy 1.2% 873,842
Japan 4.8% 3,420,552
Korea 0.3% 227,770
Luxembourg 0.4% 302,219
Mexico 0.4% 277,239
Netherlands 8.2% 5,785,241
Norway 1.0% 734,730
Peru 0.1% 24,124
Philippines 0.1% 102,200
Russia 0.1% 38,675
Spain 1.6% 1,108,600
Sweden 13.7% 9,722,207
Switzerland 2.4% 1,672,334
United Kingdom 3.8% 2,697,696
United States++ 35.8% 25,407,010
Uruguay 0.2% 156,249
Total 100.0% $70,924,197
++Includes Short-Term Securities
<TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS
Open at April 30, 1995
<CAPTION>
Currency Currency Unrealized
Fund Currency Sold and Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- - ---- --------------------------------- ---------- --------------- -----------
<S> <C> <C> <C> <C>
Janus Overseas Fund British Pound 7/12/95 695,000 $1,117,908 $ (11,085)
British Pound 7/25/95 435,268 699,954 566
Finnish Markka 7/12/95 3,000,000 704,143 (5,607)
German Deutschemark 6/8/95 5,456,000 3,941,058 (38,842)
German Deutschemark 6/12/95 1,136,697 821,254 546
German Deutschemark 7/5/95 1,961,817 1,418,831 11,169
German Deutschemark 7/25/95 6,409,689 4,639,659 50,341
Japanese Yen 7/5/95 28,472,652 338,387 (6,387)
Japanese Yen 7/25/95 44,348,098 527,074 13,459
Spanish Peseta 7/18/95 75,038,949 604,885 (16,739)
Swedish Krona 7/12/95 21,000,000 2,872,187 (21,831)
Swedish Krona 7/25/95 5,655,296 772,750 (16,007)
Swedish Krona 7/31/95 27,605,923 3,770,477 (12,370)
$22,228,567 $ (52,787)
</TABLE>
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
24
<PAGE>
JANUS TWENTY FUND Portfolio Manager, Thomas F. Marsico
PERFORMANCE
The six months ended April 30, 1995, saw a sharp rally that set new records
in the domestic financial markets. Slower economic growth sparked a decline in
interest rates and relieved inflationary pressure. The current conditions are
extremely favorable for stocks.
The Janus Twenty Fund returned 4.64% for the six-month period, while the
S&P 500 Stock Index gained 10.46%, both with dividends reinvested.
The difference in performance can partially be explained by the Fund's lack
of participation in the oil and utility sectors. In November and December of
1994 our financial holdings were also weak, and another key position, Lowes,
underperformed. Results in 1995 have improved. We are excited about Janus Twenty
Fund's prospects going forward.
THE PORTFOLIO HAS BEEN RE-CONFIGURED
The significant repositioning that the Janus Twenty Fund's holdings
underwent in 1994 has continued. The portfolio is now more aggressive. It is
currently 96.7% invested in stocks, a relatively high percentage historically
and a direct result of the many individual opportunities we believe currently
exist in a number of market segments.
Foreign stocks account for a modest 11% of assets. The portfolio remains
concentrated. The ten largest holdings were 43.6% of assets at the end of April.
Ten Largest Holdings April 30, 1995 October 31, 1994
- - -------------------- -------------- ----------------
Coca-Cola 5.6% 5.3%
Hewlett Packard 5.5% --
Federal Home Loan Mortgage 4.6% 4.9%
Lowe's 4.4% 6.2%
Merrill Lynch 4.4% 5.2%
Pfizer 4.2% 2.9%
Philips Electronics 4.0% 4.5%
Microsoft 3.9% 2.6%
First Data 3.7% 5.7%
Texas Instruments 3.3% --
PORTFOLIO THEMES
A theme that spans most of the Fund's holdings is the excellent competitive
position of large multinationals, such as Coca-Cola, Pfizer, Microsoft,
Citicorp, Merrill Lynch, and Intel. A multinational essentially owns a global
franchise in its respective market, and has brand-name recognition worldwide. A
unique opportunity exists for these companies as the world becomes more closely
linked economically.
The most significant change in the portfolio has been the increase in
technology-related and electronics stocks, as evidenced by two new names -
Hewlett Packard and Texas Instruments - among our ten largest positions. Both
are facilitating the global boom in productivity.
April 30, 1995 October 31, 1994
-------------- ----------------
Technology-Related 22.2% 12.6%
Electronics 8.0% 6.1%
Beverages 8.1% 5.3%
Pharmaceuticals 7.6% 2.9%
Financial Services 7.5% 9.1%
Retail 6.5% 10.5%
Technology-Related. Hewlett Packard's desk-top printers, PCs, and
workstations continue to gain market share. EDS (General Motors E) was also
increased substantially. EDS is a data processing and information management
outsourcer. The growing complexity of computer operations has caused economies
of scale that make it cheaper for businesses to move computer operations
out-of-house.
We made a profitable trade in another tech holding, Compaq Computer, after
the stock moved up to our pricing target. We also sold Motorola at approximately
breakeven because of difficulties in the cellular handset market.
Electronics. Texas Instruments is a multinational semiconductor
manufacturer that is developing new technology in the video terminal and display
area.
Beverages. Coca-Cola is perhaps the example of a multinational competitor.
Approximately 65% of Coca-Cola's business is overseas. Its products are
recognized globally.
We also added PepsiCo because the company continues to focus on enhancing
profitability through cost cutting and restructuring. We believe Pepsi is making
a significant effort to enhance shareholder value.
Pharmaceuticals. Astra (Swedish), Pfizer, and Merck are all meeting a
booming global demand for new medications. Astra's anti-ulcer drug, Losec, is
selling well internationally and the company has two anti-asthma drugs in the
pipeline. The pipelines at Merck and Pfizer are also full, and they both do
significant business abroad.
Financial Services. Federal National Mortgage Association and Federal Home
Loan Mortgage remain substantial positions. They have a secure franchise in the
domestic mortgage market for low-cost housing, are growing at better than 10%,
and sell at less than ten times estimated 1996 earnings. The recent decline in
interest rates is also boosting both the growth and margins of their mortgage
portfolios.
Retail. We have trimmed our position in Lowe's Corp., the dominant
home-improvement chain in the Southeast. Business is brisk at Lowes' new
megastores, but the company has experienced a slowdown in sales growth due to
heavy rains in its Southeastern markets. We sold some of our Home Depot position
when the stock approached full pricing.
CURRENT STRATEGY
Janus Twenty Fund remains committed to a concentrated investment strategy,
even though this approach can entail greater price volatility. In the long term,
intensive research on fewer ideas can provide better performance.
Thank you for your investment in Janus Twenty Fund.
Janus Funds April 30, 1995 Semiannual Report
25
<PAGE>
JANUS TWENTY FUND Portfolio Manager, Thomas F. Marsico
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Twenty Fund and the S&P 500 Index. Janus Twenty Fund is represented by
a solid green line and the S&P 500 Index is represented by a solid black line.
The "y" axis reflects the value of the investment. The "x" axis reflects the
computation periods from inception, April 30, 1985, through April 30, 1995. The
upper right quadrant reflects the ending value of the hypothetical investment in
Janus Twenty Fund ($38,086) as compared to the S&P 500 Index ($39,378). There is
a legend in the upper left quadrant of the graph which indicates Janus Twenty
Fund's one-year, five-year and ten-year average annual total returns as 8.58%,
13.93% and 14.30%, respectively.
Source - Lipper Analytical Services, Inc. 1995. All returns reflect reinvested
dividends.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
JANUS TWENTY FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Common Stock - 92.3%
Aerospace and Defense - 2.2%
700,000 Boeing Co. $ 38,500,000
300,000 Lockheed Martin Corp.* 17,325,000
55,825,000
Banking - 5.4%
705,850 BankAmerica Corp. 34,939,575
1,481,825 Citicorp 68,719,634
721,425 First Bank System, Inc. 29,217,712
90,250 First Interstate Bancorp 6,937,969
139,814,890
Beverages - 8.1%
2,493,075 Coca-Cola Co. 144,909,984
1,603,400 PepsiCo, Inc. 66,741,525
211,651,509
Biotechnology - 1.6%
556,450 Amgen, Inc.* 40,446,959
Brokerage - 5.0%
2,502,875 Merrill Lynch and Co., Inc. 113,880,813
486,375 Schwab (Charles) Corp. 16,658,344
130,539,157
Business Services - 4.4%
1,727,225 First Data Corp. 97,156,406
382,275 Reuters Holdings PLC (ADS) 17,393,513
114,549,919
Computer Related - 16.0%
939,275 Digital Equipment Corp.* 43,324,059
1,979,425 General Motors Corp. - Class E 85,610,131
2,166,325 Hewlett-Packard Co. 143,248,241
1,253,400 Microsoft Corp.* 102,465,450
1,341,055 Oracle Systems Corp.* 40,902,178
415,550,059
Shares or
Principal Amount Market Value
- - ---------------- ------------
Conglomerates - 0.5%
228,300 Eastman Kodak Co. $ 13,127,250
Consumer Goods - 1.5%
591,100 Duracell International, Inc. 26,008,400
333,300 Tambrands, Inc. 13,873,613
39,882,013
Drugs - 7.6%
1,486,600 Astra A.B., A - Free** 43,401,391
755,575 Merck & Co., Inc. 32,395,278
1,276,510 Pfizer, Inc. 110,577,679
1,592,950 SmithKline Beecham PLC - Class A 12,613,082
198,987,430
Electronics - 8.0%
507,000 General Instrument Corp.* 17,301,375
2,715,032 Philips Electronics N.V. (ADR) 104,528,732
815,300 Texas Instruments, Inc. 86,421,800
208,251,907
Entertainment - 4.9%
1,203,750 Circus Circus Enterprises, Inc.* 39,874,219
211,575 Mirage Resorts, Inc.* 6,347,250
519,604 Walt Disney Co. (The) 82,111,434
128,332,903
Environmental Services - 2.3%
1,818,975 Browning-Ferris Industries, Inc. 60,026,175
Financial Services - 6.6%
1,858,850 Federal Home Loan Mortgage Corp. 121,289,962
577,925 Federal National Mortgage Association 51,001,881
172,291,843
Food Products - 1.9%
899,075 Archer Daniels Midland Co. 16,408,119
1,189,725 Nabisco Holdings Corp. - Class A* 33,163,584
49,571,703
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
26
<PAGE>
JANUS TWENTY FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Healthcare - 0.2%
175,025 United Healthcare Corp. $ 6,344,656
Insurance - 0.2%
57,000 American International Group, Inc. 6,084,750
Office Equipment and Supplies - 0.2%
50,000 Xerox Corp. 6,156,250
Paper Products - 2.2%
584,975 Georgia Pacific Corp. 46,432,391
200,000 Willamette Industries, Inc. 10,250,000
56,682,391
Railroads - 0.6%
286,275 Conrail, Inc. 15,637,772
Restaurants - 1.5%
1,313,040 Lone Star Steakhouse & Saloon, Inc.*,# 40,211,850
Retail - 6.5%
1,277,288 Home Depot, Inc. 53,326,774
3,989,175 Lowe's Companies, Inc. 115,187,428
168,514,202
Semiconductors - 4.2%
614,450 Intel Corp. 62,904,319
2,019,850 National Semiconductor Corp.* 46,204,069
109,108,388
Technology - 0.1%
80,000 Silicon Graphics, Inc.* 3,000,000
Telecommunications - 0.6%
226,850 L.M. Ericsson Telephone Co. (ADR) 15,213,128
Total Common Stock (cost $2,036,626,458) 2,405,802,104
Shares or
Principal Amount Market Value
- - ---------------- ------------
Preferred Stock - 4.4%
Computer Related - 1.9%
50,397 SAP A.G.** $ 49,797,252
Financial Services - 0.9%
500,000 American Express Co. Exchange Notes, 6.25%
(Debt Exchangeable for Common Stock) 24,312,500
Telecommunications - 1.6%
509,103 Nokia A.B. 20,771,918
505,100 Nokia A.B. (ADR) 20,835,375
41,607,293
Total Preferred Stock (cost $99,640,023) 115,717,045
Corporate Bonds - 1.3%
$ 39,860,000 M.D.C. Holdings, Inc., 11.125%
senior notes, due 12/15/03 33,681,700
(cost $36,241,656)
U.S. Government Obligations - 1.2%
Federal Home Loan Mortgage Corp.
30,000,000 5.82%, 5/1/95 (amortized cost $30,000,000) 30,000,000
Short-Term Corporate Notes - 3.3%
American Express Credit Corp.
20,000,000 5.85%, 5/1/95 20,000,000
Chevron Oil Finance Co.
16,100,000 5.75%, 5/1/95 16,100,000
Ford Motor Credit Co.
50,000,000 5.93%, 5/3/95 49,983,528
Total Short-Term Corporate Notes (amortized cost $86,083,528) 86,083,528
Total Investments - 102.5% (total cost $2,288,591,665) 2,671,284,377
Liabilities, net of Cash, Receivables and Other Assets - (2.5%) (64,284,014)
Net Assets - 100% $2,607,000,363
<TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS
Open at April 30, 1995
<CAPTION>
Currency Currency Unrealized
Fund Currency Sold and Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- - ---- --------------------------------- ---------- --------------- -----------
<S> <C> <C> <C> <C>
Janus Twenty Fund German Deutschemark 7/24/95 27,800,000 $20,123,055 $ (4,107)
Swedish Krona 7/18/95 278,216,581 38,035,269 (376,399)
$58,158,324 $ (380,506)
</TABLE>
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
27
<PAGE>
JANUS VENTURE FUND Portfolio Managers, James P. Goff, Warren B. Lammert
PERFORMANCE
Although small stock indexes hit new records during the six months ended
April 30, 1995, they were relative laggards compared to the powerful rally
enjoyed by the indexes of larger issues. A slowing economy and declining
interest rates provided very positive market conditions. The Janus Venture Fund
gained 2.23% during the period, versus 5.36% for the Russell 2000 Index, both
with dividends reinvested.
Several individual holdings encountered difficulties during the last six
months and affected Fund performance. These stocks included Exide, the largest
automotive and industrial battery maker in the U.S., APS Holdings, owner of Big
A Auto Parts, and Paging Network, a provider of paging services.
COMPOSITION OF THE PORTFOLIO
The Fund is currently 93.2% invested in equities, a high percentage
historically and one which reflects the present encouraging backdrop for stocks.
Foreign stocks make up a moderate 12.7% of assets. The ten largest positions in
the portfolio account for 31.8% of assets and are an eclectic group, the result
of our stock-by-stock approach to portfolio development.
Ten Largest Holdings April 30, 1995 October 31, 1994
- - -------------------- -------------- ----------------
Nokia 5.2% 8.6%
Wisconsin Central 4.9% 4.3%
R.P. Scherer 4.1% 2.8%
SAP 3.5% 1.0%
Minerals Technology 3.4% 2.7%
Paging Network 2.6% 3.0%
First Empire State 2.3% 2.2%
Exide 2.1% 4.3%
APS Holdings 1.9% 2.5%
LSI Logic 1.8% 0.5%
PORTFOLIO THEMES
There are a number of investment themes in the current portfolio.
Individual companies are providing exciting earnings growth in all of these
areas.
April 30, 1995 October 31, 1994
-------------- ----------------
Technology-Related 9.8% 3.0%
Telecommunications 10.1% 13.9%
Railroads 5.8% 6.3%
Financial Services 5.5% 6.0%
Auto-Related 5.4% 9.1%
Business Services 4.8% 5.2%
Pharmaceuticals 4.1% 3.1%
Technology-Related. Although our weighting in this sector is low relative
to our peers, we have found a number of fast-growing companies among
semiconductors and computer-related stocks. One position that has been increased
significantly is SAP. Based in Germany, SAP is an international provider of
integrated software applications to business, linking accounting, manufacturing,
and personnel. Keane has also been increased, as has Analysts International.
Both companies are benefiting from the current boom in outsourcing of data
processing and information management.
LSI Logic, the semiconductor and chip manufacturer, remains a significant
position. LSI has developed the capability to manufacture a complete computer
system in a single chip. Applications for LSI's new chip range from computer and
video games to set-top cable boxes.
We trimmed Analog Devices, a semiconductor maker that had performed well,
and reached a fair valuation.
Telecommunications. This area, especially the cellular sector, continues to
enjoy increasing global demand. We own Nokia, the Finnish maker of cellular
telephones and a leading provider of digital infrastructure equipment for
cellular systems. Paging Network is developing a new paging product that is
virtually an answering machine for your pocket.
Railroads. Wisconsin Central is a longtime holding in the portfolio. The
company is a short-haul rail operator that dominates a number of key industrial
routes in the Midwest. The stock continues to perform well.
Financial Services. We increased our holding in Credit Acceptance, the
fast-growing consumer loan company. But we sold Mercury Finance Corporation,
which makes high risk loans to automobile buyers, when it experienced increasing
competition from new entrants into the business.
Auto-Related. Two of our largest holdings suffered disappointments during
the period. Exide declined sharply when one of the warmest winters on record in
both Europe and the U.S. dramatically slowed automotive battery sales. The
unusually warm weather also meant fewer car repairs, and fewer auto part sales,
which lowered the revenues and earnings of APS Holdings. We continue to hold
both stocks, although we have trimmed our positions.
Business Services. Fiserv, the largest position in this group, is another
outsourcing company that provides data processing and information management to
the banking industry.
Pharmaceuticals. R.P. Scherer, the premier maker of gelcap delivery
products for the pharmaceutical industry, remains a substantial holding. Scherer
is growing at 20% a year in its core softgel business and is adapting new and
exciting drugs to a number of innovative drug delivery formats.
STRATEGY GOING FORWARD
We continue to be enthusiastic about our current holdings. The portfolio is
diversified, with an emphasis on fast-growing companies that dominate their
markets, sell at reasonable prices, and have a high degree of control over their
destinies.
Thank you for your continued investment in Janus Venture Fund.
Janus Funds April 30, 1995 Semiannual Report
28
<PAGE>
JANUS VENTURE FUND Portfolio Managers, James P. Goff, Warren B. Lammert
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Venture Fund and the Russell 2000 Index. Janus Venture Fund is
represented by a solid green line and the Russell 2000 Index is represented by a
solid black line. The "y" axis reflects the value of the investment. The "x"
axis reflects the computation periods from inception, April 30, 1985, through
April 30, 1995. The upper right quadrant reflects the ending value of the
hypothetical investment in Janus Venture Fund ($46,697) as compared to the
Russell 2000 Index ($28,000). There is a legend in the upper left quadrant of
the graph which indicates Janus Venture Fund's one-year, five-year and ten-year
average annual total returns as 14.05%, 14.26% and 16.66%, respectively.
Source - Lipper Analytical Services, Inc. 1995. All returns reflect reinvested
dividends.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
JANUS VENTURE FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Common Stock - 84.3%
Advertising - 0.6%
547,700 Katz Media Group, Inc.* $ 8,831,663
Aerospace and Defense - 0.1%
100,000 Tracor, Inc.* 1,300,000
Auto Related - 5.4%
1,334,422 APS Holding Corp. - Class A*,# 29,857,692
150,000 Borg-Warner Automotive, Inc. 3,862,500
877,390 Exide Corp.# 32,902,125
274,600 FinishMaster, Inc.*,# 4,084,675
50,000 Harley-Davidson, Inc. 1,193,750
376,350 Wabash National Corp. 11,713,894
83,614,636
Banking - 3.4%
224,000 First Empire State Corp. 35,952,000
200,000 ISB Financial Corp.* 2,625,000
173,200 Safra Republic Holdings, Inc., S.A.** 14,375,600
52,952,600
Beverages - 0.2%
77,925 Canandaigua Wine Co., Inc. - Class A* 3,350,775
Broadcast Media - 2.6%
100,000 Emmis Broadcasting Corp. - Class A*,# 2,125,000
120,000 Evergreen Media Corp.* 2,235,000
30,225 Heartland Wireless Communications, Inc.* 574,275
950,000 Heritage Media Corp. - Class A*,# 24,225,000
360,000 Jacor Communications, Inc.* 4,680,000
196,000 People's Choice TV Corp.* 5,586,000
39,425,275
Building Materials - 0.1%
160,000 Cameron Ashley, Inc.* 1,800,000
Shares or
Principal Amount Market Value
- - ---------------- ------------
Business Services - 3.4%
390,450 Analysts International Corp.# $ 9,858,863
74,600 Broadway & Seymour, Inc.* 1,380,100
15,000 Envoy Corp.* 341,250
200,000 Equifax, Inc. 6,475,000
1,006,825 Fiserv, Inc.* 26,680,862
16,400 Norrell Corp. 393,600
580,000 Sotheby's Holdings, Inc. - Class A 7,757,500
52,887,175
Chemicals - 0.2%
263,000 Lawter International, Inc. 3,616,250
Computers Related - 5.0%
105,750 CoATS Software, Inc.* 1,374,750
375,500 Ceridian Corp.* 12,954,750
6,625 CliniCom, Inc.* 130,843
184,550 Comverse Technology, Inc.* 2,768,250
200,000 Getronics N.V.** 8,178,773
249,400 Integrated Systems, Inc.* 5,237,400
828,325 Keane, Inc.* 20,915,206
125,000 Medic Computer Systems, Inc.* 5,500,000
376,700 National Instruments Corp.* 7,063,125
400,000 Platinum Software Corp.* 4,000,000
272,550 Softkey International, Inc.* 6,677,475
52,600 System Software Associates, Inc. 1,321,575
76,122,147
Conglomerates - 0.3%
120,127 Kinnevik A.B., B - Free** 4,168,836
Consumer Goods - 0.5%
125,000 Children's Discovery Centers of America, Inc.* 2,062,500
305,000 DSG International, Ltd. 5,642,500
109 Windmere Corp. 831
7,705,831
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
29
<PAGE>
JANUS VENTURE FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Drugs - 4.2%
1,340,575 R.P. Scherer Corp.*,# $ 64,012,456
Electrical Equipment - 1.2%
150,000 California Amplifier, Inc.* 1,425,000
515,300 Littelfuse, Inc.*,# 17,455,787
2,160 Mark IV Industries, Inc. 38,880
18,919,667
Electronics - 1.5%
196,425 ITI Technologies, Inc.* 4,566,881
260,500 Itron, Inc.* 6,577,625
109,325 StrataCom, Inc.* 4,017,693
400,000 X-Rite, Inc. 7,800,000
22,962,199
Energy - 0.3%
315,450 Energy Service Co., Inc.* 5,283,787
Engineering and Construction - 0.7%
22,722 Metra OY - A** 937,736
225,879 Metra OY - B** 9,163,125
10,100,861
Entertainment - 0.7%
65,000 Cinar Films, Inc. - Class B 471,250
539,025 Speedway Motorsports, Inc.* 9,904,584
10,375,834
Environmental Services - 1.0%
60,000 Continental Waste Industries, Inc.* 720,000
500,000 United Waste Systems, Inc.* 14,125,000
14,845,000
Financial Services - 5.5%
740,435 Credit Acceptance Corp.* 14,808,700
800,000 Finova Group, Inc. 27,000,000
200,000 Foothill Group, Inc. - Class A 4,350,000
178,700 North American Mortgage Co. 3,216,600
523,875 United Asset Management Corp. 19,645,312
549,625 World Acceptance Corp.*,# 15,526,906
84,547,518
Food Products - 0.8%
105,370 Cultor OY - Series I** 3,459,128
70,436 Cultor OY - Series II** 2,312,301
507,625 J.P. Foodservice, Inc.* 6,281,859
12,053,288
Funeral Services - 1.4%
225,575 Equity Corp. International* 3,637,396
417,700 Loewen Group, Inc. 11,780,476
250,000 Stewart Enterprises, Inc. 6,875,000
22,292,872
Healthcare - 3.6%
396,225 Coram Healthcare Corp.* 8,122,613
142,825 Homedco Group, Inc.* 8,176,731
388,625 Horizon Healthcare Corp.* 8,112,546
119,900 Horizon Mental Health Management, Inc.* 1,333,887
221,725 Oxford Health Plans, Inc.* 9,229,303
216,225 PacifiCare Health Systems, Inc. - Class B* 13,405,950
50,000 Summit Care Corp.* 1,025,000
260,750 Sun Healthcare Group, Inc.* 6,290,593
55,696,623
Shares or
Principal Amount Market Value
- - ---------------- ------------
Home Building - 0.8%
2,400 Beazer Homes USA, Inc.* $ 34,200
73,530 Champion Enterprises, Inc.* 2,205,900
56,510 D.R. Horton, Inc. 550,972
157,430 Lennar Corp. 2,597,595
100,000 Oakwood Homes Corp. 2,500,000
91,000 Schuler Homes, Inc.* 898,625
29,700 Southern Energy Homes, Inc.* 341,550
22,600 Toll Brothers, Inc.* 268,375
113,000 Webb (Del E.) Corp. 2,161,125
11,558,342
Hospital Management - 0.1%
52,000 American HomePatient, Inc.* 1,631,500
Hotels and Lodging - 0.3%
342,200 Hammons (John Q.) Hotels, Inc.*,# 5,175,775
Industrials - 1.7%
250,000 ITEL Corp.* 9,000,000
818,975 TriMas Corp. 17,915,078
26,915,078
Insurance - 2.5%
305,375 CMAC Investment Corp. 11,298,875
486,450 Progressive Corp. 18,363,487
205,725 Protective Life Corp. 9,334,771
38,997,133
Machinery - 0.8%
8,900 FSI International, Inc.* 413,850
250,000 Harnischfeger Industries, Inc. 7,375,000
100,000 York International Corp. 4,100,000
11,888,850
Manufacturing - 3.6%
280,725 American Standard Companies, Inc.* 7,404,122
250,000 Brady (W.H.) Co. - Class A 13,000,000
342,300 Duracraft Corp.*,# 10,868,025
396,200 Lydall, Inc.* 14,659,400
336,200 Simula, Inc.* 8,068,800
57,900 Standex International Corp. 1,816,613
55,816,960
Medical Equipment - 4.8%
341,000 AmeriSource Health Corp. - Class A* 7,544,625
86,800 Boston Scientific Corp.* 2,365,300
20,900 Dentsply International, Inc. 736,725
50,075 Gulf South Medical Supply, Inc.* 2,103,150
371,000 Isolyser Co., Inc.* 6,492,500
428,300 Landauer, Inc.# 7,870,013
150,000 Lunar Corp.* 3,037,500
355,175 Pyxis Corp.* 7,059,103
418,600 Sofamor Danek Group, Inc.* 10,151,050
201,125 St. Jude Medical, Inc. 8,648,375
233,025 STERIS Corp.* 9,204,488
250,425 Target Therapeutics, Inc.* 9,140,513
74,353,342
Medical Management - 0.6%
250,000 MediSense, Inc.* 4,031,250
219,600 MedPartners, Inc.* 5,188,050
9,219,300
Packaging and Containers - 2.4%
27,025 Intertape Polymer Group, Inc. 591,172
119,250 Liqui-Box Corp. 4,233,375
275,000 Sealed Air Corp.* 11,756,250
1,000,000 U.S. Can Corp.*,# 20,500,000
37,080,797
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
30
<PAGE>
JANUS VENTURE FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Paper Products - 3.7%
108,450 Bowater, Inc. $ 4,148,212
1,579,120 Minerals Technologies, Inc.# 52,505,740
150,000 Repap Enterprises, Inc.* 1,054,695
57,708,647
Railroads - 5.8%
422,275 Illinois Central Corp. 14,832,409
1,314,050 Wisconsin Central Transportation Corp.*,# 74,982,321
89,814,730
Real Estate Investment Trust - 0.3%
355,000 Prime Residential, Inc. 5,147,500
Recreation - 0.1%
127,300 Golf Enterprises, Inc.* 1,623,075
Restaurants - 2.6%
90,000 Apple South, Inc. 1,305,000
528,950 DavCo Restaurants, Inc.*,# 7,008,587
157,200 Lone Star Steakhouse & Saloon, Inc.* 4,814,250
426,425 Papa John's International, Inc.* 14,764,966
209,900 Quality Dining, Inc.* 2,807,413
1,278,097 Wetherspoon (J.D.) PLC** 10,120,055
40,820,271
Retail - 1.7%
100,000 Barnes and Noble, Inc.* 2,862,500
201,100 Casey's General Stores, Inc. 3,468,975
127,250 Heilig-Meyers Co. 2,672,250
126,500 Hello Direct, Inc.* 1,502,858
6,582 Hornbach Baumarkt A.G.*,**,+ 4,158,551
12,500 Neostar Retail Group, Inc.* 132,813
247,050 Nine West Group, Inc.* 8,029,125
5,200 PETsMART, Inc.* 173,550
159,190 Proffitts, Inc.* 3,939,953
26,940,575
Semiconductors - 2.3%
293,782 Analog Devices, Inc.* 7,895,391
422,525 LSI Logic Corp.* 28,150,728
36,046,119
Technology - 0.4%
66,450 Altera Corp.* 5,374,144
Telecommunications - 4.7%
552,625 Arch Communications Group, Inc.*,# 9,670,937
250,000 CAI Wireless Systems, Inc.* 3,250,000
306,400 CommNet Cellular, Inc.* 7,966,400
231,375 NumereX Corp. - Class A 3,528,469
1,439,276 Paging Network, Inc.* 39,580,090
185,000 Periphonics Corp.* 2,913,750
160,625 Telephone and Data Systems, Inc. 5,983,281
72,892,927
Tobacco - 0.1%
345,000 PT Hanjaya Mandala Sampoerna*,+ 2,024,865
Shares or
Principal Amount Market Value
- - ---------------- ------------
Toys - 0.2%
309,950 ERO, Inc.* $ 2,479,600
Transportation - 0.4%
262,975 Arnold Industries, Inc. 4,733,550
25,800 Cannon Express, Inc. - Class A* 354,750
28,400 Cannon Express, Inc. - Class B* 386,950
10,000 Swift Transportation Co., Inc.* 158,750
5,634,000
Utilities-Electric - 0.8%
757,600 California Energy Co., Inc.* 12,595,100
Wholesale Distributor - 0.9%
285,000 Cardinal Health, Inc. 13,145,625
Total Common Stock (cost $1,089,546,329) 1,301,749,548
Preferred Stock - 8.8%
Computer Related - 3.4%
54,341 SAP A.G.** 53,694,316
Telecommunications - 5.4%
1,979,284 Nokia A.B.** 80,756,792
50,000 Nokia A.B. (ADR)** 2,062,500
82,819,292
Total Preferred Stock (cost $100,375,443) 136,513,608
Warrants - 0.2%
24,000 Heartland Wireless Communications, Inc. -
exp. 4/15/00*,+ 168,000
105,125 Littelfuse, Inc. - exp. 12/31/01* 2,706,969
Total Warrants (cost $1,990,564) 2,874,969
Corporate Bonds - 0.3%
$ 4,000,000 Heartland Wireless Communications, Inc.,
13.00% senior notes, due 4/15/03+ 3,945,000
(cost $3,832,129)
Short-Term Corporate Notes - 7.7%
Chevron Oil Finance Co.
20,000,000 5.90%, 5/3/95 19,993,444
General Electric Capital Corp.
79,700,000 5.85%, 5/1/95 79,700,000
Texaco, Inc.
20,000,000 5.90%, 5/5/95 19,986,889
Total Short-Term Corporate Notes
(amortized cost $119,680,333) 119,680,333
Repurchase Agreement - 1.9%
State Street Bank & Trust Co.,
29,285,000 5.50%, dated 4/28/95, maturing
5/1/95, to be repurchased at $29,298,422
collateralized by $30,875,000 in
U.S. Treasury Notes, 5.125%, due 2/28/98, 29,285,000
value $29,871,563 (cost $29,285,000)
Total Investments - 103.2% (total cost $1,344,709,798) 1,594,048,458
Liabilities, net of Cash, Receivables, and Other Assets - (3.2%) (49,092,216)
Net Assets - 100% $1,544,956,242
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
31
<PAGE>
<TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS
Open at April 30, 1995
<CAPTION>
Currency Currency Unrealized
Fund Currency Sold and Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- - ---- --------------------------------- ---------- --------------- -----------
<S> <C> <C> <C> <C>
Janus Venture Fund British Pound 6/26/95 2,325,520 $ 3,741,994 $ (55,871)
British Pound 1/24/96 3,825,150 6,117,563 (4,208)
Finnish Markka 6/26/95 80,979,461 19,003,018 (536,059)
Finnish Markka 7/12/95 54,484,912 12,788,385 (101,838)
Finnish Markka 7/31/95 38,916,059 9,136,083 75,909
Finnish Markka 1/24/96 196,133,243 46,062,293 (750,235)
German Deutschemark 6/16/95 41,370,301 29,893,996 (402,238)
Swedish Krona 7/31/95 26,231,104 3,582,701 (11,754)
Swiss Franc 6/26/95 9,620,394 8,451,545 (138,753)
$138,777,578 $(1,925,047)
</TABLE>
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
32
<PAGE>
JANUS WORLDWIDE FUND Portfolio Manager, Helen Young Hayes
PERFORMANCE
Most foreign markets have not kept pace with the rally in U.S. stocks. In
Europe, where the Janus Worldwide Fund has a significant investment, economies
have remained robust and interest rates have not declined as much as they have
domestically.
Partly as a result of its commitment to Europe, the Janus Worldwide Fund
was down 1.86% during the six months ended April 30, 1995, versus a gain of
4.56% for the Morgan Stanley International World Index. Both returns are with
net dividends reinvested.* Although European stocks lagged the U.S., the
earnings growth of our European holdings is very exciting, and also inexpensive.
We are very encouraged about these positions going forward.
Other investments that did not do well during the period were in Latin
America and Japan, where unusually sharp currency fluctuations kept stocks under
pressure.
Hedging against declines in local currencies was also a drag on
performance. Early in 1995 the dollar dropped to historic lows against the
Japanese yen and German mark. The weak dollar turned losses into gains for the
Morgan Stanley International World Index, because the Index's local currencies
were worth more weak U.S. dollars. Measured in local currency, the Morgan
Stanley International World Index lost 0.19%, but measured in dollars (as
reported above) it actually gained 4.56%. We were only moderately hedged, but
our attempts to neutralize currency fluctuations cost us. We missed some of the
gains reported in dollars.
COMPOSITION OF THE PORTFOLIO
At the end of April, the Fund was approximately 87% invested in equities.
We were 57.3% invested in Europe compared to 45.2% at the beginning of the
period, and 9% in the Pacific Rim, versus 14.2% at the end of October, 1994.
Top 5 Countries April 30, 1995 October 31, 1994
- - --------------- -------------- ----------------
United States** 27.7% 32.0%
Sweden 17.8% 20.2%
Netherlands 10.6% 8.9%
Germany 7.6% 3.3%
Switzerland 5.3% 0.9%
The ten largest positions were 32.4% of the portfolio.
Ten Largest Holdings April 30, 1995 October 31, 1994
- - -------------------- -------------- ----------------
Kinnevik 7.5% 5.3%
Astra 6.3% 5.4%
Roche 3.2% --
Wolters Kluwer 2.8% 2.4%
Elsevier 2.5% 2.3%
Getronics 2.4% --
Nabisco 2.1% --
Nestle 2.0% --
Mattel 1.9% --
Siemens 1.7% --
*Net dividends reinvested are the dividends that remain to be reinvested after
foreign tax obligations have been met. Such obligations vary from country to
country.
**Includes fixed-income investments.
PORTFOLIO THEMES
April 30, 1995 October 31, 1994
-------------- ----------------
Pharmaceuticals 13.6% 12.7%
Telecommunications 9.2% 13.5%
Printing & Publishing 7.2% 5.6%
Multinational Pharmaceuticals. Two of our largest positions are Astra
(Swedish), and Roche (Swiss). Roche is one of the best run companies we know and
is growing at 20%. It possesses a wide array of products and a full product
pipeline, including a new drug for transplant patients that should reduce the
rate of organ rejection. Astra is the fastest growing of the multinational drug
manufacturers, and its anti-ulcer drug, Losec, is selling well worldwide.
Telecommunications. Our largest holding is Kinnevik, a Swedish paper and
paper packaging manufacturer that also has a growing telecom and media
component. Other exciting telecommunications positions include Nokia, the
Finnish telecommunications equipment manufacturer that also has 20% of the
international cellular handset market, and DDI, an independent Japanese
long-distance provider that is on its way to becoming a leading competitor in
the booming Japanese cellular market, which has grown over 100% so far this year
as a result of deregulation.
Printing and Publishing. We own Wolters Kluwer and Elsevier (Netherlands).
These companies publish scientific, medical, legal, and professional journals.
They enjoy a growing market share in a consolidating industry and generate
tremendous cash flow. Last year Elsevier also acquired Mead Data, owner of the
Lexis and Nexis data bases.
Financial Services and Electronics. We liquidated most of our Latin
American banks when the peso devaluation severely constrained their ability to
grow assets and also hurt the performance of their existing loan book. We
trimmed our Japanese electronics makers. Although these companies dominate world
markets, the unusually strong rise in the yen made their products more expensive
in foreign markets.
OTHER CHANGES IN THE PORTFOLIO
Buys. Several portfolio additions have produced good returns during the
period. Getronics is a multinational information manage-ment and consulting firm
located in the Netherlands, and Siemens is the largest engineering firm in
Germany and a worldwide provider of power generation and transmission systems.
Sells. In the U.S., we sold Wal-Mart when Sam's Club, the company's
membership warehouse club, failed to meet estimates. We also sold the Swedish
pharmaceutical maker, Pharmacia Aktiebolag. Company revenues fell behind
schedule.
GLOBAL STRATEGY
The Janus Worldwide Fund looks for individual companies with strong
earnings growth. The trend toward deregulated, more open foreign markets should
continue to create excellent long-term investment opportunities globally.
Thank you for your continued investment in Janus Worldwide Fund.
Janus Funds April 30, 1995 Semiannual Report
33
<PAGE>
JANUS WORLDWIDE FUND Portfolio Manager, Helen Young Hayes
PERFORMANCE OVERVIEW
[line graph]
A graphic comparison of the change in value of a hypothetical $10,000 investment
in Janus Worldwide Fund and the Morgan Stanley International World Index. Janus
Worldwide Fund is represented by a solid green line. Morgan Stanley
International World Index is represented by a solid black line. The "y" axis
reflects the value of the investment. The "x" axis reflects the computation
periods from inception, May 15, 1991, through April 30, 1995. The upper right
quadrant reflects the ending value of the hypothetical investment in Janus
Worldwide Fund ($18,374) as compared to the Morgan Stanley International World
Index ($14,153). There is a legend in the upper left quadrant of the graph which
indicates Janus Worldwide Fund's one-year, three-year, and since inception (May
15, 1991) average annual total returns as 2.31%, 13.30% and 16.61%,
respectively.
Source - Lipper Analytical Services, Inc. 1995. All returns reflect reinvested
dividends.
Past performance is not predictive of future performance. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
JANUS WORLDWIDE FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Common Stock - 82.9%
Auto Related - 0.9%
77,370 Bajaj Auto, Ltd. (GDR)* $ 1,988,409
297,000 Toyota Motor Corp.** 6,038,882
30,855 Varta A.G.*,** 5,852,770
13,880,061
Banking - 1.8%
64,280 Banco Weise (ADR) 578,520
481,775 Citicorp 22,342,316
2,442,000 PT Bank Dagang Nasional Indonesia+ 3,036,089
45,961 Unidanmark A/S - Class A* 2,102,841
28,059,766
Broadcast Media - 1.2%
2,652,307 British Sky Broadcasting Group PLC*,** 10,596,709
30,000 Central European Media Enterprises, Ltd.* 367,500
200,075 Grupo Televisa S.A. de C.V. (GDR) 3,976,491
141,500 Heritage Media Corp. - Class A* 3,608,250
18,548,950
Building Materials - 0.4%
2,435,500 PT Semen Cibinong 6,547,043
Business Services - 0.8%
116,950 First Data Corp. 6,578,437
450,853 Reuters Holdings PLC** 3,431,882
38,550 Reuters Holdings PLC (ADS) 1,754,025
11,764,344
Computer Related - 4.2%
180,925 General Motors Corp. - Class E 7,825,006
920,138 Getronics N.V.** 37,628,003
20,329,953 Olivetti Systems & Networks S.p.A.* 20,670,000
66,123,009
Shares or
Principal Amount Market Value
- - ---------------- ------------
Conglomerates - 7.9%
1,160,000 Citic Pacific, Ltd. $ 2,839,685
296,000 Grupo Carso S.A. de C.V. - Series A1* 1,613,175
1,495,275 Guangdong Investments 690,558
3,352,654 Kinnevik A.B., B - Free**,# 116,349,075
121,492,493
Consumer Goods - 1.2%
334,750 Dial Corp. 8,075,844
150,950 Duracell International, Inc. 6,641,800
97,875 Reebok International, Ltd. 3,058,594
17,776,238
Distribution - 0.1%
2,736,140 PT SMART Corp.+ 2,267,858
Drugs - 13.6%
31,032 Altana A.G.** 16,495,192
3,310,050 Astra A.B., A - Free** 96,637,141
53,507 Gehe A.G.** 23,000,485
8,205 Roche Holding A.G. 49,423,819
456,925 R.P. Scherer Corp.* 21,818,169
5,033 Schering A.G.** 3,733,459
211,108,265
Electronics - 3.1%
786,000 Hitachi, Ltd.** 7,990,844
716,000 Matsushita Electric Industrial Co.** 12,004,281
384,132 Philips Electronics N.V.** 14,644,909
47,150 Sony Corp. (ADR) 2,398,756
2,925,000 Thorn Lighting**,+ 7,303,871
406,000 Victor Co. of Japan, Ltd.*,** 4,779,310
49,121,971
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
34
<PAGE>
JANUS WORLDWIDE FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Energy - 2.1%
278,910 Compagnie Francaise
de Petroleum Total S.A. - Class B $ 17,420,179
481,980 Repsol S.A. 15,323,290
32,743,469
Engineering and Construction - 1.3%
44,411 Metra OY - A** 1,832,842
458,267 Metra OY - B** 18,590,299
20,423,141
Entertainment - 1.2%
2,318,690 Tabcorp Holdings, Ltd.* 5,313,568
735,303 Thorn EMI PLC** 13,468,597
18,782,165
Environmental Services - 0.5%
1,843,723 Rentokil Group PLC** 7,663,213
Financial Services - 2.0%
278,000 First Pacific Co. 228,045
158,350 Grupo Financa GBM Atlantico S.A.
de C.V. - Class L* 129,584
10,474,775 Grupo Financiero Inbursa S.A. - Class C* 20,807,278
155,076 Internationale Nederlanden Group N.V.** 8,169,253
29,200 PMI Group, Inc. (The)* 1,087,700
30,421,860
Food Products - 5.0%
68,357 Cultor OY - Series I** 2,244,051
101,831 Cultor OY - Series II** 3,342,949
250,099 Huhtamaki Group - Series I** 8,093,060
1,189,950 Nabisco Holdings Corp. - Class A* 33,169,856
31,342 Nestle S.A. 30,683,900
77,533,816
Healthcare - 0.7%
278,125 Horizon Healthcare Corp.* 5,805,859
72,800 PacifiCare Health Systems, Inc. - Class B* 4,513,600
10,319,459
Heavy Machinery - 0.5%
1,135,000 Mitsubishi Heavy Industries, Ltd.** 8,232,461
Hotels and Lodging - 1.3%
156,518 Accor S.A. 17,947,779
93,020 Indian Hotels Co., Ltd. (GDS)* 1,553,434
19,501,213
Household Products - 0.8%
7,725 Amway Asia Pacific, Ltd. 277,134
332,625 Industrie Natuzzi S.p.A (ADR) 12,431,859
12,708,993
Insurance - 0.1%
219,040 Trygg-Hansa Spp Holding, B - Free** 2,096,437
Investment Company - 0.1%
281,425 First NIS Regional Fund*,+ 914,631
Jewelry - 0.1%
79,325 Fossil, Inc.* 1,328,694
Manufacturing - 2.2%
4,646 Mannesmann A.G.** 1,259,932
21,003 Sidel S.A. 6,136,283
54,420 Siemens A.G.** 26,415,189
33,811,404
Medical Equipment - 0.1%
79,802 Arjo A.B.** 1,241,841
62,050 Gelman Sciences, Inc. 1,116,900
2,358,741
Shares or
Principal Amount Market Value
- - ---------------- ------------
Mining - 0.5%
212,869 SGL Carbon A.G.*,+ $ 8,490,195
Office Equipment - 1.2%
360,640 Oce-Van Der Grinten N.V.** 17,883,359
Paper Products - 0.3%
2,698,056 Rottneros Bruks A.B.*,** 4,347,209
Printing and Publishing - 7.0%
3,575,188 Elsevier N.V.** 39,141,033
2,883,721 News Corp., Ltd. 14,014,019
647,100 News Corp., Ltd. (ADR) 12,618,450
525,258 Wolters Kluwer N.V.** 42,722,878
108,496,380
Retail - 5.1%
169,975 AnnTaylor Stores, Inc.* 4,270,622
1,171,675 Federated Department Stores, Inc.* 24,751,634
251,875 Gap, Inc. 8,028,516
221,075 Hennes & Mauritz A.B., B - Free** 14,948,403
382,475 Lowe's Companies, Inc. 11,043,966
80,275 Nine West Group, Inc.* 2,608,938
13,083 Sears Roebuck de Mexico - Series B1* 47,978
545,520 Wal-Mart Stores, Inc. 12,956,100
78,656,157
Security Systems - 2.0%
976,327 Assa-Abloy A.B., B - Free*,** 4,235,254
878,727 Securitas A.B., B - Free**,# 26,380,567
30,615,821
Semiconductors - 0.6%
381,325 National Semiconductor Corp.* 8,722,809
Technology - 0.5%
118,275 Millipore Corp. 7,259,128
Telecommunications - 7.1%
560,075 AirTouch Communications, Inc.* 15,052,016
35,600 Compania de Telefonos de Chile (ADR) 2,456,400
2,975 DDI Corp.** 26,177,170
6,200 Grupo Iusacell S.A. de C.V. - Series L (ADR)* 89,900
172,875 Korea Mobile Telecommunications, Inc.*,+ 5,056,594
72,200 Millicom International Cellular S.A.* 1,795,975
1,380 Nippon Telegraph & Telephone Corp.** 12,191,914
249,153 Nordictel Holdings A.B.*,** 2,401,805
69,575 Paging Network, Inc.* 1,913,313
948,000 Tele Danmark A/S (ADR) - Class B* 24,885,000
548,480 Vodafone Group PLC (ADR)** 17,482,800
109,502,887
Tire and Rubber Goods - 1.1%
376,709 Michelin B*,+ 16,888,144
Tobacco - 1.0%
2,547,000 PT Hanjaya Mandala Sampoerna*,+ 14,948,790
Toys - 1.9%
1,252,675 Mattel, Inc. 29,751,031
Utilities-Electric - 1.4%
6,418,889 Consolidated Electric Power Asia, Ltd. 14,055,053
233,625 Consolidated Electric Power Asia, Ltd. (ADR)+ 5,115,453
154,200 Huaneng Power International, Inc. (ADR)* 2,235,900
21,406,406
Total Common Stock (cost $1,173,178,354) 1,282,498,011
Preferred Stock - 4.2%
Computer Related - 0.5%
8,467 SAP A.G.** 8,366,239
Medical Equipment - 1.1%
26,785 Fresenius A.G.** 16,903,624
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
35
<PAGE>
JANUS WORLDWIDE FUND April 30, 1995 (unaudited)
Shares or
Principal Amount Market Value
- - ---------------- ------------
Printing and Publishing - 0.2%
851,360 News Corp., Ltd. $ 3,759,542
Retail - 0.3%
89,743 Fielmann A.G.*,** 3,669,981
14,639,000 Lojas Americanas S.A. 319,629
3,989,610
Telecommunications - 2.1%
790,708 Nokia A.B.** 32,261,687
91,000 Telecomunicacoes Brasileiras S.A. 3,259
32,264,946
Utilities-Electric - 0%
486,000 Centrais Electricas Brasileiras S.A. - Class B 131,581
Total Preferred Stock (cost $43,192,717) 65,415,542
U.S. Government Obligation - 2.6%
Federal Home Loan Mortgage Corp.
$ 40,000,000 5.82%, 5/3/95 (amortized cost $39,987,067) 39,987,067
Short-Term Corporate Notes - 7.4%
Ford Motor Credit Co.
43,000,000 5.81% - 5.91%, 5/1/95 43,000,000
General Electric Capital Corp.
70,800,000 5.85%, 5/1/95 70,800,000
Total Short-Term Corporate Notes (amortized cost $113,800,000) 113,800,000
Repurchase Agreement - 0.6%
State Street Bank & Trust Co. 5.50%,
8,938,000 dated 4/28/95, maturing 5/1/95,
to be repurchased at $8,942,097,
collateralized by $9,425,000 in U.S.
Treasury Notes, 5.125%, due 2/28/98, 8,938,000
value $9,118,688 (cost $8,938,000)
Total Investments - 97.7% (total cost $1,379,096,138) 1,510,638,620
Cash, Receivables and Other Assets, net of Liabilities - 2.3% 36,116,878
Net Assets - 100% $1,546,755,498
SUMMARY OF INVESTMENTS BY COUNTRY
April 30, 1995
Country % of Investment Securities Market Value
- - ------- -------------------------- ------------
Australia 2.4% $ 35,705,577
Brazil 0.0% 454,468
Chile 0.2% 2,456,400
China 0.1% 2,235,900
Denmark 1.8% 26,987,840
Finland 4.4% 66,364,887
France 3.8% 58,392,385
Germany 7.6% 114,187,064
Hong Kong 1.5% 23,205,928
India 0.2% 3,541,843
Indonesia 1.8% 26,799,780
Italy 2.2% 33,101,859
Japan 5.3% 79,813,619
Korea 0.3% 5,056,594
Mexico 1.8% 26,664,405
Netherlands 10.6% 160,189,435
Peru 0.0% 578,520
Russia 0.1% 914,631
Spain 1.0% 15,323,289
Sweden 17.8% 268,637,731
Switzerland 5.3% 80,107,719
United Kingdom 4.1% 62,068,597
United States++ 27.7% 417,850,149
Total 100.0% $1,510,638,620
++Includes Short-Term Securities
<TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS
Open at April 30, 1995
<CAPTION>
Currency Currency Unrealized
Fund Currency Sold and Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- - ---- --------------------------------- ---------- --------------- -----------
<S> <C> <C> <C> <C>
Janus Worldwide Fund British Pound 7/12/95 24,692,000 $ 39,717,082 $ (393,837)
British Pound 7/25/95 651,800 1,048,160 847
Finnish Markka 7/12/95 66,833,000 15,686,657 (124,918)
German Deutschemark 6/8/95 150,921,034 109,015,483 (1,074,426)
German Deutschemark 6/12/95 26,138,091 18,884,539 12,561
German Deutschemark 7/5/95 21,657,088 15,662,897 123,303
German Deutschemark 7/25/95 147,135,846 106,504,413 1,155,587
Japanese Yen 7/5/95 654,785,235 7,781,879 (146,879)
Japanese Yen 7/25/95 1,051,046,112 12,491,619 318,986
Swedish Krona 7/12/95 602,800,000 82,445,463 (626,664)
Swedish Krona 7/25/95 364,948,129 49,867,201 (1,032,950)
Swedish Krona 7/31/95 559,562,000 76,426,191 (250,742)
$535,531,584 $ (2,039,132)
</TABLE>
See Notes to Schedule of Investments
Janus Funds April 30, 1995 Semiannual Report
36
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Adjustable Rate Preferred Stock dividend rates are as of 4/30/95
* Non-Income producing security
** A portion of this security has been segregated by the custodian to cover
margin or segregation requirements on open futures contracts and/or foreign
currency contracts.
+ Securities are registered pursuant to Rule 144A and may be deemed to be
restricted for resale.
# The Investment Company Act of 1940 defines affiliates as those companies in
which a fund holds 5% or more of the outstanding voting securities.
Following is a summary of the transactions with each such affiliate for the
period ended April 30, 1995:
<TABLE>
<CAPTION>
Purchases Sales Realized Dividend
Shares Cost Shares Cost Gain/(Loss) Income
------ ---- ------ ---- ----------- ------
<S> <C> <C> <C> <C> <C> <C>
Janus Fund
Alexander & Alexander Services, Inc. 755,050 $ 17,160,536 -- -- -- $ 84,425
Tele Danmark A/S (ADR) - Class B -- -- 3,362,935 $ 85,125,637 $ 15,093 1,175,945
UNUM Corp. 1,950,475 83,292,995 298,200 16,243,017 (4,711,301) 2,588,284
Wolters Kluwer N.V 50,000 3,774,687 -- -- -- 3,773,597
Janus Enterprise Fund
APS Holding Corp. - Class A 122,925 3,217,222 -- -- -- --
Catalytica, Inc. 29,000 131,000 297,593 2,373,732 (1,488,333) --
Central European Media Enterprises, Ltd. -- -- 336,675 5,475,696 (354,753) --
Exide Corp. 12,925 655,631 649,140 32,127,452 (10,882,583) 38,025
Insignia Financial Group, Inc. - Class A 7,300 151,109 23,600 471,264 (60,184) --
TheraTech, Inc. 49,305 551,040 2,975 47,600 (14,875) --
Trigen Energy Corp. 614,825 12,412,525 -- -- -- 50,469
Janus Mercury Fund
Central European Media Enterprises, Ltd. 30,000 349,650 80,000 1,321,040 (697,040) --
Ciber, Inc. -- -- 61,775 521,257 317,326 --
Rottneros Bruks A.B 4,700,000 7,058,390 -- -- -- --
Janus Twenty Fund
Lone Star Steakhouse & Saloon, Inc. -- -- 1,606,700 24,613,989 12,728,690 --
Janus Venture Fund
Analysts International Corp. -- -- -- -- -- 101,517
APS Holding Corp. - Class A -- -- -- -- -- --
Arch Communications Corp. 552,625 10,386,712 -- -- -- --
DavCo Restaurants, Inc. 100,000 1,303,000 -- -- -- --
Duracraft Corp. 50,000 1,588,634 -- -- -- --
Emmis Broadcasting Corp. - Class A -- -- 406,250 6,337,941 1,356,744 --
Employees General Insurance Group, Inc. -- -- 570,000 3,063,750 (712,500) --
Exide Corp. -- -- 313,525 7,990,255 2,277,857 47,637
FinishMaster, Inc. 25,900 303,800 106,300 1,044,300 497,005 --
Heritage Media Corp. - Class A 150,000 3,843,426 77,125 1,327,092 527,754 --
Hammons (John Q.) Hotels, Inc. 342,200 4,169,132 -- -- -- --
Landauer, Inc. -- -- -- -- -- 214,150
Littelfuse, Inc. -- -- 20,000 487,500 93,750 --
Minerals Technologies, Inc. 170,025 4,760,093 -- -- -- 74,292
R.P. Scherer Corp. 467,625 18,819,831 91,325 2,718,208 1,684,398 --
U.S. Can Corp. 432,225 8,173,177 -- -- -- --
Wisconsin Central Transportation Corp. 94,950 3,764,463 225,000 3,624,032 6,897,843 --
World Acceptance Corp. -- -- -- -- -- --
Janus Worldwide Fund
Kinnevik A.B., B - Free 803,052 25,719,968 -- -- -- --
Securitas A.B., B - Free -- -- 97,600 3,084,972 (572,377) --
</TABLE>
See Notes to Financial Statements
Janus Funds April 30, 1995 Semiannual Report
37
<PAGE>
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Janus
Janus Janus Growth and
For the six months ended April 30, 1995 Janus Balanced Enterprise Income
(all numbers in thousands) (unaudited) Fund Fund Fund Fund
- - -------------------------------------- ---- ---- ---- ----
Investment Income:
<S> <C> <C> <C> <C>
Interest $ 74,266 $ 1,250 $ 1,548 $ 2,787
Dividends 53,995 728 675 3,198
Foreign Tax Withheld (1,623) (5) (37) (32)
126,638 1,973 2,186 5,953
Expenses:
Advisory fees 31,463 401 1,450 1,713
Transfer agent fees and expenses 8,134 157 659 777
Registration fees 51 12 77 19
Postage and mailing expenses 506 40 136 165
Custodian fees 992 8 38 15
Printing expenses -- 4 16 21
Audit fees 13 3 5 3
Trustees' fees and expenses 16 1 1 1
Other expenses 148 13 24 24
41,323 639 2,406 2,738
Net investment income/(loss) 85,315 1,334 (220) 3,215
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 34,027 (237) 6,859 20,709
Net realized gain/(loss) from foreign currency transactions (22,939) (171) (1,232) (822)
Net realized gain/(loss) from futures contracts (9,439) 98 1,013 --
Change in net unrealized appreciation or depreciation of investments 510,384 5,002 (21,104) (7,858)
Net gain/(loss) on investments 512,033 4,692 (14,464) 12,029
Net increase/(decrease) in net assets resulting from operations $ 597,348 $ 6,026 ($ 14,684) $ 15,244
</TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Janus Janus Growth and
As of April 30, 1995 Janus Balanced Enterprise Income
(all numbers in thousands except net asset value per share)(unaudited) Fund Fund Fund Fund
- - ---------------------------------------------------------------------- ---- ---- ---- ----
Assets:
<S> <C> <C> <C> <C>
Investments at cost $ 8,959,451 $ 100,382 $ 334,358 $ 426,883
Investments at value $10,241,046 $ 106,692 $ 366,727 $ 480,006
Cash 2,241 548 578 515
Receivables:
Investments sold 441,772 2,840 58,135 21,951
Fund shares sold 14,318 296 1,679 396
Interest 1,870 614 -- 1,359
Dividends 17,416 92 164 384
Other assets 269 4 4 11
Total Assets 10,718,932 111,086 427,287 504,622
Liabilities:
Payables:
Investments purchased 333,883 3,100 27,539 31,027
Fund shares repurchased 8,279 110 595 270
Advisory fee 5,499 72 249 286
Transfer agent fee 1,615 32 131 146
Accrued expenses 1,207 40 130 76
Foreign currency contracts 477 2 301 69
Total Liabilities 350,960 3,356 28,945 31,874
Net Assets $10,367,972 $ 107,730 $ 398,342 $ 472,748
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) 507,996 8,666 17,555 31,233
Net Asset Value Per Share $ 20.41 $ 12.43 $ 22.69 $ 15.14
</TABLE>
See Notes to Financial Statements
Janus Funds April 30, 1995 Semiannual Report
38
<PAGE>
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Janus Janus Janus Janus Janus
For the six months ended April 30, 1995 Mercury Overseas Twenty Venture Worldwide
(all numbers in thousands) (unaudited) Fund Fund Fund Fund Fund
- - -------------------------------------- ---- ---- ---- ---- ----
Investment Income:
<S> <C> <C> <C> <C> <C>
Interest $ 5,954 $ 619 $ 8,455 $ 8,516 $ 12,030
Dividends 3,165 304 11,850 4,588 7,026
Foreign Tax Withheld (323) (40) (144) (202) (851)
8,796 883 20,161 12,902 18,205
Expenses:
Advisory fees 3,009 281 8,426 5,103 5,139
Transfer agent fees and expenses 1,412 195 3,647 1,497 2,030
Registration fees 296 13 11 41 81
Postage and mailing expenses 389 57 638 244 375
Custodian fees 190 42 208 113 456
Printing expenses 74 8 88 43 17
Audit fees 5 4 8 10 10
Trustees' fees and expenses 5 1 13 10 5
Other expenses 19 10 74 28 53
5,399 611 13,113 7,089 8,166
Net investment income/(loss) 3,397 272 7,048 5,813 10,039
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 13,382 85 133,329 51,982 (18,947)
Net realized gain/(loss) from foreign currency transactions (8,030) (587) (11,921) (18,413)
Net realized gain/(loss) from futures contracts 2,706 -- -- -- 3,294
Change in net unrealized appreciation or depreciation of investments 61,476 (694) (20,374) (17,262) (7,210)
Net gain/(loss) on investments 69,534 (1,196) 101,034 27,535 (41,276)
Net increase/(decrease) in net assets resulting from operations $ 72,931 ($ 924) $ 108,082 $ 33,348 ($ 31,237)
</TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Janus Janus Janus Janus Janus
As of April 30, 1995 Mercury Overseas Twenty Venture Worldwide
(all numbers in thousands except net asset value per share)(unaudited) Fund Fund Fund Fund Fund
- - ---------------------------------------------------------------------- ---- ---- ---- ---- ----
Assets:
<S> <C> <C> <C> <C> <C>
Investments at cost $ 951,323 $ 68,113 $ 2,288,592 $ 1,344,710 $ 1,379,096
Investments at value $ 1,068,328 $ 70,924 $ 2,671,284 $ 1,594,048 $ 1,510,639
Cash 612 537 1,512 1,614 593
Receivables:
Investments sold 33,445 596 76,428 36,356 47,255
Fund shares sold 6,364 474 1,359 430 6,158
Interest 56 -- 1,675 21 4
Dividends 1,036 160 1,438 679 4,043
Other assets 16 4 101 52 13
Total Assets 1,109,857 72,695 2,753,797 1,633,200 1,568,705
Liabilities:
Payables:
Investments purchased 7,216 629 141,513 84,084 17,038
Fund shares repurchased 887 223 2,175 815 1,343
Advisory fee 607 48 1,402 859 842
Transfer agent fee 356 35 913 348 351
Accrued expenses 441 50 413 213 337
Foreign currency contracts 2,790 53 381 1,925 2,039
Total Liabilities 12,297 1,038 146,797 88,244 21,950
Net Assets $ 1,097,560 $ 71,657 $ 2,607,000 $ 1,544,956 $ 1,546,755
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) 73,916 7,025 103,087 30,273 62,062
Net Asset Value Per Share $ 14.85 $ 10.20 $ 25.29 $ 51.03 $ 24.92
</TABLE>
An Explanation of the Statement of Operations
This financial statement details the Fund's income, expenses, and gains and
losses (realized and unrealized) on securities and currency transactions and
from appreciation or depreciation of portfolio holdings. The first section in
this statement, called "Investment Income," reports both the dividends earned
from stocks held and interest earned from interest-bearing securities in the
portfolio.
The next section to this schedule reports the expenses incurred by the
funds including the advisory fee paid to the investment advisor, the transfer
agent fees and shareholder servicing expenses, and printing and postage for
mailing statements, financial reports and prospectuses to investors.
The last section of this schedule lists the increase or decrease in the
value of securities held in the fund's portfolio. Funds realize a gain (or loss)
when they sell their position in a particular security. Unrealized gain (or
loss) refers to the change in net appreciation or depreciation of the fund's
portfolio during the period. This figure is affected by both changes in the
market value of portfolio holdings and by gains (or losses) realized during the
reporting period.
An Explanation of the Statement of Assets and Liabilities
This financial statement is often referred to as the "balance sheet." It
lists the assets and liabilities of the Funds on the last day of the fiscal
period.
The Fund's assets are calculated by adding the value of the securities
owned, the receivable for securities sold but not yet settled, the receivable
for dividends declared, but not yet received, on stocks owned, and the
receivable for Fund shares sold to investors but not yet settled. The Fund's
liabilities include payables for securities purchased but not yet settled, Fund
shares redeemed but not yet paid, and expenses owed but not yet paid.
The last line of this schedule reports the Fund's net asset value (NAV) per
share on the last day of the fiscal period. The NAV is calculated by dividing
the fund's total net assets (assets minus liabilities) by the number of shares
outstanding.
Janus Funds April 30, 1995 Semiannual Report
39
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
Janus
For the six months ended April 30, 1995 (unaudited) and Janus Balanced
the year or period ended October 31, 1994 (all numbers in thousands) Fund Fund
1995 1994 1995 1994
- - ------------------------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 85,315 $ 104,800 $ 1,334 $ 1,965
Net realized gain/(loss) from investment transactions 1,649 112,901 (310) 2,772
Change in unrealized net appreciation or depreciation of investments 510,384 (143,484) 5,002 (3,493)
Net increase/(decrease) in net assets resulting from operations 597,348 74,217 6,026 1,244
Dividends and Distributions to Shareholders:
Net investment income* (4,024) (173,127)(2) (1,022) (1,697)
Net realized gain from investment transactions (190,268) (419,077) (2,610) --
Net decrease from dividends and distributions (194,292) (592,204) (3,632) (1,697)
Capital Share Transactions:
Shares sold 1,113,725 2,612,140 24,021 51,412
Reinvested dividends and distributions 186,387 570,758 3,465 1,622
Shares repurchased (982,441) (2,115,666) (15,696) (31,582)
Net increase/(decrease) from capital share transactions 317,671 1,067,232 11,790 21,452
Net increase/(decrease) in net assets 720,727 549,245 14,184 20,999
Net Assets:
Beginning of period 9,647,245 9,098,000 93,546 72,547
End of Period $ 10,367,972 $ 9,647,245 $ 107,730 $ 93,546
Net Assets consist of:
Capital(par value and paid-in surplus)* $ 9,006,582 $ 8,688,911 $ 101,236 $ 89,446
Undistributed net investment income/(distribution in excess)* 72,793 (8,497) 395 83
Undistributed net realized gain/(loss)* from investments 7,480 196,098 (209) 2,711
Unrealized appreciation/(depreciation) of investments 1,281,117 770,733 6,308 1,306
$ 10,367,972 $ 9,647,245 $ 107,730 $ 93,546
Transactions in Fund Shares:
Shares sold 57,141 133,897 1,986 4,212
Reinvested distributions 9,925 29,436 296 134
Total 67,066 163,333 2,282 4,346
Shares repurchased (50,697) (108,992) (1,302) (2,591)
Net increase/(decrease) 16,369 54,341 980 1,755
Shares outstanding beginning of period 491,627 437,286 7,686 5,931
Shares outstanding end of period 507,996 491,627 8,666 7,686
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 6,167,356 $ 10,601,054 $ 86,651 $ 121,814
Proceeds from Sales of Securities 5,116,249 10,038,464 65,810 125,937
Purchases of Long-Term U.S. Government Obligations 5,431 388,976 11,161 6,356
Proceeds from Sales of Long-Term U.S. Government Obligations -- 663,560 12,122 1,411
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
****************************
<TABLE>
<CAPTION>
Janus
For the six months ended April 30, 1995 (unaudited) and Enterprise
the year or period ended October 31, 1994 (all numbers in thousands) Fund
1995 1994
- - ------------------------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C>
Net investment income/(loss) $ (220) $ (858)
Net realized gain/(loss) from investment transactions 6,640 13,842
Change in unrealized net appreciation or depreciation of investments (21,104) 29,068
Net increase/(decrease) in net assets resulting from operations (14,684) 42,052
Dividends and Distributions to Shareholders:
Net investment income* -- (196)(3)
Net realized gain from investment transactions (13,301) (6,261)
Net decrease from dividends and distributions (13,301) (6,457)
Capital Share Transactions:
Shares sold 245,196 320,299
Reinvested dividends and distributions 12,981 6,309
Shares repurchased (201,878) (231,509)
Net increase/(decrease) from capital share transactions 56,299 95,099
Net increase/(decrease) in net assets 28,314 130,694
Net Assets:
Beginning of period 370,028 239,334
End of Period $ 398,342 $ 370,028
Net Assets consist of:
Capital(par value and paid-in surplus)* $ 360,378 $ 304,080
Undistributed net investment income/(distribution in excess)* (225) (5)
Undistributed net realized gain/(loss)* from investments 6,121 12,782
Unrealized appreciation/(depreciation) of investments 32,068 53,171
$ 398,342 $ 370,028
Transactions in Fund Shares:
Shares sold 10,605 14,584
Reinvested distributions 565 288
Total 11,170 14,872
Shares repurchased (8,761) (10,670)
Net increase/(decrease) 2,409 4,202
Shares outstanding beginning of period 15,146 10,944
Shares outstanding end of period 17,555 15,146
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 318,518 $ 548,630
Proceeds from Sales of Securities 294,064 469,221
Purchases of Long-Term U.S. Government Obligations -- --
Proceeds from Sales of Long-Term U.S. Government Obligations -- --
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
An Explanation of the Statement of Changes in Net Assets
This financial statement reports the increase or decrease in the fund's net
assets during the reporting period. Changes in a fund's net assets are
attributable to investment operations, dividends, distributions, and capital
share transactions. This schedule is of importance to investors because it shows
exactly what caused the fund's net asset size to change during the period.
Investors can use this information to determine if the fund's growth was a
result of operations or an increase in the number of shares being purchased.
The first section to this schedule summarizes the information from the
Statement of Operations regarding changes in net assets due to the fund's
investment performance. The fund's net assets will also change as a result of
dividend and capital gains distributions to investors. If investors receive
their dividends in cash, money is taken out of the fund to pay the distribution.
If investors reinvest their dividends, the fund's net assets will not be
affected. If you compare each fund's "Net decrease from dividends and
distributions" to the "Reinvested dividends and distributions," you'll notice
that dividend distributions had little effect on each fund's net assets. This is
because the majority of Janus investors reinvest their distributions.
The reinvestment of dividends is included under "Capital Share
Transactions." "Capital Shares" refers to the money investors contribute to the
fund through purchases or withdraw via redemptions. The fund's net assets will
increase and decrease in value as investors purchase and redeem shares from the
fund.
The section titled "Net Assets Consist of" breaks down the components of
the fund's net assets. Since funds must distribute substantially all earnings,
you'll notice that a significant portion of net assets is shareholder capital.
See Notes to Financial Statements
- - ---------------------
(1) Period May 2, 1994 (inception) to October 31, 1994
(2) Distribution in excess by $8,497,399
(3) Distribution in excess by $4,926
(4) Distribution in excess by $258,010
(5) Distribution in excess by $218,327
* See note 3 in Notes to Financial Statements
Janus Funds April 30, 1995 Semiannual Report
40
<PAGE>
<TABLE>
<CAPTION>
Janus Janus
For the six months ended April 30, 1995 (unaudited) and Growth and Income Mercury
the year or period ended October 31, 1994 (all numbers in thousands) Fund Fund
1995 1994 1995 1994
- - ------------------------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 3,215 $ 6,307 $ 3,397 $ 654
Net realized gain/(loss) from investment transactions 19,887 (15,650) 8,058 14,943
Change in unrealized net appreciation or depreciation of investments (7,858) 4,709 61,476 $ 40,804
Net increase/(decrease) in net assets resulting from operations 15,244 (4,634) 72,931 56,401
Dividends and Distributions to Shareholders:
Net investment income* (2,091) (3,309) -- --
Net realized gain from investment transactions -- (11,430) (13,422) --
Net decrease from dividends and distributions (2,091) (14,739) (13,422) --
Capital Share Transactions:
Shares sold 43,656 162,999 763,236 687,939
Reinvested dividends and distributions 2,008 14,297 12,799 --
Shares repurchased (76,011) (186,944) (334,314) (260,735)
Net increase/(decrease) from capital share transactions (30,347) (9,648) 441,721 427,204
Net increase/(decrease) in net assets (17,194) (29,021) 501,230 483,605
Net Assets:
Beginning of period 489,942 518,963 596,330 112,725
End of Period $ 472,748 $ 489,942 $ 1,097,560 $ 596,330
Net Assets consist of:
Capital(par value and paid-in surplus)* $ 411,393 $ 441,740 $ 971,087 $ 529,366
Undistributed net investment income/(distribution in excess)* 1,530 4,065 3,397 --
Undistributed net realized gain/(loss)* from investments 6,771 (13,116) 8,861 14,225
Unrealized appreciation/(depreciation) of investments 53,054 60,913 114,215 52,739
$ 472,748 $ 489,942 $ 1,097,560 $ 596,330
Transactions in Fund Shares:
Shares sold 3,032 11,178 54,532 53,024
Reinvested distributions 143 977 941 --
Total 3,175 12,155 55,473 53,024
Shares repurchased (5,304) (12,846) (23,795) (20,417)
Net increase/(decrease) (2,129) (691) 31,678 32,607
Shares outstanding beginning of period 33,362 34,053 42,238 9,631
Shares outstanding end of period 31,233 33,362 73,916 42,238
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 307,158 $ 536,313 $ 1,049,363 $ 844,500
Proceeds from Sales of Securities 385,068 523,030 515,106 577,910
Purchases of Long-Term U.S. Government Obligations 75,020 34,485 -- --
Proceeds from Sales of Long-Term U.S. Government Obligations 52,308 79,662 -- --
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
****************************
<TABLE>
<CAPTION>
Janus Janus
For the six months ended April 30, 1995 (unaudited) and Overseas Twenty
the year or period ended October 31, 1994 (all numbers in thousands) Fund Fund
1995 1994(1) 1995 1994
- - ------------------------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 272 $ (118) $ 7,048 $ 17,290
Net realized gain/(loss) from investment transactions (502) (1,141) 121,408 (24,725)
Change in unrealized net appreciation or depreciation of investments (694) 3,453 (20,374) (129,746)
Net increase/(decrease) in net assets resulting from operations (924) 2,194 108,082 (137,181)
Dividends and Distributions to Shareholders:
Net investment income* -- -- (7,399) (35,434)
Net realized gain from investment transactions -- -- -- (63,233)
Net decrease from dividends and distributions -- -- (7,399) (98,667)
Capital Share Transactions:
Shares sold 41,222 71,522 191,722 454,640
Reinvested dividends and distributions -- -- 7,202 96,084
Shares repurchased (32,706) (9,651) (435,419) (1,320,860)
Net increase/(decrease) from capital share transactions 8,516 61,871 (236,495) (770,136)
Net increase/(decrease) in net assets 7,592 64,065 (135,812) (1,005,984)
Net Assets:
Beginning of period 64,065 -- 2,742,812 3,748,796
End of Period $ 71,657 $ 64,065 $ 2,607,000 $ 2,742,812
Net Assets consist of:
Capital(par value and paid-in surplus)* $ 69,805 $ 61,288 $ 2,116,277 $ 2,352,772
Undistributed net investment income/(distribution in excess)* 272 -- 6,120 6,472
Undistributed net realized gain/(loss)* from investments (1,179) (676) 102,291 (19,118)
Unrealized appreciation/(depreciation) of investments 2,759 3,453 382,312 402,686
$ 71,657 $ 64,065 $ 2,607,000 $ 2,742,812
Transactions in Fund Shares:
Shares sold 4,133 7,144 8,094 18,884
Reinvested distributions -- -- 317 3,935
Total 4,133 7,144 8,411 22,819
Shares repurchased (3,290) (962) (18,488) (54,669)
Net increase/(decrease) 843 6,182 (10,077) (31,850)
Shares outstanding beginning of period 6,182 -- 113,164 145,014
Shares outstanding end of period 7,025 6,182 103,087 113,164
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 48,339 $ 87,659 $ 1,467,394 $ 2,884,133
Proceeds from Sales of Securities 60,549 30,376 1,587,119 3,540,706
Purchases of Long-Term U.S. Government Obligations -- -- -- --
Proceeds from Sales of Long-Term U.S. Government Obligations -- -- -- 67,473
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
***************************
<TABLE>
<CAPTION>
Janus Janus
For the six months ended April 30, 1995 (unaudited) and Venture Worldwide
the year or period ended October 31, 1994 (all numbers in thousands) Fund Fund
1995 1994 1995 1994
- - ------------------------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 5,813 $ 4,286 $ 10,039 $ 5,250
Net realized gain/(loss) from investment transactions 44,797 80,431 (34,066) 99,098
Change in unrealized net appreciation or depreciation of investments (17,262) 47,575 (7,210) 46,242
Net increase/(decrease) in net assets resulting from operations 33,348 132,292 (31,237) 150,590
Dividends and Distributions to Shareholders:
Net investment income* (862) (17,532)(4) -- (10,026)(5)
Net realized gain from investment transactions (82,645) (145,179) (92,093) (13,741)
Net decrease from dividends and distributions (83,507) (162,711) (92,093) (23,767)
Capital Share Transactions:
Shares sold 80,144 168,628 369,084 1,127,205
Reinvested dividends and distributions 81,200 155,972 88,948 23,016
Shares repurchased (116,705) (580,362) (375,067) (444,532)
Net increase/(decrease) from capital share transactions 44,639 (255,762) 82,965 705,689
Net increase/(decrease) in net assets (5,520) (286,181) (40,365) 832,512
Net Assets:
Beginning of period 1,550,476 1,836,657 1,587,120 754,608
End of Period $ 1,544,956 $ 1,550,476 $ 1,546,755 $ 1,587,120
Net Assets consist of:
Capital(par value and paid-in surplus)* $ 1,244,485 $ 1,199,846 $ 1,434,692 $ 1,351,727
Undistributed net investment income/(distribution in excess)* 4,693 (258) 9,821 (218)
Undistributed net realized gain/(loss)* from investments 48,364 86,212 (27,261) 98,898
Unrealized appreciation/(depreciation) of investments 247,414 264,676 129,503 136,713
$ 1,544,956 $ 1,550,476 $ 1,546,755 $ 1,587,120
Transactions in Fund Shares:
Shares sold 1,605 3,425 14,921 44,162
Reinvested distributions 1,668 3,191 3,647 920
Total 3,273 6,616 18,568 45,082
Shares repurchased (2,332) (11,777) (15,292) (17,530)
Net increase/(decrease) 941 (5,161) 3,276 27,552
Shares outstanding beginning of period 29,332 34,493 58,786 31,234
Shares outstanding end of period 30,273 29,332 62,062 58,786
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of Securities $ 706,546 $ 1,511,361 $ 1,062,131 $ 2,160,545
Proceeds from Sales of Securities 650,317 1,727,718 945,437 1,624,451
Purchases of Long-Term U.S. Government Obligations -- -- -- 6,441
Proceeds from Sales of Long-Term U.S. Government Obligations -- -- -- 6,246
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
An Explanation of the Statement of Changes in Net Assets
This financial statement reports the increase or decrease in the fund's net
assets during the reporting period. Changes in a fund's net assets are
attributable to investment operations, dividends, distributions, and capital
share transactions. This schedule is of importance to investors because it shows
exactly what caused the fund's net asset size to change during the period.
Investors can use this information to determine if the fund's growth was a
result of operations or an increase in the number of shares being purchased.
The first section to this schedule summarizes the information from the
Statement of Operations regarding changes in net assets due to the fund's
investment performance. The fund's net assets will also change as a result of
dividend and capital gains distributions to investors. If investors receive
their dividends in cash, money is taken out of the fund to pay the distribution.
If investors reinvest their dividends, the fund's net assets will not be
affected. If you compare each fund's "Net decrease from dividends and
distributions" to the "Reinvested dividends and distributions," you'll notice
that dividend distributions had little effect on each fund's net assets. This is
because the majority of Janus investors reinvest their distributions.
The reinvestment of dividends is included under "Capital Share
Transactions." "Capital Shares" refers to the money investors contribute to the
fund through purchases or withdraw via redemptions. The fund's net assets will
increase and decrease in value as investors purchase and redeem shares from the
fund.
The section titled "Net Assets Consist of" breaks down the components of
the fund's net assets. Since funds must distribute substantially all earnings,
you'll notice that a significant portion of net assets is shareholder capital.
See Notes to Financial Statements
- - -------------------
(1) Period May 2, 1994 (inception) to October 31, 1994
(2) Distribution in excess by $8,497,399
(3) Distribution in excess by $4,926
(4) Distribution in excess by $258,010
(5) Distribution in excess by $218,327
* See note 3 in Notes to Financial Statements
Janus Funds April 30, 1995 Semiannual Report
41
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995 Janus Fund
(unaudited) or throughout each fiscal year or
period ended October 31 1995 1994 1993 1992 1991 1990
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $19.62 $20.81 $18.86 $18.27 $13.25 $16.36
Income from investment operations
Net investment income .17 .17 .26 .23 .25 .25
Net gains or (losses) on securities (both realized and unrealized) 1.02 (.03) 2.88 1.46 5.09 (.67)
Total from investment operations 1.19 .14 3.14 1.69 5.34 (.42)
Less distributions
Dividends (from net investment income) (.01) (.39)+ (.29) (.19) (.31) (.19)
Distributions (from capital gains) (.39) (.94) (.90) (.91) (.01) (2.50)
Total distributions (.40) (1.33) (1.19) (1.10) (.32) (2.69)
Net asset value, end of period $20.41 $19.62 $20.81 $18.86 $18.27 $13.25
Total return** 6.22% 0.75% 17.41% 9.35% 40.95% (3.68%)
Net assets, end of period (in thousands) $10,367,972 $9,647,245 $9,098,000 $4,989,299 $2,597,866 $1,049,486
Average net assets for the period (in thousands) $9,687,968 $9,338,807 $7,335,871 $3,870,923 $1,784,627 $930,240
Ratio of expenses to average net assets* 0.86% 0.91% 0.92% 0.97% 0.98% 1.02%
Ratio of net investment income to average net assets* 1.78% 1.12% 1.55% 1.54% 1.77% 2.11%
Portfolio turnover rate* 139% 139% 127% 153% 132% 307%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*******************************
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995 Janus Twenty Fund
(unaudited) or throughout each fiscal year or
period ended October 31 1995 1994 1993 1992(1) 1992(2) 1991(2)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $23.89 $25.85 $22.75 $22.17 $18.88 $16.01
Income from investment operations
Net investment income .07 .16 .17 .09 .11 .16
Net gains or (losses) on securities (both realized and unrealized) 1.40 (1.07) 3.31 .49 3.62 2.90
Total from investment operations 1.47 (.91) 3.48 .58 3.73 3.06
Less distributions
Dividends (from net investment income) (.07) (.25) (.18) -- (.02) (.19)
Distributions (from capital gains) -- (.45) (.20) -- (.42) --
Total distributions (.07) (.70) (.38) -- (.44) (.19)
Net asset value, end of period $25.29 $24.24 $25.85 $22.75 $22.17 $18.88
Total return** 4.64% (3.52%) 15.39% 2.62%** 19.60% 19.43%
Net assets, end of period (in thousands) $2,607,000 $2,742,812 $3,748,796 $2,434,245 $2,080,922 $555,696
Average net assets for the period (in thousands) $2,541,099 $3,051,194 $3,545,727 $2,221,065 $1,187,646 $294,469
Ratio of expenses to average net assets* 1.04% 1.02% 1.05% 1.12% 1.01% 1.07%
Ratio of net investment income to average net assets* 0.56% 0.57% 0.87% 1.27% 1.08% 1.30%
Portfolio turnover rate* 124% 102% 99% 79% 83% 163%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
**************************
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995 Janus Venture Fund
(unaudited) or throughout each fiscal year or
period ended October 31 1995 1994 1993 1992(3) 1992(4) 1991(4)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $52.86 $53.25 $47.74 $45.96 $45.05 $37.90
Income from investment operations
Net investment income .20 .11 .66 .17 .36 .44
Net gains or (losses) on securities (both realized and unrealized) .84 4.40 6.72 1.61 4.23 7.71
Total from investment operations 1.04 4.51 7.38 1.78 4.59 8.15
Less distributions
Dividends (from net investment income) (.03) (.53) (1.16) -- (.25) (.11)
Distributions (from capital gains) (2.84) (4.37) (.71) -- (3.43) (.89)
Total distributions (2.87) (4.90) (1.87) -- (3.68) (1.00)
Net asset value, end of period $51.03 $52.86 $53.25 $47.74 $45.96 $45.05
Total return** 2.23% 9.23% 15.76% 3.87%** 9.90% 22.28%
Net assets, end of period (in thousands) $1,544,956 $1,550,476 $1,836,657 $1,544,531 $1,510,471 $892,642
Average net assets for the period (in thousands) $1,509,974 $1,562,521 $1,792,532 $1,496,106 $1,381,628 $427,325
Ratio of expenses to average net assets* 0.95% 0.96% 0.97% 1.07% 1.00% 1.04%
Ratio of net investment income to average net assets* 0.78% 0.27% 1.29% 1.32% 1.20% 2.10%
Portfolio turnover rate* 105% 114% 139% 124% 166% 167%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
An Explanation of the Financial Highlights
This schedule provides a per share breakdown of the components that affect
the fund's NAV for the current and past reporting periods. Not only does this
table provide you with total return, it also reports total distributions, asset
size, expense ratios and portfolio turnover rate.
The first line in the table reflects the fund's NAV per share at the
beginning of the fiscal period. The next line reports the fund's net investment
income per share and the dividends and interest income earned on securities held
by the Fund. Dividends and distributions are then subtracted to arrive at the
NAV per share at the end of the fiscal period.
Also included in the Financial Highlights is the fund's expense ratio, or
the percentage of net assets that was used to cover operating expenses during
the period. Expense ratios vary across the funds for a number of reasons
including the differences in management fees, average shareholder account size,
the frequency of dividend payments, and the extent of foreign investments, which
entail greater transaction costs.
The next line reports the ratio of net investment income, which is the
income earned divided by the average net assets of the fund during the reporting
period. Don't confuse this ratio with a fund's yield. The net investment income
ratio is not a true measure of a fund's yield because it doesn't take into
account the dividends distributed to the fund's investors.
The last ratio provided in this table is the portfolio turnover rate, which
measures the amount of buying and selling activity in the fund's portfolio.
Portfolio turnover is affected by market conditions, changes in the size of a
fund, the nature of the fund's investments, and the investment style of the
portfolio manager. A 100% rate implies that an amount equal to the value of the
entire portfolio is turned over in a year; a 50% rate means that an amount equal
to the value of half the portfolio is traded in a year; and a 200% rate would
mean that an amount equal to the value of the portfolio is sold in an average of
six months.
- - ------------------
(1) Fiscal period June 1, 1992 to October 31, 1992
(2) Fiscal year ended on May 31st of each year
(3) Fiscal period August 1, 1992 to October 31, 1992
(4) Fiscal year ended on July 31 of each year
(5) Fiscal period from September 1, 1992 (inception) to October 31, 1992
(6) Fiscal period from May 15, 1991 (inception) to October 31, 1991
(7) Fiscal period from May 3, 1993 (inception) to October 31, 1993
(8) Fiscal period from May 2, 1994 (inception) to October 31, 1994
* Annualized for periods of less than one full year.
** Total return not annualized for periods of less than one full year.
+ Distribution in excess of financial statement income of $.02
Janus Funds April 30, 1995 Semiannual Report
42
<PAGE>
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995 Janus Balanced Fund
(unaudited) or throughout each fiscal year or period ended October 31 1995 1994 1993 1992(5)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $12.17 $12.23 $10.64 $ 10.00
Income from investment operations
Net investment income .19 .27 .19 --
Net gains or (losses) on securities (both realized and unrealized) .53 (.09) 1.56 .64
Total from investment operations .72 .18 1.75 .64
Less distributions
Dividends (from net investment income) (.46) (.24) (.16) --
Distributions (from capital gains) -- -- -- --
Total distributions (.46) (.24) (.16) --
Net asset value, end of period $12.43 $12.17 $12.23 $ 10.64
Total return** 6.18% 1.51% 16.54% 6.40%**
Net assets, end of period (in thousands) $107,730 $93,546 $72,547 $ 2,130
Average net assets for the period (in thousands) $97,871 $86,361 $43,522 $ 563
Ratio of expenses to average net assets* 1.32% 1.42% 1.70% 2.50%
Ratio of net investment income to average net assets* 2.75% 2.28% 2.15% (0.12%)
Portfolio turnover rate* 204% 167% 131% 130%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
**********************************
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995 Janus Enterprise Fund
(unaudited) or throughout each fiscal year or period ended October 31 1995 1994 1993 1992(5)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $24.43 $21.87 $17.09 $ 15.00
Income from investment operations
Net investment income .08 (.06) .04 --
Net gains or (losses) on securities (both realized and unrealized) (.92) 3.18 4.76 2.09
Total from investment operations (.84) 3.12 4.80 2.09
Less distributions
Dividends (from net investment income) (.52) (.02) (.02)
Distributions (from capital gains) (.38) (.54) -- --
Total distributions (.90) (.56) (.02) --
Net asset value, end of period $22.69 $24.43 $21.87 $ 17.09
Total return** (3.46%) 14.56% 28.09% 13.93%**
Net assets, end of period (in thousands) $398,342 $370,028 $239,334 $ 8,320
Average net assets for the period (in thousands) $385,548 $269,595 $188,345 $ 1,560
Ratio of expenses to average net assets* 1.28% 1.25% 1.36% 2.50%
Ratio of net investment income to average net assets* (0.12%) (0.32%) 0.14% (0.81%)
Portfolio turnover rate* 180% 193% 201% 53%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
**********************************
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995 Janus Growth and Income Fund
(unaudited) or throughout each fiscal year or period ended October 31 1995 1994 1993 1992 1991(6)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.69 $15.24 $12.95 $12.13 $10.00
Income from investment operations
Net investment income .10 .19 .14 .17 .02
Net gains or (losses) on securities (both realized and unrealized) .41 (.31) 2.29 .80 2.13
Total from investment operations .51 (.12) 2.43 .97 2.15
Less distributions
Dividends (from net investment income) (.06) (.10) (.14) (.15) (.02)
Distributions (from capital gains) -- (.33) -- -- --
Total distributions (.06) (.43) (.14) (.15) (.02)
Net asset value, end of period $15.14 $14.69 $15.24 $12.95 $12.13
Total return** 3.54% (0.76%) 18.81% 7.98% 21.50%**
Net assets, end of period (in thousands) $472,748 $489,942 $518,963 $243,509 $56,473
Average net assets for the period (in thousands) $461,310 $499,831 $404,285 $156,815 $21,279
Ratio of expenses to average net assets* 1.20% 1.22% 1.28% 1.52% 2.33%
Ratio of net investment income to average net assets* 1.41% 1.26% 1.13% 1.61% 0.76%
Portfolio turnover rate* 177% 123% 138% 120% 14%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*******************************
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995 Janus Mercury Fund
(unaudited) or throughout each fiscal year or period ended October 31 1995 1994 1993 (7)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $14.12 $11.70 $10.00
Income from investment operations
Net investment income .10 .02 (.01)
Net gains or (losses) on securities (both realized and unrealized) .90 2.40 1.71
Total from investment operations 1.00 2.42 1.70
Less distributions
Dividends (from net investment income) (.16) -- --
Distributions (from capital gains) (.11) -- --
Total distributions (.27) -- --
Net asset value, end of period $14.85 $14.12 $11.70
Total return** 7.25% 20.68% 17.00%**
Net assets, end of period (in thousands) $1,097,560 $596,330 $112,725
Average net assets for the period (in thousands) $860,615 $257,726 $67,462
Ratio of expenses to average net assets* 1.27% 1.33% 1.75%
Ratio of net investment income to average net assets* 0.80% 0.25% (0.40%)
Portfolio turnover rate* 156% 283% 151%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
******************************
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995 Janus Overseas Fund
(unaudited) or throughout each fiscal year or period ended October 31 1995 1994(8)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $10.36 $10.00
Income from investment operations
Net investment income .04 (.02)
Net gains or (losses) on securities (both realized and unrealized) (.20) .38
Total from investment operations (.16) .36
Less distributions
Dividends (from net investment income) -- --
Distributions (from capital gains) -- --
Total distributions -- --
Net asset value, end of period $10.20 $10.36
Total return** (1.54%) 3.60%**
Net assets, end of period (in thousands) $71,657 $64,065
Average net assets for the period (in thousands) $65,558 $36,645
Ratio of expenses to average net assets* 1.88% 2.16%
Ratio of net investment income to average net assets* 0.84% (0.64%)
Portfolio turnover rate* 218% 181%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
**********************
<TABLE>
<CAPTION>
For a share outstanding for the six months ended April 30, 1995 Janus Worldwide Fund
(unaudited) or throughout each fiscal year or period ended October 31 1995 1994 1993 1992 1991(6)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $27.00 $24.16 $18.95 $17.45 $ 15.00
Income from investment operations
Net investment income .19 .15 .14 .16 --
Net gains or (losses) on securities (both realized and unrealized) (.72) 3.34 5.29 1.39 2.45
Total from investment operations (.53) 3.49 5.43 1.55 2.45
Less distributions
Dividends (from net investment income) (.54) (.27) (.22) -- --
Distributions (from capital gains) (1.01) (.38) -- (.05) --
Total distributions (1.55) (.65) (.22) (.05) --
Net asset value, end of period $24.92 $27.00 $24.16 $18.95 $ 17.45
Total return** (1.86%) 14.76% 28.79% 9.20% 16.00%**
Net assets, end of period (in thousands) $1,546,755 $1,587,120 $754,608 $160,672 $18,423
Average net assets for the period (in thousands) $1,521,128 $1,244,194 $379,259 $79,518 $ 7,344
Ratio of expenses to average net assets* 1.20% 1.12% 1.32% 1.73% 2.50%
Ratio of net investment income to average net assets* 1.33% 0.42% 0.92% 1.74% 0.02%
Portfolio turnover rate* 168% 158% 124% 147% 40%
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
An Explanation of the Financial Highlights
This schedule provides a per share breakdown of the components that affect
the fund's NAV for the current and past reporting periods. Not only does this
table provide you with total return, it also reports total distributions, asset
size, expense ratios and portfolio turnover rate.
The first line in the table reflects the fund's NAV per share at the
beginning of the fiscal period. The next line reports the fund's net investment
income per share and the dividends and interest income earned on securities held
by the Fund. Dividends and distributions are then subtracted to arrive at the
NAV per share at the end of the fiscal period. Also included in the Financial
Highlights is the fund's expense ratio, or the percentage of net assets that was
used to cover operating expenses during the period. Expense ratios vary across
the funds for a number of reasons including the differences in management fees,
average shareholder account size, the frequency of dividend payments, and the
extent of foreign investments, which entail greater transaction costs.
The next line reports the ratio of net investment income, which is the
income earned divided by the average net assets of the fund during the reporting
period. Don't confuse this ratio with a fund's yield. The net investment income
ratio is not a true measure of a fund's yield because it doesn't take into
account the dividends distributed to the fund's investors.
The last ratio provided in this table is the portfolio turnover rate, which
measures the amount of buying and selling activity in the fund's portfolio.
Portfolio turnover is affected by market conditions, changes in the size of a
fund, the nature of the fund's investments, and the investment style of the
portfolio manager. A 100% rate implies that an amount equal to the value of the
entire portfolio is turned over in a year; a 50% rate means that an amount equal
to the value of half the portfolio is traded in a year; and a 200% rate would
mean that an amount equal to the value of the portfolio is sold in an average of
six months.
- - ----------------------
(1) Fiscal period June 1, 1992 to October 31, 1992
(2) Fiscal year ended on May 31st of each year
(3) Fiscal period August 1, 1992 to October 31, 1992
(4) Fiscal year ended on July 31 of each year
(5) Fiscal period from September 1, 1992 (inception) to October 31, 1992
(6) Fiscal period from May 15, 1991 (inception) to October 31, 1991
(7) Fiscal period from May 3, 1993 (inception) to October 31, 1993
(8) Fiscal period from May 2, 1994 (inception) to October 31, 1994
* Annualized for periods of less than one full year.
** Total return not annualized for periods of less than one full year.
+ Distribution in excess of financial statement income of $.02
Janus Funds April 30, 1995 Semiannual Report
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS
The following section describes the organization and significant accounting
policies of the funds and provides more detailed information about the schedules
and tables that appear throughout this report. In addition, the Notes explain
how the funds operate and the methods used in preparing and presenting this
report.
1. Organization and Significant Accounting Policies
Janus Investment Fund (the Trust) is registered under the Investment
Company Act of 1940 (the 1940 Act) as a no-load, open-end management investment
company. Nine series of shares (or "funds") included in this report invest
primarily in equity securities. Each Fund is diversified as defined in the 1940
Act, with the exception of the Janus Enterprise, Janus Mercury and Janus Twenty
Funds, which are non-diversified.
Effective May 2, 1994, the Trust issued to the public a new series of
shares, the Janus Overseas Fund, a diversified fund investing primarily in
equities of foreign issuers. Organization costs for the Fund were borne by Janus
Capital.
The following policies have been consistently followed by the Funds and are
in conformity with accounting principles generally accepted in the investment
company industry.
Investment Valuation
Securities are valued at the closing price for securities traded on a
principal exchange (U.S. or foreign) and on the NASDAQ National Market.
Securities traded on over-the-counter markets and listed securities for which no
sales are reported are valued at the latest bid price obtained from one or more
dealers making a market for such securities or by a pricing service approved by
the Funds' Trustees. Short-term securities maturing within 60 days are valued at
amortized cost, which approximates market value. Foreign securities are
converted to U.S. dollars using exchange rates at the close of the New York
Stock Exchange. When market quotations are not readily available, securities are
valued at their fair value determined in good faith by the Funds' Trustees.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold.
Dividend income is recorded on the ex-dividend date. Interest income is recorded
on the accrual basis and includes amortization of discounts and premiums. Gains
and losses are determined on the identified cost basis, which is the same basis
used for federal income tax purposes.
Forward Foreign Currency Transactions and Futures Contracts
Unrealized gain or loss on forward foreign currency contracts is calculated
daily as the difference between the contract exchange rate and the closing
forward rate applied to the face amount of the contract. A realized gain or loss
is recorded at the time a forward contract is closed or settled. Currency gain
and loss is also calculated on payables and receivables that are denominated in
foreign currencies. The payables and receivables are generally related to
security transactions and income. Futures contracts are marked to market daily
and the variation margin is recorded as an unrealized gain or loss. When a
contract is closed, a realized gain or loss is recorded equal to the difference
between the opening and closing value of the contract. Generally, open forward
and futures contracts are marked to market for federal income tax purposes at
fiscal year-end.
Foreign denominated assets and forward currency contracts may involve more
risks than domestic transactions, including: currency risk, political and
economic risk, regulatory risk, and market risk.
The Funds may enter into "futures contracts" and "options" on securities,
financial indices and foreign currencies; forward contracts; and interest rate
swaps and swap-related products. The Funds intend to use such derivative
instruments primarily to hedge or protect from adverse movements in securities
prices, currency rates or interest rates. The use of futures contracts and
options may involve risks such as the possibility of illiquid markets or
imperfect correlation between the value of the contracts and the underlying
securities, or that the counterparty will fail to perform its obligations.
Dividend Distributions and Expenses
Dividends for Janus Balanced and Janus Growth and Income Funds are declared
and distributed quarterly and capital gains (if any) are distributed annually.
The remaining seven Equity Funds declare and distribute dividends and capital
gains (if any) annually. Each Fund bears expenses incurred specifically on its
behalf as well as a portion of general expenses.
Federal Income Taxes
The Funds intend to distribute to shareholders all taxable investment
income and realized gains and otherwise comply with the Internal Revenue Code
applicable to regulated investment companies.
2. Investment Advisory Agreement and Other Transactions with Affiliates
The advisory agreement with the funds spells out the expenses that the
funds must pay. Each of the funds is subject to the following schedule:
Average Daily Net Annual Rate
Fee Schedule Assets of Fund Percentage (%)
- - ------------ -------------- --------------
Equity Funds First $ 30 Million 1.00
Next $270 Million .75
Next $200 Million .70
Over $500 Million .65
Janus Capital will reduce advisory fees to the extent that a Fund's normal
operating expenses (exclusive of brokerage commissions, interest and taxes)
exceed the most restrictive state limitation, which is believed by the Funds to
be 21/2% of the first $30 million, 2% of the next $70 million and 11/2% of the
balance of a Fund's average net assets for a fiscal year.
Janus Funds April 30, 1995 Semiannual Report
44
<PAGE>
Janus Service Corporation (Janus Service), a wholly owned subsidiary of
Janus Capital, receives an annual fee of $16 per shareholder account for
transfer agent services plus reimbursement of certain out of pocket expenses
(primarily postage and telephone charges).
Officers and certain trustees of the Funds are also officers and/or
directors of Janus Capital; however, they receive no compensation from the
Funds.
DST Systems Inc. (DST), an affiliate of Janus Capital through a degree of
common ownership, provides fund accounting and shareholder accounting systems to
the Funds. DST Securities Inc., a wholly owned subsidiary of DST, is designated
as an introductory broker on certain portfolio transactions. Brokerage
commissions paid to DST Securities Inc. serve to reduce transfer agent fees and
expenses. Investors Fiduciary Trust Company (IFTC), formerly 50% owned by DST,
provides domestic custody services to the Funds. Brokerage commissions paid,
fees reduced, and the net fees paid to DST and IFTC for the year or period ended
April 30, 1995 are noted below.
DST Securities Inc. Fund
Commissions Expense
Paid* Reduction* DST Fees IFTC Fees
----- ---------- -------- ---------
Janus Fund $362,056 $271,542 $999,823 $121,028
Janus Balanced Fund 5,025 3,769 32,947 2,859
Janus Enterprise Fund 27,247 20,435 82,344 10,739
Janus Growth and Income Fund 41,157 30,868 95,612 --
Janus Mercury Fund -- -- 160,359 19,507
Janus Overseas Fund 2,785 2,087 37,294 --
Janus Twenty Fund 172,860 129,645 588,243 --
Janus Venture Fund -- -- 262,006 9,468
Janus Worldwide Fund 69,945 52,459 242,724 --
* The difference between commissions paid to DST Securities, Inc. and
expenses reduced constituted commissions paid to an unaffiliated clearing
broker.
3. Federal Income Tax
Gains and losses on forward currency contracts and foreign currency gains
and losses on debt instruments are treated as ordinary income for federal income
tax purposes pursuant to Section 988 of the Internal Revenue Code. Listed below
are such currency gains or losses for the period ended April 30, 1995.
Net capital loss carryovers noted below as of October 31, 1994 are
available to offset future realized capital gains and thereby reduce future
taxable gains distributions. The aggregate cost of investments and the
composition of unrealized appreciation and depreciation of investment securities
for federal income tax purposes as of April 30, 1995 are as follows:
<TABLE>
<CAPTION>
at October 31, 1994 at April 30, 1995
------------------- -----------------------------------------------------------------
Net
Currency Net Capital Loss Federal Tax Unrealized Unrealized Appreciation/
Gains/(Losses) Carryovers Cost Appreciation (Depreciation) (Depreciation)
-------------- ---------- ---- ------------ -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Janus Fund $ (11,747,654) -- $8,965,493,424 $1,369,819,095 $ (94,266,891) $1,275,552,204
Janus Balanced Fund (71,284) -- 100,381,583 7,663,846 (1,353,591) 6,310,255
Janus Enterprise Fund (205,226) -- 334,732,444 41,129,532 (9,135,125) 31,994,407
Janus Growth
and Income Fund (892,033) $ 13,112,535 426,991,974 57,548,527 (4,534,163) 53,014,364
Janus Mercury Fund (8,162,738) -- 952,420,626 139,913,128 (24,005,773) 115,907,355
Janus Overseas Fund (350,326) 924,393 68,147,962 4,038,878 (1,262,643) 2,776,235
Janus Twenty Fund (12,301,815) 17,101,793 2,289,162,282 408,271,831 (26,149,736) 382,122,095
Janus Venture Fund (4,508,270) -- 1,346,457,322 279,432,007 (31,840,871) 247,591,136
Janus Worldwide Fund (10,508,401) -- 1,381,260,356 171,411,555 (42,033,291) 129,378,264
</TABLE>
Janus Funds April 30, 1995 Semiannual Report
<PAGE>
[LOGO]
Janus Funds
100 Fillmore Street, Suite 300
Denver, Colorado 80206-4923
1-800-525-3713
Funds distributed by Janus Distributors, Inc. Member NASD.
